Sunrise Communications (SNRE) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered stable to modestly growing revenue (+0.1% to +2.5% YoY) and strong adjusted EBITDAAL growth (+2.5% YoY), driven by cost optimization and favorable phasing.

• Achieved 10,000 postpaid mobile net adds and stabilized Internet base, reflecting improved loyalty and lower churn.

• Launched Sunrise Rewards loyalty program and announced a strategic B2B partnership with PHOENIQS for sovereign AI/cloud solutions.

• AGM approved a CHF 3.42 dividend for 2025, already paid out in May; progressive dividend policy reaffirmed.

• Maintained strong premium segment position, winning top ratings in Connect magazine and "connect complete check 2026."

Financial highlights

• Revenue stable at CHF 722.8–723 million (+0.1% YoY), with growth in mobile postpaid, B2B, and handset sales offsetting fixed-line declines.

• Adjusted EBITDAAL rose 2.5% YoY to CHF 245.9–246 million, margin improved to 34.0%, driven by OpEx reductions.

• CapEx to sales ratio at 18.5%, about CHF 10 million lower YoY, with reductions expected to continue.

• Adjusted FCF at minus CHF 111 million, broadly flat YoY, reflecting typical Q1 working capital and interest payments.

• Net loss widened to CHF 39.4 million from CHF 1.3 million YoY, mainly due to absence of prior-year exchange-rate gains and higher restructuring costs.

Outlook and guidance

• Full-year 2026 guidance reiterated: revenue broadly stable, adjusted EBITDAAL around CHF 1 billion, capex/revenue below 15%, and adjusted FCF CHF 380–400 million.

• Dividend for 2026 expected to grow by over 2% to CHF 3.49 per Class A share, subject to AGM approval.

• General price increase effective August 2026, expected to provide a net positive impact, with more significant effects in 2027.

• SME and B2B segments expected to accelerate in H2 2026, driven by new offerings and partnerships.

• Dividend to be paid from reserves, not subject to Swiss withholding tax or income tax for Swiss residents holding shares as private assets.