Sponsored By

Sunrise lowers 2020 revenue guidance over COVID-19

Swiss operator reports revenue growth for the first quarter of 2020 and said business remains robust, but coronavirus effects were evident in March and the outlook is less certain than before.

Anne Morris

May 14, 2020

2 Min Read
Sunrise lowers 2020 revenue guidance over COVID-19

Switzerland-based Sunrise lowered revenue guidance slightly for 2020 amid the ongoing uncertainty related to the COVID-19 pandemic, although it maintained its annual outlook for adjusted operating profits or EBITDA.

Like many operators in Europe, Sunrise first started to see some tangible effects of the pandemic in March, mainly owing to a decline in roaming revenue that continued into April. Revenue in 2020 is now forecast at between 1.84 billion Swiss Francs ($1.89 billion) and CHF1.88 billion ($1.93 billion), down from CH1.87 billion-CHF1.91 billion, while adjusted EBITDA guidance is reiterated at CHF675 million ($693 million) to CHF690 million ($709 million).

The operator said it was able to maintain adjusted EBITDA guidance because its performance in the first quarter of 2020 had been relatively robust. Total quarterly revenue increased by 2.8% year-on-year, to CHF459 million ($471 million), while service revenue rose by 3.6%, to CHF384 million ($394 million). Adjusted EBIDTA increased 5.9%, to CHF168 million ($172 million).

However, it has inserted a caveat: If assumptions on a gradual recovery from the pandemic prove too optimistic, Sunrise said it would expect an incremental roaming risk of CHF5 million ($5 million) to CHF10 million ($10 million) to the adjusted EBITDA guidance.

Want to know more about 5G? Check out our dedicated 5G content channel here on Light Reading.

Capex guidance for 2020 has also been maintained in the range of CHF410 million ($421 million) to CHF450 million ($463 million). Sunrise said its 5G network rollout has continued in 2020, with 535 cities and towns covered by 5G in the 3.5GHz band by the beginning of May. The target is to achieve 90% population coverage in the 700MHz by the third quarter.

However, Sunrise continues to gripe about radiation limits that it says are hampering a swifter rollout. According to André Krause, CEO of Sunrise, "the Federal Council continues to make the 5G rollout challenging" with its latest decision to not change the limit values for non-ionizing radiation and the delay in execution guidelines for handling adaptive antennas.

"This will worsen the quality of Switzerland's networks and endanger digitization. Switzerland has already been left behind in terms of fiber optic connections," Krause said.

Related posts:

— Anne Morris, contributing editor, special to Light Reading

Read more about:


About the Author(s)

Anne Morris

Contributing Editor, Light Reading

Anne Morris is a freelance journalist, editor and translator. She has been working in the telecommunications sector since 1996, when she joined the London-based team of Communications Week International as copy editor. Over the years she held the editor position at Total Telecom Online and Total Tele-com Magazine, eventually leaving to go freelance in 2010. Now living in France, she writes for a number of titles and also provides research work for analyst companies.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like