- Dividend Increase & Credit Rating: Swisscom raised its dividend by 18% to CHF 26/share while maintaining an A2 credit rating.
- Brand & Operational Excellence in Switzerland: Achieved top telco brand status, won all service tests, and launched B2B portfolio <i>beem</i>.
- Italy Integration Synergies: Vodafone Italia synergy realization overachieved by EUR 95M in 2025, with EUR 600M target by 2029.
- Infrastructure Expansion: Targeted 60% FTTH coverage in Switzerland and 65% in Italy by 2025, with 91% 5G+ coverage in both regions.
- Free Cash Flow Stability: Delivered CHF 1.4B operating free cash flow in 2025, with guidance for CHF 2B in 2026 despite integration costs.
Segment Performance
In Switzerland, revenue was down CHF 108 million, mainly due to lower telco service revenues. EBITDA was down CHF 27 million on an adjusted basis, with cost savings partly compensating for the decline. In Italy, revenue was down EUR 81 million, with a strong growth in wholesale. EBITDA was down EUR 57 million on an adjusted basis, with synergies ramping up, particularly in Q3 and Q4.
Synergy Realization and Integration
Swisscom achieved significant progress in synergy realization from the Vodafone acquisition, with EUR 95 million realized in 2025, exceeding the EUR 60 million target. The total run-rate synergy expected is EUR 600 million, and total integration costs over the first three years are EUR 700 million. As Christoph Aeschlimann mentioned, the company is working to integrate two big companies, focusing on a single culture and future-proof operating model.
Valuation Metrics
Swisscom's current P/E Ratio is 28.83, indicating a relatively high valuation. The Dividend Yield is 3.11%, which is attractive for income investors. The EV/EBITDA ratio is 6.06, suggesting a reasonable valuation compared to EBITDA. With a Net Debt / EBITDA ratio of 0.52, Swisscom's debt position appears manageable.
Guidance and Outlook
Swisscom guided for revenue of CHF 14.7-14.9 billion in 2026, with EBITDA of CHF 5.0-5.1 billion. Operating free cash flow is expected to be CHF 2 billion, up CHF 100 million year-over-year. The company remains committed to rock-solid financials, focusing on long-term value creation and attractive dividend.