Swisscom said nine-month net profit rose a better-than-expected 44.6 per cent to $1.26 billion as efficiency gains compensated for falling revenues.
"[Profit rose] thanks to lower depreciation, an improved financial result and elimination of the loss from the discontinued debitel business," Switzerland's largest telecoms group said.
"New technologies such as Voice over IP (Internet Protocol), as well as intense competition and regulatory intervention in the market, are continuing to drive down prices and will put increased pressure on costs also in the future," the company said.
"In response to the fiercely competitive operating environment, Swisscom aims to bring about further efficiency improvements," the firm added.
Swisscom this week confirmed it was in talks with Eircom but that a takeover offer was far from certain.
Cash-rich Swisscom has said it is looking for acquisitions abroad as it tries to offset falling domestic growth. It was thwarted in recent attempts to buy Alpine neighbour Telekom Austria and Czech-based Cesky Telecom.
It has also been tipped as a possible buyer of Denmark's TDC, which is up for auction.