Swisscom Earnings: Strong 8% EBITDA Growth Due To Cost Reductions; Maintain FVE

We are pleased with narrow-moat Swisscom’s second-quarter results as it managed to grow EBITDA by an impressive 8% despite flat revenue growth year over year (down 0.4%). Indirect costs, mainly labor, IT, advertising, and other expenses have been reduced by 8.5% year over year with almost no effect on subscriber numbers, lifting EBITDA. This has allowed Swisscom to maintain prices for its core products, which we believe helped it keep subscribers. We believe Swisscom is on track to achieve 2023 guidance of CHF 4.6 billion to CHF 4.7 billion in EBITDA and our CHF 440 fair value estimate remains unchanged.