Sunrise top line dips as price erosion hits mobile earnings

22 Aug 2013

Swiss full-service telco Sunrise has booked a 3.8% decline in total revenues for 1H 2013, compared to the corresponding period a year earlier, as gains in the fixed line segment failed to offset a drop in turnover from mobile services. Sunrise reported turnover of CHF984.3 million (USD1.07 billion), compared to CHFD1.023 billion in the first half of 2012, whilst EBITDA for the six-month period dipped 5.9% to CHF292.0 million with EBITDA margin slipping by 0.7 percentage points to 29.7%. Earnings from mobile services slumped by 4.1% to CHF612.9 million, as price erosion led to a fall in ARPU from CHF44.3 to CHF41.6 whilst subscriptions remained flat at 2.116 million. The reverse was the case in the broadband sector however: subscriptions fell from 372,300 to 360,600, but a CHF1 increase in ARPU to CHF36.8 saw turnover grow by 8.4% to CHF97.1 million.

CAPEX meanwhile grew by 40% to CHF98 million, largely due to the telco funnelling some CHF62 million into mobile network development (equivalent to nearly 90% of total H1 2012 CAPEX), driving an expansion of Sunrise’s 3.5G network – which reached 97% population coverage at end-June 2013 – and the launch of its 4G Long Term Evolution (LTE) network in June 2013. Sunrise expects CAPEX to total CHF270 million-CHF280 million for 2013.

Switzerland,Sunrise Communications,

Subscribe



Feedback

Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share