Swisscom’s net revenue rose by CHF 269 million or 2.4% to CHF 11,703 million, while operating income before depreciation and amortisation (EBITDA) was CHF 111 million or 2.6% higher at CHF 4,413 million. Net income increased by CHF 11 million or 0.6% to CHF 1,706 million.

At constant exchange rates, excluding company acquisitions and Fastweb’s wholesale revenue from interconnection (hubbing), net revenue rose by 1.9% or CHF 218 million, of which Swiss business accounted for CHF 128 million. Price erosion of CHF 360 million in Swiss core business (CHF 170 million of which resulted from reduced roaming fees) was more than offset by customer and volume growth of CHF 488 million. Excluding hubbing, Fastweb’s net revenue was EUR 63 million or 3.9% higher at EUR 1,660 million.

On a like-for-like basis, ­Swisscom’s EBITDA increased by 0.9% or CHF 39 million, of which Swiss business accounted for CHF 22 million. Fastweb’s EBITDA rose year-on-year by EUR 10 million or 2.0% to EUR 515 million. Net income increased year-on-year by CHF 11 million or 0.6% to CHF 1,706 million. The increase in EBITDA was offset in part by higher depreciation and amortisation and higher income tax expense.

Capital expenditure increased by CHF 40 million or 1.7% to CHF 2,436 million, and in Switzerland by CHF 65 million or 3.9% to CHF 1,751 million. The higher figures are primarily due to the expansion and upgrading of mobile and fixed network infrastructure with the latest technologies. At the end of 2014, ­Swisscom had connected more than 1.4 million homes and offices to ultra-fast broadband. Despite ending the year EUR 3 million or 0.5% lower at EUR 562 million, capital expenditure at Fastweb remains high due to progressive expansion and upgrading of the broadband network in Italy.

Operating free cash flow declined by CHF 118 million or 6.0% to CHF 1,860 million. Net debt increased by CHF 308 million or 3.9% over the end of 2013 to CHF 8,120 million, chiefly due to the acquisition of PubliGroupe. The ratio of net debt to EBITDA remained unchanged year-on-year at 1.8.

Headcount increased year-on-year by 1,017 FTEs or 5.1% to 21,125 FTEs. The higher headcount resulted from corporate acquisitions, the hiring of external staff and the strengthening of customer service operations. In Switzerland the number of employees increased by 910 FTEs or 5.2% to 18,272. Excluding corporate acquisitions, the number of FTEs rose by 282 or 1.4%, in Switzerland by 375 FTEs or 2.2%.

Swisscom expects to close 2015 with net revenue in excess of CHF 11.4 billion and EBITDA of around CHF 4.2 billion. This outlook is based on an assumed euro exchange rate of CHF 1.00. It does not take account of the possible negative implications of the currency situation for the economy. The negative effects of the lower euro exchange rate will amount to almost CHF 400 million on net revenue and around CHF 100 million on EBITDA. In the case of EBITDA, the All IP transformation, higher pension costs and lower gains from the sale of real estate, will result in a reduction of more than CHF 100 million. At CHF 2.3 billion, capital expenditure is expected to be some CHF 100 million lower than in 2014, due to the lower euro exchange rate and a slight reduction in investment in Fastweb. Capital expenditure in Switzerland will remain unchanged at CHF 1.75 billion. Subject to achieving its targets, ­Swisscom will again propose a dividend of CHF 22 per share for the 2015 financial year at the 2016 Annual General Meeting.