Sunrise Communications AG

What they do

Sunrise operates a converged network providing fixed-line (broadband, TV, landline) and mobile services, along with ICT and wholesale solutions. It serves residential customers and business/wholesale clients, and also generates revenue from infrastructure and support functions. The company is organized into three segments: Residential Customers, Business Customers & Wholesale, and Infrastructure & Support Functions.

Revenue drivers

• Residential Customers — Revenue from fixed and mobile subscription services, non-subscription and hardware sales, and other products/services to households. This is typically the largest segment by revenue.
• Business Customers & Wholesale — Revenue from fixed and mobile subscription services, non-subscription and hardware, and ICT/wholesale offerings to enterprise and wholesale clients. Contributes a significant portion of total revenue.
• Infrastructure & Support Functions — Revenue from shared infrastructure and internal support services allocated to other segments, such as network usage and corporate functions. Smaller but integral to operations.

Recent performance

For fiscal year 2025, Sunrise reported total revenue of CHF 3,000 million (illustrative). The Residential segment saw stable subscription revenue despite competitive pressure, while Business Customers & Wholesale grew modestly. Adjusted EBITDA margin improved due to cost efficiencies. Net debt was reduced, and operating cash flow remained strong. Detailed figures are in the 20-F filing.

Strategy

Management is focused on accelerating fixed-mobile convergence and expanding into business ICT services. Investment priorities include network expansion, 5G and fiber rollout, and digital customer experience enhancements. The company also targets operational efficiency gains and deleveraging. They aim to defend market share in residential and grow in business/wholesale.

Risks

• Competitive intensity — Swiss telecom market competition (e.g., Swisscom, Salt) could pressure pricing and subscriber growth.
• Regulatory exposure — Changes in telecom regulation or spectrum licensing fees could increase costs or limit operations.
• Technology transition — High capital requirements for fiber and 5G rollout may strain cash flows if returns underperform.
• Macroeconomic headwinds — Inflation or economic slowdown could reduce consumer spending on telecom services and hardware.

Outlook

Management expects continued moderate revenue growth in business segments, with stable residential performance. Capex intensity is projected to remain elevated for network expansion. They anticipate further EBITDA margin improvements from efficiency programs. The company will continue to monitor competitive and regulatory developments.