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Swisscom Q1 Profit Rises; Affirms FY19 Outlook - Quick Facts

Swiss telecommunication services firm Swisscom AG (SWZCF.PK,SCMWY.PK) on Thursday reported that its net income for the first quarter of 2019 increased 1.1 percent to 383 million Swiss francs from 379 million francs last year. Earnings per share increased 1.0 percent to 7.43 francs from 7.36 francs a year ago.

The consolidated operating income before depreciation and amortization or EBITDA rose 5.8 percent to 1.12 billion francs from 1.06 billion francs in the previous year.

However, Swisscom's consolidated net revenue decreased 0.9 percent to 2.86 billion francs from 2.89 billion francs in the year-ago period, while at constant currencies revenue remained largely stable, at -0.2 percent.

The decline in revenue of 41 million francs recorded in the Swiss core business was largely offset by currency adjusted growth at Italian subsidiary Fastweb and growth in the other segments.

In the Swiss core business, revenue fell as a result of continuing price pressure and the decline in the number of connections in fixed-line telephony.

The number of employees at Swisscom declined 3.0 percent year-on-year, to 19,719 full-time employees FTEs. In Switzerland, the company's headcount decreased by 576 or FTEs to 17,035 FTEs. In Switzerland, the reduction in the first quarter of 2019 totalled 112 FTEs.

Looking ahead to fiscal 2019, Swisscom said its outlook remains unchanged. The company continues to expect full-year net revenue of around 11.4 billion francs, EBITDA of more than 4.3 billion francs and capital expenditure of around 2.3 billion francs, excluding costs of 196 million francs for mobile communication frequencies in Switzerland.

Subject to achieving its targets, Swisscom said it will propose payment of an unchanged dividend of 22 francs per share for the 2019 financial year at the 2020 Annual General Meeting.

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