Swisscom ups y/e expectations on back of 9M results

9 Nov 2010

In the first nine months of 2010 Swisscom’s revenue grew by 0.6% to CHF8.925 billion (USD9.25 billion), compared to the same period of 2009. Sales at its Italian subsidiary Fastweb rose by 2.9% in local currency to EUR1.4 billion (USD1.95 billion) while Swisscom’s revenue excluding Fastweb increased by 2.3% to CHF7.03 billion. The increase is attributed to the economic recovery, company acquisitions made by Swisscom IT Services as well as growth in mobile communications and bundled products. As a result of the provision of CHF102 million recognised in the first quarter of 2010 for the proceedings against Fastweb relating to VAT, Swisscom’s nine months EBITDA fell by 1.3% to CHF3.55 billion, while net profit dropped by 8.2% year-on-year to CHF1.41 billion, mainly as a result of the provision and an increase in depreciation. Expectations for the 2010 financial year have been revised upwards: net revenue (excluding Fastweb) has been revised upwards to around CHF9.35 billion and EBITDA to around CHF4.0 billion. Across the group, Swisscom now anticipates net revenue of around CHF12 billion and EBITDA of around CHF4.7 billion.

In operational terms, the number of broadband access lines decreased by half a percentage point year-on-year to 1.793 million at 30 September 2010, of which 1.553 million were retail DSL lines (up 7.8%) and 240,000 wholesale lines (down 33.9%). The Swisscom TV subscriber base almost doubled to 358,000, while mobile customers increased by 4% to 5.761 million. In the first nine months of 2010 Swisscom sold 953,000 mobile devices, of which almost half were smartphones.

Switzerland, Swisscom