Sunrise Communications (SUNN) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered stable revenue at CHF 722.8 million (+0.1% YoY), with adjusted EBITDAAL up 2.5% to CHF 245.9 million and margin improving to 34.0%, driven by cost optimization and favorable phasing.

• Net loss widened to CHF 39.4 million, mainly due to lower financial income and restructuring expenses of CHF 26–27.8 million.

• Key initiatives included the launch of the Sunrise Rewards loyalty program and a strategic B2B partnership with Phoeniqs for sovereign AI and cloud solutions, with rollout expected in H2 2026.

• Dividend of CHF 3.42 per share for FY 2025 was approved and paid in May; FY 2026 dividend guidance set at CHF 3.49, subject to AGM approval.

• General price increase announced for August 2026, following industry trends and expected to support margins.

Financial highlights

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

• Adjusted EBITDAAL rose to CHF 245.9–246 million (+2.5% YoY), margin improved to 34.0% from 33.2% YoY.

• CapEx to sales ratio at 18.5%, with CapEx reduced to CHF 82.8–134 million, supporting improved cash flow metrics.

• Adjusted FCF was negative CHF 111–117.6 million, reflecting typical Q1 seasonality and interest payments.

• Net cash from operating activities dropped to CHF 99.8 million from CHF 171.1 million YoY.

Outlook and guidance

• Full-year 2026 guidance reconfirmed: revenue broadly stable, adjusted EBITDAAL ~CHF 1bn, CapEx/revenue <15%, and adjusted FCF guidance of CHF 380–400 million.

• Dividend for FY 2026 proposed at CHF 3.49 per share (+2% YoY), subject to AGM approval.

• Integration challenges from the Sunrise-UPC transaction largely resolved, with focus on leveraging synergies and expanding business market share.

• General price increase expected to provide a net positive impact, with more clarity on financial effects by Q3.

• Sufficient resources available to meet liquidity needs and refinance near-term debt maturities.