WORBLAUFEN (dpa-AFX) - Swiss telecommunication services firm Swisscom AG (SWZCF.PK, SCMWY.PK) reported that its first-quarter net profit was 638 million Swiss francs, up 61.9% from the prior-year due to non-recurring items in the financial results. This was mainly attributable to a shareholding that Fastweb transferred as a capital contribution to the newly-founded fibre optic network company FiberCop as part of the strategic partnership with TIM.
Group revenue for the first-quarter rose by 2.4% to 2.803 billion francs from last year. In the saturated Swiss core business, revenue rose slightly by 0.7% to 2.08 billion francs. The increase resulted from the IT solutions business with business customers and a higher number of smartphones sold. However, ongoing competition and price pressure continued to result in a decline in revenue from telecommunications services, which decreased by 3.5% to 1.39 billion francs.
Swisscom said it has set itself an ambitious expansion target with its aspiration to offer all customers the best network in Switzerland everywhere and at all times. By the end of 2025, FTTH fibre-optic coverage is set to increase to 60%.
For 2021, Swisscom now expects net revenue of around 11.3 billion francs, EBITDA of 4.3 billion francs to 4.4 billion francs and capital expenditure of 2.2 billion francs to 2.3 billion francs. Previously, Swisscom expected net revenue of around 11.1 billion francs, EBITDA of around 4.3 billion francs and capital expenditure of around 2.3 billion francs.
Swisscom will propose to the 2022 Annual General Meeting that the dividend for the 2021 financial year should remain unchanged at 22 francs per share.
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