Financial Data and Key Metrics Changes - The company reported an EBITDA growth of 2.4%, driven by operational expense (OPEX) improvements, despite a year-on-year decline in software revenues by 1.1% [5][22] - Revenue decreased by 1.1%, translating to a decline of approximately CHF 8 million, primarily due to a drop in fixed subscription revenue [22][25] - Free cash flow generated was close to CHF 14 million, lower than Q2, attributed to interest payments typically made in Q1 and Q3 [25][30] Business Line Data and Key Metrics Changes - Mobile segment saw 20,000 postpaid net additions, supported by B2B growth, while the internet segment experienced a decline of 7,000 net adds due to software trading impacts and UPC migrations [5][18] - Fixed business reported negative net adds of 7,000, attributed to slower inflow and higher churn, which is expected to be a one-time impact [13][14] - Mobile ARPU increased, benefiting from price increases and improved inflow values, while fixed ARPU declined due to promotional pressures and accounting impacts from new mobile portfolio [19][22] Market Data and Key Metrics Changes - Competitive intensity remains high but unchanged, with the company continuing its strategy across main brands, flanker brands, and B2B [7][36] - The company launched a new budget mobile brand, CH Mobile, to capture the lower end of the market, responding to increased competition in that segment [11][12][58] Company Strategy and Development Direction - The company is executing a fast follower strategy, particularly in response to Black Friday activities, and has launched several new services to open growth avenues [6][11] - Focus on improving operational efficiencies and cost management, with expectations of further OPEX and CAPEX efficiencies in the future [7][36] - The company aims to stabilize its fixed business by 2026, despite current delays in stabilization [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slower than expected stabilization of the fixed consumer business, driven by softer inflow and higher churn levels [15][36] - The company reaffirmed its 2025 financial guidance, including a 2.7% growth in dividends per share (DPS) [6][36] - Management is optimistic about increasing free cash flows and attractive shareholder returns in the midterm [7][36] Other Important Information - The company confirmed the termination of its Class A ADS program, with a significant percentage of shares already converted [34][35] - The company is committed to gradually repaying its debt, with plans to repay CHF 180 million in Q4 [33][34] Q&A Session Summary Question: B2B interest in 5G services and EU vendor replacement risks - Management noted slow movement in B2B adopting 5G services, with no major inflow of new demands yet [41] - No imminent need to react to EU discussions on vendor replacements in Switzerland [41][42] Question: Black Friday sales and fixed ARPU weakness - Management observed early promotions from competitors but noted no significant changes in aggression compared to previous years [46] - Fixed ARPU pressures are expected to stabilize with ongoing actions to improve inflow and reduce churn [48] Question: Brand strategy and fiber rollout focus - The new CH Mobile brand aims to fill gaps in the budget segment, responding to competitor activity [58] - Management plans to enhance marketing efforts in fiber rollout areas to capture more customers [60] Question: Expectations for CH Mobile and cost savings - No specific market share targets for CH Mobile, but the goal is to participate in the growing budget segment [76] - Cost savings expected from AI implementation, organizational efficiencies, and effective marketing spending [77]

Financial Data and Key Metrics Changes - The company reported an EBITDA growth of 2.4%, driven by operational expense improvements, despite a 1.1% decline in software revenues year-on-year [5][22] - Revenue decreased by 1.1%, translating to a decline of approximately CHF 8 million, primarily due to a drop in Fixed Subscription Revenue [22][25] - Free cash flow generated was close to CHF 14 million, lower than Q2, attributed to interest payments typically made in Q1 and Q3 [25][30] Business Line Data and Key Metrics Changes - Mobile segment saw 20,000 postpaid net additions, supported by B2B growth, while the internet segment experienced a decline of 7,000 net adds due to software trading impacts and UPC migrations [5][18] - Fixed business reported negative net adds of 7,000, attributed to the tail end of UPC migrations and higher churn rates [13][14] - Mobile ARPU increased, benefiting from price increases and improved inflow values, while Fixed ARPU declined due to promotional pressures and accounting impacts from the new mobile portfolio [19][22] Market Data and Key Metrics Changes - The