Swisscom releases January-June 2008 Interim Report

Growth thanks to Fastweb – Swiss core business stable – Withdrawal from leasing agreements reduces net income by 10%

BERNE, Switzerland — Thanks largely to the acquisition of the Italian company Fastweb in spring 2007, Swisscom (Swiss: SCMN) posted a 17.6% increase in revenue to CHF 5,991 million and an 18.9% increase in operating income (EBITDA) to CHF 2,427 million for the first half of 2008.

As at the end of June 2008 «Bluewin TV» was used by 80,000 paying customers. Net growth compared with the previous year amounted to around 40,000 customers, thereof 21,000 since the end of 2007. The average one-time cost per new customer, including installation, devices, etc. dropped sharply as many customers took advantage of the possibility to install devices themselves. At the end of February, Swisscom added four channels in high-definition quality (HDTV) to its channel line-up at Bluewin TV, and at the same time launched an offering for first-time users, without a hard-disk recorder. Marketing activities were stepped up in April.

                            30.6.2007   30.6.2008   Change
                            ---------   ---------   ------
Bluewin TV customers           40,000      80,000     100%

Fastweb

Fastweb is included in the consolidated financial statements since the completion of the acquisition on May 22, 2007: Fastweb is the second-largest provider of broadband telecommunication services in Italy. Their wide product portfolio comprises language, data, Internet, TV (IPTV) services and video on demand for residential and corporate customers.

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