Swisscom posts 2025 forecast after completing Vodafone Italia acquisition (updated)

Swisscom AG

13/02/2025 07:07

(Adds full-year revenue for the group and segments, background
on Vodafone Italia deal, graphic on segments performance)
       Feb 13 (Reuters) - 
    Telecom firm Swisscom  SCMN.S  on Thursday announced its
outlook for financial year 2025 after completing the acquisition
of Vodafone Italia.
    The company expects revenue to be between 15 billion Swiss
francs and 15.2 billion francs ($16.47-$16.68 billion) for 2025
and anticipates earnings before depreciation and amortisation
after lease expense (EBITDAaL) of around 5 billion francs.
    Swisscom also said it plans to increase its dividend to 26
francs per share for the financial year 2025.
        The Swiss group firm reported a revenue of 11.04 billion
Swiss francs in 2024, ahead of analysts' expectation of 11.02
billion francs, according to a company-provided 
    consensus
    .
  
    Swisscom's revenue in its Swiss core business fell by 1.7%
due to price erosion and lower broadband and fixed line
telephony connections, while its Italian business Fastweb's
revenue rose 6.7% year-on-year, helped by a growing customer
base.
        VODAFONE ITALIA AND FASTWEB
  
        Last month, the company competed its acquisition of
competitor Vodafone  VOD.L  Italia, which it will merge with its
Italian business Fastweb.
        The company incurred acquisition costs of up to 200
million euros.
    The deal will create Italy's second-biggest fixed-line
broadband operator behind Telekom Italia (TIM)  TLIT.MI , with a
strong presence in the telecommunication business segment and
will be a leading player in the mobile division.
    Fastweb saw a pick up in its customers last year, with
revenue from both business and wholesale customers increasing
despite lagging broadband demand in the highly competitive
telecommunications sector.
       
 
 ($1 = 0.9110 Swiss francs)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
The performance of Swisscoms' core businesses Italian Fastweb
and Swisscom Switzerland in 2024-2023    https://reut.rs/4hyhyPj
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Anastasiia Kozlova in Gdansk, additional
reporting by Amir Orusov; Editing by Savio D'Souza and Sonia
Cheema)
 ((Anastasiia.Kozlova@thomsonreuters.com;))