Swisscom posts 32 percent drop in 3Q net profit

Swisscom AG reported Wednesday a 32 percent decline in net profit for the third quarter partly due to costs related to the launch of the iPhone and the acquisition of Italian telecom Fastweb SpA.

Switzerland's largest telephone company said net income for the quarter was 470 million Swiss francs ($401 million) compared with 689 million francs for the same period last year, a Swisscom statement said.

Pre-tax profit for the quarter dropped 3.6 percent, to 1.188 billion francs ($ 1.014 billion) from 1.233 billion francs ($1.052) because of subsidies and dealer commissions on the sale of over 100,000 iPhones, Swisscom said.

The decline in net income is also due to the amortization of 143 million francs ($122 million) in cost for the takeover of Fastweb, Swisscom said.

Fastweb had a 17.2 percent increase in net revenue for the quarter to 687 million francs ($586.4 million), Swisscom said.

The company's overall net revenue for the quarter was 3.1 billion francs.

Shares in Swisscom were down 3.13 percent at 355.50 francs ($303.5) on the Zurich exchange.

Resource - Cellular-news