Sunrise Communications, Switzerland's second-largest telecommunications operator, said its core fourth-quarter profit edged down 1.4% year-on-year, delivering lease-adjusted earnings before interest, taxes, depreciation and amortization (EBITDAaL) of 242.7 million Swiss francs. That result compares with 249.6 million francs for the same quarter in 2024 and was below the 245 million francs average forecast by analysts polled by the company.
The group attributed the decline in quarterly core profit to a change in the seasonality of operating costs when compared with 2024. Sunrise highlighted this shift in cost timing as the principal reason for the shortfall relative to market expectations.
On the top line, Sunrise reported a slight uptick in quarterly revenue. Management pointed to improved performance in the business-to-business and wholesale segments as the drivers of that modest increase. However, the company also reported ongoing softness in its residential internet business, a factor that weighed on full-year results.
For the full year, sales fell 1.1% to 2.98 billion francs. The company framed the annual decline as the net effect of segment-level variation - gains in B2B and wholesale were not sufficient to offset weakness in the residential internet market.
Sunrise said it will pay a dividend of 3.42 francs per class A share, a payout consistent with its previously stated target. The dividend confirmation preserves the company’s disclosed distribution plan despite the quarter's profit decline and the missed analyst estimate.
Analysis
The quarter's figures show a modest deterioration in core operating profitability on a year-on-year basis and a revenue mix that benefited from non-residential segments while residential services underperformed. Management has pointed to timing differences in operating costs as the main explanatory factor for the profit drop.
Further quarterly detail on cost components or segment margins was not provided beyond the company’s attribution to changed seasonality in operating costs and segmented revenue performance.