Sunrise Communications (SNRE) Q3 2024 earnings summary

Executive summary

• Achieved strong net growth in Q3 2024 with +48,000 mobile postpaid and +5,000 Internet subscriptions, supported by new offers and increased customer loyalty.

• Financial results were stable and in line with expectations; updated 2024 guidance fully confirmed.

• Spin-off preparations are on track, with Liberty Global shareholders approving the transaction and a CHF 1.5 billion debt reduction planned by year-end.

• Commercial highlights include leading broadband speeds, 50% of iPhone sales with Device-as-a-Service, and a high-profile advertising campaign.

Financial highlights

• Q3 2024 revenue was CHF 749.0 million, down 1.3% year-over-year; residential revenue declined 4.4% to CHF 538.6 million, while business and wholesale grew 6.8% to CHF 207.3 million.

• Adjusted EBITDAAL remained stable at CHF 274.4 million (+0.4% YoY); Adjusted EBITDAAL less P&E additions grew 15.9% to CHF 163.1 million due to lower CAPEX.

• Q3 2024 CAPEX was CHF 111.3 million, down 16.1% YoY; investments accounted for 14.9% of revenue.

• Adjusted FCF reached CHF 6.2 million, with comparability limited due to a one-off effect in Q3 2023.

• For the nine months ended September 2024, revenue was CHF 2,233.3 million (-0.3% YoY), Adjusted EBITDAAL CHF 780.3 million (+1.1%), and Adjusted FCF CHF 118.8 million (-21.5%).

Outlook and guidance

• 2024 revenue expected to remain broadly stable; Adjusted EBITDAAL to see stable to low single-digit growth.

• CAPEX as a percentage of revenue targeted at 16–18%.

• Adjusted FCF guidance for 2024 is CHF 360–370 million, including an estimated CHF 10 million of one-off costs.

• Dividend of at least CHF 240 million planned for mid-2025, not subject to Swiss withholding tax for 5+ years.