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%.
30 Nov 16
Abzena (ABZA): Interim results indicate happy customers (BUY) | Horizonte Minerals* (HZM): Fund raise completed (CORP) | SacOil* (SAC): Half-year trading statement (CORP) | Revolution Bars (RBG): New openings (BUY) | Amino Technologies* (AMO): Multi operator FUSION roll out (CORP)
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
N+1 Singer - Morning Song 03-11-2016
03 Nov 16
Overall trading for the year appears to have started slightly slowly overall but with underlying revenues making progress and profits flat for the period. Slow profit progress was already expected due to the previously signalled growth orientated investment being made. A material timing change on a Compliance unit contract, strong growth in AXCO and buoyant Health performance bode well for revenue performance looking forward. Visibility levels are said to be good underpinning managements confidence that the group is on track for the year. Wilmington remains a good play on the growth in global regulation and compliance. BUY
Reduced H1 loss and strong H2 flagged
30 Aug 16
H1 shows a continuing move towards Bio-Medical, with that division now delivering 57% of group revenue. Overall, a challenging first half year was as expected, but improved margins and tight cost control reduced the loss and a much stronger second half is flagged in the outlook. There is thus no change to FY 2016 guidance or forecasts. Following its $3.8m acquisition of Green Lab in January, but before receipt of the $3.0m Egens investment in Adaltis, BATM ended June with a healthy $14.0m net cash. Reviewing the financials, H1 revenue was down 5% YoY to $45.1m, with sales falling in both divisions; Networking & Cyber (down 9%) continues to transition away from legacy products, while Bio-Medical (down 3%) suffered a slowdown in the Sterilization business as it focused on new opportunities in bio-pharma and agriculture markets which should deliver in H2. However, both divisions achieved breakeven at operating profit level in H1 thanks to higher margins; notably from cyber security solutions and from better products in Medical Distribution, and improving sales of high-margin machines and reagents in Diagnostics. This left a small $0.6m operating loss from unallocated group overheads, but $0.3m profit at the EBITDA level. The outlook is positive, with growth and contributions anticipated from both divisions in H2, generating a solid c$2m FY operating profit.
Strategic focus at interims
30 Nov 16
KCOM’s interims show a focus on the continuing transformation of the business in cost and investment, under a single brand. The benefit of the cash injection from the network sale has led to the opportunity for significant investment both in the Hull & East Yorkshire division and the nationwide Enterprise division, to create a platform for growth. With a reiterated commitment to a minimum 6p dividend for FY17 and FY18, ongoing cost-saving initiatives, and proof of customer enthusiasm for the integrated platform which investment will further support, KCOM continues to deliver an attractive dividend in anticipation of its return to headline growth. Target 130p reiterated.