Swiss operator Sunrise has recorded Q1 revenues of CHF 447 million, down 2.6 percent from Q1 2018, because of lower hubbing and hardware sales. Service revenue increased by 2.7 percent, driven by customer momentum and B2B. Adjusted EBITDA including IFRS 16 was up by 13.2 percent to CHF 158 million. The total mobile subscriber base in Q1 reached nearly 2.37 million, with 13,000 net additions in Q1.
It still expects full year revenue in the range of CHF 1.86-1.9 billion. After a strong start to the year, Sunrise is increasing its adjusted EBITDA guidance from CHF 608-623 million to CHF 613-628 million. First quarter net profit doubled to CHF 35 million year-on-year, supported by adjusted EBITDA growth and the sale of 133 telecom towers to Swiss Towers in January.
As regards the acquisition of UPC Switzerland, Sunrise management has seen more than 170 investors and the transaction had a broadly positive reception. Merger control notification has been submitted and a final regulatory decision is expected in the second half of this year. Integration planning has been started, resulting in high level of confidence that synergies can be realised. Subject to regulatory clearance and EGM approval, the closing of the transaction is expected in the fourth quarter.
Momentum in subscriber additions continued, with Sunrise achieving 43,200 postpaid net adds in Q1 to 1.77 million. This represents the company's strongest performance since 2010, enabled by B2B customer wins (Valora and University Hospital Zurich).
The mobile prepaid customer base decreased year-on-year to 597,300, losing 30,200 net customers in Q1, as they continue to migrate to postpaid tariffs. Internet subscribers rose by 14,500 during Q1 to 471,800, and TV subscribers rose by 8,600 in Q1 to 252,300. These substantial increases were supported by 2-4P bundle offers and TV content, including 'Sky Sport' and 'Sky Show'.
Blended mobile ARPU in Q1 was CHF 31.1, compared with CHF 31.7 in Q4 2018. Post-paid ARPU was CHF 38.3 compared with CHF 39.5 in Q4 2018 and pre-paid ARPU was CHF 10.6 compared with CHF 11 in Q4 2018.
