Swisscom loses big money in Italy

Swiss telecommunications firm Swisscom faces a SFr1.2 billion ($1.27 billion) net profit loss via Fastweb, its Italian broadband subsidiary.

This content was published on December 14, 2011 - 10:32 and agencies

Swisscom, which invested €4.6 billion to buy Fastweb in 2007, posted a net profit of SFr1.8 billion in 2010.

"The difficult economic situation and increasing interest rates have led to reduced prospects for growth and a higher cost of capital in Italy," Swisscom announced in a statement on Wednesday.

Swisscom said Fastweb's book value had been impaired as a result, reducing its net income by SFr1.2 billion.

It noted that retail business was particularly slow, and that many of Fastweb’s customers failed to pay their invoices.

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