Sunrise boosts profit despite falling revenue

20 Aug 2015

Swiss full service provider Sunrise has reported a 6.9% year-on-year drop in revenue for the three months ended 30 June 2015, fuelled by declines in hubbing, mobile hardware and fixed and pre-paid voice businesses. The operator registered total revenue of CHF487.71 million (USD500.89 million) in Q2 2015, compared to CHF523.75 million twelve months earlier. Sunrise noted that improvements in its post-paid subscriber base – aided by the launch of a post-paid offering by its Yallo sub-brand – failed to offset declines in other segments, although cost efficiency measures led to an increase of 1.1 percentage point in the operator’s EBITDA margin to 31.5%. EBITDA for the quarter was down at CHF153.49 million compared to CHF159.10 million in Q2 2014, whilst net earnings grew to CHF14.24 million from CHF6.58 million as debt refinancing in February 2015 lowered interest expenses.

Sunrise registered 1.355 million post-paid and 1.078 million pre-paid mobile users at end-June 2015, compared to 1.288 million and 1.199 million a year earlier. Broadband and IPTV subscriptions increased y-o-y from 330,000 and 89,000 to 333,000 and 122,000, respectively, although fixed voice contracts fell to 395,000 from 410,000 in mid-2015.

Switzerland, Sunrise Communications (Sunrise UPC)