Sunrise slows revenue decline to 3.3%

25 Aug 2016

Swiss full-service provider Sunrise booked total revenue of CHF472 million (USD489 million) in Q2 2016, a decrease of 3.3% year-on-year. The operator noted that the y-o-y revenue decrease had more than halved compared to the 8.8% drop in Q1, attributing the deceleration to development in low-margin hubbing and mobile hardware revenues. These improvements, combined with growth in the operator’s post-paid mobile, broadband and TV customer bases, were insufficient to completely offset structural headwinds affecting the mobile pre-paid and fixed line voice segments. Mobile service revenue for the three months ended 30 June 2016 totalled CHF311 million – down from CHF321 million a year earlier – whilst turnover from fixed voice and internet services was CHF108 million (CHF117 million in Q2 2015) and CHF52 million (CHF50 million) respectively. EBITDA for the period under review dipped from CHF153 million to CHF148 million y-o-y, while net profits fell to CHF10 million from CHF14 million in Q2 2015.

In terms of subscribers, Sunrise counted a total of 1.439 million post-paid mobile users, up from 1.355 million a year earlier although its pre-paid mobile customer base shrank by 9.6% y-o-y to 974,000. In the fixed segment the operator reported subscriber growth across the board, with voice lines increasing by 1.8% to 402,000, broadband subscriptions expanding by 7.2% to 357,000 and IPTV by 20.5% to 147,000.

Switzerland, Sunrise Communications