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.

In compliance with the JTI standards

In compliance with the JTI standards

More: SWI certified by the Journalism Trust Initiative

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