Swisscom: Competition Limits Margin Wins After Rollouts

(5min)

Summary

  • Swisscom's CAPEX burden is relatively limited, with substantial progress in FTTH and 5G+ coverage, reducing future investment needs compared to peers.
  • The Italian segment, Fastweb, shows promising organic performance and ARPU lift opportunities from the liberalized energy market, despite competitive pressures.
  • Swisscom faces intense competition, limiting the benefits of its infrastructure investments and leading to disappointing cost savings in Switzerland.
  • Despite its premium valuation, the telco sector's competitive nature and regulatory environment make Swisscom less compelling, with forward P/Es closer to 20x than 10x.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

Swisscom store in the town of Winterthur

Denis Linine

Swisscom (OTCPK:SWZCF) isn't as burdened by CAPEX which has been the focus of our previous coverage. Lately, in addition to the Italian segment helmed by Fastweb being a sink for investment with the cash acquisition of

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The Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.

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