Swisscom results show big drop in profit

Swisscom results show big drop in profit
Swisscom is the country's biggest phone company. Photo: Swisscom
Two weeks after the shock suicide of CEO Carsten Schloter, telecoms giant Swisscom has presented its results for the first six months of the year.

The figures presented on Wednesday show a 10 percent drop in profit, the SDA news service reported.

Switzerland’s biggest phone company said it planned to name a replacement for 49-year-old Schloter by the end of the year.

The majority state-owned firm said it had set up a nomination committee to decide on a successor.

Schloter’s former deputy, Urs Schaeppi,has been running the company since July 23rd when Schloter was found dead.

In the first half of the year Swisscom saw sales fall slightly to 5.59 billion francs, SDA said. Net profit stood at 819 million francs – 9.7 percent less than a year ago.

Swisscom blamed the fall on competition in Switzerland and lower revenue from roaming fees.

The costs of winning new customers had risen, as had expenditure on network maintenance and IT.

Despite lower revenue from traditional businesses, Swisscom was optimistic for the future.

“Our results are solid and we are on track,” Schaeppi said in a media release.

“We’ll continue to pursue our strategy with a strong focus on customer service and innovation, and despite ongoing competition and price pressure we are confident about the second half of the year."

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