Sunrise reports slowdown in revenue decline

11 May 2017

Swiss full service provider Sunrise has reported a 3.3% year-on-year decrease in first quarter revenue, registering turnover of CHF431 million (USD428 million) for the three months ended 31 March 2017, compared to CHF446 million in Q1 2016. The group noted that much of the decline could be attributed to a reduction in mobile termination rates (MTRs) from 1 January, adding that revenue decline softened from 2.4% y-o-y in Q4 2016 to just 1.0% in Q1 2017 when the impact of the MTR reduction is adjusted for. EBITDA for the period under review grew by 1.4% to CHF141 million, whilst net profit grew from CHF7 million to CHF13 million on the back of a reduction in financial expenses and lower depreciation and amortisation.

Sunrise counted a total of 2.4 million mobile subscribers at the end of March 2017, an increase of just 0.1% y-o-y, reporting a continuation in the trend of growth in the post-paid segment and decline in the pre-paid sector. Similarly, ARPU from wireless services continued to fall, reaching CHF29.4 compared to CHF31.4 in March 2016. In the fixed segment, meanwhile, Sunrise reported strong growth in broadband subscriptions, which rose 10.7% to 386,000, with the number of internet customers taking an IPTV service as well (i.e. signed up to a multi-play plan) rising by 25.2% to 175,800.

Switzerland, Sunrise Communications (Sunrise UPC)