Sunrise’s return to the stock market raises many questions about the real value of this operator. With a valuation of around 3.2 billion francs at the end of the week, far from the 6.8 billion paid by the American Liberty Global to absorb this brand in 2020 and merge it with UPC, one can wonder about the financial relevance of this operation.
This “new” Sunrise has little in common with the company it bought 4 years ago. The integration of UPC has profoundly changed its profile and corporate culture, making the former mobile challenger the country’s leading cable operator, with synergies that remain to be demonstrated for the end customer, who continues to be stripped bare with great strokes of the lawnmower for the benefit of the owners.
A debt that worries
The colossal debt inherited from the acquisition by Liberty Global seems to weigh heavily on the accounts. Despite the efforts announced to reduce it by 1.5 billion, it constitutes a ball and chain that limits investment student database capacities, which are nevertheless crucial in such a competitive sector. We are thinking in particular of the company’s aging cable that the financial management is struggling to renew.
Recent financial results could be open to discussion, with a turnover down 1.3% in the third quarter. We are far from this leading competitor who was supposed to do battle with Swisscom! The promise of a dividend of 240 million from 2025 may thus seem very optimistic given the situation. Obviously, the financial management can still try to cut to the quick. It will not hesitate.Swisscom offers
An uncertain future
Operationally, Sunrise (UPC) is struggling to stand out from the competition. Its mobile network, once the company’s flagship, has lost its splendor and will require significant investment to withstand competition from the former monopolist Swisscom and the dynamic Salt, while its fixed-line offer via cable appears increasingly uncompetitive compared to fiber optics.
In this context, this kind of “return to the What isr ba leads Sunrise (UPC) really stock market” looks more like a dubious financial operation than a genuine new beginning. Potential new investors would do well to look beyond the marketing veneer to assess the real prospects for growth and profitability of this operator that has been pretty much emptied of its substance for the benefit of its various owners.