* Swisscom Q3 EBITDA 1.19 bln Sfr vs forecast of 1.24 bln Sfr * iPhone introduction costs, lower telephony prices weighed * Confirms 2008 EBITDA forecast, cautions on revenue outlook (Adds shares, comment, iPhone details)
By Sven Egenter
ZURICH, Nov 5 (Reuters) - Swisscom AG's (SCMN.VX: Quote, Profile, Research, Stock Buzz) core profit fell 3.6 percent in the third quarter, missing expectations and weighed down by launch costs of the iPhone and falling prices. Its shares fell 3.2 percent in early trade.
The former monopoly confirmed its targets for 2008 on Wednesday, forecasting revenue of around 12.3 billion francs and operating income (EBITDA) of around 4.8 billion francs.
But the prevailing currency trend may cause net revenue to fall slightly short of its target, the group said.
By 0855GMT, Swisscom shares were 3.2 percent lower at 355.50 Swiss francs, against a 1.2 percent fall in the Swiss European telecoms index .
"In general, Swisscom maintained good cost control to compensate for revenue declines in some of the domestic businesses," said Vontobel analyst Panagiotis Spiliopouolos.
The launch of the iPhone led to above-average growth in clients in the third quarter, with over 100,000 handsets sold, but the launch had 45 million Swiss francs one-off costs.
Swisscom's core profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), fell to 1.19 billion Swiss francs ($1.03 billion), the group said. Analysts had on average expected a largely stable EBITDA of 1.24 billion francs, according to a Reuters poll.
The group's net profit declined to 473 million francs, down 31.5 percent compared with the third quarter 2007, when an extraordinary gain from the sale of two business units boosted Swisscom's bottom line.
Swisscom bought Italian broadband operator Fastweb (FWB.MI: Quote, Profile, Research, Stock Buzz) in 2007, returning to a more aggressive strategy to counter lacklustre growth at home where, like other former monopolies, it faces price pressures and increasing competition.
Swisscom shares have fallen around 17 percent this year but outperformed the European peers as the stock is seen a defensive pick given relatively benign regulation in its home market and the government's majority stake.
Swisscom is trading at around 9.8 times forecast 2009 earnings, an 11 percent premium over the sector. (Additional reporting by Jason Rhodes; Editing by David Cowell)
Source: reuters.com
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