• Switzerland's news in English
 

Swisscom takes 1.2 billion franc hit

Published: 14 Dec 2011 12:20 GMT+01:00

Telecoms firm Swisscom said on Wednesday it expected a drop in profit this year of 1.2 billion Swiss francs ($1.3 billion) owing to its struggling Fastweb subsidiary in Italy amid tough economic conditions.

The Swiss phone and internet provider said the private customer sector of Fastweb, which it acquired in 2007, had come under pressure in recent months.

The company will remain in profit in 2011 despite the setback.

"This development has been triggered by the difficult economic environment in Italy due to the financial and sovereign debt crisis," Swisscom said in a statement.

The firm also cited an increasingly saturated broadband market and intense price competition.

As a result Swisscom, which invested €4.6 billion to buy Fastweb, took a write-down on the value of the business of €1.3 billion.

Its 2011 net profit will be hit by 1.2 billion francs, said the firm, which earned a 1.8 billion net profit last year.

"The purchase price for Fastweb in 2007 was appropriate given the situation at that time. Since then, however, economic conditions in Italy have deteriorated considerably," Swisscom said, adding that its shareholder dividend would not be affected.

"Fastweb is being put on a solid basis once again", with a new business plan, the company said.

Your comments about this article

Today's headlines
Wawrinka dubbed 'Stan the man' of Geneva Open
Photo: AFP

Wawrinka dubbed 'Stan the man' of Geneva Open

Swiss tennis star Stan Wawrinka brushed aside his recent problems on — and off — the court on Tuesday at a press conference in Geneva to highlight his appearance as the top-ranked player at next month’s Geneva Open tournament. READ  

Public transport safety touted despite death rise
Wreckage from minibus involved in fatal train collision last August. Photo: Nidwalden cantonal police

Public transport safety touted despite death rise

The total number of deaths from public transport accidents in Switzerland shot up to 41 in 2014, an increase of 11 from the previous year, official figures released on Tuesday show. READ  

IOM fears Mediterranean death toll will increase

More than 1,750 migrants have perished in the Mediterranean since the start of 2015, a 30-fold increase over the same period last year, the Geneva-based International Organization for Migration said on Tuesday. READ  

Yemen faces collapse of health system: WHO
WHO headquarters in Geneva. Photo: Yann Forget

Yemen faces collapse of health system: WHO

Yemen risks an imminent collapse in its health system, the Geneva-based UN health agency warned on Tuesday, estimating the latest death toll from fighting there at 944. READ  

Solar Impulse finishes sixth stage in Nanjing
Photo: Solar Impulse

Solar Impulse finishes sixth stage in Nanjing

Switzerland's Solar Impulse 2 landed late on Tuesday in the Chinese city of Nanjing, finishing the sixth stage of its landmark 12-leg quest to circumnavigate the globe powered only by the sun. READ  

Credit Suisse beats forecasts for first quarter
Credit Suisse's private banking unit boosted the bottom line. Photo: AFP

Credit Suisse beats forecasts for first quarter

Swiss banking giant Credit Suisse says a strong performance by its investment banking unit helped first quarter net profit rise by 23 percent to 1.05 billion francs ($1.1 billion), outstripping forecasts by analysts. READ  

Ranking downgrades Swiss passport's 'power'

Ranking downgrades Swiss passport's 'power'

The passports of 18 countries are regarded as more “powerful” than the one offered by Switzerland, according to a new survey. READ  

Swiss hotel schools serve 'world best' recipe
Students work through lunch at the Glion school. Photo: Fabrice Coffrini/AFP

Swiss hotel schools serve 'world best' recipe

It feels like a luxury restaurant, with starched-uniformed waiters pouring pricy wine and explaining the intricate details of a gourmet menu as diners gaze out at a spectacular mountain view. READ  

Frog invasion forces halt to Zurich football game
Photo: FC Embrach

Frog invasion forces halt to Zurich football game

A referee was forced to stop an amateur football match between two senior clubs in Zurich after thousands of frogs invaded the field, according to media reports on Monday. READ  

Search continues in Chur River for missing boy
Photo: Saint Gallen cantonal police

Search continues in Chur River for missing boy

Police and fire department officers in the canton of Saint Gallen continued searching for the third day in a row on Monday for Semere, a two-year-old boy who went missing over the weekend. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Features
Swiss hotel management schools serve up 'world best' recipe
National
French president Hollande basks in good vibes from first Swiss visit
National
Segways win approval for operation on Swiss bicycle lanes
National
Joan Baez and Sting in lineup for this summer's Paléo music festival
National
Second CERN club skier dies from avalanche in Valais Alps
Sport
Lausanne and IOC celebrate a century of Olympism
National
Bern waters down criteria for beer that can be labelled ‘Swiss’
National
VIDEO: Swiss television satire clip ridicules Americans on ski slopes
National
Internet giant Google named most attractive employer in Switzerland
National
Immigration remains top election issue for Swiss voters: opinion poll
National
Environmental bureau ranks Zurich first among Europe's 'sootfree cities'
National
Zurich crane-climbing stunt by teenager flags 'roofer' concerns
Features
Mobility takes off as young urban Swiss catch the car-sharing bug
Education
THE ranks EPFL among seven 'fastest rising young universities'
Features
Six steps for expats to get along better with the Swiss
Business & Money
Ethical Coffee Company aims to beat Nespresso in home market
National
Use of temporary staffing continues to rise in Switzerland
Sponsored Article
Need help with permits and registration in Switzerland?
National
Swiss foreign affairs minister touted as candidate for top UN job
National
One of Switzerland's most celebrated artists dies in Lucerne at 106
Business & Money
Swiss luxury brand Tag Heuer announces plans for smartwatch
National
Valais lights up 13 mountain peaks for 200th anniversary
Business & Money
Switzerland to avoid recession this year: Credit Suisse forecast
Business & Money
Europe's tallest hotel pitched for Swiss mountain village
National
Exlusive interview: surviving Swiss cousin remembers Anne Frank
National
New Credit Suisse chief executive 'offers hope for Africans'
Features
Top tips to help you find an apartment in Switzerland
Business & Money
American expat to make way for African as Credit Suisse CEO
National
Rising Swiss gender pay gap above European Union average
National
Political deal reached to enact Swiss holiday home restrictions
National
Optimism drives this year's Geneva International Motor show
National
Robust Swiss economy beats forecasts for 2014: government
Sport
Federer scores upset win against Djokovic for seventh Dubai title
National
Swiss train in collision near Zurich ignored stop signal: SBB
Technology
Switzerland best in world for per capita European patent filings
Education
New EPFL building to showcase art and science 'under one roof'
National
Same-sex marriage supported by most Swiss: opinion polls
National
New study finds Switzerland is world's best place to retire
National
Army official calls for Swiss women to undergo military training
National
New Swiss health campaign combats smoking as 'norm' for too many
Culture
Abba star Frida records song about first ascent of the Matterhorn
National
Swiss federal government unveils EU immigration quotas bill
Business & Money
HSBC Swiss private bank revelations 'tip of iceberg': whistleblower
Business & Money
FATCA: 'The age of financial privacy is over'
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

4,714
jobs available