Sunrise Communications (SUNN) Q4 2023 earnings summary

Executive summary

• Q4 2023 returned to rebased revenue and Segment Adjusted EBITDA growth; full-year financial guidance was achieved.

• Mobile postpaid net additions were 31,000 in Q4 and 132,000 for FY 2023; broadband customer base stabilized in Q4.

• 2024 priorities include strengthening fixed and mobile connectivity, expanding B2B and B2C services, and improving customer experience and loyalty.

Financial highlights

• Q4 revenue was CHF 795.4 million, up 2.5% YoY rebased; FY revenue was CHF 3,035.2 million, down 0.2% rebased.

• Q4 Segment Adjusted EBITDA was CHF 254.9 million, up 5.6% rebased, including CHF 4 million of costs to capture; FY was CHF 1,031.1 million, down 2.0%.

• Q4 Adjusted EBITDA less P&E additions was CHF 96.0 million, up 55.4% rebased; FY was CHF 504.6 million, up 5.9%.

• Adjusted Free Cash Flow reached CHF 324.0 million, an increase of CHF 54.0 million.

Outlook and guidance

• FY 2024 revenue growth guidance is broadly stable; Segment Adjusted EBITDA, including costs to capture, is expected to be stable to low-single-digit growth.

• FY 2024 costs to capture in Opex and Capex are expected to be ~CHF 15 million, mainly Capex; P&E additions are guided at 16–18% of revenue, including costs to capture.

• FY 2024 Adjusted FCF guidance is CHF 360–400 million.

• Delayed activations affected Q4 additions; the timing is expected to benefit Q1 2024.