La Swisscom announced that its 2011 net income will be reduced for 1,2 billion francs (approximately 0,98 billion euros). The cause is the write-down of the subsidiary Fastweb.
The Swiss telephone company, which four years ago had invested 4,6 billion in the Italian company, announced today in a statement that "the difficult economic situation and rising interest rates lead to reduced growth prospects and a higher cost of capital in Italy".
In fact, the 'impairments' realized indicate the value of Fastweb written down at the end of 2011 by 1,3 billion euros compared to the book value of the assets, excluding goodwill. However, Swisscom assures that the write-downs will not affect the dividend policy.