Swisscom 2Q Net Profit Up Sharply On Mobile Stake, FastWeb Buy"

ZURICH -(Dow Jones)- Swiss incumbent telecoms operator Swisscom, Wednesday said second quarter net profit was up sharply, boosted by its bought-back mobile stake and the contribution of FastWeb which it bought this spring, and lifted its full year outlook to include FastWeb earnings.

The Bern-based former monopoly, and still the largest telecom operator, said net profit for the three months ending June 30 was CHF475 million, up 59% from CHF299 million in the year-ago period, just topping analysts' expectations.

The result benefitted from the fact that Swisscom no longer has to pay out 25% of profits from its mobile operations to Vodafone Group, after it bought back its stake in the fall of 2006. In the second quarter of 2006, Swisscom paid CHF78 million to minority interests, most of which was to Vodafone.

FastWeb, which Swisscom bought in May for a total of EUR4.2 billion, contributed for the first time to the result.

The Italian broadband provider accounted for CHF281 million in revenue and CHF79 million in EBITDA in the second quarter, said Swisscom.

Swisscom said it expects to close 2007 with revenue between CHF11.2 billion and CHF11.3 billion and earnings before interest, taxes, depreciation and amortisation of between CHF4.4 billion and CHF4.5 billion.

These figures include revenue and EBITDA from Fastweb of around CHF1.8 billion and CHF0.6 billion respectively, it said. The previous guidance of Swisscom - stemming from before the FastWeb acquisition - was for CHF9.7 billion in revenue, and CHF3.9 billion in EBITDA.

Swisscom also said it plans to achieve its delisting from the New York Stock Exchange on August 31, having announced its intention to do so in July. .

Company Web Site: http://www.swisscom.com

-By Hans Schoemaker, Dow Jones Newswires; +41-43-4438045; hans.schoemaker@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 8th August 2007