Sunrise Communications reported stable financial performance for the first quarter of 2026, supported by mobile subscriber growth, improving broadband trends, disciplined cost management, and lower capital expenditure as the Swiss telecom operator continued investing in digital services and sovereign AI infrastructure.
Sunrise generated revenue of CHF 722.8 million in Q1 2026, marginally higher than CHF 722.1 million a year earlier. Residential customer revenue declined 1.4 percent to CHF 513.2 million, while business customers and wholesale revenue increased 4.3 percent to CHF 209.5 million, reflecting stronger B2B demand and growth in mobile postpaid services.
The telecom operator posted Adjusted EBITDAaL of CHF 245.9 million, rising 2.5 percent year-on-year from CHF 240 million, driven by continued operating cost optimisation and tighter Opex control. Sunrise said savings from external IT services and professional services contributed significantly to the earnings improvement. The company’s focus on cost reduction and operational efficiency helped offset softer market activity during the quarter.
Sunrise recorded net growth of 10,000 mobile postpaid subscriptions during the quarter despite seasonally lower market liquidity. The broadband business also showed signs of stabilisation, with Internet customer losses narrowing to 1,000 subscribers compared with losses of 2,000 in Q4 2025 and 7,000 in Q3 2025. The company attributed the improvement to stronger customer retention and lower churn rates.
As of March 31, 2026, Sunrise served around 3.16 million mobile subscribers, 1.28 million broadband Internet customers, and 0.96 million enhanced TV customers. The company also strengthened its fixed-mobile convergence strategy, with the FMC rate increasing 2.2 percentage points year-on-year to 60.5 percent as more broadband users adopted Sunrise mobile services.
Sunrise continued to expand its digital customer engagement strategy through the launch of Sunrise Rewards, a loyalty programme designed to improve customer retention, reduce churn, and increase cross-selling opportunities. The operator expects the platform to deepen customer relationships through continuous interaction and loyalty-based incentives.
Artificial intelligence became a key part of Sunrise’s enterprise growth strategy during Q1 2026. The company announced an exclusive partnership with PHOENIQS to deliver sovereign Swiss AI solutions for enterprises, public-sector organisations, and SMEs. Sunrise said the offering enables AI services that are developed, hosted, and operated entirely within Switzerland without dependence on foreign cloud providers, targeting regulated industries with strict data sovereignty requirements.
Capital expenditure trends improved significantly during the quarter. P&E Additions (CAPEX) fell 6.6 percent year-on-year to CHF 133.6 million, representing 18.5 percent of revenue. Sunrise said major infrastructure expansion projects have largely been completed, lowering investment requirements for network deployment and customer-premise equipment. The company also achieved efficiency gains in IT implementation and project execution.
Lower Capex and improved earnings supported a 15.9 percent increase in Adjusted EBITDAaL less P&E Additions, which reached CHF 112.3 million. Adjusted free cash flow remained broadly stable at negative CHF 111 million, reflecting seasonal cash-flow patterns typical for the first quarter.
Despite operational improvements, Sunrise reported a net loss of CHF 39.4 million compared with a loss of CHF 1.3 million in the prior-year quarter. The increase was mainly linked to the absence of foreign exchange gains recorded last year and higher restructuring costs. Net cash provided by operating activities declined 41.9 percent to CHF 99.8 million due to working capital movements and lower liabilities.
Sunrise reaffirmed its full-year 2026 guidance, expecting broadly stable revenue, Adjusted EBITDAaL of around CHF 1 billion, capital expenditure below 15 percent of revenue, and adjusted free cash flow between CHF 380 million and CHF 400 million. The company also maintained its progressive dividend policy, targeting a dividend of CHF 3.49 per Class A share and CHF 0.35 per Class B share in 2027 for the 2026 financial year.
BABURAJAN KIZHAKEDATH
