Swisscom reduces its sales outlook for 2021 and maintains its dividend target

ZURICH (Reuters) -Swisscom on Thursday slashed its sales outlook for 2021, citing a review of its fiber-optic partnership with Salt as well as the evolution of exchange rates.

It now expects net sales of around 11.2 billion Swiss francs, down from its previous forecast of around 11.3 billion, and capital expenditure of around 2.3 billion. billion against the previous 2.2 billion to 2.3 billion, he said in a report on https: //www.swisscom. ch / en / about / news / 2021/10/28-report-q3-2021.html third quarter results.

He still expects earnings before interest, taxes, depreciation and amortization (EBITDA) of between 4.4 billion and 4.5 billion francs and reiterated his intention to keep its dividend for 2021 unchanged at 22 francs per share.

The former state-controlled telecommunications monopoly raised its 2021 profit forecast in August after reporting a 4.9% increase in its half-year EBITDA.

The Swiss Federal Administrative Court this month rejected Swisscom’s appeal over the standards it should use to extend fiber optic networks to consumers.

The expansion of fiber optic networks is “clouded by uncertainty”, said Swisscom. Until the situation is clarified, Swisscom is only building point-to-point network elements such as feeders to homes, he said.

By the end of September, it had connected around 4.7 million (88%) homes and businesses in Switzerland to its very high-speed service. He said he would make super-fast broadband available in every municipality by the end of 2021, even in remote locations.

(Reporting by Michael Shields, editing by John Revill and Subhranshu Sahu)

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