DJ Solid financial year 2021: Sunrise UPC increases revenue and customer numbers
Sunrise UPC GmbH / Key word(s): Quarter Results Solid financial year 2021: Sunrise UPC increases revenue and customer numbers 18-Feb-2022 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement.
----------------------------------------------------------------------------------------------------------------------- . Sunrise UPC continues its growth trend. Net increase of +49,400 mobile^1) postpaid and +9,300 broadband/TV subscriptions in Q4 2021. . For the full fiscal year 2021, Sunrise UPC registers a total net increase of +181,800 Mobile^1) postpaidand +34,700 Broadband or TV RGUs and numbers a total of 5.5 million subscriptions (Mobile, Broadband and TV RGUs)at the end of Q4 2021. . Fixed-mobile convergence (FMC) grew by +3.1% in 2021. 56.3% of fixed broadband customers also used amobile postpaid offer by the end of 2021. . Revenue^2) amounted to CHF 760.0 million in Q4, growing +1.0% YoY on a rebased basis. Over the fullfinancial year, Sunrise UPC realized revenue of CHF 3,035.7 million (+0.5% YoY on a rebased basis). . Adjusted EBITDA^2) including costs to capture^3) (-1.8%) and Adjusted EBITDA less P&E Additions^ 2)4)(-2.7%) decreased slightly over the full year 2021. . B2B continues to experience strong growth with revenue up +9.9% in Q4 2021 and +3.7% over the full year. . In 2021, leading benchmarks continue to honor Sunrise UPC's performance: Customers benefit from the bestInternet and, in combination, from the largest and fastest 5G network in Switzerland. . Sunrise UPC is the only provider in Switzerland to offer giga speeds for over 90% of households with itshybrid fiber network.
André Krause, CEO of Sunrise UPC, is satisfied with the first consolidated financial year: «Despite the pandemic, the integration process and intense competition, we were successful in expanding our operational and financial success in 2021. We were able to play to our strengths as a merged company in the residential and business customer market as well as in the secondary brand business. We maintained momentum with our new offerings and were able to significantly increase our market share, which is also reflected in solid revenue growth. This momentum also gives me confidence for fiscal 2022.»
Operational results
Sunrise UPC continued its customer growth in Q4 2021. Overall, the company registered a net increase of +58,700 broadband, TV and mobile RGUs in the last three months of 2021. Net additions totaling +216,500 subscriptions were achieved over the course of the whole year. As of the end of 2021, this results in a total of 2.610 million mobile RGUs (2.995 million including second SIM cards), 1.166 million broadband RGUs (1.222 million including SME) and 1.240 million TV RGUs (1.282 million including SME).
As of December 31, 2021, FMC penetration was 56.3% representing an increase of +3.1% compared to year-end 2020. This stabilized the decline in average revenue per user (ARPU) despite intense competition at -1.4% for the full year. Sunrise UPC will continue to drive the FMC rate with convergent products.
B2B segment: Continued growth and significant new contracts
Sunrise UPC was able to further accelerate the growth already shown in previous quarters in the B2B area. Numerous new contracts and renewals/upgrades were also signed in Q4, resulting in a revenue increase of +9.9% compared to the same quarter last year. Overall, the B2B segment grew by +3.7% in 2021 and realized annual revenues of CHF 552.3 million. New contracts and renewals/upgrades in Q4 2021 included Appenzeller Bahnen AG and ERNE Management AG.
Financial results
Sunrise UPC increased the Q4 revenue^2) by +1.0% YoY to CHF 760.0 million on a rebased basis. For the full fiscal year 2021, revenues are up +0.5% YoY to a total of CHF 3,035.7 million. This is predominantly due to increased service revenues in the mobile postpaid segment with residential customers as well as in the B2B wholesale mobile business.
In Q4 2021, the individual business units continued to contribute differently to the results: mobile CHF 284.3 million (+1.7% YoY), fixed (including Internet, TV and telephony) CHF 312.5 million (-3.4% YoY) and B2B CHF 160.0 million (+9.9% YoY). Over the entire fiscal year 2021, the various business units developed as follows: mobile CHF 1,202.2 million (+1.9%), fixed CHF 1,259.0 million (-2.0%) and B2B CHF 552.3 million (+3.7%).
