Swisscom reported a 10 percent rise in net profits in the second quarter and upped its EBITDA guidance for the year.

Group EBITDA rose 3.6 percent year-on-year to CHF1.19 billion, pushing net income to CHF466 million, largely thanks to the performance of Fastweb.

The Italy-based subsidiary recorded earnings growth of 25 percent, although this was down in part to one-off compensation from unspecified legal proceedings.

Nevertheless, Swisscom said it expected full-year EBITDA to increase by CHF100 million to CHF4.3 billion.

Sales at Fastweb also rose, by 5.8 percent to CHF511 million, after it added 117,000 mobile customers and 11,000 broadband subscribers.

However, group revenues fell 0.9 percent to CHF2.86 billion as the operator registered a 2.2 percent decline, to CHF2.24 billion, in its home market.

The Swiss business continued to be affected by “fierce” competition and fixed-line telephony substitution, the company said.

It added 9,000 TV subscribers and 1,000 broadband customers, taking their respective totals to 1.45 million and 1.99 million, while 450,000 people signed up to a new quad-play tariff, called inOne, launched in April.

The mobile subscriber base dropped by 12,000 to 6.59 million, while it lost 89,000 fixed telephony customers leaving 2.2 million in total.

CEO Urs Schaeppi said: “Swisscom recorded an extremely solid market performance in the second quarter.

“We successfully rolled out inOne while achieving growth in bundled offerings and in the TV business.

“Fastweb is also well on track and has increased its contribution to the Swisscom EBITDA.

“The decline in the use of fixed-line telephony has not slowed down, which in combination with intensive and heavily promotion-driven competition has resulted in a slight drop in revenue for telecommunication services.

“Thanks to the initiatives we have set up to lower costs, we have been able to offset a large part of the decrease in revenue and are on course to meet our objectives for full-year 2017 despite price competition and a saturated market.”

Read more: Q&A with Cyrill Wick, head of Swisscom’s Wingo

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