Swisscom Earnings Rise as TV, Broadband Gains Offset Price Drop
May 7 (Bloomberg) — Swisscom AG, Switzerland’s largest phone company, reported an increase in earnings excluding some items in the first quarter, bringing it on course to achieve its first annual gain in profit on that basis since 2008.
Earnings before interest, taxes, depreciation and amortization climbed 2.9 percent to 1.06 billion francs ($1.21 billion), the Bern-based carrier said today in a statement. Sales rose 3.2 percent to 2.82 billion francs, beating the 2.77 billion-franc average of analysts’ estimates compiled by Bloomberg.
Swisscom, controlled by the Swiss government, is benefiting from investments in its network and products such as television and broadband access as it seeks to offset a decline in wireless prices. The company confirmed its full-year forecast.
“The positive trend in operating business continued, with encouraging first-quarter growth in revenue and operating income despite price erosion,” Chief Executive Officer Urs Schaeppi said in the statement.
The company last month offered to buy stakes in directory businesses it jointly owns with PubliGroupe SA as it seeks to strengthen its position in advertising. The number of its Swiss TV customers rose 22 percent from the year-earlier period to 1.05 million.
To contact the reporter on this story: Cornelius Rahn in Berlin at crahn2@bloomberg.net To contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net Ville Heiskanen, David Risser
