Despite profits, the telco announces plan to close call centers
Swiss mobile telephony operator Swisscom recorded revenue of 3.02 billion francs ($306 million) in the fourth quarter of 2015, slightly down compared to 3.07 billion francs in the same period a year ago. The operator’s net profit for the period reached 304 million francs, down from 357 million francs in the same period the previous year.
Swisscom ended 2015 with a total of 6.62 million mobile subscribers, up from 6.54 million at the end of 2014. “Currency effects and more intense competition with stronger price dynamic characterized our business in the last year,” CEO Urs Schaeppi said.
Swisscom said that 98% of its customers are able to access 4G LTE services. The operator also said that it 73% of mobile data traffic is already transmitted on the telco’s 4G LTE network. The operator initially launched 4G LTE services in Switzerland in 2012.
Swisscom Switzerland’s overall capital expenditures for the last quarter of 2014 totaled 499 million francs, down compared to 505 million francs in the same quarter last year. Total capex for 2015 reached 2.4 billion francs, down 1.1% year-over-year.
The telco also provides broadband, fixed telephony and pay-TV services, as well as telecom services for residential and corporate customers in Italy through its Fastweb subsidiary. In Italy, the company ended 2015 with 2.20 million broadband customers, after a net addition of 129,000 subscribers during the year.
For 2016, Swisscom expects net revenue of over 11.6 billion francs, EBITDA of around 4.2 billion francs and capital expenditure of over 2.3 billion francs.
Swisscom also said that it aims to reduce its 2015 cost base by over 300 million francs by 2020 through organizational changes implemented in January 2016, headcount reductions, process optimization measures and the migration to all-IP technology. The telco said that this cost reduction plan will enable the company to release funds to continue investing in infrastructure and new business areas.
Swisscom also announced plans to reduce its call center operation. Under this restructuring process, Swisscom will reduce its call centers for customers, currently distributed over 14 sites, to eight sites by the end of 2016. The call centers in Zurich, Berne, Basel, Geneva, Lucerne and Rapperswil will be closed and the staff will be concentrated at the remaining eight sites in Lausanne, Neuenburg, Biel, Olten, Sion, St. Gallen, Chur and Bellinzona.