company observed unchanged competitive intensity in the market, with a focus on three growth engines: main brand, flanker brands, and B2B [7][36] - The FMC share increased by 0.5 percentage points compared to the previous quarter, now at 59% [18] Company Strategy and Development Direction - The company reaffirmed its midterm outlook of increasing free cash flows and attractive shareholder returns, despite slower stabilization in the Fixed business [7][36] - New product launches, including Home Security and CHmobile, aim to capture market opportunities and enhance service offerings [8][11] - The company is executing a fast follower strategy in response to competitor activities, particularly during the Black Friday sales period [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slower than expected stabilization of the Fixed business, with expectations for improvement during 2026 [36] - The company is taking countermeasures to address challenges in the Fixed segment, including loyalty initiatives and operational execution improvements [16][48] - Management remains optimistic about the liquidity in Q4 and the potential for growth through new product offerings [36] Other Important Information - The company confirmed its guidance for 2025, including a 2.7% year-on-year growth in dividends per share [6][32] - The termination of the Class A ADS program is expected to conclude on November 13, with a significant percentage of shares already converted [34][35] Q&A Session Summary Question: B2B interest in 5G services and EU vendor replacement risks - Management noted slow movement in B2B interest for 5G services, with no major inflow of new demands [41] - There is no immediate need for action regarding EU vendor replacement risks in Switzerland [41][42] Question: Black Friday sales and Fixed ARPU weakness - Management observed early promotional activities from competitors but noted no significant changes in aggression compared to previous years [46] - The stabilization of Fixed ARPU is delayed, with several actions being taken to improve the situation [48] Question: Brand strategy and fiber rollout focus - The launch of CHmobile is seen as a completion of market coverage rather than a shift in strategy, addressing gaps in the budget segment [58] - Management plans to enhance marketing efforts in fiber rollout areas to capture more customers [60] Question: Expectations for CHmobile and cost savings - No specific market share targets for CHmobile, but the aim is to participate in the growing budget segment [76] - Cost savings are expected from operational efficiencies, AI implementation, and effective marketing spending [77]

Financial Data and Key Metrics Changes - The company reported an EBITDA growth of 2.4%, driven by operational expenditure (OPEX) improvements, despite a year-on-year decline in software revenues by 1.1% [4][21] - Revenue decreased by 1.1%, translating to a decline of approximately CHF 8 million, primarily due to a drop in fixed subscription revenue [21][24] - Free cash flow generated was close to CHF 14 million, lower than Q2, attributed to interest payments typically made in Q1 and Q3 [23] Business Line Data and Key Metrics Changes - The mobile segment saw 20,000 postpaid net additions, supported by B2B growth, while the internet segment experienced a decline of 7,000 net adds due to software trading impacts and UPC migrations [4][18] - Mobile Average Revenue Per User (ARPU) increased, benefiting from price increases and improved inflow values, while fixed ARPU declined due to various factors including promotional intensity [19][21] Market Data and Key Metrics Changes - The company observed unchanged competitive intensity in the market, with a focus on three growth engines: main brand, flanker brands, and B2B [6][36] - The Fixed Consumer Business is experiencing slower stabilization than anticipated, influenced by softer inflow and higher churn rates [6][14] Company Strategy and Development Direction - The company reaffirmed its midterm outlook of increasing free cash flows and attractive shareholder returns, while executing a fast follower strategy with the launch of CH Mobile [5][36] - New product launches included home security services, a high-end Iconic bundle, and a Super search functionality for content, aimed at enhancing market competitiveness [8][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slower than expected stabilization of the fixed business, with expectations for improvement during 2026 [36] - The company is taking countermeasures to address challenges in the fixed segment, including adjustments to promotional strategies and loyalty initiatives [46][47] Other Important Information - The company confirmed its guidance for 2025, including a 2.7% year-on-year growth in dividends per share (DPS) [5][32] - The termination of the Class A ADS program was noted, with a significant percentage of shares already converted [34][37] Q&A Session Summary Question: B2B interest in 5G services and EU vendor replacement risks - Management noted slow movement in B2B interest for 5G services, with no major inflow of new demands observed [41] - There is no imminent need to react to EU discussions on vendor risks in Switzerland [41][42] Question: Black Friday sales outlook and fixed ARPU weakness - Management indicated that Black Friday promotions have started early, with no significant changes in aggression compared to previous years [45] - The stabilization of fixed ARPU is delayed, with several actions being taken to improve the situation [46][47] Question: Brand strategy and fiber rollout focus - The launch of CH Mobile is seen as a completion of the multi-brand strategy, addressing gaps in the budget segment [58] - The company plans to enhance marketing efforts in new fiber rollout areas to capture more customers [60] Question: Expectations for CH Mobile and cost savings - No specific targets for CH Mobile were set, but the aim is to participate in the growing budget segment [76] - Future cost savings are expected from OPEX efficiencies, AI implementation, and improved marketing spending [77]

Financial Performance - Revenue decreased by 1.1% YoY to CHF 741 million in Q3 2025 [46], primarily due to a decline in Fixed Subscription Revenue and lower Mobile Non-Subscription Revenue [50] - Adjusted EBITDAaL increased by 2.4% YoY to CHF 270 million in Q3 2025 [46], driven by Opex improvements [16] - CAPEX decreased by 4.7% YoY to CHF 106 million in Q3 2025 [46], aligning with expected full-year reductions [50] - Adjusted FCF reached CHF 37 million, benefiting from lower interest payments [46] Customer & Commercial - Mobile Postpaid net additions increased by 20k, supported by improved B2B growth [16] - Fixed Mobile Convergence (FMC) increased to 59% of the customer base [41] - Internet net additions were -7k, impacted by softer trading and UPC migrations [16] Strategic Initiatives - Launched "CHmobile" to address the C-Segment, completing segment coverage [16] - Introduced new products including Home Security, "Iconic Bundle," and "SuperSearch" [16] - Reaffirmed Capital Markets Day (CMD) mid-term outlook of increasing Free Cash Flows [16] Guidance & Debt - 2025 Guidance re-confirmed, including expected DPS growth of 2.7% YoY [16] - Debt maturity extended, with approximately 84% of debt due after 2031 and about 60% due in 2032 [74]

Financial Data and Key Metrics Changes - Q2 revenue decreased by 0.8% year-over-year, but showed significant stabilization compared to Q1 [26] - Adjusted EBITDA increased by 1.9% year-over-year, supported by operational efficiencies and reduced lease costs [27][28] - Free cash flow for the quarter was approximately €150 million, slightly lower than the previous year due to net working capital changes [28] Business Line Data and Key Metrics Changes - Mobile net adds were 18,000, while internet net adds were zero, attributed to lower market liquidity and price increases [24] - Mobile ARPU declined by 1.6% year-over-year but improved sequentially due to subscription revenue increases [24][25] - Fixed ARPU showed an upward trend as the impact of price increases became more pronounced [25] Market Data and Key Metrics Changes - The mobile market is characterized by a three-tier structure: premium, Smart Shopper, and budget segments, with the premium segment covering over 50% of customers [8][10] - The budget segment, which constitutes about 10% of the market, is seeing increased promotional activity, particularly from new entrants [12][56] - Overall market liquidity is decreasing, impacting customer motivation for further price improvements [12][13] Company Strategy and Development Direction - The company has successfully switched off its 2G and 3G networks, transitioning to a fully 4G and 5G SA enabled network, positioning itself as a leader in mobile technology [5][20] - New product offerings include expanded roaming plans and the introduction of cyber insurance, aimed at enhancing customer value [16][17] - The company is focused on maintaining a multi-brand strategy to effectively compete across different market segments [13] Management's Comments on Operating Environment and Future Outlook - Management noted a stable competitive environment in the fixed market, while the mobile market is experiencing irrational promotional behavior [7][9] - The company expects moderate net adds in the coming quarters due to lower market liquidity [24] - Management reaffirmed guidance for the year, including a 2.7% growth in dividends [34] Other Important Information - The company has refinanced a term loan and issued a new €550 million