Sunrise With Stable Sales and Lower Operating Profit

Sunrise With Stable Sales and Lower Operating Profit

Fri, Feb 16th 2024

Sunrise Communications navigates 2023 with stable sales amidst a challenging telecom landscape, facing a slight decrease in operational earnings.

Sunrise Communications, Switzerland’s second-largest telecom provider, reported stable annual sales of CHF 3.035 billion, showing resilience in a challenging market. Despite a steady revenue stream, the company experienced a slight dip in operational earnings, with segment-adjusted EBITDA falling by 2.0% to CHF 1.031 billion.

The telecom giant saw a positive shift in the final quarter, with sales climbing by 2.5% and EBITDA increasing by 5.6%, buoyed by inflation-related price adjustments. This uplift was evident across all segments, including a surge in mobile subscriptions for private customers and enhanced business in the corporate sector, accompanied by an increase in mobile and landline device sales.

Sunrise CEO André Krause highlighted the solid fourth quarter, attributing the success to the growth in mobile subscriptions and corporate clientele, alongside an uptick in broadband customers. The company’s secondary brands, especially Yallo, played a significant role in 2023’s growth, underpinned by cost discipline and efficiency improvements.

Sunrise gained 132,000 net mobile subscription customers throughout the financial year despite slightly losing 3,000 broadband customers in the fixed network domain. The company secured numerous new and extended contracts with key corporate clients, including energy provider BKW, ground handling service Swissport, and Swiss Airline. A notable achievement was securing an agreement to provide Migros locations with broadband connections, outpacing Swisscom in securing the most significant corporate customer contract in the company’s history.

Sunrise anticipates a modest improvement for the upcoming year, forecasting stable sales and a slight increase in segment-adjusted EBITDA, signaling continued growth and stability in the telecommunications sector.


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