Sunrise Communications (SNRE) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw continued customer growth, new product launches, and Sunrise's network becoming the first in Switzerland to be 5G Standalone ready with 99.5% population coverage.

• Revenue declined 3.3% year-over-year, mainly due to lower hardware sales, right-pricing, and lower ARPU in residential, partially offset by business and wholesale growth.

• Financial results were in line with expectations, with Adjusted EBITDAAL up 0.4% year-over-year and net loss narrowing to CHF 1.3 million.

• Full-year guidance and progressive dividend policy were confirmed, with a 2.7% increase in dividend per share expected for 2025.

• Delisting of ADSs from Nasdaq is scheduled for August 2025, with most shares already converted.

Financial highlights

• Q1 2025 revenue: CHF 722/722.1 million, down 3.3% year-over-year; Adjusted EBITDAAL: CHF 240 million, up 0.4% year-over-year.

• Adjusted free cash flow was negative CHF 117 million, reflecting higher capex and typical Q1 seasonality.

• Capex increased to CHF 143 million (+9.5% year-over-year), mainly due to network and CPE investments.

• Dividend of CHF 3.33 per Class A share for FY 2024 paid; 2.7% increase targeted for 2025.

• Net loss narrowed to CHF 1.3 million from CHF 127.2 million in Q1 2024.

Outlook and guidance

• Full-year 2025 guidance confirmed: revenue broadly stable, Adjusted EBITDAAL stable to low single-digit growth, capex/revenue at 15–16%, and Adjusted FCF CHF 370–390 million.

• Dividend per share for FY 2025 targeted at CHF 3.42 for Class A shares (+2.7% year-over-year).

• Price increases are expected to positively impact revenue and ARPU in coming quarters.

• Management expects stabilization and growth in residential revenues as integration challenges subside.