Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

SUNRISE COMMUNICATIONS GROUP AG

(SRCG)
  Report
SummaryQuotesChartsNewsRatingsCompanyFinancials 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Q2 with continued market share gains

08/27/2020 | 12:50am EDT

Q2 with continued market share gains

  • Strong customer momentum continued in mobile postpaid (+8% YoY), internet (+7%) and TV (+13%)
  • Customer growth largely offset less roaming and project driven 'Integration' business, leading to a slight decrease in service revenue; stable total revenue supported by hardware sales
  • Adj. EBITDA broadly stable supported by careful cost management
  • Impacts of global pandemic in-line with company expectation; 2020 guidance reiterated, supported by ongoing gradual roaming recovery and cost containment

Revenue (CHF m)

Q2'19

Q2'20

YoY

Mobile services

302

305

0.8%

Landline services

74

70

(6.3%)

Landline internet

78

82

4.8%

Total revenue

455

456

0.3%

Service revenue (total excl. hubbing & hardware)

383

381

(0.6%)

Gross profit

311

307

(1.3%)

EBITDA

157

159

1.2%

Adjusted EBITDA

165

163

(1.4%)

Net income

26

21

(17.3%)

Equity free cash flow

(29)

40

237.2%

Customers (in k)

Mobile Postpaid

1,812

1,960

8.1%

Mobile Prepaid

592

477

(19.3%)

Landline Voice

491

514

4.6%

Internet

483

516

6.8%

TV

263

298

12.9%

André Krause, CEO of Sunrise, comments: "Despite the global pandemic, Sunrise continued to define the market pace in Q2: We won market share, launched a new B2B portfolio and continued to roll out 5G. This strong performance is also reflected in our financials, which continued to grow when adjusting for roaming."

Solid customer growth and market share gains

Momentum in subscriber additions continued, with Sunrise achieving 34,300 postpaid net adds in Q2'20. This represents an acceleration compared to 33,900 net adds in Q1 and drives a solid +8.1% YoY increase in the mobile postpaid customer base. B2B and residential customer growth was achieved via online and telesales channels and was supported by slightly lower churn. Sunrise's mobile prepaid customer base decreased YoY as customers continue to migrate to postpaid tariffs, and as the pandemic decreased tourism and temporarily closed physical points of sale. Internet and TV subscribers rose by +6.8% YoY and +12.9% YoY, respectively. These substantial increases were supported by 2-4P bundled offers, attractive TV content (including Netflix, Sky Sports and Sky Show), a focus on service excellence, demand for the OTT TV product and dedicated promotions.

Service revenue impacted by roaming

Service revenue decreased slightly by -0.6% YoY in Q2. Customer growth largely compensated for lower roaming revenues driven by temporary travel bans related to the global pandemic. Furthermore revenue from project driven 'Integration' business declined due to a difficult YoY base. Total Q2 revenue was stable at CHF 456m, supported by increased mobile hardware sales.

Adjusted EBITDA broadly stable supported by cost containment

Q2 gross profit decreased by -1.3% YoY to CHF 307m due to service revenue and a slight contraction in service gross margin related to roaming and MTR. Q2 adjusted EBITDA decreased slightly from CHF 165m to CHF163m, supported by careful cost management. Net income decreased from CHF 26m in 2019 to CHF 21m, driven by higher depreciation and amortization.

Higher eFCF and leverage as expected

Q2 equity free cash flow (eFCF) increased from CHF -29m to CHF40m YoY, primarily due to 5G spectrum-related payments of CHF 91m last year. Adjusted for spectrum, eFCF decreased slightly as a result of accelerated network investments, in-line with guidance. Net debt to adjusted EBITDA ratio stood at 2.56x at the end of Q2. This represents a slight increase compared to 2.49x in Q2 2019, predominantly driven by last year's cancellation of the acquisition of UPC Switzerland.

FY'20 guidance confirmed

Sunrise reiterates its FY'20 guidance supported by the Q2 financial performance: Revenue and adjusted EBITDA continue to be expected between CHF 1,840-1,880m and CHF 675-690m, respectively. Guidance is based on continued cost containment and an expected gradual recovery in roaming. FY'20 Capex is reiterated in the range of CHF 410-450m. Upon meeting its FY'20 guidance, Sunrise expects to propose a dividend in the range of CHF 4.55-4.65 per share for FY'20, to be paid out of foreign capital contribution reserves in FY'21. As communicated on August 12th, Liberty Global has made a tender offer to the shareholders of the Group to acquire Sunrise. In case of a successful offer, Liberty Global intends to delist Sunrise shares from trading on the SIX exchange. As such, Sunrise wants to make shareholders aware of possible future changes to the current dividend policy.

Complementary HY'20 results table

Revenue (CHF m)

H1'19

H1'20

YoY

Mobile services

604

611

1.1%

Landline services

145

141

(3.0%)

Landline internet

152

164

7.6%

Total revenue

901

915

1.5%

Service revenue (total excl. hubbing & hardware)

754

765

1.5%

Gross profit

617

623

1.1%

EBITDA

331

321

(3.1%)

Adjusted EBITDA

324

331

2.2%

Net income

61

43

(28.8%)

Equity free cash flow

3

114

3354.8%

Please see www.sunrise.ch/reports for the IFRS report, the investor presentation, and further information.




Provider
Channel
Contact
Tensid EQS Ltd., Switzerland
www.tensid.ch


newsbox.ch
www.newsbox.ch


Provider/Channel related enquiries
marco@tensid.ch
+41 41 763 00 50
All news about SUNRISE COMMUNICATIONS GROUP AG
07/30EQS-NEWS : Ottima performance nel secondo trimestre del 2021: incremento continuo del nume..
DJ
07/30EQS-NEWS : Excellente performance au T2 2021: croissance continue de la clientèle et intég..
DJ
07/30EQS-NEWS : Strong Q2'21 performance: continued customer growth and successful integration
DJ
07/14SWISSCOM : to Fight Against Federal Court Decision on Market Abuse Case
MT
07/14LIBERTY GLOBAL : Swisscom loses latest round of market abuse case
RE
06/30Exclusive-Swiss telecoms group Salt targets $2.7 billion valuation in autumn float -sou..
RE
06/11SUNRISE COMMUNICATIONS : Top performance paves the way to champion status
PU
06/10SUNRISE COMMUNICATIONS : UPC – together more business power
PU
06/09SUNRISE SKYLIGHTS ZÜRISEE SESSIONS : music to be played on the water
PU
06/08Sunrise UPC to become new, main Swiss-Ski partner as of the 2022/23 season
TE
More news
Analyst Recommendations on SUNRISE COMMUNICATIONS GROUP AG
More recommendations
Financials
Sales 2019 1 887 M 2 033 M 2 033 M
Net income 2019 55,6 M 59,9 M 59,9 M
Net Debt 2019 1 640 M 1 768 M 1 768 M
P/E ratio 2019 61,8x
Yield 2019 5,79%
Capitalization 4 916 M 5 314 M 5 298 M
EV / Sales 2018 2,69x
EV / Sales 2019 2,69x
Nbr of Employees 1 763
Free-Float 1,79%
Chart SUNRISE COMMUNICATIONS GROUP AG
Duration : Period :
Sunrise Communications Group AG Technical Analysis Chart | SRCG | CH0267291224 | MarketScreener
Income Statement Evolution
Managers and Directors
AndrÚ Krause Chief Executive Officer
Uwe Schiller Chief Financial Officer
Michael Thomas Fries Chairman
Elmar Grasser Chief Technology Officer
Marcel Heinz Huber Chief Administrative Officer
Sector and Competitors