Mixed fortunes for Sunrise as price cuts hurt top-line

20 Mar 2014

Swiss full service provider Sunrise has registered a slight decline in revenues for the year to end-December 2013, as customer growth in the mobile market failed to offset the impact of increasing price erosion caused by strong competition from rivals Swisscom and Orange Switzerland. Sunrise booked total revenues of CHF2.02 billion (USD2.31 billion) for the twelve-month period, down from CHF2.07 billion in 2012. Whilst the operator grew its mobile customer base from 2.14 million to 2.49 million over the year, price erosion led to a sharp in ARPU from CHF44.5 to CHF39.9 and as a result, service revenues from the mobile market fell 3.3% year-on-year to CHF1.27 billion. Conversely, in the fixed internet space revenues increased by 8.2% to CHF197.62 million despite a decline in subscribers from 396,600 to 348,000, buoyed by ARPU growth of 4.5% to CHF37.5. Sunrise booked a slight dip in EBITDA from CHF629.23 million to CHF613.55 million, although EBTIDA margin remained flat at 30.4%.

Switzerland,Sunrise Communications,



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