FastWeb USD1.3bn writedown for parent Swisscom

Bloomberg reports that Swisscom’s full-year 2011 net income will be cut by USD1.3 billion due to a writedown on its Italian fixed line and broadband unit FastWeb, following an impairment test. The Swiss incumbent’s net profit had been forecast by analysts at just over USD2 billion, according to Bloomberg. ‘In the wake of the sovereign debt crisis, Italy’s economic situation has worsened in the last few months,’ Swisscom said in a statement, citing increasing unemployment and political uncertainty as risks impairing FastWeb’s growth. Italy’s new prime minister Mario Monti has proposed a USD39 billion package of austerity and growth measures as he attempts to reduce a debt pile that is bigger than that of Spain, Greece, Portugal and Ireland combined.