Failing fixed line offsets Sunrise’s smartphone-driven growth

24 Nov 2011

Switzerland’s Sunrise has reported a 4.3% drop in total revenues for the third quarter of 2011, with increasing mobile revenues and higher smartphone and post-paid uptake failing to offset the effect of the declining fixed line market. The telco’s total revenue for the three month period ended 30 September 2011 was CHF509.96 million (USD556.2 million), down from CHF532.98 million in the year-ago period. EBITDA for the quarter was CHF178.3 million, with an EBITDA margin of 35%. With y-o-y net additions of some 119,000 mobile subscribers bringing the total at the end of Q3 2011 to 2.071 million, the wireless segment generated CHF337.59 million up 1.9% from the previous year. Blended mobile ARPU increased by CHF1.5 from the previous quarter to CHF47.8, but fell by CHF0.7 y-o-y. Meanwhile, post-paid subscriptions increased by 14% y-o-y to 1.07 million. Sunrise attributes the growth to new, attractive smartphone offerings and rates.

Over the same period, however, fixed line subscriptions declined from 586,000 lines to 529,000 with revenues falling 19.4% to CHF127.6 million. Revenues generated by fixed internet services for Q3 2011 remained steady, increasing by 2.4% y-o-y to CHF44.61million, whilst its customer base for the segment grew by 4.2% over the same period, to 371,000.

Switzerland, Sunrise Communications