Tough market hits Sunrise’s mobile earnings

21 Nov 2013

Swiss full service provider Sunrise has reported its third quarter results, registering a 0.6% increase in revenues on an annual basis, as earnings from its fixed line operations offset a slump in mobile sector turnover. The telco booked total revenues of CHF520.05 million (USD570.3 million) for the three months ended 30 September 2013, compared to CHF517.09 million in the year ago period. Strong competition in the wireless market saw turnover from mobile services drop 1.8% year-on-year to CHF329.91 million, despite a 16.5% increase in mobile subscribers to 2.494 million over the same period, as mobile ARPU plummeted from CHF46.1 to CHF40.0. By contrast, Sunrise’s broadband subscriptions declined by 4.6% y-o-y to 354.3 million, although an increase in ARPU to CHF37.9 from CHF35.9 – buoyed by the introduction of an IPTV offering, ‘Sunrise TV’ – led to an increase of 9.0% in fixed internet revenues to CHF49.748 million.

Meanwhile, the telco’s investments in network infrastructure in 9M 2013 reached CHF177 million, representing a 33% increase over the previous year. Sunrise intends to spend CHF270-280 million on networks by the end of the year. The lion’s share of the investment (CHF124 million) was spent on the rollout of 4G Long Term Evolution (LTE) networks, related capacity enhancements.

Switzerland, Sunrise Communications