Swisscom's third-quarter net profit fell 12 per cent as sales in its mobile, fixed-line and Internet businesses continued to fall, although its mobile division managed to achieve higher margins than expected.
Swisscom today reiterated its 2006 target for core profit of Sfr3.7 billion Swiss francs ($2.96 billion) and its revenue target of around Sfr9.5 billion.
The quarterly net profit was Sfr470 million francs.
Swisscom faces increasing competition, including from cable operator Cablecom, and falling prices, making it difficult for the cash-rich, state-controlled company to grow in its home market.
Swisscom had planned a large foreign takeover last year, but the Swiss government shot down the plan and imposed several restrictions, leaving the firm with limited growth opportunities.
The company said its revenues in the third quarter rose 1.6 per cent to Sfr2.42 billion francs, due to higher sales in Swisscom's IT services unit and Antenna Hungaria.
Sales in its fixed-line and Internet services unit were down 14 million francs and revenues in its mobile business fell by Sfr18 million francs compared to the year-ago period, according to a Swisscom presentation for analysts.