Swisscom cuts earnings outlook after completion of Vodafone Italia acquisition By Reuters
(Reuters) – Swisscom (SIX:) said Thursday that it has completed the acquisition of rival Vodafone (NASDAQ:) Italia, which it will now begin merging with its Italian company Fastweb.
The Swiss telecoms group said charges of up to 200 million euros ($207.20 million) would be recognized in 2024 financial results due to the shutdown this year and revised down its full-year earnings outlook.
The company now expects earnings before interest, taxes, depreciation and amortization (EBITDA) of 4.3 to 4.4 billion Swiss francs for 2024, down from 4.5 to 4.6 billion francs previously forecast , without affecting free cash flow.
Revenue, CAPEX and dividend guidance remain unchanged, added the company, which said it would provide further details on integration costs with its full-year results presentation.
Swisscom said the €8 billion deal closed on December 31 after it was approved by Italian authorities earlier that month.
“I am delighted with the successful closing as it strengthens the Swisscom group,” Swisscom CEO Christoph Aeschlimann said in a statement. “At the same time, the focus on the Swiss market remains unchanged,” he added.
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