Swisscom was thankful to a strong performance at its Fastweb arm during the second quarter.

The operator saw revenues rise 0.7 percent year-on-year to CHF2.9 billion (€2.67 billion) in the three months to June, while EBITDA grew 5.9 percent to CHF1.15 billion (€1.06 billion).

Italian fixed-line player Fastweb reported sales up 6.6 percent and EBITDA up by 50.7 percent to CHF483 million (€445.2 million) and CHF223 million (€205.4 million) respectively.

The figures were boosted by currency conversions, with sales and EBITDA up 1.8 percent and 45.7 percent respectively in euro terms.

It also received €55 million in compensation from Telecom Italia following the resolution of a legal dispute.

Fastweb customer numbers have grown by 56,000 to 2.3 million since the beginning of the year.

In Switzerland, sales were down 0.2 percent to CHF2.3 billion (€2.1 billion), as revenue growth from bundles, enterprise and wholesale services could not offset declines in single mobile and fixed-line subscriptions.

TV continues to be a highlight, with the number of customers hitting 1.4 million, up over 13 percent over the past 12 months.

Group net income finished Q2 up 0.5 percent to CHF788 million (€726.3 million).

The company said it was revising EBITDA forecasts for the year up to CHF4.25 billion (€3.9 billion) from CHF4.2 billion (€3.87 billion), while capex would increase from CHF2.3 billion (€2.1 billion) to CHF2.4 billion (€2.2 billion) .

Swisscom CEO Urs Schaeppi said: “The strong price pressure in mobile telecommunications and the increasingly cut-throat competition in the core business make it necessary to deal with costs in a prudent manner and to further increase efficiency within the company.

“Doing so will enable us to maintain the high levels of capital expenditure in future-oriented networks and IT infrastructure and continue to keep our customers happy in future.”

 

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