Swisscom with slightly lower half-year profit
Published: Wednesday, Jul 31st 2024, 07:50
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Swisscom stayed on course in the first half of the year. While revenue remained stable, profits fell slightly. Switzerland's largest telecommunications group is sticking to its targets for 2024 as a whole.
From January to the end of June, Swisscom generated revenue of CHF 5.45 billion. This is practically the same as in the same period of the previous year (+0.1 percent), as the "blue giant" announced in a press release on Wednesday. The weakness of the euro provided some headwind: at constant exchange rates, Swisscom revenue would have risen by 0.8 percent.
In the Swiss core business, revenue fell by 1.4% to CHF 3.99 billion. In Italy, however, Swisscom was able to grow: The turnover of the broadband subsidiary Fastweb climbed by 7.1 percent.
Profitability eroded slightly once again. Operating profit before depreciation and amortization (EBITDA) fell by 1.0% to CHF 2.28 billion. Net profit also fell by 1.4 percent to 836 million francs.
Targets unchanged
Swisscom has thus delivered a mixed set of figures: Revenue exceeded analysts' expectations (AWP consensus), operating profit was roughly on target and net profit fell well short.
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, the "blue giant" intends to pay a dividend of CHF 22 per share once again.
No objections from the Competition Commission to the acquisition of Vodafone Italia
Swisscom has also received the green light from the Swiss Federal Competition Commission (ComCo) for the planned takeover of Vodafone Italia. The purchase for EUR 8 billion is expected to be completed in the first quarter of 2025. The Italian Presidency of the Council of Ministers has already unconditionally approved the transaction in accordance with the Golden Power Law.
However, the green light from the Italian competition authority is still pending. Swisscom has submitted the corresponding application and is now awaiting an in-depth investigation by the Italian anti-trust watchdog.
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