Fastweb, how is Swisscom’s business going?
Fastweb accounts raise the fortunes of the parent group Swisscom, which sees sales and profits down in 2020
A 2020 to forget for Swisscom, the leading Swiss telecommunications company. The company saw its net profit drop by $ 8.4 to Swiss $ 1.5 billion. However, the numbers of Fastweb, a Swisscom subsidiary, which recorded a turnover of 2.304 billion, reassured investors.
All the details.
THE NUMBERS OF SWISSCOM
Switzerland's Swisscom closed 2020 with a net profit down 8.4% compared to the previous year, to 1.5 billion Swiss francs (1.4 billion euros). Turnover also fell to 11.1 billion Swiss francs, minus 3.1%.
SWISS BUSINESS
The activities in Switzerland, where the group is losing customers on the fixed telephony front, with considerable price pressure, have a negative impact on performance.
The company generated a turnover of 8.275 billion francs in the Swiss market, showing a decrease of -3.5%. Business revenues also fell 6.6% due to strong competition but also the rise of new technologies.
THE REASONS FOR DIFFICULTY
According to the CEO of the group, Urs Schaeppi, the difficulties experienced by the group are linked to the "difficult context" of 2020, marked in particular by "intense competition" and "aggressive promotions". Covid also had an impact, with roaming revenue plummeting.
THE GOOD RESULTS OF FASTWEB
The Italian subsidiary Fastweb , on the other hand, does much better, which recorded an increase in turnover of 86 million euros (+ 3.9%) compared to last year, to 2.304 billion. Ebitda also rose, reaching 784 million euros, with an increase of 5% compared to 2019.
GROWTH OF CUSTOMERS
Customers are also growing. "With the acquisition of 110,000 new customers for broadband access services, equal to an increase of 4% compared to the previous year", explains the company in a statement, "Fastweb's customer base at the end of December is to 2,747,000 units. With the plus sign also the revenues which amounted to 2,304 million euros, up by 4% compared to 2019 ".
Positive performance also on the mobile service front, with 1,961,000 SIMs active as of December 31st, up by 12% compared to 2019.
THE FORECASTS OF 2021
And also thanks to the results on the Italian market, the Swisscom group remains optimistic and expects a good result also for 2021, despite the uncertainties related to the Covid-19 pandemic.
In particular, the Swiss group forecasts for the current year a net turnover of around 11.1 billion francs, an EBITDA of around 4.3 billion and investments of around 2.3 billion.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/fastweb-come-vanno-gli-affari-di-swisscom/ on Thu, 04 Feb 2021 14:30:59 +0000.