Swisscom has announced that its net profit for the first quarter plunged by over a fifth, hit by provisions for a tax fraud probe at its Italian subsidiary Fastweb. Net profit for the three months ended 31 March 2010 fell by 22.1% to CHF377 million (USD341 million) from CHF484 million a year ago. Net revenues were up 1.3% to CHF2.95 billion, thanks to a slight recovery in the economy, it added. The group’s earnings were weighed down by proceedings against Fastweb, for which it had set aside CHF102 million. Prosecutors in Rome had issued arrest warrants for 56 people, including Fastweb founder Silvio Scaglia, in February over alleged money laundering and tax fraud offences. Out of a total of EUR2 billion in value added tax (VAT) said to have been evaded by the numerous companies being probed, Fastweb is allegedly involved in some EUR40 million in evaded VAT, Swisscom said.