Weaker summer quarter: Sunrise with lower sales and operating profit

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Sales fell 0.8 percent on an adjusted basis to 759.1 million francs, Sunrise announced in a statement released Wednesday. This decrease can be attributed to the mobile communications segment for private customers (-2.3 percent). There was a decrease in mobile phone and tablet sales, as well as roaming and value-added services sales. In contrast, Sunrise was able to sell more mobile phone subscriptions.

In the fixed-line division for private customers, the annual decline in sales (-0.6 percent) was significantly less than in the previous quarter. In addition to the price increase since July 1, the decrease in the price adjustment resulting from the merger of the Sunrise and UPC brands in the fixed network is also effective here. The corporate client segment remained stable.

Operating profit before depreciation and amortization (EBITDA) decreased by 3.4 percent to 274.9 million francs. The main reason for the decline was the high cost of hardware and access in the fixed line region. “Although there were higher costs for network maintenance and energy, these were partially offset by lower operating costs,” Sunrise wrote.

“Following the price increase due to inflation and focusing on preserving value in the customer base, we have held back from aggressive promotions,” said CEO André Krause. Still, Sunrise gained 29,200 new mobile phone subscriptions. Secondary brands Yallo, Lebara and Swype also contributed significantly to growth.

In the first nine months as a whole, sales fell by 1.2 percent to 2.2 billion francs. There was a decline in mobile communications and the fixed network for private customers. In contrast, the corporate customer division managed to grow. Segment-adjusted EBITDA decreased by 4.3 percent to 776.2 million francs.

«Compared with the first half of the year, we see a renewed improvement in financial trends and after nine months we are still on the right track. Looking ahead, we expect significantly stronger momentum in the fourth quarter because the tailwind of the third quarter is no longer there,” Krause explained.

Sunrise therefore confirms its financial targets for the full year 2023. The group continues to expect a decline in sales in the low single-digit percentage range. Segment-adjusted EBITDA is expected to decline in the low to mid-single digit range. Adjusted free cash flow should be between 320 and 350 million francs. (SDA)

Source :Blick