Swisscom posts positive 3Q results

9 Nov 2006

Swisscom has reported better than expected results for the three months ended 30 September 2006, showing weaker profits due to extraordinary charges but slightly higher sales. 3Q net profit fell by 12% to CHF470 million (USD376 million) while EBITDA fell by 3% to CHF1.041 billion. Sales, on the other hand, rose 1.6% to CHF2.42 billion. Reduced mobile termination charges and additional provisions for interconnection proceedings had a significant negative impact on the group’s nine month figures. During the first three quarters of the year net profit fell 24.4% to CHF1.23 billion and EBITDA dipped 12.7% to CHF1.041 billion, on the back of sales of CHF7.196 billion, down 1.4%.

The group’s Fixnet segment continued to enjoy strong growth in broadband accesses, with the number of customers rising by 29.2% year-on-year to 1.31 million. The lower revenue recorded in the first nine months of 2006 for telephone traffic and access lines was almost completely offset by growth in the number of ADSL accesses. Swisscom also said that the recent launch of its IPTV offering, Bluewin-TV, was met with high demand. Swisscom Mobile saw a rise in customer numbers of 389,000 in the year to September, to take its base to 4.56 million. Much of the growth came from its MVNO joint venture with Swiss retailer Migros, Migros Budget Mobile, which reported 250,000 customers at the end of September.

Switzerland, Swisscom