Swiss telecommunications provider Sunrise reported second-quarter results on Wednesday, with adjusted free cash flow surging 33.3% year-over-year to CHF 204 million, despite a 2.6% decline in revenue to CHF 713 million.
Adjusted EBITDAaL fell 3.8% to CHF 244 million, with the margin contracting to 34.3% from 34.7% in the prior-year period. Capital expenditures decreased 12.7% to CHF 102 million, representing 14.3% of revenue compared with 15.9% a year earlier. For the first half of 2026, adjusted free cash flow more than doubled to CHF 93 million, up 153.8% from CHF 37 million in H1 2025.
Revenue pressure was broad-based, with residential revenue down CHF 24 million and business-to-business and wholesale revenue declining CHF 3 million. Infrastructure and support functions provided a CHF 2 million offset. Operating expenses fell 3.6% to CHF 471 million, while lease costs declined 4.0% to CHF 92 million. Property and equipment additions improved to 16.4% of revenue from 17.9% a year ago.
Commercial metrics showed modest improvement. Postpaid mobile net additions totaled 21,000 in Q2, while internet net additions returned to positive territory at 3,000. Fixed-mobile convergence penetration reached 61.1% of the customer base, up from 60.5% in the prior quarter. Mobile ARPU edged down 1.4% to CHF 28.9, and fixed ARPU fell 5.9% to CHF 54.5. The Sunrise Rewards program achieved approximately 60% customer awareness and surpassed 60,000 redemptions.
Sunrise’s leverage position stood at CHF 4.783 billion in net debt as of June 30, with gross debt of CHF 4.882 billion and cash and equivalents of CHF 100 million. In July, the company issued EUR 500 million in senior secured notes maturing in 2033 to refinance existing EUR senior unsecured notes due 2029. The weighted average cost of debt remained at 2.8%, fully hedged against interest rate and currency risk until 2032 and swapped into Swiss francs.
Full-year 2026 guidance calls for broadly stable revenue, adjusted EBITDAaL of approximately CHF 1 billion, capital expenditures below 15% of revenue, and adjusted free cash flow of CHF 380–400 million. The board proposed a dividend of CHF 3.49 per Class A share and CHF 0.35 per Class B share, representing growth of more than 2% year-over-year.
CEO André Krause highlighted improving commercial dynamics in the second quarter, noting that an August 1 price increase had delivered better-than-expected results, with churn moderating and customer satisfaction impacts remaining limited compared with prior adjustments.
