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).
FY 2016 results confirm further strong delivery
21 Mar 17
Gamma’s FY 2016 revenues, Adjusted EBITDA and Adjusted EPS numbers were a touch ahead of our estimates. We make small upward adjustments to forecasts for all three years of our forecast horizon reflecting that performance. Gamma is capitalising on its position as a nimble player in an attractive marketplace. It made strong progress in 2016 as Voice over IP technology drove uptake of SIP Trunking and Hosted PBX services - both areas where Gamma has strong platforms. In addition, data services reflected Gamma’s investment in its network, channel partner numbers increased again and the indirect business accordingly showed strong revenue growth. The Direct Business also produced good growth and won some significant new contracts. The outlook statement is ’enthusiastic’ about the current year and comments that the Board ‘remains open to suitable M&A opportunities and areas for strategic capital investment’. Overall, an optimistic picture, in our view.
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.
Panmure Morning Note 18-07-2016
18 Jul 16
We look for an in-line set of H1s from Spirent; this follows the Q1 beat. Look for good cash generation, good performance in the Networks division, ‘spotty’ at Wireless division, regionally growth in APAC offset by North America and EMEA customers who are “slow to release budgets”. Spirent should reaffirm the FY outlook – but will flag currency. Whilst the macro backdrop remains fragile, in truth Spirent is a story of getting its house in order and achieving better sales execution. We reiterate that our general investment view (Buy when others are frightened) has captured the zeitgeist and shares have performed well this year. That said there are some neat big picture drivers; 5G remains a prize being dangled as are the opportunities in IoT, high-speed data centre and driverless cars – indeed these should ensure that the shares pick up some Arm-related enthusiasm. Spirent enjoys an attractive valuation (2016E EV/Sales 1.1x, 7.0x EV/EBITDA) relative to sector peers (see table) despite sporting similar operating KPIs (see table). Our target price is 120p. Buy
Panmure Morning Note 13-06-2016
13 Jun 16
More news on 5G means a favourable read-across for the key 5G ‘name’ – Spirent. Today the Dutch Ministry of Economic Affairs has gathered 10 partner organisations together to run a 5G test in North Groningen – tests to be carried out at the end of the year. This is favourable for Spirent as it illustrates that 5G is getting closer and with it raises the possibilities of earlier revenue opportunities for Spirent. Short term is good for share sentiment. We retain our Buy.
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.
Signs of recovery after a difficult 2016
08 Mar 17
As flagged by the recent trading update, group FY 2016 revenue slipped 7% YoY to $90.4m; 43% ($38.5m) of this came from Telecoms, which saw the majority of the decline in revenue as the legacy copper-based equipment sales continue to be wound down. The Bio-Medical division sales slipped just 2% YoY to $51.6m; a poor year from sterilization being compensated for by growth in diagnostics. While gross margins remained firm in both divisions (40% and 25% respectively), both slipped into operating loss; a hefty $2.2m from Telecoms (due to the loss of revenue from contracts) and $0.3m from Bio-Medical; however, the $2.5m operating loss was covered by an exceptional $3m profit on sale of a property. That sale helped cash; $1m received from operations was offset by $6m capex but cash from the sale of assets lifted BATM’s net cash from $21m to a welcome $23m at the year end.