Swisscom's first-quarter earnings beat market estimate on strong sales
Swisscom Reports Strong First-Quarter Financial Results
Quarterly Profit and Sales Performance
May 7 (Reuters) - Telecom group Swisscom reported higher quarterly core profit on Thursday, boosted by strong sales in its Swiss market.
Core Profit and Revenue Details
Group core profit after lease expenses (EBITDAaL) rose 0.8% to 1.288 billion Swiss francs ($1.65 billion), surpassing a company-compiled consensus of 1.257 billion francs. In constant currency terms, adjusted for the strength of the Swiss franc, sales grew by 1.3%.
Revenue Decline and Currency Effects
Revenue fell by 4.1% to 3.61 billion francs compared with the same period in the previous year. It was down 2.9% when adjusted for currency effects.
CEO Statement and Market Leadership
""Despite a lower revenue, we managed to significantly increase our operating free cash flow. In Switzerland, we reaffirm our market leadership," CEO Christoph Aeschlimann said in a statement.
Network Coverage and Expansion
The company covers 56% of Swiss households and businesses with optical fibre and 89% of the population with 5G, the company said.
Outlook and Dividend Plans
The telecom group affirmed its 2026 outlook, saying it plans to increase its dividend to 27 francs per share, payable in 2027 if its targets are achieved.
Additional Information
($1 = 0.7788 Swiss francs)
(Reporting by Cian Muenster; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
