Sunrise’s revenue decline slows to 1.8%

14 Nov 2016

Swiss full service provider Sunrise has registered a 1.8% year-on-year decline in total revenue for its third quarter, with growth in turnover from mobile hardware and fixed broadband and TV services failing to compensate for the continuing downward trend from fixed voice services. Revenue for the three-month period ending 30 September 2016 totalled CHF478 million (USD483.5 million), down from CHF487 million in Q3 2015. Commenting on the development, Sunrise noted that annual revenue decline had slowed from 3.3% in Q2 2016, attributing the improvement to ‘development in low-margin mobile hardware revenue, supported by the iPhone 7 launch’ adding that: ‘While the decline of revenue excluding hubbing and hardware also slightly moderated, subscriber growth in mobile post-paid, internet and TV did not fully compensate for headwinds. Structural headwinds continued to be present within mobile pre-paid and landline voice businesses.’ EBITDA for the period was CHF156 million, falling from CHF164 million a year earlier, whilst EBITDA margin fell from 33.6% to 32.7% over the same period. Lower depreciation and amortisation costs for the period, however, combined with a reduction in financial expenses saw net profit grow to CHF22 million, compared to CHF14 million in Q3 2015.

As at end-September 2016, Sunrise claimed a total of 2.406 million mobile subscribers – compared to 2.440 million twelve months earlier – of which, 1.459 million were post-paid and 947,200 were pre-paid. The operator also claimed a total of 411,500 fixed voice customers (up from 393,800 in September 2015) and 363,400 broadband accounts, an increase from 336,200.

Switzerland, Sunrise Communications (Sunrise UPC)