Swisscom 9Q Net Profit Down 8.2%, Upgrades Guidance
November 09 2010 - 2:09AM
Dow Jones News
Swiss telecommunications company Swisscom AG (SCM) Tuesday
reported a 8.2% drop in net profit for the first nine months on a
0.6% increase in sales, and increased its full year outlook.
MAIN POINTS:
-9M net profit CHF1.41 billion versus CHF1.53 billion, mainly as
a result of the provision and an increase in depreciation.
-9M revenue CHF8.98 billion versus CHF8.93 billion.
The increase is primarily attributable to the economic recovery,
company acquisitions made by Swisscom IT Services as well as growth
in mobile communications and bundled products.
-Outlook: The financial outlook for the 2010 financial year is
being revised upwards.
Swisscom's expected net revenue (excluding Fastweb) has been
revised upwards to around CHF 9.35 billion and EBITDA to around CHF
4.0 billion. Capital expenditure remains unchanged at around CHF
1.3 billion.
As a result of a change in revenue recognition, net revenue and
EBITDA at Fastweb could be between 3% and 5% down on the previous
expectations of EUR 1.95 billion and EUR 580 million (excl. a
provision for the VAT proceedings) respectively. Fastweb's capital
expenditure could be up to 5% higher than the previous assumption
of around EUR 410 million.
Across the Group, Swisscom now anticipates net revenue of around
CHF 12 billion and EBITDA of around CHF 4.7 billion (incl. a
provision for the VAT proceedings against Fastweb). Expectations
concerning revenue and EBITDA have thus been stepped up by some CHF
100 million each. Excluding any special payments of provisions for
ongoing legal proceedings, operating free cash flow will remain
unchanged at around CHF 2.6 billion.
-With immediate effect, Alberto Calcagno (38) will take over as
general manager (Direttore Generale)
of Fastweb
-Eight analysts polled by Dow Jones Newswires on average
forecast a net profit of CHF506.8 million
-Eight analysts polled by Dow Jones Newswires on avrage forecast
revenue of CHF2.97 billion
-By Anita Greil, Dow Jones Newswires; +41 43 443 8044 ;
anita.greil@dowjones.com
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