Financial outlook 2014

Swisscom expects the 2014 year-end figures for revenue and EBITDA to show moderate growth. Excluding Fastweb, Swisscom expects to close 2014 with revenue of around CHF 9.45 billion and EBITDA of at least CHF 3.7 billion. The trend for revenue and income is being driven by a slight increase in revenue from services, coupled with ongoing stagnation in the business customer segment due to persistent price erosion. The companies acquired in 2013 will also contribute some CHF 80 million to growth. The outlook for EBITDA remains predicated on the assumption that no material restructuring and integration costs will be incurred. Expansion of the network infrastructure will again entail high capital expenditure of around CHF 1.75 billion in 2014.

Fastweb is expected to close 2014 with revenue of around EUR 1.65 billion, EBITDA of at least EUR 0.5 billion, and capital expenditure of around EUR 0.55 billion. The high figure for capital expenditure is due to expansion of the fibre-optic network in Italy.

Assuming a stable CHF/EUR exchange rate of 1.23, Swisscom therefore expects to post Group revenue of around CHF 11.5 billion, EBITDA of around CHF 4.35 billion and capital expenditure of CHF 2.4 billion at the end of 2014. If all targets are met, Swisscom will once again propose a dividend of CHF 22 per share for the 2014 financial year to the Annual General Meeting of Shareholders.