Swisscom revises down earnings outlook after Vodafone Italia acquisition complete

(Reuters) – Swisscom (SIX:) said on Thursday that it has completed its acquisition of competitor Vodafone (NASDAQ:) Italia, which it will now begin merging with its Italian business Fastweb.

The Swiss telecoms group said costs in the amount of up to 200 million euros ($207.20 million) would be recognised in its 2024 financial results due to the closing 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 4.5-4.6 billion francs previously guided for, with no impact on free cash flow.

The guidance for revenue, CAPEX and dividend remains unchanged, added the company, which said it will provide further details about the integration costs with the presentation of its full-year results.

Swisscom said that the closing of the 8-billion euro deal took place on Dec. 31 after it had been approved by the Italian authorities earlier that month.

“I am thrilled about the successful closing, as it strengthens 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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