By John Revill and Neil MacLucas
ZURICH--Swisscom AG (SCMN.VX) Wednesday reported a 6.8% fall in
second-quarter profit as the telecommunications giant said it would
continue following the strategy outlined by its late chief
executive, whom it expects to replace by the end of the year.
Swisscom, which is 57% owned by the Swiss government, said it
will continue an infrastructure investment plan developed last year
by Carsten Schloter, who was found dead in his home in July.
The infrastructure plan is designed to offer higher Internet
speeds and digital Tv to consumers as the company continues to
expand outside of its core fixed- and mobile-phone businesses.
"Our results are solid and we are on track," said interim CEO
Urs Schaeppi. "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."
Swisscom's expansion comes as the company's battles falling
revenue from its traditional businesses. Last year, the company
said 400 million Swiss francs ($431 million) from price erosion was
offset by revenue from new sources.
In the quarter ended June 30, Swisscom said net profit fell to
CHF427 million from CHF458 million a year ago. Revenue increased 1%
to CHF2.86 billion.
Swisscom also said Mr. Schaeppi, the current head of Swisscom's
domestic business, will remain as acting CEO until the end of the
year, when it expects to appoint a "definitive" successor to Mr.
Schloter. Analysts say Mr. Schaeppi, who joined Swisscom in 1998,
is seen as a favorite to take the job permanently.
Swisscom will again propose a dividend of CHF22 per share for
the 2013 financial year.
Write to Neil Maclucas at neil.maclucas@wsj.com
Order free Annual Report for Swisscom AG
Visit http://djnweurope.ar.wilink.com/?ticker=CH0008742519 or
call +44 (0)208 391 6028
Order free Annual Report for Swisscom AG
Visit http://djnweurope.ar.wilink.com/?ticker=US8710131082 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires