Swisscom 1H profit sinks 22% on FastWeb writedown
Swisscom has reported a 22% decline in first quarter net profit as a result of writedowns accrued from defending a tax fraud probe of its FastWeb unit.
Profits fell to 377 million Francs (€235.3 million), even as revenue increased 1.3% to 2.9 billion francs, as the firm was forced to set aside €70 million as a provision for the fraud proceedings against FastWeb.
Earnings would have been flat without the provision, Swisscom said.
The Italian broadband unit is being investigated over allegations of tax fraud and money laundering.
FastWeb grew its subscriber base 8.8% to 1.5 million and its revenue 4.1% (in local currency) to €462 million.
Swisscom's domestic mobile subscriber base grew 4.4% to 5.4 million, while its domestic broadband customer base rose 0.7% to 1.7 million.