Net income at Swisscom declined last year by 61.2 per cent to SFr694 million ($756 million), due mainly to losses at its Italian broadband subsidiary Fastweb.This content was published on February 15, 2012 - 09:51
Switzerland’s largest telecoms company, which is majority state owned, invested €4.6 billion to buy Fastweb in 2007.
The fall in profit of SFr1.094 billion is slightly under the SFr1.2 billion predicted by Swisscom back in December.
The group also posted a fall in net revenue in 2011 of SFr521 million or 4.3 per cent on Wednesday. Payment of an ordinary dividend of SFr22 per share will be proposed to the annual general meeting.
The domestic market was relatively tight in 2011. “Price erosion in Swiss core business of some SFr500 million could not be fully offset by customer and volume growth of around SFr400 million,” Swisscom noted.
Swisscom said it was investing heavily in expanding the broadband networks across the country to further increase competitiveness. Investment in infrastructure is expected to reach SFr2.2 billion this year.
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