February 7, 2018 / 6:39 AM / 10 months ago

Swisscom steps up cost cuts as competition grows

ZURICH, Feb 7 (Reuters) - Swisscom AG on Wednesday increased its cost-cutting target to fight competition from agiler rivals that it making it hard to grow core profit and sales.

The Swiss telecoms group said it now aimed to reduce costs in Switzerland by 100 million Swiss francs ($1071 million) a year through 2020, in part by eliminating 700 jobs. Last year it had targeted 60 million francs in annual cost cuts.

It forecast 2018 revenue of around 11.6 billion francs, earnings before interest, tax, depreciation and amortisation (EBITDA) of around 4.2 billion and capital expenditure of less than 2.4 billion.

Last year revenue was flat at 11.66 billion, EBITDA held steady at 4.30 billion and capex fell 1.6 percent to 2.38 billion.

It proposed an unchanged dividend of 22 francs per share, the level it also targets for next year should it hit its goals.

$1 = 0.9345 Swiss francs Reporting by Michael Shields; Editing by John Miller

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