In a statement released by the company earlier this week, Swisscom said its sales revenue increased by 2.8% to SFr7.02 billion, and earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 8.3% year-on-year to SFr2.28 billion. Management consistently reduced net borrowings through increased operating efficiency and the closing of successful transactions. As of 30 June 2001 Swisscom had net funds of SFr1.02 billion, and free cash flow in the first six months amounted to SFr3.22 billion.

Markus Rauh, Chairman of the Board of Directors, commented: 'Swisscom has a very solid balance sheet. This is the result of our strong investment principles and a careful selection of opportunities. Swisscom is as solid as a rock.'

Swisscom said the reason for its huge success is largely down to the sale of its 25% stake in Swisscom Mobile AG to Vodafone and property divestments. The telecoms operator has been widely regarded by the industry as a diminutive telecoms company and has never really been considered to be big player in Europe but with these latest profit announcements Swisscom is set to have one of the most significant balance sheets among European telecoms providers. This is particularly so when considering that Swisscom is predicting a slight rise in revenue for the full financial year 2001, and a substantially higher net income than in 2000.

And while riding high with confidence, Swisscom itself has stated that it believes it is 'among the few telecommunications companies in the world with great financial strength.'