Switzerland’s Swisscom has reported a decline in its third-quarter profits as the company saw declines in its core businesses.
Net revenue for the first nine months of the year was up slightly at CHF8.46 billion (US$9.26 billion), but net profits fell by 6.1 percent to CHF1.27 billion (US$1.4 billion).
EBITDA fell by 3.2% on a like-for-like basis, due in particular to the fall in revenue in Swiss core business, higher network maintenance and IT expenses in Switzerland and an increase in acquisition costs in Italy as a result of the high customer growth.
The company saw its mobile customer base rise by 3.1 percent over the year to 6.35 million, while TV customers jumped by nearly a third to 943 thousand.
It’s Italian broadband subsidiary saw customers rise by 12% to 1.9 million.
“We have enjoyed a strong third quarter, with both Swisscom and Fastweb reporting slightly higher revenue and operating income. Our results are solid and we remain on track for 2013,” says Urs Schaeppi, CEO of Swisscom.
Swisscom’s full-year outlook for 2013 remains unchanged, with expected revenue of over CHF 11.4 billion, EBITDA of at least CHF 4.25 billion and capital expenditure of CHF 2.4 billion.