Group revenue fell 1.2% to CHF 2 768 million. Revenue in the saturated Swiss core business saw a slight decline of 0.5% to CHF 2 070 million. Telecommunications services revenue declined further due to price pressures and ongoing competition. This fell by 1.8% to CHF 1365 million. Revenue from the IT solutions industry with business customers rose 8.8% to CHF 297.5 million. Fastweb reported year-on–year revenue growth of EUR14 million (+2.4%) in Italy’s business sector.
The decline in core business with telecoms services was offset in part by growth in the IT solution business and continued cost-cutting measures. Consolidated Operating Income before Depreciation and Amortization (EBITDA), was slightly higher than last year, at CHF 1,137 millions. EBITDA increased by 1.5% in the core Swiss market and Fastweb saw a 3.4% increase (in EUR).
Swisscom reported a net income of CHF 447million, down 29.9%. This decline was due to non-recurring items in the previous year’s financial result: the transfer of a shareholding of Fastweb and the sale of Swisscom’s shareholding in Belgacom International Carrier Services. Net income would have increased if these non-recurring items were not present.