Switzerland’s state-owned companies – La Poste, Swiss Federal Railways (CFF), Swisscom, and Skyguide – largely met their public service obligations in 2024, according to a recent review by the Federal Council. Although the four firms demonstrated their value as employers with modern personnel policies and a commitment to social responsibility, financial performance varied, with Skyguide facing significant challenges.
La Poste
La Poste, the Swiss postal service, generally achieved the strategic goals set by the Federal Council for 2024. The company maintained quality and reasonable pricing for its universal services, including postal and payment services, and held steady market share in core areas like letters, parcels, payment transactions, and passenger transport. However, its market share in payment services declined. While parcel volumes increased for the first time since 2021, letter and newspaper volumes, as well as transactions through the postal network, continued to fall. Operating income decreased by 334 million Swiss francs year-over-year, primarily due to declining volumes in core activities and lower interest income at PostFinance. Annual profit fell 20% to 332 million Swiss francs, resulting in a dividend of 150 million Swiss francs for the Confederation.
The company noted that the postal market is undergoing significant change, with declining demand for traditional services not yet offset by new digital business models. This raises long-term questions about the sustainability of the current universal service funding model. The Federal Council expects La Poste to take steps to improve its results and is also planning to adapt the regulatory framework to better align the service with customer needs, with consultations expected to open in mid-2026.
Les CFF
Swiss Federal Railways (CFF) also largely met its strategic objectives for 2024. Despite a high volume of passengers and ongoing construction projects, rail operations remained safe, stable, and punctual. However, the freight transport segment continues to face major challenges.
The annual result improved from 275 to 496 million Swiss francs, with nearly half of the increase attributable to one-time effects, primarily a reduction in pension obligations. Real estate, long-distance passenger traffic, energy, and cost optimizations also contributed to the annual operating result. Freight and regional passenger traffic, however, reported losses. Net debt decreased thanks to a capital injection of 850 million Swiss francs from the Confederation, reaching 8.1x EBITDA (earnings before interest, taxes, depreciation, and amortization), compared to 8.2 in 2024. The Federal Council reiterated its expectation that the debt ceiling of 6.5x EBITDA be met by 2030.
Stabilizing the financial situation remains the primary challenge for CFF in the coming years, both for the company as a whole and for its subsidiary, CFF Cargo. CFF is implementing measures to restructure CFF Cargo, a process supported by the Confederation, which is encouraging the transport of single wagon loads. This was enabled by a revision of the goods transport law.
Swisscom
Swisscom also generally achieved the strategic goals set by the Federal Council in 2024. The company maintained its leading position in the Swiss telecommunications market and continued to expand its high-speed infrastructure, including fiber optic networks and 5G mobile technology, nationwide. It provided universal service without receiving financial compensation, and the security and stability of its networks and IT infrastructure met expectations.
In December 2024, Swisscom finalized the acquisition of the Italian subsidiary of British group Vodafone. The integration of Vodafone Italia into Fastweb progressed as planned during the fiscal year.
The group’s financial result was solid, although lower than the previous year. Net profit decreased due to the costs associated with integrating Vodafone Italia into the Swisscom Group. However, the dividend was increased as planned, from 22 to 26 Swiss francs per share.
Swisscom’s immediate challenge is the successful integration of Vodafone Italia. In the medium term, the company’s success depends on the development of high-speed networks, which will require substantial and ongoing investment in a generally stagnant market.
Skyguide
Skyguide, Switzerland’s air navigation service provider, partially achieved the strategic goals set by the Federal Council. Despite a statutory profit of 52.6 million Swiss francs (compared to a loss of 12.4 million Swiss francs in 2024), Skyguide’s financial situation remains strained. In the field of civil aviation, funding depends on the European model of charges. Switzerland has submitted its performance plan covering costs relating to Skyguide to the EU, which is still under review by the European Commission.
Air traffic safety was guaranteed at all times, and punctuality improved, exceeding the European average. However, Skyguide again increased overflight fees due to the new reference period (2025 to 2029) and continues to apply the highest fees in Central Europe.
Skyguide continues to face the challenge of sustainably reducing costs without compromising safety in order to achieve the legally required balanced result. However, Skyguide’s room for maneuver is limited by the European charging model.
Based on a recommendation from the Federal Audit Office, a standard relating to business continuity management (BCM) will be introduced into Skyguide’s strategic objectives. The company will develop its BCM in accordance with this standard.
Remuneration of the Executive Bodies of La Poste, CFF, Swisscom and Skyguide
As provided for in corporate law and the statutes, the general meetings of La Poste, CFF, Swisscom and Skyguide set the maximum amounts available for the remuneration of their executive bodies (board of directors and management). The Federal Council approved the proposals made in this regard by the various boards of directors for the 2027 financial year. The maximum amounts proposed for 2027 remain at the current level.
Links
Objectives assigned to federal enterprises and realization (DETEC website)
