Despite increased competition in the telecommunication market, Swisscom has recorded a large increase in its net income for 1999, benefiting mainly from acquisitions and sell-offs. Net income rose 54 per cent to SFr2.4 billion.This content was published on March 22, 2000 - 13:49
Despite increased competition in the telecommunication market, Swisscom has recorded a large increase in its net income for 1999, benefiting mainly from acquisitions and sell-offs. Net income rose 54 per cent to SFr2.4 billion.
Turnover increased by 6.7 per cent, thanks to the purchase of the German mobile phone operator, Debitel. Operating income before those exceptional gains actually fell by one per cent to SFr4.4 billion, due to reductions in call rates in the more competitive environment.
However Swisscom, which is still 65.5 per cent owned by the Swiss government, is optimistic for 2000. Although the Swiss market will experience falling revenues, the company said it expected a substantial increase because for the first time, Debitel would be included in the financial statements for a complete fiscal year.
As well, "the disposal of its stake in Cablecom Holding AG will contribute around SFr 1.35 billion to the Group's extraordinary gain for the year 2000," Swisscom said in a statement.
Swisscom did not specify the size of the extraordinary gains it made on the sale of a stake in the US-based group Infonet, and the unwinding of its Unisource alliance with Dutch KPN and Telia of Switzerland.
The Berne-based group also said that it has set up a task force to prepare the stock market debut of its Blue Window Internet service in the second half of this year. A definitive decision on the timing and structure of the flotation will be made later in the year.
Detailed results are due on April 13.
swissinfo with agencies
This article was automatically imported from our old content management system. If you see any display errors, please let us know: firstname.lastname@example.org