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Swisscom keeps 2020 outlook as "price war" weighs on Swiss sales

ZURICH, Oct 29 (Reuters) - Swisscom maintained its 2020 outlook on Thursday as nine-month operating income held steady while sales slipped 3% amid what it called a “price war” in its core Swiss business.

“For the 2020 financial year, Swisscom still expects net revenue of around 11.0 billion Swiss francs ($12.13 billion), EBITDA of around 4.3 billion francs and capital expenditure of around 2.3 billion francs,” it said.

If it hits its targets, Swisscom will propose an unchanged dividend of 22 francs per share for the 2020 financial year, it added.

Swisscom in August trimmed its 2020 revenue forecast as COVID-19 weighs on income from roaming charges and said it was ready to take on the rival set to be formed by Liberty Global’s takeover of Sunrise Communications.

It named company veteran Eugen Stermetz as chief financial officer from March, replacing Mario Rossi.

It proposed Michael Rechsteiner, now the European head of Power Services and Gas Power at General Electric, as new chairman as of next year’s annual meeting.

$1 = 0.9070 Swiss francs Reporting by Michael Shields

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