Sunrise pleases new CEO Swantee with growth in net income, EBITDA in Q1

Sunrise made a good impression on newly appointed CEO Olaf Swantee after the Swiss operator grew its net income, mobile user base and adjusted EBITDA in the opening quarter of 2016.

Swantee took the helm of Sunrise this week, just before the operator reported that net income grew by CHF174 million (€157 million/$179 million) year-on-year to CHF7 million in the first quarter of 2016. Adjusted EBITDA was up 1.6 per cent year-on-year to CHF140 million, and the operator added 17,900 postpaid mobile users during the quarter.

"While having joined Sunrise only this week I am pleased and have a good first impression so far," Swantee commented, adding: "The network quality, the customer orientation and the innovative products are on a high level. I look forward to further strengthening our position."

Swantee's enthusiasm came despite Sunrise recording an 8.8 per cent year-on-year drop in revenue to CHF446 million. In a statement announcing its first quarter earnings, Sunrise attributed the decline to a drop-off in sales of hardware, hubbing and handsets, and ongoing declines in prepaid and fixed voice income.

The operator stated that net additions to its mobile subscriber base in the year to end-March totalled 83,700 -- growth it said is notable because it came amid intense competition in the Swiss market. The operator's total mobile user base stood at 1.42 million at end-March.

Sunrise added that the growth in its overall mobile user base was boosted by sales of secondary SIM cards, which it said highlights the growing relevance of, and focus on, data services. The rise in postpaid users offset declines in its pre-pay user base, which Sunrise explained was due to the competitive market and a rising number of customers turning to its postpaid packages.

The operator said it enjoyed its strongest quarterly growth in Internet subscriber numbers in over five years during the opening quarter of 2016. Sunrise added 19,700 users during the quarter, taking its total Internet subscriber base to 348,500 by end-March.

TV subscriptions grew by 25,400 year-on-year to 140,400 customers in the opening quarter. Sunrise explained that the rise in Internet and TV users was due to attractive tariffs, convergence benefits, higher broadband speeds, and a recent enhancement to its TV service.

For more:
- see this Sunrise announcement

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