WORBLAUFEN (dpa-AFX) - Swiss telecommunication services firm Swisscom AG (SWZCF.PK, SCMWY.PK) reported that its first-quarter net profit was 394 million Swiss francs, up 2.9% on the prior-year level due to one-time effects in income tax expense.
Consolidated operating income before depreciation and amortisation or EBITDA were 1.11 billion francs, 0.7% below that of the previous year.
Quarterly group revenue was 2.737 billion francs, down 4.3% from last year. In its saturated Swiss core business, Swisscom reported revenue of 2.071 billion francs, down 4.4% from prior year. The 72 million francs decline in revenue from telecommunications services can be largely attributed to persistent competitive and price pressure in various segments. The decline in core business was largely offset by ongoing cost-cutting measures.
Swisscom has also set itself new expansion targets up to 2025. FTTH coverage is set to double in homes and businesses compared to 2019 by the end of 2025.
For 2020, Swisscom continues to expect net revenue of around 11.1 billion francs, EBITDA of around 4.3 billion francs and capital expenditure of around 2.3 billion francs.
The company noted that it is not possible to quantify the potential financial impact of COVID-19.
If business develops as planned, Swisscom will propose to the 2021 Annual General Meeting that the dividend for the 2020 financial year remain unchanged at 22 francs per share.
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