Swisscom AG ADR (SCMWY ) Q1 2025 Earnings Call Transcript

2025-05-09 11:22:03 ET

Swisscom AG ADR (SCMWY)

Q1 2025 Earnings Conference Call

May 08, 2025 03:00 AM ET

Company Participants

Louis Schmid - Head of Investor Relations

Christoph Aeschlimann - Chief Executive Officer

Eugen Stermetz - Chief Financial Officer

Conference Call Participants

Polo Tang - UBS

Andrew Lee - Goldman Sachs

Joshua Mills - BNP Exane

Luigi Minerva - HSBC

Steve Malcolm - Redburn Atlantic

Robert Grindle - Deutsche Bank

Presentation

Operator

Good morning, ladies and gentlemen. Thank you for joining the Swisscom Q1 2025 Results Conference Call hosted by Christoph Aeschlimann, Eugen Stermetz and Louis Schmid.

Louis, the floor is yours.

Louis Schmid

Good morning, ladies and gentlemen, and welcome to Swisscom's Q1 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 presentation with Chapter 1 and a quick overview on the highlights, the operational and financial performances of the first quarter. Then in Chapter 2, Christoph presents a business update for Switzerland and Italy. In the second part of today's results presentation, Eugen runs you through Chapter 3 with the first quarter financials, including the confirmation of our full-year guidance.

On page 3, some brief remarks on our financial communication this year explaining the focus of the presentation, which is the comparison of 2025 figures with pro forma 2024 figures as if Vodafone Italia had been consolidated from 1 January 2024, adjusted based on Swisscom's accounting and reporting policies and unaudited. This comparison ensures that we provide a meaningful comparison on a like-for-like basis.

With that, I would like to hand over to Christoph to start his part. Christoph?

Christoph Aeschlimann

Thank you, Louis, and welcome also from my side to this Q1 2025 call. I will start on Page number 5 with some group achievements. Overall, I'm pleased with the financial results in the first quarter. We are spot on and on track to achieve the full-year guidance. And as you have seen, we are also confirming the full-year 2024 guidance with revenue between CHF 15 billion and CHF 15.2 billion and EBITDAaL around CHF 5 billion.

I'm also very pleased that we have successfully started the integration in Italy with Fastweb and Vodafone. The execution is in full swing and progressing very well as we are executing our plan and the new ExCo is in place and executing all required and planned integration actions and maybe some more words on this later on in the Italy section.

In Switzerland, we have been awarded again, according to Brand Finance, the Strongest Telco brand worldwide being a testimony to the strength of the Swisscom brand in Switzerland, building on the best experience and the best network. We also won again numerous awards for our network and the service we provide, especially on the B2C side. And we have launched in Q1, a new multi-mobile offering, we are calling, we are Family, to build the next level of convergence, not only between wireline and wireless, but especially increase the household penetration of mobile on the main brand, Swisscom.

In Italy, you will see that we are driving the value focus and taking first steps to drive differentiation in the Italian market and stabilize the Telco business.

Now moving to slide number 6, sorry, I need to drink some water. Sorry for that, I have slight cold. Our RGU base is overall broadly stable in Switzerland and Italy. If you look at postpaid, we had a slight growth of 51,000 net adds to 5.5 million RGUs. While on the broadband side, we have a slight decline of 14,000 net adds in the first quarter, and correspondingly, a slight decrease also on the TV side as the new net adds broadband come more from second brand with less TV attachment....

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