Swissnet AG Sees Positive FY26 Start with New Projects

Swissnet AG began its FY26 with promising developments, indicating strong progress in international expansion and IoT strategy. The company announced a significant project to implement a guest room management system across several Abu Dhabi hotels, valued at approximately CHF 1.1 million, set to complete within five months. This project enhances Swissnet's presence in the MENA region and highlights its capability in large-scale hospitality technology ventures.

Additionally, Swissnet expanded its IoT collaboration with a European construction client, deploying 1,700 IoT SIM cards for secure retail touchpoint connectivity. This extension suggests high customer satisfaction and indicates Swissnet's potential for scalable recurring revenue.

Operationally, the company reported strong sales momentum in H1'25, nearly doubling to CHF 11.3 million. Recurring sales maintained a high share at 77%, with a low churn rate of less than 5%. The adjusted EBITDA stood at CHF 2.3 million with a 20% margin, reflecting operational leverage and synergy benefits. Swissnet targets a fully integrated platform model in FY26, anticipating a 59% sales increase to CHF 42.7 million and an improved EBITDA margin of 20%. Despite its progress, the valuation remains appealing, reinforcing the BUY recommendation with a target price of €20.