The provision amounted to CHF 102 million in the first quarter of 2010. In contrast, EBITDA, adjusted for the provision and currency effects, rose by 1.7 percent. This was announced by Swisscom on Thursday. The provision was the main reason why net profit fell by 7.1 percent to CHF 1.79 billion. Swisscom's net revenue fell by 0.1 percent to CHF 11.99 billion. Revenue, on the other hand, increased by 2.1 percent due to constant currencies.
The subsidiary Fastweb increased its net revenue in local currency by 1.5% to 1.88 billion euros. And Swisscom's revenue excluding Fastweb increased by 2.3% to CHF 9.4 billion. This increase is primarily attributable to the economic recovery, company acquisitions by Swisscom IT Services and growth in mobile telephony and bundled offers, Swisscom writes in the press release.
Swisscom's mobile customers in Switzerland grew by four percent to 5.8 million. Revenue from mobile data transmission by Swisscom customers rose by 33 percent year-on-year to CHF 435 million. Meanwhile, prices in mobile telephony fell by around 13 percent compared to the previous year. The number of Swisscom TV subscribers rose by 81.5 percent to 421,000 within the space of a year.
For the 2011 financial year, Swisscom expects net revenue of at least CHF 11.8 billion, EBITDA of over CHF 4.6 billion and investments of less than CHF 2 billion. Swisscom also hopes that after a transitional year in 2011, Fastweb will achieve "strong revenue and cash flow growth" in subsequent years thanks to the marketing initiatives and efficiency improvements that have been introduced.
Changes to the Swisscom Board of Directors
The Swisscom Board of Directors will propose Hansueli Loosli for election as the new Chairman at the next Annual General Meeting on April 20, 2011. He will assume the new role after relinquishing his operational activities at Coop on September 1, 2011. The current Chairman of the Swisscom Board of Directors, Anton Scherrer, will stand for election as Chairman until August 31, 2011 at the Annual General Meeting.
Hans Werder, the state representative elected by the Federal Council, will also take a seat on the Board of Directors from the next Annual General Meeting. Felix Rosenberg, who has been on the Board of Directors since Swisscom was founded, will hand over his mandate at the Annual General Meeting after many years on the Board as a representative of the Swiss Confederation.