Sunrise with slight sales growth in the second quarter
Published: Friday, Jul 26th 2024, 07:10
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The Swiss telecommunications group Sunrise increased its earnings in the second quarter of 2024. The outlook for the year as a whole is now confirmed. Preparations for the IPO are also proceeding according to plan.
Sunrise's sales rose slightly by 0.5 percent to CHF 737.5 million in the second quarter, as the telecommunications group announced on Friday. The company recorded a net increase of 31,000 mobile postpaid subscriptions as well as a net increase of 5,000 Internet subscriptions and thus broadband growth for two consecutive quarters.
Reduced churn rate
Growth was also supported by continued commercial momentum and a significantly reduced churn rate, Sunrise added. Various initiatives to increase customer loyalty and satisfaction, which were launched at the end of last year, had paid off. As a result, the segment-adjusted operating result before depreciation and amortization (EBITDA) also rose slightly by 0.9 percent to CHF 260 million.
However, excluding the so-called additions to property, plant and equipment, the operating result fell by 9.5 percent. The decline was mainly due to higher, staggered investments in connection with various investment programs, the company announced. In the second quarter, Sunrise made value-enhancing investments totaling 126.4 million (17.1% of sales) in networks, product innovations and digital services.
Overall, Sunrise has "strengthened its commercial momentum", CEO André Krause was quoted as saying in the press release. The company is therefore also "fully confirming" its previous forecast for the 2024 financial year. "We are still on track with our financial results." With largely stable sales, stable to slight growth in segment-adjusted EBITDA is therefore expected.
The price increase effect from which Sunrise benefited in the first half of the year will no longer have an impact, according to the press release. However, Sunrise expects positive effects from cost optimization and greater customer loyalty, according to Krause.
IPO on track
The planned IPO is also progressing. "Preparations for the spin-off are going according to plan and we are looking forward to the Capital Markets Day on September 9," said CEO Krause. The Group intends to provide analysts and investors with the necessary information there.
In an interview with the news agency AWP, the CEO had previously announced a so-called roadshow for investors for the current third quarter. Sunrise will thus become independent again four years after the takeover by Liberty Global.
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