Swisscom TV growth fails to offset fixed-line decline

Swisscom signSwisscom added 40,000 TV customers in the third quarter to take its total to 1.44 million, up 12.9% year-on-year, despite what the company described as stiff competition from rival providers.

Swisscom TV received a boost in the quarter from its acquisition of  football and ice-hockey rights during the quarter. The total number of Swisscom TV customers reached 1.44 million at the end of September.

Four fifths of customers use the cloud-based Swisscom TV 2.0 service.

Broadband subscriptions grew year-on-year by 48,000 or 2.5% to 1.99 million, up 7,000 in the quarter. However, growth in TV and broadband was not able to offset the decline in fixed lines due to a decline in fixed phone use.

Post-paid mobile subscribers increased, while fixed-line and pre-paid mobile customers declined.

Swisscom posted revenues of CHF8.65 billion (€8 billion), down 0.1%, and EBITDA of CHF3.1 billion, up 6.7%.

Swisscom has still not recognised a provision in its consolidated financial statements related to a fine levied by the competition regulator over its marketing of sports content via pay TV. The company said it was appealing and still expected to escape a sanction.

“We have again achieved solid results in the third quarter despite fierce competition. Strong pressure on pricing and decreasing roaming prices are good news for our customers but more challenging for our revenue and profitability. On a more positive note, there is increased growth in bundled products and TV access lines, our solutions business for corporate customers and Fastweb. Thanks to strong market performance and active cost management we are on target,” said CEO Urs Schaeppi.