Sunrise reports slight revenue decline in Q2, focusing on customer loyalty and value

Sunrise, a leading telecommunications company in Switzerland, announced a slight decline in revenue for the second quarter of 2023, with total revenue reaching CHF 733.6 million, representing a decrease of 1.0 percent compared to the same period last year.
The decline in revenue was primarily attributed to lower revenues in the Consumer Fixed segment, mainly due to the pressure on Average Revenue Per User (ARPU) on the main brand offerings. However, this decline was partially offset by the continued strong growth of the secondary brands, including yallo, Lebara, and swype, collectively known as the “flanker brands,” as well as growth in the B2B segment, including wholesale.

Revenue in the Consumer Mobile segment remained stable, contributing significantly to the quarterly results.

The individual business units’ performance during Q2 2023 is as follows: Consumer Mobile CHF 295.7 million, showing a slight increase of 0.1 percent on a rebased basis year-on-year; Consumer Fixed (including Internet, TV, telephony, and other services) CHF 286.2 million, experiencing a decline of 3.8 percent on a rebased basis year-on-year; B2B CHF 140.8 million, displaying a healthy growth of 3.3 percent on a rebased basis year-on-year; and other revenue CHF 10.9 million.

Sunrise continued to witness growth in its customer base in the mobile postpaid segment during Q2 2023, with a net increase of 24,000 mobile postpaid subscriptions. Although the net growth was slightly lower than in previous quarters, it was primarily due to the company adopting less aggressive promotions for new customers and instead focusing on creating incentives to enhance customer loyalty.

The company is executing its strategic plan to strengthen its market position by emphasizing the added value of its services and further increasing the value of its existing customer base. The slight decline of 2,800 Internet subscriptions in the broadband segment compared to the same period in 2022 was influenced by the impact of right-pricing in the Consumer Fixed business and the gradual withdrawal of the UPC brand.

As of the end of June 2023, Sunrise reported a total of 2.803 million mobile RGUs (Retail Group Units) and 3.246 million including second SIM cards, 1.188 million Internet RGUs (including SMEs), and 1.230 million TV RGUs (including SMEs). The Fixed Mobile Convergence (FMC) penetration reached 58 percent, displaying an increase of 0.8 percent compared to the same period in 2022. The growth in FMC rate was driven by sales efforts such as upselling and cross-selling of convergent products to the existing customer base.

Sunrise remained committed to significant investments, with CHF 110.1 million, equivalent to 15 percent of revenue, being allocated to networks, product innovations, and digital services during Q2 2023.

Andre Krause, CEO of Sunrise, expressed his confidence in the company’s performance and its strategic approach.

“We’re focusing on retaining value in the customer base and creating targeted incentives to generate a high degree of loyalty. As a result, six months into the year, everything is going to plan, and we’re very much in line with the guidance for the full year 2023, which we can confirm as unchanged,” Andre Krause said.

Sunrise continues to prioritize customer satisfaction, loyalty, and technological advancements as it progresses through 2023, reaffirming its commitment to providing quality telecommunications services to its customers in Switzerland.