Swisscom feels the heat of competition

Switzerland’s largest telecommunications company, Swisscom, says tougher competition will keep its sales and profit under pressure in 2010.

This content was published on February 18, 2010 minutes

The company made a net profit of SFr1.925 billion ($1.78 billion) in 2009 when lower depreciation charges helped to offset weaker domestic demand.

The former state monopoly said in a statement that its key Swiss business would continue to decline this year as a result of ongoing competition, unbundling and a levelling-off of growth in the mobile and broadband market.

Swisscom’s fourth-quarter profit was SFr401 million, below analysts’ average expectations of SFr438 million.

The group’s Italian broadband operator, Fastweb, has reported a 2009 net profit of €35.6 million (SFr52.2 million).

Swisscom bought Fastweb in 2007, returning to a more aggressive strategy to counter lacklustre growth at home.

The company’s share price rose 16.5 per cent in 2009. The board of directors is to propose a dividend of SFr20 (SFr19 for 2008) at the annual shareholders’ meeting. and agencies

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