Swisscom '07 Net Profit Up 29%, No Buyback in '08

ZURICH -(Dow Jones)- Telephone operator Swisscom has reported a 29% rise in net profit for the full year, citing gains from divestments as well as the buyback of a 25% stake in its mobile operation in the fall of 2006.

The Bern-based former monopoly, which is still majority-owned by the state, said 2007 net profit was CHF2.07 billion, up from CHF1.6 billion the previous year.

Gains from the sale of the subsidiaries Antenna Hungaria and Infonet resulted in an increase of CHF162 million in net income.

Swisscom's Italian broadband unit Fastweb contributed CHF1.47 billion to revenue, and CHF498 million to earnings before interest, taxes, depreciation and amortization, or Ebitda.

In a change from its usual policy, Swisscom said there would be no share buyback in 2008. Instead, it's proposing a CHF18 per share dividend, plus a special dividend of CHF2 per share, an increase on the CHF17 per share dividend for 2007.

"The lack of a buyback in '08 isn't a complete surprise, but it might be a bit disappointing for some participants in the market," said Thomas Germann, an analyst at Zuercher Kantonalbank who rates the stock at marketweight.

For the 2008 financial year, Swisscom expects to post revenue of around CHF12.3 billion and Ebitda of around CHF4.8 billion.

Swisscom shares closed at CHF386.25 Tuesday, down 13% in the year-to-date, slightly better than the SMI. Premarket indications point to a slightly higher opening.

-By Hans Schoemaker, Dow Jones Newswires; +41-43-4438045; hans.schoemaker@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 5th March 2008