Sunrise reverses losses to book net profit of CHF7m

12 May 2016

Swiss full-service provider Sunrise has booked an 8.8% decrease in turnover for the first three months of 2016, attributing the decline to lower revenue from hubbing services and handset sales, as well as the downward trend in pre-paid mobile and fixed telephony. Total revenue for the period was CHF446 million (USD458.2 million), including CHF297 million (down 7.2% year-on-year) from mobile services, CHF97 million (down 18.5% y-o-y) from fixed voice and CHF52 million (up 6.1% y-o-y) from broadband services. Nevertheless, the operator’s ongoing efforts to optimise its cost base led to an increase in EBITDA from CHF133 million to CHF139 million, with EBITDA margin growing to 33.3% from 30.6%. Net profit was CHF7 million compared to a net loss of CHF167 million in Q1 2015, although the year-ago period was impacted by the operator’s initial public offering (IPO) and refinancing costs. Adjusting for these exceptional items net losses in Q1 2015 were CHF12 million.

Sunrise has registered a slight decline in its overall mobile user base but its post-paid subscriptions continue to grow, with the provider counting 1.418 million contract subscribers at end-March 2016 compared to 1.334 million a year earlier and 981,000 pre-paid users, down from 1.090 million. Fixed line voice subscriptions increased from 395,000 to 397,000, whilst broadband lines rose from 329,000 to 349,000 and IPTV contracts grew to 140,000 from 115,000.

Switzerland, Sunrise Communications (Sunrise UPC)