Swisscom posts 3Q results

7 Nov 2007

Swisscom has reported a 47% rise in third-quarter profit, driven by the repurchase of Vodafone’s 25% stake in its mobile phone unit late last year. Swisscom’s net income for the three months ended 30 September 2007 rose to CHF691 million (USD601.4 million), while revenues increased to CHF2.99 billion, boosted by the summer’s EUR3 billion (USD4.36 billion) acquisition of Italian broadband operator Fastweb. With the acquisition of Fastweb, which claimed 1.25 million customers at the end of September, state-owned Swisscom has returned to a more aggressive strategy to counter slow growth in its saturated home market. Swisscom Fixnet, the group’s fixed line arm, reported a 6.1% fall in net revenues in the third quarter to CHF1.09 billion, in part as a result of a steady decline in PSTN/ISDN lines to 3.7 million. On the plus side, the number of broadband lines in service rose by almost 20% year-on-year to 1.56 million, of which 440,000 were wholesaled to rival ISPs. Swisscom Mobile reported a year-on-year 7.3% increase in subscribers to 4.89 million, although ARPU fell by CHF4 to CHF62 over the same time period.

Switzerland, Swisscom