Swisscom Reports Decline in Net Income and Revenue for 2024

Swisscom's fiscal 2024 results reveal a decrease in net income by 9.9% and a slight revenue drop of 0.3%. As the company faces acquisition-related costs, investor sentiment may be affected due to these declines and the mixed revenue outlook for fiscal 2025.

Date: 13-02-2025

AI Rating: 4

**Net Income and Revenue Performance**: Swisscom reported a net income of 1.54 billion Swiss francs for fiscal 2024, reflecting a notable decline of 9.9% compared to the prior year. This decrease can be attributed to costs associated with the acquisition of Vodafone Italia, which raises concerns about the impact of such investments on profitability. Additionally, the company's consolidated operating income before depreciation and amortisation (EBITDA) also saw a reduction, falling by 5.8% to 4.35 billion francs. On a like-for-like basis, the decrease in EBITDA for the Swiss core business was 1.1%. This decline in both net income and EBITDA might signal to investors that operational efficiencies need to be prioritized, especially amidst strategic shifts like acquisitions. **Revenue Trends**: Swisscom's revenue for fiscal 2024 stood at 11.04 billion Swiss francs, a slight decrease of 0.3% year-on-year, although it registered a small increase of 0.2% when adjusted for constant exchange rates. However, the Swiss core business revenue dropped by 1.7%, which could concern investors about the company’s prospects in its primary market. **Future Outlook and Dividends**: For fiscal 2025, Swisscom has forecasted revenue between 15.0 billion and 15.2 billion francs, with an expected EBITDAaL of around 5.0 billion francs. The consistency in dividend payments suggests a commitment to returning value to shareholders, with plans to increase the dividend to 26 francs per share if targets are achieved, reflecting a more optimistic outlook for fiscal 2025. However, the actual achievement of these targets remains key to investor confidence. In summary, while the proposed dividends may offer some reassurance, the significant declines in net income and revenue could negatively affect stock prices as stakeholders weigh the challenges mentioned alongside the company's growth plans.

Stocks: SWX:SCMN