Swisscom reports sales suffer with Fastweb
Switzerland's biggest telecoms provider, Swisscom, reported on Wednesday a 25.7-percent increase in its first-quarter net profit but sales dropped on a decline at Italian subsidiary Fastweb.
Net profit for the first three months of the year reached 474 million Swiss francs (370.4 million euros, 548 million dollars), rising against last year mainly because of a provision of 102 million francs for tax litigation against Fastweb in Italy that was included in first quarter 2010 accounts.
Swisscom said in a statement that first-quarter net sales fell by 3.1 percent to 2.86 billion francs owing to declining sales at Italian broadband specialist Fastweb, while earnings before interest and tax (EBIT) grew 16.3 percent to 648 million francs.
Fastweb's net profit decreased 5.8 percent to 435 million euros despite a growing customer base due to more pressure on prices and cost saving cuts in its product rangem, the Swiss parent said.
© 2011 AFP