Sunrise returns to profitability in H1 2016

Swiss operator Sunrise generated modest gains in net income and EBITDA in the opening six months of 2016, and said it has tempered declines in revenues.

 

The operator generated net income of CHF17 million (€15.5 million/$17.6 million) in the first half of 2016 compared to a loss of CHF152 million in the same period of 2015. EBITDA grew by a marginal 0.3% year-on-year to CHF287 million in the recent six months, while revenue declined 6% year-on-year to CHF917 million.

 

Figures for the second quarter were more mixed. While Sunrise increased net income by 28.9% year-on-year to CHF14 million, EBITDA declined 3.5% to CHF148 million and revenue was 3.2% lower at CHF472 million.

 

Newly appointed CEO Olaf Swantee noted that the Q2 “revenue decrease halved compared to Q1,” and said Sunrise continued to invest in its future during the recent quarter, pumping funds into “an improved network, customer service and in innovative convergent products for residential and business customers.”

 

In a statement, Sunrise said second-quarter revenue fell because growth in the number of postpaid and Internet customers failed to offset declines in prepaid and fixed voice subscribers. Other factors impacting sales in the opening half of 2016 include the winding down of Sunrise’s Freedom hardware offer, the impact of lower roaming income, and the cost of temporary promotions.

 

The operator added 21,700 postpaid mobile subscribers during Q2, taking its total user base to 1.4 million at end-June. Sunrise said the period was also its strongest in terms of net Internet subscriber additions, with 9,000 customers added during the quarter taking its total user base to 357,500. TV subscriptions totalled 147,200 at the end of June, which was 20.4% higher than the same period of 2015.

 

Sunrise stood by its full-year earnings forecasts, which target revenue in the range of CHF1.8 billion to CHF1.9 billion, and adjusted EBITDA of between CHF600 million and CHF620 million.