Swisscom phones in lower profits

Switzerland's largest communications provider finished 2008 with higher revenues but lower profits, it said on Wednesday.

The Bern-based company, a former monopolist, said its yearly revenues rose ten per cent to SFr12.19 billion ($10.38 billion).

Net income fell 15.5 per cent to SFr1.75 billion, which the company attributed in part to the 2007 disposal of a Hungarian telecommunications provider.

Swisscom also reported growth at Fastweb, an Italian broadband company. The 2007 purchase of Fastweb returned the Swisscom to a more aggressive strategy to counter lacklustre growth in Switzerland.

The telecommunications company also said the weakening economic climate would only have a limited impact on customer demand for telecom services.

Swisscom, which is still majority-owned by the government, has outperformed its European counterparts over the past 12 months and still dominates the domestic market.