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Swisscom Q1 profit beats estimates amid cost cuts

ZURICH May 3 Swisscom AG said on Wednesday that first-quarter net profit rose 2.5 percent, beating analyst expectations, as the state-controlled telecommunications company continued cost-cutting in its home market.

Net profit rose to 373 million Swiss francs ($376.27 million), more than the average estimate of 355 million francs in a Reuters poll. Sales slipped 1.9 percent to 2.83 billion francs.

The company cut its Swiss headcount by 680 employees to 18,280 from the previous year as its core business declined. Swisscom left its outlook unchanged for 2017, when it still expects net revenue of around 11.6 billion francs and an operating profit of around 4.2 billion francs. ($1 = 0.9913 Swiss francs) (Reporting by John Miller; Editing by Gopakumar Warrier)

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