Swisscom Q1 net profit dips 7%

7 May 2008

Swisscom has reported a 7% fall in Q1 net profit, as costs associated with its takeover of Italian ISP Fastweb took their toll. Net profit for the three months ended 31 March 2008 fell to CHF428 million (USD407.2 million) compared to the same period of 2007, while revenue was up 23% at CHF2.93 billion. The group’s EBITDA increased to CHF1.16 billion, largely in line with expectations. Fastweb’s net loss narrowed to EUR11 million from EUR20.7 million a year ago, Swisscom said. In its core business in Switzerland, Swisscom reported a slight decline in revenues despite a growing number of customers, as fierce competition forced the group to cut prices.

Swisscom confirmed its 2008 forecast for revenue of around CHF12.3 billion and EBITDA of CHF4.8 billion.

Switzerland, Swisscom