Sunrise Investment of CHF 120 mn in Q3 2023 Fails to Show Revenue Growth

Sunrise, a telecommunications operator in Switzerland, announced an investment of CHF 119.7 million during the third quarter of 2023.
Sunrise 5G network
These investments accounted for 15.8 percent of the Sunrise’s revenue, showing the company’s commitment to technological advancement and service improvement. Sunrise said its investment was aimed at enhancing its infrastructure, product innovations, and digital services.

However, despite these investments, Sunrise has faced challenges in the broadband segment, where they lost 7,400 Internet subscriptions during Q3 2023. This decline in subscribers led to a 0.8 percent decrease in the company’s total revenue, which fell to CHF 759.1 million.

The breakdown of quarterly results by business units revealed the following:

Consumer Mobile: CHF 312.0 million, a decrease of 2.3 percent

Consumer Fixed (including Internet, TV, telephony, and other services): CHF 292.1 million, a decrease of 0.6 percent

B2B: CHF 144.0 million, a decrease of 0.2 percent

Other revenue: CHF 11.0 million, showing a remarkable increase of 33.3 percent

Andre Krause, the CEO of Sunrise, remained optimistic about the company’s financial performance, stating, “We see another improvement in financial trends and remain on track after nine months. Looking ahead, we expect much stronger commercial momentum in Q4, as headwinds from Q3 will disappear. Therefore, we confirm the full-year guidance for 2023 unchanged.”

Sunrise managed to add 29,200 mobile postpaid subscriptions in the same quarter, although this growth was slower than anticipated due to reduced promotional activities for the main brand, which was primarily targeted at new customers. The company’s focus on innovations like Flex Upgrade contributed to increased customer loyalty and the overall value of the existing customer base.

The decline of 7,400 broadband Internet subscriptions was attributed to reduced promotional activities and heightened competition for a limited customer base during the summer months.

As of Q3 2023, Sunrise boasts 2.839 million mobile phone customers (3.281 million, including second SIM cards), 1.18 million Internet subscribers (1.248 million, including SMEs), and 1.217 million TV customers (1.273 million, including SMEs).

Furthermore, the Fixed-Mobile Convergence (FMC) penetration rate reached 58 percent, reflecting an increase of 0.6 percent compared to the same period in the previous year. This growth was driven by the successful sales of convergent products within the existing customer base.

Sunrise’s strategic investments and ongoing efforts to improve its services position the company for a promising future, with expectations of a stronger performance in the upcoming quarter.