Q2 2026 Sunrise Communications Ltd Earnings Call Transcript
Key Points
- Improved commercial momentum with 21,000 postpaid and 3,000 internet net additions in Q2, driven by better churn and successful campaigns.
- Sunrise Rewards program shows encouraging early results: 60% customer awareness, 60,000 redemptions, NPS uplift, and lower churn.
- Price increase implemented on August 1 is performing better than expected, with moderate churn and less NPS impact than prior hikes.
- Strong adjusted free cash flow of CHF204 million in Q2, supported by lower CapEx and improved working capital management, on track to meet full-year guidance.
- Successful refinancing with EUR500 million notes issuance, extending maturity profile to no maturities before 2031 and reducing weighted cost of debt to 2.8%.
- B2B growth initiatives, including SME bundles and PHOENIQS sovereign AI partnership, are expected to drive future revenue growth.
- FMC penetration continues to rise, reaching 61.1%, enhancing customer stickiness and cross-selling opportunities.
- Revenue declined 2.6% in Q2, impacted by lapping of 2025 price increase, softer fixed customer dynamics, and tougher hardware comparisons.
- Fixed ARPU fell to CHF54.5, with pressure from narrowing front book/back book price gap, though inflow values are stable.
- Mobile ARPU remains under pressure due to mix shift towards secondary SIMs and Flanker brands, plus temporary roaming and prepaid headwinds.
- EBITDAaL decreased 3.8% in Q2, as OpEx improvements were insufficient to offset gross profit pressure.
- Q3 revenue improvement is expected to be gradual, with more pronounced benefits in Q4 due to price increase timing and roaming seasonality.
- Spectrum auction uncertainty and potentially higher reserve prices could lead to increased future costs.
- CFO transition and management team changes may introduce execution risk during the second half.
Ladies and gentlemen, welcome to the Sunrise second quarter 2026 financial results conference call and live webcast. I am Matilda, the chorus call operator. (Operator Instructions) and the conference is being recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast.
Page 2 of the presentation details the company's safe harbor statement regarding forward-looking statements. Today's presentation may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Sunrise's expectations with respect to its outlook and future growth prospects and other information and statements that are not historical fact.
These forward-looking statements involve certain risks that could cause actual results to differ materially from those expressed or implied by these statements. These risks include those detailed in Sunrise's filings with the Securities and Exchange Commission, including its most recently filed 20-F. Sunrise disclaims any obligation to update any of these forward-looking statements to
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