Swisscom Estimates Potential P2P Implementation in 500,000 Less FTTH Homes; Stable Q4 2021

Swisscom's fourth-quarter 2021 results showed the relative stability we are accustomed to, declining 2% during the quarter but growing 0.7% for the full year, as weaker growth during the second half of the year was compensated by the stronger performance in the first half. In Switzerland, the residential and business segments contributed to the decline, as management claims to be seeing some price and competitive pressures, which we assume were caused by Salt through promotional activities as peer UPC-Sunrise has also recently commented on some competitive pressures. Fastweb in Italy declined 1.3% during the quarter, but sales grew by 4.6% for the full year as the company seems to be winning market share in the mobile and broadband segments in Italy. We maintain our CHF 470 fair value estimate.