Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SWISSCOM AG-REG. We currently have 8 research reports from 1 professional analysts.
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More a bond than a share!
09 Feb 17
In 2016, revenues declined marginally by 0.3% to €11.64bn due to lower roaming fees and fierce price competition. EBITDA, however, increased 4.8% to CHF4.29bn. Excluding extraordinaries, EBITDA declined by 1.2%. In 2015, EBITDA was adversely effected by provisions of around CHF186m for legal proceedings on broadband services. In addition, Fastweb received compensation of €55m as a result of an out-of-court agreement with Telecom Italia in Q2 16. The EBITDA margin increased from 35.1% to 36.9% and EBIT increased 6.8% to CHF2.15bn. Net income improved 17.8% to CHF1.6bn. Management proposed a stable dividend for the current year of CHF22 per share. In Q4 16, revenues declined 0.9% to CHF3.bn and EBITDA 1.3% to CHF986m compared to CHF999m in Q4 15. The operating income (EBIT) declined 0.2% to CHF457m. Net income, however, jumped 33.9% to CHF407m compared to CHF304m due to higher financial gains. In December, the company sold its stake in Metroweb for a purchase price of €80m. This resulted in a disposal gain of CHF41m in Q4 16.
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).
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.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Ready to dominate TV distribution and prepared for new competition from Iliad
20 Feb 17
TI has released a good set of Q4 results: Revenues were up organically by 0.8% yoy (vs -5.2% in Q1, -4.2% in Q2 and -1.2% in Q3) while the EBITDA (excluding the negative impact of non-recurring items) has increased sharply by 5.9% yoy as in Q3 but vs a decline of 1.7% in H1! EBITDA has clearly benefited from the actions implemented in the “cost recovery plan” that started in Q2 in the Domestic Business and in Q3 in the Brazil Business. In Italy, revenues were up by 2.7% yoy (vs +1% in Q3 and -1.7% in the H1). The solid, structural recovery of Mobile revenues was confirmed, thanks both to the maintenance of market share and the stabilisation of ARPU levels. But the key point is the EBITDA which has grown by 8.4% (vs 7.9% in Q3, +6.9% in Q2 and -5.2% in Q1). Excluding non-recurring restructuring charges, EBITDA would have grown by +4.5% in 2016, with an EBITDA margin of 45.9%, up 1.9ppts on 2015. In Brazil, Q4 revenues were down organically and at constant change by only 1.7% yoy (vs -5.2% in Q3 and -14% in H1)! The main issue is that the total number of subscribers (c.63m with a market share of 26%) was still down by 4.3% vs end 2015. Note, however, that like its competitors the group has seen its prepaid customer base contract sharply in 2016, due to the adoption of a restrictive policy for the disconnection of inactive customers according to Anatel’s new criteria (the Brazilian National Telecommunications Agency). Q4 EBITDA was up by 2.8% yoy (vs +0.5% in Q3 and -10.9% in H1) with the start in Q3 of cost-cutting operations.
Ronez performing, debt facilities agreed
21 Feb 17
Confirming our view that Ronez is a high-quality maiden acquisition, SigmaRoc today announces that trading and operational performance at the verticallyintegrated aggregates business on the Channel Islands has been strong in the first few weeks of trading since the deal completed in early 2017. January sales volumes are reportedly above budget, a healthy order book is in place for the remainder of the quarter, and requisite back-office systems are being developed faster and at lower cost than initially anticipated. Furthermore, SigmaRoc has agreed terms with Santander Bank for a £2m revolving credit facility and is close to agreeing an £18m term facility – once finalized these debt facilities should see SigmaRoc sufficiently capitalized to progress initial projects in management’s pipeline of growth opportunities. We thus continue to believe that Ronez has potential to generate EBITDA to the group of at least £6m pa as efficiencies continue to be unlocked under the new independent ownership structure, providing SigmaRoc with a firm platform from which to leverage more acquisitions and/or organic investments and thus deliver further earnings growth as it progresses its niche buy-and-build strategy.
12 Apr 16
Rigid-plastic-products manufacturer and waste-management services provider One51 is holding a general meeting on 21 April to gain the shareholder approvals required to issue shares for a potential flotation on AIM and the Enterprise Securities Market (ESM). In 2014, Ireland-based One51 paid 78p a share in cash for AIM-quoted Straight, which valued the wheeled-bins manufacturer at £10.7m. One51 subsequently bought a controlling stake in Canadian plasticproducts business IPL. A flotation would trigger a deal to swap One51 shares for the one-third of IPL that it does not currently own. The plastics division is the main focus of expansion. One51 is a substantial business. In 2015, revenues grew from €276.5m to €366m, while underlying profit almost doubled from €16.2m to €31.9m. A full 12-month contribution from IPL would have taken revenues to €473.5m and grown profit even more rapidly. Plastic products generate nearly two-thirds of revenues and a greater proportion of profit. Net debt was €120m at the end of 2015 and there is contingent consideration of more than €33m that could become payable. Numis and Davy have been appointed as advisers for the flotation, which is still dependent on market conditions. Although One51 is unlisted there has been regular trading in its shares since 2007 and by the end of March the shares were changing hands at €1.70 each.
Small Cap Breakfast
09 Feb 17
GBGI—Schedule One from the integrated provider of international benefits insurance focused on providing tailored insurance products. Looking to raise £32m with admission expected 22 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management Ramsdens Holdings –Schedule One from the financial services provider and retailer, operating in the core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. Expected admission to AIM 15 Feb raising circa £15.6m. Expected mkt cap £26.5m.