Swisscom revises the earnings outlook to the decrease after the completion of the acquisition of Vodafone Italia

(Reuters) – Swisscom said on Thursday it has completed the acquisition of competitor Vodafone Italia, which will now begin a merger with its Italian business Fastweb.

The Swiss telecommunications group said costs of up to 200 million euros ($207.20 million) would be recognized in its 2024 financial results due to the shutdown this year and revised its earnings outlook for the entire year.

The company now expects earnings before interest, taxes, depreciation and amortization (EBITDA) of 4.3 to 4.4 billion Swiss francs for 2024, up from 4.5 to 4.6 billion Swiss francs previously guided, without impact on free cash flow.

Guidance for revenue, CAPEX and dividends remains unchanged, added the company, which said it would provide more details on integration costs with the presentation of its full-year results.

Swisscom said the closing of the €8 billion deal took place on December 31 after it was approved by Italian authorities earlier that month.

“I am excited about the successful closing, as it strengthens the Swisscom Group,” said Swisscom CEO Christoph Aeschlimann in a statement: “At the same time, the focus on the Swiss market remains unchanged,” he added.

($1 = 0.9653 euros)

(Reporting by Marleen Kaesebier in Gdansk, Editing by Miranda Murray)