Swisscom reports 22 per cent drop in Q1 net profit

GENEVA: Swisscom AG reported a 22 per cent drop in first-quarter net profit on Wednesday due to provisions made for a tax case against its Italian broadband unit Fastweb.

The former Swiss telecoms monopolist said net profit attributable to shareholders fell to 377 million Swiss francs ($341 million) from 484 million francs during the same quarter of 2009.

Swisscom set aside 102 million francs to cover possible fallout from the Fastweb probe in Italy, where the broadband provider is being investigated for alleged involvement in a 2 billion euro($2.7 billion) money-laundering ring.

Fastweb denies the accusations and says it was a victim of a criminal organization.

Swissom, based in Bern, Switzerland, said revenue increased 1.3 per cent to 2.92 billion francs in the first quarter as economies recovered from the downturn and more people signed up to its Internet TV service.

Swisscom shares were up 0.4 per cent at 363.60 francs ($328.56) on the Zurich exchange.