Sunrise Communications Ltd

Latest Results (06.10.2025):

Sunrise Communications Ltd reported its second-quarter 2023 financial results, showcasing revenues in line with expectations and an EBITDA that exceeded forecasts by 3%. The company upheld its full-year guidance despite a slight year-over-year decline in revenues.

Revenue Performance

The Swiss telecommunications company achieved Q2 revenues of CHF732 million, a 0.8% decrease compared to the same period last year. This result surpassed the consensus estimate of CHF728 million and improved from the 3.3% decline observed in Q1, driven by reduced declines in hardware sales and the full impact of price increases implemented on March 1, 2025.

EBITDA Growth

Adjusted EBITDAaL grew by 1.9% to CHF254 million in Q2, outperforming analyst expectations of CHF246 million. Sunrise attributes this growth to effective cost savings measures and the positive impact of staff participation in the employee share purchase plan.

Subscriber Additions

Sunrise added 18,000 post-paid mobile customers in the quarter, slightly below the consensus estimate of 21,000. Broadband net additions remained flat against expectations of 6,000 new customers. The company highlighted that these softer subscriber trends are a result of its strategic focus on value rather than volume.

ARPU Improvement

Average Revenue Per User (ARPU) metrics showed notable improvement, with mobile ARPU declining by 1.6% compared to a 3.6% drop in Q1, and fixed ARPU falling by 4.5% versus 5.3% in the previous quarter.

Free Cash Flow Rebound

Free cash flow for Q2 reached CHF153 million, a rebound from negative CHF117 million in Q1. The company noted that cash flow is seasonally weighted toward the second and fourth quarters due to the timing of interest payments, capital expenditures, and working capital movements.

2025 Guidance and Strategic Initiatives

Sunrise maintained its 2025 guidance, projecting broadly stable revenue and stable to low-single-digit growth for adjusted EBITDAaL. Capital expenditure is expected to account for 15-16% of sales, with adjusted free cash flow forecasted between CHF370-390 million. Additionally, the company extended its Swiss National Hockey TV rights contract for eight more years through 2035, anticipating modest financial benefits after 2027.