Sunrise Communications Ag Class A · SIX:SUNN
Sunrise Communications Ag Class A — Q3 2010 Earnings Presentation
17 slides from Sunrise Communications Ag Class A's earnings presentation, Dec 7, 2010
Slide 1: Financial Results January–September 2010
December 2010 Sunrise Communications Holding S.A. Financial Results January –September 2010
Slide 2: Disclaimer
Disclaimer This Presentation and any materials distributed in connection herewith (the "Presentation") include forward-looking statements. Forward-looking statements are statements regarding or based upon our management’s current intentions, beliefs or expectations relating to, among other things, S
Slide 3: Key Messages
Key Messages CVC Capital partners completed the acquisition of Sunrise successfully on October 28, 2010 for an aggregate consideration of CHF 3.3bn iPhone launched end of July 2010 Revenues for Q3 were CHF 533 million, an increase of 3.4 % QoQ with YTD revenues of CHF 1’528 million or an 2.9% increa
Slide 4: Operational Trends: Mobile
Operational Trends: Mobile Comments Mobile trends 5.8% Mobile subscribers up 5.8% YoY driven 1'952 by mobile broadband, postpaid voice, 1'845 prepaid voice base Sunrise launched its iPhone offering at -1.4% the end of July, 2010 49.2 48.5 ARPU has declined by -1.3% YoY driven by: Introduction of fla
Slide 5: Mobile Termination Rates
Mobile Termination Rates Delta: 6.5 Delta: 4.1 Delta: 3.0 Delta: 3.0 Delta: 2.0 Delta: 1.8 Delta rel.: 35% Delta rel.: 25% Delta rel.: 20% Delta rel.: 21% Delta rel.: 21% Delta rel.: 25% • In Switzerland, MTRs are determined through an agreement among the operators, rather than ex ante by a regulato
Slide 6: iPhone launched end of July 2010
iPhone launched end of July 2010 Sunrise launched the sale of iPhones at the end of July 2010 Customer reception was very positive, and accounted for Sunrise’s data network quality Customers predominately subscribed to our higher value flat rate plans and 24 month contract length Subscriber acquisit
Slide 7: Successful launch of new multi brand initiatives
Successful launch of new multi brand initiatives Launched September 6, 2010 Largest free newspaper in Switzerland available in the German and French Targets the youth segment speaking regions of Switzerland Well received by the market Launched October 25, 2010 Majority of customers subscribe to the
Slide 8: Operational Trends: Landline Retail Bundles (ADSL and retail Voice)
Operational Trends: Landline Retail Bundles (ADSL and retail Voice) Comments Double Play Customers Double play connections (landline retail voice and ADSL) have grown 3.8% YoY driven by 3.9% -0.1% 347 Attractive bundle prices including line 334 80.0 79.9 rental, voice services and xDSL Triple play o
Slide 9: Operational trends: Landline Retail Voice
Operational trends: Landline Retail Voice Comments Landline Retail Voice Customers -9.9% Low margin CPS Voice customers – mostly acquired as part of the Tele 2 acquisition - continue to churn to double play products, off the Sunrise network or +5.1% are substituting their service with mobile 317 CPS
Slide 10: Financial Performance
Financial Performance Year to Date Quarter to Date (CHFm) Q3'10 Q3'09 Q3'10 Q3'09 Revenues 1'528 1'485 533 516 % growth 2.9% - 3.4% - EBITDA 422 364 142 128 % margin 27.6% 24.5% 26.5% 24.9% % margin (excl. Hubbing) 30.4% 26.8% 28.9% 27.2% % growth 16.0% - 10.4% - Capex (109) (138) (32) (55) % margin
Slide 11: Pro forma closing net debt
Pro forma closing net debt Pro forma leverage at the closing of the acquisition on 28th October was CHF2.3bn after adjusting for the Eur56m tap issue Pro forma post transaction close CHF’m Term Loan A 500 Term Loan B 321 Senior Secured Notes 808 Total Senior debt 1,629 Senior Notes 769 Total debt 2,
Slide 12: Outlook
Outlook • Sunrise is still experiencing a continued subscriber growth in mobile and LLU, which supports our growth assumptions • Outlook for the year remains constant © Sunrise 07.12.2010 12
Slide 13: Backup
Backup © Sunrise 07.12.2010 13
Slide 14: Financial Performance
Financial Performance Year to Date Quarter to Date (CHFm ) Q3'10 Q3'09 Q3'10 Q3'09 Mobile 909.134 858.555 330.975 301.319 Landline Services 486.326 489.644 158.689 168.946 of which hubbing 151.668 136.091 48.653 46.455 Landline Internet 132.356 137.046 43.570 45.315 Revenues 1'527.816 1'485.245 533.
Slide 15: Operational KPIs
Operational KPIs Year to Date Quarter to Date Q3'10 Q3'09 Q3'10 Q3'09 Subscriber base (thousand) 2894.0 2845.4 Mobile 1'951.9 1'844.6 Postpaid 938.0 857.6 Prepaid 1'013.9 987.0 Landline Retail Voice 586.0 650.5 Landline Internet 356.1 350.3 thereof LLU 215.3 95.9 thereof dial-up 9.4 16.5 ARPU (CHF)
Slide 16: Fixed ARPU and AMPU mechanics
Fixed ARPU and AMPU mechanics IFRS bundled arrangement accounting effects ARPU and AMPU Average Revenue per User (ARPU) Significant voice ARPU increase from CPS/BBCS customer to ARB customer due to wholesale of line rental previously charged by Swisscom to the customer. Almost no impact on ADSL ARPU
Slide 17: Thank you
Thank you © Sunrise 07.12.2010 17
Sunrise Communications Holding — Q3 2010 Earnings Presentation on 6ix