• Swisscom has published its first set of quarterly results since the integration of Vodafone Italia
• While reported Q1 revenue has risen almost 40%, pro forma comparisons show a different picture
• The Fastweb+Vodafone integration is said to be on track with 2025 expected to be a “transitional year” 

Swisscom reported what at first glance appears to be an enviable year-on-year increase in revenue in the first three months of 2025, although the operator conceded that the record quarterly growth was largely owing to its recent acquisition of Vodafone Italy and the merger of that operation at the start of this year with its Italian fixed network operation Fastweb. 

In the first quarter, Swisscom Group increased its revenue on a reported basis by a whopping 39.3% to 3.76bn Swiss francs (CHF) ($4.55bn). What’s more, earnings before interest, taxes, depreciation and amortisation after lease expense (EBITDAaL) increased by 17.9% to CHF 1.27bn ($1.54bn).

The picture does not look quite as rosy from a pro forma perspective, however, where figures are presented as if Vodafone Italia were consolidated as of 1 January 2024. In this case, group revenue actually fell by 1.2% and EBITDAaL was 6.6% lower. 

Indeed, the integration of Vodafone Italia – now part of the new Fastweb+Vodafone operation – with Fastweb, to form Fastweb + Vodafone, somewhat obscures the rather dismal financial performance of Swisscom in both its domestic and Italian markets, although in both cases there was a notable rise in revenue from business-to-business (B2B) services. 

In the Swiss market, for instance, Q1 revenue fell by 1.2% to CHF 1.96bn ($2.37bn). While revenue from telecom services was down 2% overall at CHF 1.29bn ($1.56bn), the operator reported a 2.4% increase in the B2B services segment to CHF 304m ($367m). Adjusted EBITDAaL remained almost stable at CHF 865m ($1bn), dropping by 0.3%.

In Italy, pro forma revenue from Fastweb+Vodafone dipped slightly by 0.4% to €1.82bn. Again, revenue from business customers increased by 2.7% to €800m, while there was a 2.6% decline in the residential customer segment to €854m. Adjusted EBITDAaL fell by 10.8% to €428m. 

Period of transition 

All in all, Swisscom CEO Christoph Aeschlimann put a confident spin on the results, noting that business performance in the first quarter of 2025 “met our expectations”, and adding that “Swisscom is on track”.

For 2025 as a whole, the group expects revenues of between CHF 15bn and CHF 15.2bn ($18bn to $18.4bn), EBITDAaL of around CHF 5bn ($6bn) and capex of between CHF 3.1bn and CHF 3.2bn ($3.75bn to $3.87bn), about CHF 1.7bn of which will be in Switzerland.

Aeschlimann also noted that the integration of Vodafone Italia “is going as planned. This acquisition in Italy is creating significant added value for all stakeholders and strengthening Swisscom as a whole.”

Swisscom agreed to buy Vodafone Group’s Italian business in May last year for €8bn on a debt- and cash-free basis. It received final approval for the deal in December 2024 and completed the transaction in January 2025. 

Like Aeschlimann, Fastweb+Vodafone said the integration plan for the two formerly separate operators is on track and “aligned with the expected timeline”. It also warned that 2025 “will be a transitional year” during which the new strategy – to stabilise the business-to-consumer (B2C) business and expand in the B2B and wholesale segments – will be gradually implemented.

- Anne Morris, Contributing Editor, TelecomTV