Sunrise Communications (SUNN) Q4 2024 earnings summary

Executive summary

• Achieved all 2024 financial guidance metrics with revenue of CHF 3,018 million (down 0.6% YoY), Adj. EBITDAAL of CHF 1,030 million (up 0.7% YoY), and strong customer growth, including +159,000 mobile postpaid and +31,000 internet subscriptions.

• Completed first year as a standalone, publicly listed company on SIX Swiss Exchange in November 2024, with stable share price and increasing Swiss investor participation.

• Sustained commercial momentum, successful product launches, and new partnerships in both consumer and B2B segments, including innovations like Device-as-a-Service and new TV offerings.

• Proposed dividend of CHF 3.33 per Class A share for 2024, with a 2.7% increase to CHF 3.42 planned for 2025.

• Published annual and sustainability reports for 2024, highlighting progress in ESG and operational excellence.

Financial highlights

• Revenue declined 0.6% year-over-year to CHF 3,018 million, mainly due to fixed business repricing, ARPU pressure, and harmonization, partially offset by B2B and flanker brand growth.

• Adj. EBITDAAL increased by 0.7% year-over-year to CHF 1,030 million, supported by CHF 23 million in OpEx savings and lower direct costs.

• Free cash flow reached CHF 363 million for 2024, up 2.8% year-over-year, in line with guidance.

• CapEx reduced by 5.2% year-over-year to CHF 510 million (16.9% of revenue) as migration-related investments phased out.

• Net leverage ratio reduced to 4.4x, following CHF 1.5 billion net debt reduction post-spin-off.

Outlook and guidance

• 2025 guidance reconfirmed: broadly stable revenue, stable to low single-digit Adj. EBITDAAL growth, CapEx at 15–16% of revenue, and free cash flow of CHF 370–390 million.

• Dividend for 2025 expected to rise to CHF 3.42 per Class A share, with payout ratio up to 70% of Adj. FCF.

• Price increases and market harmonization factored into 2025 guidance, with Q1 2025 expected to be softer due to annualization of right-pricing and delayed price increases.