Swisscom To Freeze Dividends for 2012 and 2013

ZURICH -- Swisscom AG (SCMN.VX) Thursday said it will freeze its 2012 and 2013 dividend at 22 Swiss francs - the same level as 2011 - as it reported annual earnings slightly higher than expectations.

MAIN POINTS:

- 2012 net profit of CHF1.75 billion versus CHF683 million in 2011.

- 2012 revenue of CHF11.38 billion versus CHF11.33 billion in 2011

- The company said it was keeping its 2012 dividend unchanged at CHF22 per share.

-Outlook: Swisscom expects stable revenue of CHF 9.34 billion and a decline in EBITDA to CHF3.64 billion in 2013 (excluding Fastweb)

- The continuing growth in customers and volume will lead to an increase in direct costs, mainly as a result of acquiring new customers and the procurement of handsets. The maintenance and further expansion of the network structure will also temporarily increase indirect costs, the company said.

- Capital expenditure is due to increase to CHF1.75 billion in 2013 from CHF1.65 billion in 2012.

- If all targets are met, Swisscom plans to once again propose a dividend of CHF22 per share for the 2013 financial year at the 2014 Annual General Meeting, the company said.

- Five analysts polled by Dow Jones Newswires on average forecast a net profit of CHF1.72 billion.

- Five analysts polled by Dow Jones Newswires on average forecast revenue of CHF11.33 billion.

- Swisscom shares closed Wednesday at CHF 404.7. The stock has gained 8.2% in value in the last 12 months.

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