Swisscom Completes Acquisition of Vodafone Italia, Eyes Integration
In a significant move, Swisscom has finalized its acquisition of Vodafone Italia, paving the way for the merger with its Italian subsidiary, Fastweb. This development marks a crucial step forward for the Swiss telecoms group, which is poised to reap benefits from the combined entity.
Costs and Earnings Outlook
The acquisition is expected to result in costs of up to 200 million euros, which will be reflected in Swisscom’s 2024 financial results. As a consequence, the company has revised its full-year earnings outlook, projecting EBITDA of 4.3 to 4.4 billion Swiss francs, down from the previously guided range of 4.5-4.6 billion francs. Notably, this adjustment will not impact free cash flow.
Guidance Remains Unchanged
Swisscom has reaffirmed its guidance for revenue, capital expenditures (CAPEX), and dividend, providing a sense of stability amidst the integration process. The company will provide further details on the integration costs when it presents its full-year results.
Deal Closure and Approval
The 8-billion euro deal was finalized on December 31, following approval from Italian authorities earlier in the month. Swisscom CEO Christoph Aeschlimann expressed his enthusiasm for the successful closing, stating that it strengthens the Swisscom Group while maintaining focus on the Swiss market.
A New Chapter for Swisscom
As Swisscom embarks on this new chapter, it is well-positioned to leverage the strengths of both entities, driving growth and innovation in the Italian market. With a clear vision for the future, the company is poised to capitalize on the opportunities presented by this strategic acquisition.
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