Sunrise books profit growth despite weaker top line

25 Aug 2017

Swiss full service provider Sunrise has published its financial results for the three months ended 30 June 2017, registering a decline in revenue of 3.9% year-on-year as growth in the fixed broadband segment failed to offset reduced turnover from the wireless and fixed telephony services. Sunrise booked a top-line figure of CHF453 million (USD469 million) for the period, compared to CHF472 million twelve months earlier, as mobile service revenue fell by 2.8% y-o-y to CHF303 million and fixed line voice service revenue dropped by 15.8% to CHF91 million. By contrast, meanwhile, revenue from fixed broadband services grew by 13.7% y-o-y to CHF60 million in Q2 2017. Despite the contraction in turnover, EBITDA was largely unchanged y-o-y at CHF149 million (CHF148 million in Q2 2016). Net profit for the quarter, meanwhile, was CHF27 million, an increase of 163.9% y-o-y, which Sunrise attributed to lower finance costs following the repricing of its senior facilities agreement in December 2016, and decreased depreciation and amortisation.

Sunrise claimed a total mobile subscriber base of 2.342 million at the end of June 2017, up from 2.338 million a year earlier, and of which 1.534 million were post-paid users (1.439 million). Intense price competition in the market saw ARPU dip to CHF32.0 from CHF33.1 in Q2 2016, rebounding from a low of CHF30.3 in Q1 2017. In the fixed line market, Sunrise claimed a total of 428,800 voice subscribers, compared to 402,500 in mid-2016, though ARPU fell from CHF31.1 to CHF26.8 over the same period. The operator also booked 398,100 fixed broadband accounts, up from 357,500, whilst ARPU was flat at CHF35.1.

Switzerland, Sunrise Communications (Sunrise UPC)