Half Year 2026 Swisscom AG Earnings Call Transcript
Key Points
- Swisscom AG (SCMWY) delivered a solid Q2 2026 with EBITDAaL up 6.1% and operating free cash flow up 23.9%, reaffirming full-year guidance.
- The integration of Vodafone Italia is ahead of plan, with EUR166 million in synergies realized in H1 2026, on track to exceed EUR300 million for the full year.
- Swiss B2C service revenue decline improved significantly in Q2 (minus CHF3 million vs. minus CHF16 million in Q1), driven by successful price increases and ARPU growth.
- Swiss wholesale broadband continues strong growth with plus 14,000 net adds in Q2, driving a 10% increase in wireline service revenue.
- Italian B2C mobile ARPU increased for the first time since the merger, reaching EUR8.3, as the back-to-front book alignment on mobile is completed.
- The energy business in Italy is scaling rapidly, with 141,000 RGUs and expected to generate over CHF100 million in revenue in 2026.
- Swisscom AG (SCMWY) secured UEFA Champions League rights until 2030, strengthening its entertainment offering and blue TV proposition.
- Cost savings in Switzerland are on track, with CHF42 million delivered in H1 2026, and the company is confident of exceeding the CHF50 million full-year target.
- The company is making progress on strategic infrastructure initiatives in Italy, including the Tower JV with Telecom Italia and the INWIT migration, which are expected to reduce costs and improve network efficiency.
- Swisscom AG (SCMWY) is expanding its AI footprint with new products like ROSS in Italy and the Swiss AI Assistant, positioning for future growth.
- Group revenue declined 2% year-over-year to CHF3.6 billion, driven by lower service revenue in both Switzerland and Italy and lower hardware sales in Italy.
- Swiss B2C broadband RGU losses continued, with minus 8,000 net adds in Q2, and the company expects the B2C service revenue decline to persist in H2 2026.
- Swiss B2B Telco continues to lose RGUs on both mobile and broadband, with no immediate turnaround expected.
- Italian B2C service revenue declined by EUR22 million in Q2, and the company expects a full-year decline of roughly EUR150 million, with gradual stabilization only in the future.
- The loss of the PosteMobile MVNO contract and the upcoming Lyca migration will reduce wholesale revenue in Italy, with a net RGU reduction of 2.3 million in Q2 and further losses expected.
- Swiss IT service revenue is expected to be slightly lower for the full year due to weak demand in workplace and UCC, partially offset by growth in sovereign cloud and AI.
- The Swiss spectrum auction in 2027 poses a risk of increased costs and potential loss of spectrum advantage, with the final rules still pending.
- The company faces intense promotional activity in the Swiss market, limiting the ability to implement further price increases on the main brand.
- Integration costs in Italy are expected to ramp up significantly in H2 2026, with up to EUR200 million in CapEx, which will pressure free cash flow.
- The competitive environment in Italy remains challenging, particularly in the SME segment, leading to lower gross additions in broadband.
Good morning, ladies and gentlemen. Thank you for joining the Swisscom Q2 2026 results hosted by Christoph Aeschlimann, Eugen Stermetz and Louis Schmid. Louis, the floor is yours.
Good morning, ladies and gentlemen, and also a warm welcome from our side to Swisscom's Q2 2026 Results Presentation. My name is Louis Schmid, Head of Investor Relations. And with me are our CEO, Christoph Aeschlimann; and Eugen Stermetz, our Chief Financial Officer.
Let's now move to page number 2 with the agenda of today. As you can see, our CEO starts the presentation with Chapter 1 achievements, a quick overview on the Q2 highlights, the operational and financial performances of the second quarter. Then in Chapter 2, Christoph presents the business update for Switzerland and Italy. In the second part of today's presentation, our CFO, Eugen runs you through Chapter 3 with our Q2 financials, including the confirmation of our full year guidance.
With that, I would like to hand over to Christoph to start his
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
