BofA warns Fed risks policy mistake with early rate cuts
Investing.com -- Sunrise Communications AG reported second-quarter results with revenues in line with expectations and EBITDA exceeding forecasts by 3%, while maintaining its full-year guidance.
The Swiss telecommunications company posted Q2 revenues of CHF732 million, down 0.8% compared to the same period last year, but better than the consensus estimate of CHF728 million. This marked an improvement from the 3.3% decline seen in Q1, driven by lower hardware sales declines and the full benefit of price increases implemented on March 1, 2025.
Adjusted EBITDAaL (earnings before interest, taxes, depreciation, amortization, and leases) grew 1.9% to CHF254 million in Q2, surpassing analyst expectations of CHF246 million. The company attributed this performance to cost savings and the impact of staff participating in the employee share purchase plan.
Sunrise added 18,000 post-paid mobile customers during the quarter, slightly below the consensus estimate of 21,000, while broadband net additions were flat against expectations of 6,000 new customers. The company noted these softer subscriber trends reflect its strategic focus on value rather than volume.
ARPU (average revenue per user) metrics showed improvement, with mobile ARPU declining 1.6% compared to a 3.6% drop in Q1, and fixed ARPU falling 4.5% versus 5.3% in the previous quarter.
Free cash flow for Q2 reached CHF153 million, rebounding from negative CHF117 million in Q1, with the company noting that cash flow is seasonally weighted toward the second and fourth quarters due to the timing of interest payments, capital expenditures, and working capital movements.
Sunrise maintained its 2025 guidance, projecting "broadly stable" revenue and "stable to low-single digit growth" for adjusted EBITDAaL. Capital expenditure is expected to be 15-16% of sales, with adjusted free cash flow forecast at CHF370-390 million.
The company also announced an extension of its Swiss National Hockey TV rights contract for an additional eight years through 2035, which it expects will provide modest financial benefits after 2027.
Sunrise currently offers a dividend yield of 7.4%, reflecting its leverage of 4.4x. The dividend is free of Swiss withholding taxes as it is paid from capital reserves, a benefit expected to continue for approximately ten years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.