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20 minutes – Sunrise takes UPC Switzerland paying 6.3 million francs

Grossfusion in the Swiss telecommunications market: Sunrise receives the UPC Switzerland and pays 6.3 million pounds. This is to create a stronger and more successful Swisscom company.

Sunrise and UPC Switzerland come together, in part, with two complementary companies. Solid Sunrise in mobile communications, UPC Internet and television businesses. Up until now, UPC has been owned by the giant British cable network Liberty Global.

Transactions Sunrise boosts the company as a solid phone number on the mobile, television, broadband internet and fixed line tonight. UPC Switzerland is an "attractive outing" with high-speed broadband Internet and its television content and 17,500-kilometer long fiber optics.

Challenge Swisscom

Sunrise boss Olaf Swantee sees shopping as "a great choice". As a result, Switzerland will receive a more robust telecommunications provider with a very good infrastructure, that is, UPC and 4G cable networks and Sunrise 5G mobile networks.

"We want to move the market," AWP news agency said on Wednesday afternoon. The new Sunrise wants to become the main challenger of Swisscom.

With regard to numbers, Sunrise, including UPC, has marketed 24% of subscribers, 30% of subscribers, and Internet television with 1.4% share with television clients.


Sunrise will receive 6.3 million francs and will also spend new capital capital. In fact, Sunrise will pay 3.6 million pounds for part of the UPC debt.

Another portion of the purchase price of 2.7 million euros will be financed by Sunrise through the transmission of 4,1 million francs of suicide rights. This is freely Liberty Global. It will pay the remaining $ 1.1 million in debt.

Sunrise will face the second half of 2019. Approved by the competition authorities is expected in the second or third quarter of 2019. Panagiotis Spiliopoulos, Vontobel's Chief Research Officer, can not imagine the objection to the merger by 20 minutes later.

Sunrise / UPC achieved a turnover of 3.17 million euros in 2018. Together, the industry, two numbers, with an adjusted operating exploitation of 1.24 million euros.

But compared to Swisscom, the new company is still a small fish. Industry leaders with sales of 11.7 million francs and 4.2 million operating last year.

Synergy and cuts?

The Sunrise company expects 30 million euros of cost and investment to be synergized every third year after the transaction. In addition, after the fifth year after the acquisition, the synergies of profits are about 45 million francs.

Sunrise CEO Swantee did not want employees to say what synergy is. "It's too early for that," he said, however, that real service departments and sales teams would have a negative impact. On the other hand, the reduction of management and administration is expected.

As stated in the UPC, it would be a sudden reduction. "How it works is still open. The process must be transparent and correct. The messages must be filled with the best people," said spokesman Alexandra Bini. No degradation yet known. It's up to Sunrise.

The sun is getting better

Sunrise published data for the year 2018. Sales increased by 1.2% and 1.88 million Swiss francs. Adjusted Operational Operations The EBITDA slightly decreased by 1.1 per cent, with 601 million Swiss francs.

The bottom line was still 107 million net profit. In previous years, it sold 505 million francs at ATMs, due to the sale of 2,200 antenna cheekbones. This brought 420 million pounds. Unlike the Mast Masters, net profit for 2018 increased by 3.4%.

UPC was less. In the year 2018, income of 3.7% decreased by CHF 1.30 million. The reason for this is the first competition and customer development in the last quarters. Operating profits have dropped significantly.

In the last twelve months, UPC has lost its customers considerably. The bloodiest was in the television business. At the end of the year, the decline has accelerated. In the fourth quarter, UPC revenue fell by 5.1%.

Sunrise also believes UPC 2019's financial development will again be negative and will reach approximately 2018. However, new owners believe that UPC's position will stabilize from now on, such as a new television video platform and operational measures to make joint offers.

(FSS / chk / SDA)

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