Swisscom Second-Quarter Net Profit Rises 59%

Swisscom reported on Wednesday reported a 59% increase in second-quarter net profit following the takeover of Italian telecoms company Fastweb and the repurchase of a minority stake in its mobile business.

Swisscom said net income attributable to shareholders rose to 475 million Swiss francs ($396 million; 289 million euros) in the second quarter, compared with 299 million francs in the same period last year.

Net revenue in the months April through June rose 13% to 2.7 billion francs ($2.25 billion; 1.64 billion euros) from 2.4 billion francs in the year-earlier period.

Switzerland's largest telephone company said its total number of fixed, broadband and mobile customers hit the ten million mark for the first time, in addition to 1.2 million customers acquired with the purchase of Fastweb.

Revenue from its mobile business gained 24% due to the repurchase last year of a 25% stake from Britain's Vodafone Group .

Swisscom, a spin-off of the former state-owned PTT and still majority-owned by the government, also said it had started the process of delisting from the New York Stock Exchange.

The company is delisting with effect from Aug. 31 because trading volumes for Swisscom's securities is low on the NYSE compared with Swiss bourse SWX's London-based subsidiary virt-x.