Swisscom Profits Decline as Revenues Flatline
Published on: 6th Feb 2014
Note -- this news article is more than a year old.
Switzerland's Swisscom has posted a slight decline in its full year profits, as revenues were largely flat over the previous year.
The company reported that revenues were up by just 0.4% at CHF11.38 billion, although net profit fell by 6.6% to CHF1.8 billion.
EBITDA fell by 2.0% on a like-for-like basis, due primarily to the fall in revenue in Swiss core business. Expenses were also higher in Switzerland for network maintenance and IT, while customer growth in Italy led to higher acquisition costs.
Net profits were also hurt by a CHF94 million increase in depreciation and amortisation due to increased capital expenditure on infrastructure.
"Our business performed solidly in 2013. Despite strong competition, we consolidated our market position," said CEO Urs Schaeppi.
The number of wireless subscribers grew by 349,000 or 3% to 12.1 million.
Swisscom expects moderate growth in revenue and EBITDA in 2014 and is targeting net revenue of CHF 11.5 billion and EBITDA of CHF 4.35 billion. Network infrastructure in both Switzerland and Italy will continue to call for very high capital expenditure totalling an expected CHF 2.4 billion, of which CHF 1.75 billion in Switzerland.