Swiss telco Sunrise misses core profit expectations in fourth-quarter (updated)
18/02/2026 07:05
Recasts with management quotes in paragraphs 1, 3, 5 and 6, updates shares in paragraph 2, cash flow details in paragraphs 7-8, dividend target in paragraph 9 Sunrise sees return to revenue growth after 'broadly stable' 2026 Future growth to be driven by population trends and adjacent services, CFO says Shares rise 9%, tracking best day since their 2024 relisting Dividend forecast raised to 3.49 francs per class A share for 2026 By Emanuele Berro Feb 18 (Reuters) - Sunrise Communications SUNN.S expects stable revenue in 2026 followed by a return to growth in the medium term, it said on Wednesday, after years of stagnation in a highly competitive Swiss telecoms market. Shares of Switzerland’s second‑largest telecommunications provider rose around 9% by 1220 GMT, on track for their best trading day since the company's relisting on the Swiss stock exchange in 2024. With nearly all Swiss consumers already using telecom services, Sunrise's future growth will be driven by population growth, a market share equilibrium with bigger rival Swisscom SCMN.S and promotion of adjacent services, such as home security, finance chief Jany Fruytier told Reuters. Since the launch of rival brand Salt in 2015, its aggressive pricing tactics have ignited fierce competition in the Swiss market and pushed traditional operators to reinforce their low‑cost flanker brands and rely more heavily on price‑driven promotions at the cost of revenue per user. "I would think we would all like ... to reduce promotional intensity, but that is in part hindered because of the lower market liquidity," compared with the pandemic years, Fruytier said. Sunrise plans to implement selective price increases on its main brand this year, following a series of general increases over the last three years, CEO André Krause added during an investor call. It reported a small rise in its lease-adjusted earnings before interest, taxes, depreciation and amortisation (EBITDAaL) to 1 billion Swiss francs ($1.3 billion) and a 4.7% jump in adjusted free cash flow to 379.7 million francs in 2025, broadly in line with analysts' forecasts, helped by lower capital spending and operational costs. The company expects broadly stable revenue and core earnings, with higher adjusted free cash flow of around 400 million francs in 2026. Sunrise said it would pay a dividend of 3.42 francs per class A share from 2025 earnings, in line with its previously communicated target, and raised the 2026 dividend forecast to 3.49 francs per class A share. ($1 = 0.7701 Swiss francs) (Reporting by Emanuele Berro in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham) ((Emanuele.Berro@thomsonreuters.com; +48 587696510))