«Following the Sunrise refresh in Q2, we continue to execute well commercially with strong sales during Q3 amidst a continued heated market environment. We delivered modest revenue growth in the quarter supported by B2B and B2C mobile, despite ongoing ARPU pressure in fixed and mobile. Our hybrid network strategy continues to underpin our fixed offering, with Giga Speeds to more than 90% of Swiss households. Strategically, we continue to phase out the UPC brand following the Sunrise relaunch with some impact on fixed performance as the base migrates. Finally, we are excited by our purchase of EBL’s telecoms division which will allow us to provide direct and improved support to their 60,000 Telecom customers that we already service and will be assuming as part of this transaction», says André Krause, CEO of Sunrise.

Operational results

While, as expected, the broadband segment remained unchanged in the third quarter compared to the second quarter due to the gradual reduction of the UPC brand, Sunrise is growing significantly in mobile postpaid business with a net increase of +57,600 subscriptions.

The net growth in the mobile area pushed FMC penetration up to 57.3% (+1.4% YoY). Sunrise continues to drive convergence growth with popular bundles as well as cross-selling and upselling potential within the mobile subscription customer base.

As of the end of September 2022, the total figures are as follows: 2.752 million mobile RGUs (3.173 million including second SIM cards), 1.174 million Internet RGUs (1.237 million including SMEs) and 1.223 million TV RGUs (1.278 million including SMEs). In a highly competitive market environment, average revenue per customer (ARPU) decreased by -3.5% compared to the same period last year on an adjusted basis and totaled CHF 65.65. It remained stable compared to the previous quarter.

Solid growth of yallo and Sunrise Business

In addition to the Sunrise products, the secondary brand yallo and the Sunrise Business offers were among the key growth drivers. With business customers and wholesale business, Sunrise Business achieved a revenue increase of +12.3% in the third quarter compared to the same period last year. Numerous new contracts and renewals/upgrades of existing mandates, e.g. contributed to this outcome.

Financial results

Sunrise was able to increase its revenue2) slightly in Q3 2022 on an adjusted basis to CHF 763.7 million (+1.5%) compared to the same period last year. The revenue increase was particularly supported by (i) low margin business wholesale revenue, (ii) strong trading momentum in yallo and handset revenues, partially offset by a decrease in fixed subscription revenue due to subscriber losses and ARPU pressures. In detail, the individual segments contributed to total revenue in the third quarter as follows: Consumer Mobile CHF 319.3 million (+3.3% YoY), Consumer Fixed (including Internet, TV, telephone and other services) CHF 300.2 million (-4.7% YoY) and B2B CHF 144.2 million (+12.3% YoY).

Segment-adjusted EBITDA2) decreased slightly on an adjusted basis by -2.3% compared to the previous year and reached CHF 292.1 million, including CHF 5.7 million of costs to capture3). The decrease in segment-adjusted EBITDA2) is mainly attributable to (i) a more limited tailwind from synergies following the annualizing of MVNO synergies, (ii) impact from fixed ARPU declines and (iii) increased investments in yallo and digitalization projects. Adjusted EBITDA less P&E additions 2)4) decreased on an adjusted basis by -10.8% YoY to total CHF 156.0 million, driven by the segment-adjusted EBITDA decline, increased capex for product enablers and CPE, as well as the impact of spend related to costs to capture3) (-CHF 34.6 million).

The detailed financial results of Sunrise can be found in the .

Multi-award-winning customer service

magazine has crowned Sunrise customer service its test winner – twice. Sunrise offers the best customer service both for and customers. Sunrise is the only provider to win awards in both categories, with the highest scores across the three countries (Germany, Austria, Switzerland). «Fast problem analysis paired with a high level of knowledge and competent answers» as well as «a tour de force!» are some of the comments from connect.

Innovative first with Sunrise Smart Upgrade

It’s never been done before in Switzerland: The latest iPhone can be purchased at a 25% discount every 24 months with the option – available exclusively from Sunrise. With this offer, developed together with Apple, customers can choose to which new iPhone model they want to upgrade every 24 months – always at the best price and on the largest and fastest 5G network in Switzerland. This is yet another instance of Sunrise offering Apple fans unrivaled added value.

yallo Free TV – free TV, also for customers of other providers

With , the secondary brand of Sunrise has launched a free, advertising-funded TV offer. The free streaming TV product provides viewers with over 270 TV channels and recordings of up to 60 programs. With its basic features, yallo Free TV offers everything you need for occasional TV viewing and is an ideal launchpad for getting to know the yallo TV product at no cost before opting for a comprehensive yallo TV subscription. This further strengthens the position of yallo as a full-service provider with state-of-the-art mobile, Internet and TV services from a single source.

EBL sells telecom division to Sunrise

EBL has been active in the telecommunications industry since 2000 and owns telecom networks in around 200 municipalities in Switzerland. Simultaneously, EBL has been successfully pursuing a policy of robust expansion of its business areas for several years to incorporate renewable energy/heat production and distribution. As a result of this strategic focus, EBL is selling its telecom division, with around 60,000 existing telecom customers (including mobile), to Sunrise. Both parties are preparing to transfer the business in January 2023. It has been agreed that the terms of the sale will not be disclosed.

Sunrise

Media Relations

0800 333 000

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1) including B2B and second SIM cards, excluding second SIM cards organic postpaid adds were 42,400.

2) The results on an adjusted basis are consistent with the results presented by the parent company. These non-GAAP figures are intended to supplement, and not replace, the U.S. GAAP figures contained in the financial statements of the parent company. The should be consulted for any definitions and adjustments.

3) Costs to capture generally include incremental, third-party operating and capital costs directly related to integration activities, restructuring measures and certain other costs associated with aligning an acquired company with the business processes of the parent company to achieve synergies. These costs are necessary to align the operations of a business to be acquired (or a joint venture to be formed) with those of the parent company, or are associated with the acquisition. As a result, the costs to be recognized may include certain (i) operating costs included in adjusted EBITDA, (ii) capital-related costs included in additions to property, plant and equipment and adjusted EBITDA excluding additions to property, plant and equipment4), and (iii) certain integration-related restructuring costs that are not included in adjusted EBITDA or adjusted EBITDA excluding additions to property, plant and equipment4). As the achievement of synergies occurs over time, certain costs to be recognized are recurring by nature and are generally incurred within a few years of the closing of the transaction.

4) Due to a comment by the U.S. Securities and Exchange Commission SEC, Liberty Global has changed its formerly used term «OFCF» to «Adjusted EBITDA excluding additions to property, plant and equipment» as of Q3/21.