Swisscom announces Q1 2008 results

Growth in revenue, operating income and cash flow thanks to Fastweb. Net income down slightly year-on-year

BERNE — In the first three months of 2008, Swisscom (Swiss: SCMN)(NYSE: SCM) increased revenue by 23.4% to CHF 2,933 million and operating income (EBITDA) by 19.9% to CHF 1,161 million. While Swiss business showed a slight upward trend overall, the acquisition of Fastweb in May 2007 considerably increased Group revenue and EBITDA.

Swisscom Switzerland

Broadband communications recorded strong growth year-on-year: the number of fixed-line broadband connections rose by 221,000, or 15.4%, to 1.66 million.

Regarding the IPTV service offering, Swisscom can report updated figures: as at the end of March 2008 «Bluewin TV» was used by 64,000 paying customers. Net growth in the first quarter of 2008 amounted to around 5,000 customers. The average one-time cost per new customer, including installation, devices, etc was reduced to under CHF 1,000.

At the end of February, Swisscom added four channels in high-definition quality (HDTV) to its channel line-up, and at the same time launched an offering for first-time users, without a hard-disk recorder. Marketing activities were stepped up in April.

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