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.
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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