EQS Group-News: Sunrise UPC GmbH / Key word(s): Quarter Results
André Krause, CEO of Sunrise UPC, says:
«Despite the intense ongoing competition, Sunrise UPC was able to further drive its market momentum and again gain market share. This was due in particular to the reliability of our infrastructure and services and our consistent positioning as a quality provider. The fact that this assessment is shared by both private and business customers is demonstrated by our growth, as is the fact that we have once again received an award in the largest annual and independent market survey - the BILANZ Telecom Rating 2021. Our operating and financial results continue to develop according to plan and Sunrise UPC remains the pacesetter in the Swiss telecom market.»
Sunrise UPC continued to maintain momentum in the Swiss telecommunications market during the quarter under review. The positive development resulted in a net increase of +43,200 mobile postpaid subscriptions, +6,900 broadband lines and enhanced TV subscriptions in Q3 2021.
As a result, Sunrise UPC is reporting a gain of +73,000 broadband, TV and mobile RGUs growth in Q3. This results in a current total of 2,591 million Mobile RGUs (2,960 million including second SIM cards), 1,158 million Broadband RGUs (1,211 million including SME) and 1,239 million TV RGUs (1,279 million including SME) as of the end of September 2021.
With net growth in mobile, broadband Internet and TV, Sunrise UPC increased FMC penetration by 5.7% YoY to a total of 56%. Demand for convergent combined offerings with a leading price-/performance ratio remains high, especially among existing customers. This is also reflected in the customer satisfaction rate, which remains at a very high level. Sunrise UPC will continue to drive the FMC uptake, supported by the refreshed converged bundles for both main and secondary brands.
B2B: Sustained overall growth and groundbreaking new gains
Developments in the business customer segment were characterized by sustained overall growth of 1% across all segments on the one hand, and by the «Best Universal Provider for SME» and «Best Universal Provider for Large-Scale Companies» awards in the BILANZ Telecom Rating 2021 on the other.
Signing a contract with Schutz & Rettung Zürich, which will obtain the redundancy of the telephony connections for its operations centers from Sunrise UPC, is considered groundbreaking. The emergency organization receives around 140,000 calls a year and serves various cantons such as Zurich, Schaffhausen, Schwyz and Zug. Other significant new contracts and extensions/upgrades of existing customer relationships in Q3'2021 include: Zurich Insurance Company Ltd, Kantonsspital Baden, DPD (Switzerland) and the City of St. Gallen.
NHL content for MySports
By securing the TV rights to the National Hockey League (NHL), Sunrise UPC has once again succeeded in taking a significant step towards further expanding the positioning of MySports as the «Home of Hockey». Having already won the contract in Q2'2021 to broadcast all games of the top national league until 2027, the sports broadcaster will also present more than 150 live games of the world's best and most glamorous ice hockey league from the beginning of October. With this strengthening of the MySports Pro package, Sunrise UPC is continuing to drive the channel's success story forward. Since the channel started broadcasting in 2017, MySports has been able to increase the number of subscribers for the Pro offer by around 30% annually.
Sunrise UPC's Q3 revenue of CHF 762.5 million on an adjusted basis is in line with the previous year. This is mainly due to growth in consumer mobile revenues from increased postpaid service revenues and the B2B wholesale mobile business. The individual businesses contributed differently to the overall result in Q3'2021: mobile CHF 316.4 million (+2% YoY), fixed (including Internet, TV and phone) CHF 310.1 million (-2,2% YoY) and B2B CHF 130.7 million (+0.9% YoY).
The Adjusted EBITDA increased by +3.3% YoY on an adjusted basis to CHF 303.7 million. This includes CHF 3.4 million of costs to capture2). Quarter-on-quarter improvement in the Adjusted EBITDA of CHF 32 million was supported by higher revenues, mainly from the consumer mobile segment, and lower costs due to synergies.
The rebased Adjusted EBITDA less P&E Additions3) increased by +13.1% YoY on an adjusted basis. This was the case despite the negative impact caused by CHF 24.1 million costs to capture2) and was driven by strong continued growth in the customer mobile segment, lower costs due to synergies and reduced capex investment.
Sunrise UPC's detailed financial results are included in the UPC Holding Q3 2021 fixed income release.
New terms of employment, uniform pension fund plan and commitment to complete reduction of greenhouse gas emissions by 2030
Sunrise UPC continued its rapid integration and, in close cooperation with the syndicom trade union, concluded the new employment conditions and announced the harmonized pension fund plan to be valid as of January 1, 2022.
Liberty Global is continuing its commitment to more sustainability and energy efficiency, with a focus on energy consumption, CO2 emissions and avoidance of e-waste. Liberty Global and its subsidiary Sunrise UPC have therefore pledged to reduce the greenhouse gas emissions directly or indirectly produced by the company (scope 1 and 2) down to zero by 2030. Looking ahead, the goal is to sustainably avoid even the indirect emissions that arise over the course of the entire value chain (scope 3). The company intends to present a detailed plan for reaching this last goal around the middle of next year.
1) Rebase results are consistent with those as presented by our parent company. These non-GAAP measures should be viewed as supplement to, and not a substitute to U.S.GAAP measures included in our parent company's financial statements, please see the UPC Holding Q3 2021 fixed income release for definitions and reconciliations as applicable.
2) Costs to capture generally include incremental, third-party operating and capital related costs that are directly associated with integration activities, restructuring activities, and certain other costs associated with aligning an acquiree to our business processes to derive synergies. These costs are necessary to combine the operations of a business being acquired (or joint venture being formed) with ours or are incidental to the acquisition. As a result, costs to capture may include certain (i) operating costs that are included in Adjusted EBITDA, (ii) capital related costs that are included in property and equipment additions and Adjusted EBITDA less P&E Additions and (iii) certain integration related restructuring expenses that are not included within Adjusted EBITDA or Adjusted EBITDA less P&E Additions. Given the achievement of synergies occurs over time, certain of our costs to capture are recurring by nature, and generally incurred within a few years of completing the transaction.
3) Based on a comment from the U.S. Securities and Exchange Commission SEC, Liberty Global has changed the previously used term «OFCF» to «Adjusted EBITDA less property and equipment (P&E) Additions» from Q3'21.
End of Media Release
Sunrise UPC GmbH
8152 Glattpark (Opfikon)
0800 333 000
www.sunrise.ch und www.upc.ch
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