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
1 minute
swissinfo.ch
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.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swisscom loses big money in Italy
This content was published on
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…
This content was published on
Fastweb still has some good cards in its hand despite the worsening economic conditions in Italy and the service’s poor coverage among private sector customers, according to experts. Swisscom’s track record in foreign investments is not so good: in 2004 Switzerland’s biggest telecom company sold its stake in the German Debitel, losing more than SFr3…
This content was published on
The Swiss are currently paying much more than their European neighbours for phone calls, text messages and downloading abroad, a situation consumer groups want to change. However, the government is not set to intervene. “Swiss mobile phone tariffs abroad are a total cheek and we cannot tolerate this in the long term,” said Peter Salvisberg,…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.