Swisscom Cuts Full Year Profit Outlook as 3Q Profit Falls Short

ZURICH -- Swisscom AG (SCMN.VX) Thursday reduced its operating profit outlook for 2012 by 50 million Swiss francs to CHF4.35 billion as it reported lower-than-expected earnings in its third quarter.

MAIN POINTS:

-3Q net profit of CHF458 million versus CHF564 million in 2011

-3Q revenue CHF2.81 billion versus CHF2.82 billion in 2011

-Outlook: As a result of non-recurring costs amounting to CHF50 million in connection with the changes in headcount, Swisscom has revised its earnings before interest, tax and amortization figure down for the full-year from CHF 4.4 billion to CHF 4.35 billion. Other financial projections for full-year 2012 remain unchanged.

- Swisscom said it expects net revenue of CHF 11.3 billion and capital expenditure of up to CHF 2.2 billion (excluding expenditure on mobile frequencies amounting to CHF 360 million)

- If all targets are met, Swisscom will again propose a dividend of CHF 22 per share for the 2012 financial year at the next Annual General Meeting.

- Five analysts polled by Dow Jones Newswires on average forecast a net profit of CHF484 million.

- Five analysts polled by Dow Jones Newswires on average forecast revenue of CHF 2.79 billion.

- Swisscom shares closed Wednesday at CHF 387. The stock has gained 8.7% in value since the start of the year.

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