Swisscom, Sunrise report profit growth for Q1

3 May 2018

Swiss state-owned full-service provider Swisscom has registered net revenue of CHF2.89 billion (USD2.90 billion) for the first three months of 2018, an increase of 1.9% compared to CHF2.83 billion Q1 2017. The telco notes that turnover from its domestic operations dropped by CHF40 million year-on-year, but was offset by growth of around CHF90 million at its Italian division. The decline in its Swiss business was attributed to the continuing deterioration of fixed line telephony segment as well as lower roaming income and competition-driven price erosion. EBITDA for the period was down 1.4% y-o-y to CHF1.06 billion, but net profit grew to CHF379 million from CHF373 million a year earlier. In terms of subscriptions, in its domestic market Swisscom counted a total of 6.63 million mobile accounts (up from 6.60 million in Q1 2017), 2.03 million broadband accesses (1.99 million) and 1.98 million fixed telephony lines (2.30 million). Its Italian division, Fastweb, accounted for 1.19 million mobile subscriptions (763,000) and 2.48 million broadband lines (2.40 million).

Rival full-service provider Sunrise, meanwhile, booked a 6.4% increase in its first quarter revenue to CHF459 million, with growth in the mobile, and fixed broadband segments offsetting the downward trend from fixed telephony. Adjusted EBITDA for the three-month period dropped 3.5% to CHF138 million, which Sunrise attributed to higher network service fees following the sale of its mobile towers in August 2017. Q1 net profit improved to CHF17 million from CHF13 million, driven by lower depreciation and financial expenses. Sunrise counted a total of 431,000 broadband subscriptions, up from 386,000 in Q1 2017, whilst mobile lines grew to 2.35 million from 2.32 million.

Switzerland, Sunrise Communications, Swisscom