Sunrise books 4.8% drop in annual revenue

10 Mar 2016

Swiss full service provider Sunrise has reported a 4.8% year-on-year drop in annual revenue to CHF1.976 billion (USD1.98 billion) for the year ended 31 December 2015, attributing the decline to the strength of the Swiss franc, structural declines in the pre-paid and fixed voice markets and customer migration to ‘Freedom’ plans – which separate device costs from subscription fees. Turnover from mobile services dipped to CHF1.304 billion from CHF1.350 billion on the back of the aforementioned Freedom migration, as well as price erosion and an overall decline in subscriptions; the operator reported a net drop in its mobile user base of 51,000, although its post-paid base grew by 80,000 y-o-y to 1.400 million. The telco reported subscriber growth in the fixed broadband and IPTV segments – increasing 4.6% to 342,000 and 25.2% to 134,000, respectively – but its fixed voice customer base continued to decline, falling to 394,000 from 398,000 at end-2014. Nevertheless, Sunrise registered a slight dip in turnover from fixed internet services to CHF200 million (down 2.0% y-o-y), whilst revenue from landline services fell 9.4% to CHF472 million.

EBITDA for the year declined 3.6% to CHF616 million, with operating income sliding to CHF144 million from CHF177 million twelve months earlier. Sunrise booked a net loss for the year of CHF113 million, improving slightly from losses of CHF115 million in 2014, although the 2015 figure was impacted by the company’s initial public offering (IPO) and debt refinancing in Q1 2015. Adjusting for these factors, which amounted to costs of CHF157 million, Sunrise claims its net profit for the year would total CHF45 million.

Switzerland, Sunrise Communications