Notes to the consolidated financial statements - Swisscom

Review of the Group’s results
Overview
Swisscom increased revenue by 0.8% year-on-year to CHF 14,174 million. Operating income
before interest, tax and depreciation (EBITDA) rose 9.3% to CHF 4,409 million. This
rise increase in EBITDA came primarily from Mobile. The following table outlines the results
of the individual segments:
CHF in millions
Fixnet Retail and Network
Fixnet Wholesale and
Carrier Services
Enterprise Solutions
Mobile
debitel
Other revenue
Intercompany elimination
Unallocated expenses
Total
2000
Net revenue
2001 Change 2000
1)
5 165
5 199
2 577 2 934
1 938 1 887
3 492 3 983
3 993 3 808
1 255 1 232
(4 360)
(4 869)
– –
14 060 14 174
0.7%
13.9%
–2.6%
14.1%
–4.6%
–1.8%
11.7%
–
0.8%
1 666
96
264
1 483
167
154
–
204
4 034
EBITDA 2)
2001 Change
1 691
152
247
1 876
187
142
–
114
4 409
1.5%
58.3%
–6.4%
26.5%
12.0%
–7.8%
–
–44.1%
Includes intersegment revenue
Operating income before interest, tax and depreciation; before the gain on disposal of 25% of Swisscom Mobile AG,
the gain on sale of real estate, the debitel impairment.
As a result of organizational changes, the segments were redefined in 2001. The amounts presented for 2000 have been
restated to reflect the new structure.
1)
2)
4 Swisscom Review of the Group’s results
9.3%
Operating income increased significantly from CHF 1,831 million to CHF 5,510 million primarily
as a result of three exceptional items in 2001. The sale of 25% of Swisscom Mobile
AG to Vodafone plc resulted in a gain of CHF 3,837 million and the sale of two real-estate
packages resulted in a gain of CHF 568 million. These gains were partly offset by an impairment
of CHF 1,130 million of goodwill recorded for debitel. Excluding these three exceptional
items, EBIT increased by 22.1%.
Included within financial expense was CHF 219 million relating to the impairment of Swisscom’s
investment in Infonet Inc. and CHF 199 million relating to the write down of a loan
given to UTA. Swisscom recorded a tax benefit in 2001 mainly because the gain on sale of
Mobile was effectively tax free and the gain on sale of real estate was only partly taxed.
See note 16 to the consolidated financial statements. The equity in net income of affiliated
companies in 2000 included gains from disposals amounting to CHF 1,739 million, there
were no such gains in 2001.
In 2001, Swisscom recorded net income of CHF 4,964 million which was up 57% on the
previous year.
Swisscom was able to switch from a net debt position to net funds in 2001 due to cash received
from the disposal of Mobile (CHF 4,282 million net) and the sale of the two real-estate
packages (CHF 2,480 million net). At December 31, 2001 Swisscom’s net funds
amounted to CHF 2,899 million.