Sunrise Communications (SUNN) investor relations material

Executive summary

• Q2 2026 revenue declined 2.6% year-over-year to CHF 712.9 million, mainly due to lapping prior price increases and softer fixed subscriber growth, but commercial momentum improved with net adds of +21,000 mobile postpaid and +3,000 Internet subscriptions, supported by new initiatives like Sunrise Rewards.

• Adjusted EBITDAAL fell 3.8% year-over-year to CHF 244.4 million, as OpEx improvements and cost discipline could not fully offset gross profit pressure.

• Adjusted Free Cash Flow grew 33.3% year-over-year to CHF 204 million, driven by lower CapEx and favorable working capital seasonality.

• Net loss for Q2 was CHF 22.4 million, a 58.2% improvement from Q2 2025.

• Management transition: Jany Fruytier stepping down as CFO, succeeded by Andreas Tolpeit; commercial leadership changes underway.

Financial highlights

• Q2 2026 revenue: CHF 712.9 million (down 2.6% YoY); H1 2026 revenue: CHF 1,435.7 million (down 1.2% YoY).

• Adjusted EBITDAAL margin: 34.3% in Q2 2026; H1 2026 margin: 34.2%.

• CapEx at CHF 102 million in Q2 2026 (14.3% of revenue), down 12.7% YoY; H1 2026 CapEx: CHF 235 million (down 9.4% YoY).

• Adjusted Free Cash Flow for Q2: CHF 204 million (up 33.3% YoY); H1 2026: CHF 93 million (up 153.8% YoY).

• Dividend per share guidance reiterated at CHF 3.49 (>2% growth YoY), subject to AGM approval.

Outlook and guidance

• Full-year 2026 guidance reiterated: stable revenue, Adjusted EBITDAAL ~CHF 1 billion, CapEx/revenue below 15%, and Adjusted Free Cash Flow CHF 380–400 million.

• H2 2026 expected to improve sequentially, with Q4 showing more pronounced gains due to price increases and commercial momentum.

• Price increase implemented August 1, with early signs of positive net lending and moderate churn.

• Dividend to be paid from capital contribution reserves, exempt from Swiss withholding and income tax for private individuals.

• Integration challenges from the Sunrise-UPC transaction largely resolved, expected to stabilize and grow residential revenues.