Swisscom posts 32 percent drop in Q3 net profit
Launching iPhone and taking over Fastweb have taken a toll on Swiss’s largest telephone company’s net profit.6 November 2008
BERN - Swisscom AG reported Wednesday a 32 percent decline in net profit for the third quarter partly due to costs related to the launch of the iPhone and the acquisition of Italian telecom Fastweb SpA.
Switzerland's largest telephone company said net income for the quarter was CHF 470 million compared with CHF 689 million for the same period last year, a Swisscom statement said.
Pre-tax profit for the quarter dropped 3.6 percent, to CHF 1.188 billion from CHF 1.233 billion because of subsidies and dealer commissions on the sale of over 100,000 iPhones, Swisscom said.
The decline in net income is also due to the amortisation of CHF 143 million in cost for the takeover of Fastweb, Swisscom said.
Fastweb had a 17.2 percent increase in net revenue for the quarter to CHF 687 million, Swisscom said.
The company's overall net revenue for the quarter was CHF 3.1 billion.
Shares in Swisscom closed down 1.91 percent at CHF 360.00 on the Zurich exchange on Wednesday.
[AP / Expatica]