Sunrise top line dips as price erosion hits mobile earnings

22 Aug 2013

Swiss full-service telco Sunrise has booked a 3.8% decline in total revenues for 1H 2013, compared to the corresponding period a year earlier, as gains in the fixed line segment failed to offset a drop in turnover from mobile services. Sunrise reported turnover of CHF984.3 million (USD1.07 billion), compared to CHFD1.023 billion in the first half of 2012, whilst EBITDA for the six-month period dipped 5.9% to CHF292.0 million with EBITDA margin slipping by 0.7 percentage points to 29.7%. Earnings from mobile services slumped by 4.1% to CHF612.9 million, as price erosion led to a fall in ARPU from CHF44.3 to CHF41.6 whilst subscriptions remained flat at 2.116 million. The reverse was the case in the broadband sector however: subscriptions fell from 372,300 to 360,600, but a CHF1 increase in ARPU to CHF36.8 saw turnover grow by 8.4% to CHF97.1 million.

CAPEX meanwhile grew by 40% to CHF98 million, largely due to the telco funnelling some CHF62 million into mobile network development (equivalent to nearly 90% of total H1 2012 CAPEX), driving an expansion of Sunrise’s 3.5G network – which reached 97% population coverage at end-June 2013 – and the launch of its 4G Long Term Evolution (LTE) network in June 2013. Sunrise expects CAPEX to total CHF270 million-CHF280 million for 2013.

Switzerland, Sunrise Communications