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Outlook 2012
 

Assuming an average CHF/EUR exchange rate in 2012 of 1.23, Swisscom expects to close the year with slightly lower net revenue of CHF 11.4 billion and EBITDA of CHF 4.4 billion. Continuing price erosion is not expected to be fully offset by customer growth and revenue from new business. In addition to the revenue-based decline in margins, a non-cash increase of around CHF 70 million in pension costs is expected to contribute to the reduction in EBITDA.

Fastweb is expecting stable revenue of EUR 1.6 billion; this does not include low-margin hubbing business. These interconnection revenues with other providers are expected to be reduced further in coming years. Compared to 2011, EBITDA at Fastweb is set to rise slightly and planned capital expenditure to be slightly lower. This will result in higher free cash flow for 2012.

Consumers in Switzerland are very quality conscious. With high capital expenditure, Swisscom aims to consolidate its leading position in network and service quality as well as its market position. Capital expenditure of up to CHF 2.2 billion is projected for 2012, of which CHF 1.7 billion will be invested in Swiss business, which corresponds to an increase of CHF 100 million. This amount does not include expenses arising in connection with the mobile frequencies. A similarly high investment level is projected for the following years. Swisscom continues to pursue its medium-term goal of connecting 30% of Swiss households and businesses directly with fibre-optic cables. In other areas Swisscom aims to further expand network performance and improve service quality using an optimal technology mix.

If all targets are met for 2012, Swisscom plans to once again propose payment of a dividend of CHF 22 per share to the Annual Meeting of Shareholders in 2013 despite the additional expenses arising in connection with mobile frequencies.