The following is a summary of the Swisscom AG (SCMWY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Swisscom reported Q1 2024 revenue of CHF2.7 billion, flat year-on-year when adjusted for Euro-Swiss exchange rate.
EBITDA of CHF1.16 billion was achieved, exceeding consensus expectations, with a 2.9% rise in net income to CHF455 million.
A decrease of Q1 revenue by CHF52 million was driven by lower hardware revenues and telecom service revenue.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter was down by CHF19 million, but Wholesale EBITDA saw an increase by CHF8 million.
Swisscom has reaffirmed its full-year guidance for 2024, anticipating higher cost savings in upcoming quarters due to seasonality.
Business Progress:
Despite falling revenues in the Swiss telecommunications business, growth was observed in the IT business; Fastweb performed well across all KPIs.
Swisscom launched new B2C and B2B offerings including insurance tech and upgraded Enterprise Mobile portfolio.
The company is focusing on improving customer experience, product innovation, and enhancing internal efficiency through digitization, automation, and AI.
Swisscom partnered with Ericsson for the next three years which is expected to drive improvements in energy and cost efficiency, and announced a deal to acquire Vodafone Italy.
The company aims to focus on value over promotions and improve customer satisfaction through automation and digital self-services. It is revamping their sales and promotional communications.
Swisscom is set to upgrade all activated lines by the end of 2025 and is on target to achieve a 57% build-out within their CapEx guidance.
The company raised concerns about potential reduced competition in the EU market due to the new NetCo.
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