Sunrise books CHF87m net profit for FY16

2 Mar 2017

Swiss full-service provider Sunrise has reported a 4.0% decline in annual turnover for 2016, citing continuing headwinds in the fixed voice and pre-paid mobile segments. Revenue for the twelve-month period dropped to CHF1.897 billion (USD1.88 billion) from CHF1.976 billion, with mobile and fixed voice service revenues seeing declines of 3.0% and 11.3% year-on-year, to CHF1.264 billion and CHF419 million respectively. Landline internet services continued to see growth, generating turnover of CHF214 million for the year (up 7.0% y-o-y), but failed to offset the downward trends elsewhere. EBITDA for 2016 was CHF599 million, a 2.8% decrease compared to 2015. Net profit rose to CHF87 million, reversing the net loss of CHF113 million reported in 2015, the latter of which Sunrise attributed to the effects of its initial public offering (IPO) and debt refinancing.

In operational terms, Sunrise registered subscriber growth across its fixed line segments, with the number of voice lines growing to 417,000 (+5.8%), IPTV subscriptions increasing 21.6% to 163,000 and broadband customers rising to 372,000 from 342,000 twelve months earlier. In the mobile segment, meanwhile, Sunrise reported a decrease in its overall customer base from 2.414 million to 2.395 million, though the decline was limited to pre-paid subscriptions, which fell 10.3% y-o-y, compared to a 6.1% expansion of post-paid contracts.

Switzerland, Sunrise Communications