Swisscom posts lower half-year core profit, confirms outlook

Telecoms group Swisscom reported a slightly lower core profit for the first half of 2024 on Wednesday, as growing competition and pricing pressures continued to weigh on its core telecommunications services business.

Its half-year earnings before interest, tax, depreciation and amortisation (EBITDA) fell 1.1% in constant exchange rates to 2.28 billion Swiss francs ($2.59 billion), from 2.30 billion francs the same period last year.

Switzerland’s leading telecoms provider said its acquisition of Vodafone Italia was on schedule, with completion expected in the first quarter of 2025.

Swisscom agreed in March to buy Vodafone’s Italian business for 8 billion euros and merge it with its Italian unit Fastweb, in the latest round of consolidation in Europe’s most competitive telecoms markets.

The deal will create Italy’s second-biggest fixed-line broadband operator behind TIM, with a strong presence in the prized business segment, and a leading player in mobile.

The company also confirmed its outlook for 2024.