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Swisscom 9M Results Down, Confirms FY20 View; Proposes Dividend; Names New CFO, Chairman

Swiss telecommunication services firm Swisscom AG (SWZCF.PK,SCMWY.PK) reported Thursday that its nine-month net income declined 1.3 percent to 1.166 billion Swiss francs from last year's 1.181 billion francs.

Operating income or EBIT edged down 0.4 percent from last year to 1.523 billion francs, and operating income before depreciation and amortisation or EBITDA dropped 0.1 percent to 3.356 billion francs. Adjusted EBITDA edged up 0.2 percent, despite many imponderables due to COVID-19, saturation in the Swiss market and tough competition.

Group revenue was 8.20 billion francs, down 3 percent from 8.46 billion francs last year mainly driven by ongoing price pressure and the impact of COVID-19. Adjusted revenues declined 2.1 percent. In its saturated Swiss core business, Swisscom generated revenue of 6.15 billion francs, down 3.5%.

Looking ahead for fiscal 2020, Swisscom continues to expect net revenue of around 11.0 billion francs, EBITDA of around 4.3 billion francs and capital expenditure of around 2.3 billion francs.

Subject to achieving its targets, Swisscom will propose payment of an unchanged dividend of 22 francs per share for the 2020 financial year at the 2021 Annual General Meeting.

Further, Swisscom said its Board of Directors has appointed Eugen Stermetz as the new Chief Financial Officer and a member of the Group Executive Board, effective March 1. Stermetz will be taking over from Mario Rossi, who has been CFO and a member of the Executive Board since 2013.

Swisscom also said its Board proposes Michael Rechsteiner, who has been a member of the Board since 2019, for election as Chairman. Rechsteiner is currently the European head of Power Services and Gas Power at General Electric.

Rechsteiner succeeds Chairman Hansueli Loosli, who will reach the maximum term of office of twelve years at the forthcoming General Meeting of March 31, 2021.

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