Sunrise Communications (SNRE) Q2 2025 earnings summary

Executive summary

• Completed full 3G and 2G network switch-off, now operating exclusively on 4G/5G Standalone, with over 300,000 customers using 5G Standalone and full commercial rollout planned for H2 2025.

• Q2 2025 revenue declined 0.8% year-over-year to CHF 732 million, but sequential improvement seen due to price increases, B2B growth, and hardware sales recovery.

• Adjusted EBITDAAL grew 1.9% year-over-year to CHF 254 million, driven by cost optimizations and lower lease costs.

• UPC customer migration completed; ARPU trends stabilizing, though net adds were softer due to reduced commercial activity and price increases.

• Major refinancing completed, extending debt maturities and reducing weighted average cost of debt to 2.8% as of June 2025.

Financial highlights

• Q2 2025 revenue: CHF 732 million (down 0.8% YoY); H1 2025 revenue: CHF 1,454 million (down 2.1% YoY).

• Q2 2025 Adjusted EBITDAAL: CHF 254 million (up 1.9% YoY); H1 2025: CHF 494 million (up 1.1% YoY).

• Q2 2025 CAPEX: CHF 116 million (down 7.9% YoY); H1 2025: CHF 260 million (up 0.9% YoY).

• Free cash flow at CHF 150 million for the quarter, slightly lower than prior year due to working capital phasing.

• Gross margin stable at 73.8% in Q2 2025.

Outlook and guidance

• Full-year 2025 guidance reconfirmed for all metrics; revenue expected at lower end of range due to softer hardware replacement cycles and market liquidity.

• Adjusted EBITDAAL guidance: stable to low-single digit growth, rebased for incremental standalone costs.

• Capex/revenue ratio guided at 15–16%.

• Adjusted FCF guidance: CHF 370–390 million, excluding tax settlement charges.

• Dividend per share growth of 2.7% for 2025, expected at CHF 3.42 per Class A share.