Swisscom profits shrink after Vodafone Italia integration
The biggest acquisition in Swisscom's history is having an impact on the company's results. Profits at the Swiss telecoms firm plummeted due to the costs of integrating the acquired Vodafone Italia.
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Swisscom profits shrink after Vodafone Italia integration
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Net profit fell by 17.6% to CHF 1.27 billion last year, announced Swisscom.
Operating profit before depreciation and amortisation after deduction of leasing costs (EBITDAaL) fell to CHF4.98 billion. This is a decrease of 1.2% compared to the pro-forma figures if Vodafone Italia had already belonged to Swisscom in the previous year.
In addition to the costs for the integration of the €8 billion acquisition of Vodafone Italia, the further erosion in the telecoms business weighed on the operating result. The strength of the Swiss franc also created a headwind.
One-off costs were also incurred. At constant currencies and on a comparable basis, EBITDAaL would have fallen by as much as 1.9%, according to the statement.
Profit expectations missed
On a comparable basis, sales fell by 2% to CHF15.05 billion. This was due to the weakness of the euro, which had a negative impact on business in Italy. Adjusted for currency effects, the decline would have been only 1.3%.
With these figures, Swisscom has met analysts’ revenue expectations but missed the mark in terms of profit.
Swisscom is increasing the dividend to CHF26 from CHF22 in the previous year. This is the first increase since 2010, with a good half of this going to the federal treasury, as the Swiss state is the majority owner of the company.
Swisscom is targeting revenue of CHF14.7 to CHF14.9 billion for 2026. It aims to achieve an operating profit of CHF5.0 to CHF5.1 billion.
If these targets are met, the dividend is to be increased further to CHF27 per share. Investments of up to CHF3.1 billion are planned.
Translated from German by AI/mga
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