Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SWISSCOM AG-REG. We currently have 7 research reports from 1 professional analysts.
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Solid performance but not really exciting!
03 Nov 16
Revenues in Q3 16 declined marginally by 0.7% to CHF2.87bn. EBITDA improved 11.8% to CHF1.08bn (estimates: CHF1.09bn). The EBITDA margin increased from 33.4% to 37.6%. EBIT jumped 23.8% to CHF556m and the EBIT margin improved from 15.5% to 19.3%. Net income jumped 48.9% to CHF409m. Revenues in the first nine months remained flat at around CHF8.63m. EBITDA improved 6.7% to CHF3.307bn and the EBITDA margin increased from 35.8% to 38.3%. EBIT rose 8.8% to CHF1.69bn and the EBIT margin from 18% to 19.6%. In 2015, the company made provisions of around CHF186m for a lawsuit related to broadband services. In addition, restructuring charges reached CHF70m. In the second quarter 2016, the company (Fastweb) profited from a positive outcome of an out of court settlement of around €55m.
Solid numbers with some excitement in Italy
18 Aug 16
The company reported solid Q2 16 results. Revenues increased marginally by 0.7% to CHF2.88bn. EBITDA improved 5.9% to CHF1.15bn and the EBITDA margin increased from 37.8% to 39.7%. EBIT improved 7% to CHF600m, beating our expectations. We estimated an EBIT of CHF535m. The EBIT margin increased from 19.6% to 20.8%. Net income declined 2.1% to CHF424m due to higher financial expenses. In the first six months, revenues remained flat at around CHF5.77bn. EBITDA, however, increased 4.4% to CHF2.23bn and the EBITDA margin improved from 37% to 38.6%. EBIT increased 2.7% to CHF1.14bn and the EBIT margin improved from 19.2% to 19.7%. The number of mobile access lines remained stable (+0.5%) at 6.6m. Swisscom TV access lines reported strong growth and increased by 13.1% to 1.4. The market share increased from 27% in Q2 15 to 31% in Q2 16 despite strong competition. Also the number of broadband access lines wholesale grew by 17.5% to 0.34m and broadband access lines in Italy by 4.6% to 2.26m.
Share price under pressure
24 May 16
The share price of the company is under pressure mainly due to the so-called “Pro Service Public” initiative. For Swisscom customers as well as for SBB (railway) or Die Post (mail), there should be no profit on basic services. Votes on this initiative will take place on 5 June.
Product offering drives the performance
04 May 16
In Q1 16, revenues remained stable at around CHF2.89bn despite customer growth. The number of revenue-generating units (fixed access lines, broadband, retail, TV and mobile access lines) grew 1% to 12.41m. Mobile access lines increased 0.7% to 6.57m in an already saturated market. TV access lines grew further by 13.8% to 1.2m customers. By the end of March, around 2.1m lines were already equipped with the latest fibre-optic technology. In Italy, broadband access lines increased a solid 5.5% to 2.12m. Revenues of Fastweb increased 3% to CHF482m (2.6% to CHF440m). The EBITDA margin increased from 28% to 29.8% despite fierce price competition. The EBIT loss was reduced from CHF30m to CHF19m. Despite the fierce price competition, management was able stabilise the market share. EBITDA of the group improved 2.9% to CHF1.08bn and EBIT declined marginally by 1.7% to CHF535m. The EBIT margin declined from 18.8% in Q1 15 to 18.5%. Net income improved 3.4% to CHF363m.
Cost reduction programme too low
04 Feb 16
The company reported final 2015 results. Revenues remained flat at around CHF11.7bn (estimate: CHF11.8bn) but increased 0.7% adjusted for company acquisitions, disposals and exchange rates. The total number of mobile lines in Switzerland grew by 1.3% to 6.625m. Revenues of Fastweb increased 2.8% in EURO and EBITDA improved 11.8%. Broadband access lines Fastweb increased 6.2% to 2.2m. Despite volume growth, EBIT dropped 13.4% to CHF2bn (estimate: CHF2.4bn) and the EBIT margin declined from 19.8% to 17.2%. Net income declined 20.2% to CHF1.4bn (estimate: CHF1.7bn), largely due to one-off items of around CHF339m. In October 2015 the Federal Administrative Court confirmed the ruling issued by the Competition Commission for improper pricing. The company recognized provisions of around CHF186m although the company does not consider the sanction justified. Intense price competition and the negative currency impact will keep earnings under pressure. Therefore management proposed an unchanged dividend of CHF22 per share (estimate: CHF23).
In line with expectations
10 Nov 15
In Q3 15, revenues declined marginally by 1.2% to CHF2.89bn. EBITDA dropped 18.8% to CHF966m mainly due to extraordinary provisions of around CHF186m. Consequently, net income was down by 49.5% to CHF274m, primarily due to the lower EBITDA. According to the Competition Commission, Swisscom abused the market-dominant position in the case of ADSL services. Another proceeding by the Competition Commission concerning CHF143m against Swisscom is still pending. Swisscom was alleged to have marketed sports content via pay TV. Management, however, still considers that such civil claims are unlikely to be enforced. In the first nine months, revenues grew marginally by 0.6% to CHF8.65bn. The gross margin declined from 56.7% to 55.3%. EBIT dropped 14% to CHF1.55bn and the EBIT margin dropped from 21% to 18%.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Morning Song 16-01-2017
16 Jan 17
APPLIED GRAPHENE MATERIALS PLC (AGM LN) | BELLWAY (BWY LN) | GOALS SOCCER CENTRES (GOAL LN) | GRAFENIA PLC (GRA LN) | GRAINGER PLC (GRI LN) | GREGGS (GRG LN) | HARGREAVES SERVICES (HSP LN) | IMMUNODIAGNOSTIC SYSTEMS HLDGS (IDH LN) | INSTEM PLC (INS LN) | KROMEK GROUP PLC (KMK LN) | NORTHGATE PLC (NTG LN) | QUANTUM PHARMA PLC (QP/ LN) | RHYTHMONE PLC (RTHM LN) | SCS GROUP PLC (SCS LN) | SHIELD THERAPEUTICS PLC (STX LN) | SQS SOFTWARE QUALITY SYSTEMS AG (SQS LN) | UTILITYWISE PLC (UTW LN) | VERTU MOTORS PLC (VTU LN) | VISLINK PLC (VLK LN) | ZYTRONIC (ZYT LN)
Small Cap Breakfast
19 Jan 17
SuperAwesome — The London based specialist in e-compliance is considering an IPO in its home town according to City A.M. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January
The Cybersecurity Rebellion: “No, I’m Spartacus!”
07 Jun 16
Steve “Woz” Wozniak, infamous co-founder of Apple, was the latest culprit to send shivers across the tech world by claiming Cybersecurity is the greatest threat the world has faced since the atom bomb. Mr Wozniak was alluding to the heightened sense of fear that recent high profile breaches have caused Cybersecurity to be put at the forefront of political, corporate and now it would appear, investor agendas. As the topic gains increasing awareness, it gives rise to a number of companies claiming to be a “thought leader” in the Cybersecurity space, holding the best IP and the best routes to market. With many companies singing from the same loss making hymn sheet it is making it ever difficult to spot the true “Spartacus” from the crowd.
Small Cap 2017 - The only certainty is uncertainty
18 Jan 17
AIM will turn twenty-two this June and it is fair to say it has had its fair share of ups and downs, with 2016 being a case in point. We ask what will the rest of 2017 hold in store? Arguably the US dollar, Brexit, bonds, and banks will be the four big themes for the new year.