Swisscom threatens to cut fiber-optic expansion - Group CEO leaves
Swisscom is getting a new Group CEO: after eight years at the helm, Urs Schaeppi is taking his leave on June 1. The Board of Directors has elected Christoph Aeschlimann, Head of Network and Technology, as his successor.
Schaeppi is leaving at his own request, Swisscom announced in a communiqué on Thursday. The Bernese had taken over the leadership of the Swiss telecom group in 2013 after the death of Carsten Schloter. Under his aegis, the number of TV customers had increased by about 60 percent and the number of broadband customers of the Italian subsidiary Fastweb by about 40 percent.
The departure of Schaeppi, who was born in 1960, is not unexpected. In recent years, the Group's top management had pushed ahead with the renewal of Swisscom's management and initiated a generation change. Schaeppi was at Swisscom for a total of 23 years.
His successor Christoph Aeschlimann has been head of the Infrastructure, Network and IT business unit and a member of Swisscom's Group Executive Board since 2019. He is to "successfully take the telecom group to the next level," said Chairman of the Board of Directors Michael Rechsteiner, according to the statement.
More sales and profit
Schaeppi leaves with good business figures. Last year, Swisscom generated more revenue and earned significantly more thanks to special factors.
Meanwhile, Swisscom is threatening to curtail its plans to expand its fiber-optic network following a ruling by the Federal Competition Commission. The "blue giant" actually has the goal of increasing the number of fiber-optic connections from one-third of households and businesses by 1.5 million to around 60 percent by 2025.
The rollout imposed by the authorities would be significantly more expensive and would reduce the planned coverage from around 60 to 50 percent, the group wrote. "The original rollout target of building around 1.5 million fiber connections by 2025 would thus be reduced by a third, or around 500,000 homes and businesses." That's because there would be massive additional costs for building with four fibers instead of one fiber-optic feed line from the telephone exchange to the street duct, especially in rural and sparsely populated areas.
More sales and profit
In operational terms, Swisscom posted gains and slightly exceeded market expectations. Overall, revenue increased by 0.7 percent to CHF 11.18 billion. Operating profit before depreciation and amortization EBITDA improved by 2.2 percent to CHF 4.48 billion. Below the line, Swisscom posted a net profit of CHF 1.83 billion. That is 20 percent more than a year ago.
The main reason for the current jump in profits is the revaluation of a stake in Fastweb amounting to 169 million Swiss francs. In addition, a sale of a company share in Belgium generated a gain of CHF 38 million. In addition, there was a one-time gain of 60 million from an adjustment in the pension fund.
Financial targets for 2022 for the first time
Swisscom is now announcing targets for the full year 2022 for the first time. In terms of revenue, the Group expects a result of CHF 11.1 to 11.2 billion. EBITDA is expected to reach around CHF 4.4 billion and capital expenditure around CHF 2.3 billion. The dividend will remain at 22 francs if the targets are met.
As already announced, Swisscom intends to reduce its cost base by around CHF 100 million in 2022, as in previous years. The savings will be realized mainly through simplified workflows, more efficient systems and a reduction in the number of jobs.
New jobs, on the other hand, would be created in growth areas such as the IT solutions business. "Overall, depending on market developments, Swisscom expects stable job growth in Switzerland in 2022," it said. At the end of 2021, Swisscom had 15,882 full-time positions in this country. (SDA)
