Swisscom with lower revenue and profit after 9 months
Published: Thursday, Oct 31st 2024, 08:40
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Swisscom continued the trend of the first half of the year in the summer. Revenue and profit shrank slightly in the first nine months. The "blue giant" is sticking to its targets for the year as a whole.
From January to the end of September, Swisscom generated revenue of CHF 8.17 billion. This represents a slight decline of 0.4 percent, as Switzerland's largest telecommunications group announced in a press release on Thursday. The reason for this was the weakness of the euro: at constant exchange rates, Swisscom's turnover would have increased by 0.3 percent.
In the Swiss core business, revenue fell by 1.7% to CHF 5.97 billion. In Italy, however, Swisscom was able to grow: The turnover of the broadband subsidiary Fastweb climbed by 6.3 percent.
Profitability continued to decline. Operating profit before depreciation and amortization (EBITDA) fell by 1.1% to CHF 3.44 billion. Net profit also fell by 2.1 percent to 1.28 billion Swiss francs.
Swisscom thus fell slightly short of analysts' expectations in terms of revenue, but exceeded them by a wafer-thin margin in terms of profit figures.
Targets for 2024 confirmed
Swisscom is sticking to its targets for the current year. The Group is therefore aiming for revenue of around CHF 11.0 billion and a slightly lower operating profit (EBITDA) of CHF 4.5 to 4.6 billion.
Investments are expected to amount to around CHF 2.3 billion. If these targets are achieved, Swisscom intends to pay another dividend of CHF 22 per share.
Acquisition of Vodafone Italia goes according to plan
There was no news on the planned 8 billion takeover of Vodafone Italia. The decision of the Italian competition authority AGCM, which has initiated an in-depth review, is still pending.
The Autorità Garante della Concorrenza e del Mercato (AGCM) expressed its criticism: in a report, it spoke of a potential threat to competition. According to the competition watchdog, the transaction would create a company with dominant market power for fixed network services for private and corporate customers as well as public authorities.
Swisscom still expects the transaction to be completed in the first quarter of 2025. The "blue giant" announced its plans to acquire Vodafone Italia at the end of February.
According to the information at the time, this will create the second-largest telecoms provider in Italy behind the top dog TIM, with a combined turnover of EUR 7.3 billion and a combined operating profit before depreciation and amortization (EBITDA) of EUR 2.4 billion.
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