Adjusted EBITDA^2) saw a -0.5% decline in Q4 year on year to CHF 274.6 million. This was mainly driven by increased marketing and sales investments to support the launch of Sunrise's new product portfolio. Looking at the full year 2021, overall adjusted EBITDA decreased by -1.8% to CHF 1,104.8 million, mainly due to incremental integration-related costs to capture^3).
Adjusted EBITDA less P&E Additions^ 2)4) decreased in Q4 2021 by -23.3% YoY. Over the full financial year, adjusted EBITDA less P&E Additions on a rebased basis was CHF 547.4 million (-2.7%). This is mainly due to increased costs to capture^3) of CHF 100.2 million, related to projects aimed at driving synergies.
3 months Full year
ending December 31, 2021 ending December 31, 2021
In million CHF, except % amounts rebased %^2) rebased %^2)
Revenue^2^) 760.0 1.0% 3,035.7 0.5%
- Consumer Fixnet 312.5 (3.4%) 1,259.0 (2.0%)
- Consumer Mobile 284.3 1.7% 1,202.2 (1.9%)
- B2B 160.0 9.9% 552.3 3.7%
- Other 3.2 ----- 22.2 -----
Segment Adjusted EBITDA^2^) 274.6 (0.5%) 1,104.8 (1.8%)
Adjusted EBITDA less P&E Additions^2)4^) 93.1 (23.3%) 547.4 (2.7%) Sunrise UPC's detailed financial results are included in the UPC Holding Q4 2021 fixed income release.
Customers benefit from the integration
Since March 1, 2021, customers of Sunrise and UPC have been benefiting from the integration of the company thanks to new offers, more points of sale, more service and combined infrastructure. UPC Mobile customers have been using the award-winning Sunrise mobile network since spring 2021, and Sunrise customers have been using the UPC fiber optic network since mid-October with the expanded Sunrise We offering and one of the most modern TV platforms in Europe with the new Sunrise TV solution. With its hybrid fiber network (including 5G), Sunrise UPC is the only provider in Switzerland to offer giga speeds to over 90% of households.
Customers of yallo have also been benefiting from a new type of TV experience since mid-November 2021. yallo TV was developed with the help of the technological expertise and innovative strength of the Wilmaa team and marks yallo's definitive step towards becoming a full-service provider.
Award-winning Sunrise UPC 5G network continues to grow
Customers continue to be in the fast lane with the Sunrise UPC 5G mobile network. This was once again confirmed by various renowned comparative tests in the fall of 2021. According to Opensignal's 5G Global Mobile Network Experience Awards 2021, the Sunrise UPC 5G network is Europe's most award-winning 5G network (8 out of 9 awards) and thus also one of the world's leading 5G networks. The Sunrise UPC mobile network was also awarded «OUTSTANDING» in the «connect» mobile network test 2022. The Sunrise UPC network is the only mobile network in Switzerland to have been awarded this highest rating 6 times in a row. As connect attests, Sunrise UPC offers in combination the largest and fastest 5G network in Switzerland.
By the end of 2021, Sunrise UPC already provided over 1,000 cities/towns with high-speed 5G (up to 2 Gbit/s) and over 96% of the population with basic 5G (up to 1 Gbit/s). The current coverage map with location and address checks as well as the list of towns and cities can be found on the Sunrise website.
And Sunrise UPC also impressed users in the broadband area. The Broadband Benchmark 2021 from PC Magazin and PCgo looked for the best overall user experience for Internet users. The conclusion: Sunrise UPC offers the fastest and best Internet in Switzerland with its fiber-optic and cable network.
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^1) Including B2B and second SIMS.
^2) 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 Q4 2021 fixed income release for definitions and reconciliations as applicable.
^3) 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^4) and (iii) certain integration related restructuring expenses that are not included within Adjusted EBITDA or Adjusted EBITDA less P&E Additions^4). 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.
^4) 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.
Sunrise UPC Media Relations media@sunrise.net Phone: 0800 333 000 Outside Switzerland: +41 58 777 76 66
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End of ad hoc announcement
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Language: English
Company: Sunrise UPC GmbH
Thurgauerstrasse 101b
8152 Glattpark (Opfikon)
Switzerland
Phone: 0800 333 000
E-mail: sunrisemediaservice@sunrise.net
Internet: www.sunrise.ch und www.upc.ch
EQS News ID: 1282821
End of Announcement EQS News Service
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1282821 18-Feb-2022 CET/CEST
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February 18, 2022 01:01 ET (06:01 GMT)
