Swisscom with more revenue and less profit in 2008
Although Swisscom generated more revenue last year, it posted lower profits. One-time factors such as the termination of lease agreements for fixed-line and mobile network equipment and the sale of subsidiaries affected the results.
Although Swisscom generated more revenue last year, it made less profit. Special factors such as the withdrawal from leasing contracts for fixed and mobile network equipment and the sale of subsidiaries had an impact on the result. Revenue increased by 10 percent to CHF 12.2 billion, Swisscom announced on Wednesday. In contrast, net profit fell by 15.5 percent to 1.751 billion Swiss francs.
The CHF 1.1 billion increase in turnover was mainly due to the acquisition of the Italian broadband provider Fastweb. Adjusted for Fastweb and company disposals, the revenue of Switzerland's largest telecommunications group would only have increased by 0.4 percent on a comparable basis. Swisscom's operating profit before depreciation and amortization (EBITDA) increased by 6.4% to CHF 4.789 billion. Fastweb also contributed CHF 366 million to this improvement. On a comparable basis, EBITDA would have climbed by 0.8 percent.
Special factors depress earnings
The 15.5 percent decline in net profit is due to a number of special factors. For example, Swisscom sold its subsidiary Antenna Hungaria in the previous year, which generated a one-off profit of CHF 162 million. On the other hand, the withdrawal from leasing contracts for fixed network and mobile telephony equipment in the first half of 2008 depressed the result by CHF 126 million. Adjusted for the special factors, net profit was in line with the previous year, writes Swisscom.
Fastweb's contribution to Swisscom's net profit is marginal. The Italian broadband provider achieved a small profit of EUR 6.1 million on revenue growth from EUR 1.43 billion to EUR 1.71 billion. This means that Fastweb was in the black for the first time in a financial year in 2008: In the previous year, Fastweb had suffered a loss of 124.7 million euros. However, the net profit is due to the settlement of the dispute with Telecom Italia, which brought the Swisscom subsidiary 30 million euros.
Swisscom does not expect the economic crisis to cause a slump in the current year. It is assumed that this will only have a limited impact on customer demand for telecommunications services.
The CHF 1.1 billion increase in turnover was mainly due to the acquisition of the Italian broadband provider Fastweb. Adjusted for Fastweb and company disposals, the revenue of Switzerland's largest telecommunications group would only have increased by 0.4 percent on a comparable basis. Swisscom's operating profit before depreciation and amortization (EBITDA) increased by 6.4% to CHF 4.789 billion. Fastweb also contributed CHF 366 million to this improvement. On a comparable basis, EBITDA would have climbed by 0.8 percent.
Special factors depress earnings
The 15.5 percent decline in net profit is due to a number of special factors. For example, Swisscom sold its subsidiary Antenna Hungaria in the previous year, which generated a one-off profit of CHF 162 million. On the other hand, the withdrawal from leasing contracts for fixed network and mobile telephony equipment in the first half of 2008 depressed the result by CHF 126 million. Adjusted for the special factors, net profit was in line with the previous year, writes Swisscom.
Fastweb's contribution to Swisscom's net profit is marginal. The Italian broadband provider achieved a small profit of EUR 6.1 million on revenue growth from EUR 1.43 billion to EUR 1.71 billion. This means that Fastweb was in the black for the first time in a financial year in 2008: In the previous year, Fastweb had suffered a loss of 124.7 million euros. However, the net profit is due to the settlement of the dispute with Telecom Italia, which brought the Swisscom subsidiary 30 million euros.
Swisscom does not expect the economic crisis to cause a slump in the current year. It is assumed that this will only have a limited impact on customer demand for telecommunications services.
