Sunrise achieves sales at the previous year’s level in the first quarter
Published: Thursday, May 2nd 2024, 08:10
Updated At: Thursday, May 2nd 2024, 08:10
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The Swiss telecommunications group Sunrise achieved a stable result in the first quarter of 2024. Looking ahead, the company confirms its targets for the year as a whole. In addition, preparations for the IPO are progressing according to plan.
Sunrise's revenue remained stable in the first quarter of 2024 at CHF 746.8 million, as the company announced on Thursday. A slight decline in private customers in both the mobile and fixed network was offset by growth in the business customer segment. Adjusted operating income before depreciation and amortization (EBITDA) rose slightly by 0.4% to CHF 244.3 million.
Seasonal effects
As expected, the key financial figures for the first quarter were below those of the fourth quarter of the previous year. This was mainly due to the absence of seasonal effects, which had supported the results at that time, Sunrise wrote.
Despite this, Sunrise was able to continue its customer growth in mobile subscriptions. According to the press release, the company gained 28,000 net mobile subscription customers in the reporting period. In addition, there were 6,200 Internet subscriptions. The company also benefited from various measures, such as the migration of customers to the current product portfolio.
In addition, Sunrise once again invested heavily in networks, product innovations and digital services in the first quarter. According to the announcement, these amounted to CHF 131 million or 17.5 percent of sales.
Forecast confirmed
Overall, Sunrise is therefore doing well, CEO André Krause was quoted as saying in the press release. The company is therefore also confirming its previous forecast for the 2024 financial year "in full". "We expect positive effects from the operational cost optimization in the following quarters," said Krause.
Specifically, the company anticipates a higher result for 2024: with sales remaining largely stable, stable to low growth is expected for segment-adjusted EBITDA. Free cash flow is expected to be between CHF 360 and 400 million.
The planned IPO is also progressing. "We look forward to being back on the SIX Swiss Exchange soon," said CEO Krause. Details were missing in the press release with one exception: the fourth quarter of 2024 was mentioned as the date. Sunrise had previously announced its IPO for the second half of the year.
Incidentally, this is not a classic IPO with a capital increase, but a spin-off. Four years after the takeover by Liberty Global, Sunrise is thus becoming independent again.
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