Sunrise with slightly lower sales and slightly higher operating profit
Published: Wednesday, Oct 30th 2024, 08:20
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Sunrise generated slightly lower sales in the third quarter, but earned a touch more operationally. While business with private customers shrank, Switzerland's second-largest telecoms provider was able to increase its business with corporate customers.
From July to September, sales fell by 1.3 percent to CHF 749.0 million, as Sunrise announced in a press release on Wednesday. Sales with private customers fell by 4.4 percent compared to the previous year. The reason for this was the diminishing effect of price increases when UPC customers switched to Sunrise offers. In addition, revenues from the use of cell phones abroad (so-called roaming) declined.
In contrast, sales in the business customer and wholesale segment rose by 6.8 percent. Growth was driven primarily by rising Internet and mobile subscription revenues as well as a strong performance in the virtual network operator MVNO business, Sunrise wrote.
However, adjusted operating profit before depreciation and amortization after deduction of lease payments (EBITDAaL) rose by 0.4 percent to CHF 274.4 million. This was due to lower direct costs and improvements in operating costs, according to the statement.
Spin-off going according to plan
"The financial results are in line with expectations," explained CEO André Krause. Sunrise continues to fully confirm its 2024 financial targets, including the payment of a dividend of at least CHF 240 million in mid-2025.
The Group expects largely stable sales and stable to low growth in adjusted EBITDAaL, it added. Adjusted free cash flow should reach between CHF 360 and 370 million.
The spin-off has been approved by Liberty Global shareholders with over 99 percent approval and is thus entering the home straight, said Krause. As of November 15, Sunrise will once again begin its journey as a Swiss company listed on the Swiss stock exchange.
©Keystone/SDA
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