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In the statement published by the group on Thursday, it was stated that sales increased by only 0.3 percent from January to the end of September, reaching 8.20 billion francs. Swisscom was troubled by the weakness of the euro, which reduced the earnings contribution of its Milan broadband subsidiary Fastweb. When adjusted for exchange rate effects, consolidated sales would increase by 0.9 percent.
Operationally business as usual emerged: While sales in its core business in Switzerland fell slightly, Swisscom grew in Italy. Fastweb increased its sales by 6.0 percent to 1.91 billion euros.
Net profit increases significantly
In terms of profits, things are looking better: Swisscom’s operating earnings before depreciation and amortization (EBITDA) increased by 4.1 percent to 3.5 billion francs. The elimination of special effects, which weighed down last year’s results, also contributed to this. Without one-off effects and at constant exchange rates, EBITDA would have increased by 2.2 percent.
Overall, the result a year ago was burdened by provisions for legal disputes amounting to 82 million francs. The biggest part of this was the 71.8 million franc fine imposed by the Federal Competition Commission on Comco. According to the Comco decision, the telecommunications company abused its dominant position in the market in broadcasting live ice hockey and football matches on pay TV between 2006 and 2013.
Eliminating these one-off effects had an even greater impact on net profit. As a result, Swisscom increased its net profit by 7.9 percent to 1.3 billion francs.
By numbers, the group exceeded analysts’ expectations.
The euro’s decline also complicates the full-year outcome
Due to the decline in the euro and weak mobile phone sales, Swisscom is also lowering its sales outlook for the full fiscal year 2023. The group now expects sales of 11.0 billion francs, while it had previously forecast sales of 11.1 to 11.2 billion francs. The majority of the financial community was unaware of the reduction in sales targets.
The industry leader has kept its other targets unchanged: EBITDA is expected to reach 4.6 to 4.7 billion francs, while investments are expected to reach 2.3 billion francs. If these targets are achieved, shareholders should still receive a dividend of 22 francs per share. (SDA/sak)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
