Sunrise Communications (SNRE) Q2 2024 earnings summary

Executive summary

• Achieved net growth of +31,000 mobile postpaid and +5,000 Internet subscriptions in Q2 2024, marking the second consecutive quarter of broadband growth.

• Commercial momentum and reduced churn rate supported customer growth; customer complaints fell by 30% and satisfaction metrics improved significantly year-over-year.

• Preparations for a planned spin-off on the SIX Swiss Exchange in Q4 2024 are progressing as expected.

Financial highlights

• Q2 2024 revenue increased by 0.5% year-over-year to CHF 737.5 million.

• Segment Adjusted EBITDA grew by 0.9% year-over-year to CHF 260.3 million, including CHF 2 million in integration-related costs.

• Adjusted EBITDA less P&E additions declined by 9.5% year-over-year to CHF 133.9 million, mainly due to higher phased investments.

• Value-accretive investments (capex) totaled CHF 126.4 million, representing 17.1% of revenue in Q2 2024.

Outlook and guidance

• 2024 guidance confirmed: revenue expected to remain broadly stable, with segment Adjusted EBITDA stable to low single-digit growth.

• Adjusted FCF for FY 2024 projected between CHF 360–400 million; midpoint FCF growth of approximately CHF 60 million (+17% vs prior year).

• Property and equipment additions expected at 16–18% of revenue.