Swisscom AG (SCMN) Q2 2026 Earnings Report

The call shows a predominantly positive operational and financial performance: profitability (EBITDAaL) and operating free cash flow improved materially, Italian integration synergies are ahead of plan and network/coverage KPIs progressed strongly. However, top-line challenges persist with service revenue declines in both Switzerland and Italy, ongoing RGU losses in some segments, and meaningful integration and MVNO migration headwinds in Italy. Management reaffirmed full-year guidance and emphasized cost discipline and cash-flow priorities, balancing solid cash/profit improvements against revenue and market-structure pressures.

Swisscom reaffirmed its full‑year guidance and said it is on track to meet its EBITDAaL and operating free‑cash‑flow targets: Q2 EBITDAaL rose 6.1% to CHF1.269bn and Q2 operating free cash flow was CHF608m (+23.9% YoY), with OCF up CHF214m and free cash flow up CHF221m in H1. Management expects stable Swiss free cash flows (Swiss Telco service‑revenue decline for 2026 guided around CHF120m, FTTH coverage target 60% by year‑end, 5G+ coverage 90%, Swiss CapEx slightly down for the year and at least CHF50m of Swiss cost savings—CHF42m delivered in H1). For Italy they expect growing free cash flows (Italy service‑revenue decline for 2026 ~CHF150m), reported H1 synergies of EUR166m (EUR89m in Q2) with a quarterly run‑rate ~EUR80m and on track for EUR300m for the full year, integration costs YTD EUR51m and total integration costs expected up to EUR250m including up to EUR200m of integration CapEx, while reported Italy CapEx for the year is roughly stable.