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Swisscom weathered the 2020 pandemic year with only mild corona symptoms. Sales fell, but only moderately, while operating profit was roughly stable. The fall in net profit is due to a special effect of the previous year.
Overall, the largest Swiss telecommunications group achieved a turnover of 11.10 billion Swiss francs. That’s 3.1 percent or 298 million less than in 2019, as Swisscom announced on Thursday. Operating profit before depreciation and amortization (EBITDA) increased slightly by 0.6 percent to 4.38 billion Swiss francs.
1.5 billion net profit
The conclusion is that Swisscom achieved a net profit of 1.53 billion Swiss francs. That’s a decrease of 8.4 percent compared to 2019. At the time, however, the corporate tax reform boosted Swisscom’s net profit to almost 10 percent. With the figures, Swisscom has exceeded market expectations.
Swisscom boss Urs Schäppi received more salaries in 2020 than in the previous year. Total compensation increased by 5.3 percent to 1.85 million francs, as can be seen in the annual report of the telecommunications company. The variable return component has increased. The previous year, Schäppi had earned 1.76 million.
Swisscom wants to invest 2.3 billion
Even if the corona pandemic hit the industry leader much less hard than other companies, it was still showing in the numbers. High price pressure and the effects of Corona affected sales in the main business in Switzerland. In particular, the use of mobile phones abroad (roaming) suffered travel restrictions due to the pandemic. Swisscom was able to compensate for this decrease by reducing costs. On the other hand, the business in Italy grew.
In view of the price war in Switzerland and the collapse of roaming revenue due to Corona, Swisscom is still holding back costs. This has consequences for staff. Last year, the telecommunications group cut 580 full-time positions in Switzerland.
In total, the industry leader in this country still has 16,048 full-time jobs. That’s 3.5 percent less than a year ago. Swisscom, however, has created jobs abroad. At Fastweb, the Milan broadband subsidiary, almost 250 additional jobs were created as a result of company acquisitions and the employment of outside employees, as Swisscom wrote in its annual report published Thursday. At the end of December, the group as a whole had 19,062 full-time positions, representing a decrease of 255 jobs (-1.3 percent).
The bloodshed continues
In Switzerland, bloodshed among staff continues. Swisscom also anticipates slightly fewer jobs in the domestic market during the current year. “With careful planning, Swisscom wants to absorb a decline as soon as possible through natural fluctuations and retirement or find alternative solutions,” the “blue giant” wrote in the statement.
Swisscom boss Urs Schaeppi received more salaries in 2020 than in the previous year. Total compensation increased by 5.3 percent to 1.85 million francs, as can be seen in the annual report of the telecommunications company. The variable return component has increased. The previous year, Schaeppi had earned 1.76 million.
For the new year 2021, Swisscom expects sales of around 11.1 billion Swiss francs. The industry leader wants to reach around 4.3 billion in EBITDA. Investments of 2.3 billion francs are planned. In addition, an unchanged dividend of CHF 22 is again promised if targets are achieved. (pbe / SDA)
