Swisscom Q1 profit falls

10 May 2006

Swisscom’s first quarter profit fell 11.5% year-on-year as a number of one-off items and a flagging fixed-line business offset growth from its Internet arm. The former state monopoly, whose privatisation plan is up for vote in parliament later today, reported increased competition from cable operator Cablecom and a fiercely competitive mobile telephony market. Net profit for the three months ended 31 March 2006 was CHF460 million (USD374 million); revenues declined 2.9% to CHF2.375 billion. Swisscom reiterated its full-year targets of revenues to fall to around CHF9.5 billion from CHF9.73 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) to fall to CHF4 billion from CHF4.17 billion.

Switzerland, Swisscom