Swisscom reported a 13 percent fall in second-quarter net profit, slightly below forecasts, despite the first-ever profit at its Italian subsidiary Fastweb, due to a one-off charge.

But the telecoms group confirmed its 2008 forecast for revenue of around 12.3 billion Swiss francs ($11.32 billion) and operating income of around 4.8 billion francs.

Net profit fell to 412 million Swiss francs, while revenue was 12.5 percent higher than a year ago at 3.06 billion francs, still boosted by Swisscom's 3 billion euro acquisition of broadband operator Fastweb, the Swiss group said on Wednesday.

In a Reuters analyst poll, the average forecast for net profit was 448 million francs and 3.02 billion francs for revenue.

Fastweb, which Swisscom bought in 2007 to counter lacklustre growth at home, posted a profit of 25.9 million euros in the second quarter.

Swisscom said provisions set aside for the early termination of around 75 percent of the long-term leasing agreements reduced net income by 99 million francs after tax in the second quarter.

Swisscom said in its home market, where it faces price pressures and tougher competition, revenues inched down slightly in the first-half of 2008.

Swisscom shares have fallen 18 percent this year, outperforming the European sector index , but at 9.5 times forecast 2009 earnings it is still trading at a 5 percent discount to peers due to its limited growth prospects.

Source:Reuters