Swiss operator Sunrise said its revenues increased by 0.3 percent year-on-year in Q2 2020 to CHF 456 million despite the impact of the pandemic. Service revenue fell by 0.6 percent to CHF 381 million, led by a 6.3 percent fall in landline service revenues to CHF 70 million. Mobile service revenues rose by 0.8 percent to CHF 305 million.
Gross profit fell by 1.3 percent in the second quarter to CHF 307 million because of the dip in service revenue and a slight contraction in the service gross margin related to roaming and termination rates, Sunrise said. EBITDA increased by 1.2 percent to CHF 159 million, while adjusted EBITDA fell by 1.4 percent to CHF 163 million. Net income shrank year-on-year by 17.3 percent to CHF 21 million, mainly due to higher depreciation and amortisation.
Sunrise added 34,300 postpaid subscribers in Q2 to reach total of 1.96 million. Mobile prepaid subscribers decreased by 19.3 percent to 477,000 as customers continue to migrate to postpaid tariffs, it said. The number of internet subscribers rose by 6.8 percent to 516,000 in the second quarter, and landline internet revenues grew by 4.8 percent year-on-year to CHF 82 million. TV subscribers jumped by 12.9 percent to 298,000 and landline voice subscribers grew by 4.6 percent to 514,000 in Q2.
The growth in the number of customers compensated for lower roaming revenues, driven by temporary travel bans related to the global pandemic. Based on these results, cost containment and an expected gradual recovery in roaming, the company confirmed its outlook for the fiscal year 2020 with revenues at CHF 1.84-1.88 billion and adjusted EBITDA of CHF 675-690 million. Capex is expected in the range of CHF 410-450 million. It plans to propose a dividend in the range of CHF 4.55-4.65 per share.
Separately, Liberty Global released the prospectus for its takeover bid for Sunrise at CHF 110 per share in cash. If the tender is successful, Liberty intends to de-list Sunrise shares from trading on the SIX exchange. The main offer period is expected to start on 11 September and expire on 08 October.
