Sunrise Communications Group reported a second-quarter decline in revenue and adjusted earnings, citing the lapse of 2025 pricing adjustments and softer customer growth in prior periods. The Swiss telecom operator said revenue fell 2.6% year-on-year to CHF 712.9 million for the three months ended June 30.
The adjusted EBITDAaL, before depreciation, amortisation and lease payments, decreased 3.8% to CHF 244.4 million, reflecting the revenue decline. Cost-cutting measures, including reductions in external IT and consulting expenses, partially offset the pressure. Sunrise also announced plans to eliminate 147 positions as part of its efficiency drive.
Net loss narrowed sharply to CHF 22.4 million, down nearly 60% from a year earlier, primarily due to foreign-exchange gains and losses on financing activities. The results broadly met market expectations, with analysts surveyed by AWP having forecast revenue of CHF 715 million and adjusted EBITDAaL of CHF 245 million.
Customer growth remained positive, with net additions of 21,000 mobile subscriptions and 3,000 broadband lines. The increase was supported by higher retention at the Sunrise brand and new business in the enterprise segment, alongside gains at smaller brands. As of June 30, Sunrise served 3.18 million mobile customers, 1.29 million broadband subscribers and 0.96 million extended TV customers.
Management reaffirmed its full-year guidance, targeting broadly stable revenue and adjusted EBITDAaL of around CHF 1 billion, in line with 2025 levels. Capital expenditure is expected to be kept below 15% of revenue, while adjusted free cash flow is projected at CHF 380-400 million. Meeting these targets would enable a dividend increase to CHF 3.49 per A-share and CHF 0.35 per B-share.
