Swisscom Lowers Full Year Sales Guidance As 2Q Profit Dips
August 08 2012 - 1:14AM
Dow Jones News
Telecommunications company Swisscom AG (SCMN.VX) Wednesday said
it expects slightly lower full year revenue of 11.3 billion Swiss
francs as it reported a 3.5% dip in second quarter net profit.
MAIN FACTS:
- 2Q Net profit fell 3.5% to CHF468 million from CHF485 million
a year earlier.
- Analysts expected net profit of CHF461 million.
- 2Q Revenue fell 1.4% to CHF2.82 billion from CHF 2.86 billion
in 2Q 2011.
- Revenue had been expected at CHF2.83 billion.
- In the first half of 2012, Swisscom's net revenue declined by
1.8% to CHF 5,621 million and operating income (EBITDA) was down
1.5% to CHF 2,236 million.
- The company was able to make up for the price erosion in its
Swiss core business of some CHF 170 million through growth in
customers and volume.
- Capital expenditure on infrastructure in Switzerland was up by
12.6% to CHF 740 million.
- Excluding wholesale revenues from interconnection services
(hubbing), Fastweb posted a slight growth in revenue, with 78,000
new customers in the first half-year, and an increase in operating
profit (EBITDA) of 1.3% to EUR 233 million despite higher
subscriber acquisition costs.
- Due to currency developments Swisscom expects slightly lower
net revenue of CHF 11.3 billion for full-year 2012, while other
financial guidance remained unchanged.
- Swisscom has lowered the exchange rate underlying its
financial outlook for 2012 from CHF 1.23 to CHF 1.20 per euro.
-Zurich Bureau, Dow Jones Newswires, +41 43 443 80 47;
zurichdjnews@dowjones.com
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