senior secured note, optimizing its average cost of debt [6] - The NASDAQ listing was switched off on August 15, with plans to discontinue the sponsored ADS program by November [7][36] Q&A Session Summary Question: Impact of the Flanker brand and net adds for Yallo - Management observed stable evolution in trading for the flanker brand and did not disclose individual brand performance metrics [45] Question: Cost savings from UPC migration - Management expects a flat or slightly declining OpEx evolution moving into the second half of the year, with some temporary and continuing cost improvements [46][48] Question: Promotional activity in the budget segment - The budget segment is seeing aggressive competition, particularly from new entrants like Spuzu and GOMO, while established players maintain their pricing strategies [51][56] Question: Trajectory of quarterly revenue and EBITDA growth - Management indicated that revenue is expected to improve slightly, but roaming revenues may continue to be a headwind for some time [82] Question: Share-based compensation run rate - The increase in share-based compensation is attributed to the employee share program, with expectations of elevated costs this year due to the program [66]

Financial Data and Key Metrics Changes - Q2 revenue decreased by 0.8% year-over-year, but showed significant stabilization compared to Q1 [28] - Adjusted EBITDA increased by 1.9% year-over-year, driven by operational efficiencies and reduced lease costs [29][30] - Free cash flow for the quarter was approximately €150 million, slightly lower than the previous year due to net working capital changes [30] Business Line Data and Key Metrics Changes - Mobile net adds were 18,000 in Q2, showing a sequential improvement, while internet net adds were zero due to lower market liquidity and price increases [25][26] - Mobile ARPU declined by 1.6% year-over-year but improved sequentially due to subscription revenue increases from price rises [26][27] - Fixed ARPU showed an upward trend as the impact of price increases became more pronounced [27] Market Data and Key Metrics Changes - The mobile market is characterized by a three-tier structure: premium, Smart Shopper, and budget segments, with the premium segment being the largest [10][12] - The budget segment is becoming more aggressive, with new entrants and promotional activities, while the Smart Shopper segment remains stable [12][56] - Market liquidity is decreasing, impacting customer acquisition and retention across segments [14][15] Company Strategy and Development Direction - The company has successfully switched off its 2G and 3G networks, transitioning to a fully 4G and 5G SA enabled network, positioning itself as a leader in mobile technology [5][22] - New product offerings, including a refreshed yellow portfolio and the introduction of cyber insurance, aim to enhance customer engagement and service diversity [16][19] - The company is focused on optimizing its cost structure while maintaining a multi-brand strategy to capture market opportunities across different customer segments [15][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by lower market liquidity but expressed confidence in the company's ability to drive revenue growth through strategic initiatives [20][42] - The company expects moderate net adds in the coming quarters due to the current market conditions [26] - Management reaffirmed guidance for the year, including a projected 2.7% growth in dividends for 2026 [36][37] Other Important Information - The company has successfully refinanced a term loan and issued a new €550 million senior secured note, optimizing its average cost of debt [6] - The NASDAQ listing was switched off on August 15, with plans to discontinue the sponsored ADS program by November [7][38] - An employee share program has seen a participation rate of 50%, with employees investing approximately $10 million into the company [40][41] Q&A Session Summary Question: Impact of Flanker Brand and Yallo's Performance - Management noted stable evolution in trading for Yallo following a price rise, but did not disclose specific net add splits [44][46] Question: Cost Savings and UPC Migration - Management expects a flat or slightly declining OpEx evolution moving forward, with some temporary cost improvements from UPC migration [45][47] Question: Promotional Activity in Budget Segment - The budget segment is seeing aggressive competition, particularly from new entrants like Spuzu and GOMO, while established players maintain stable pricing [53][56] Question: Revenue and EBITDA Growth Trajectory - Management reiterated guidance for lower-end revenue expectations, with improvements anticipated in the second half of the year [59][60] Question: Share-Based Compensation - The increase in share-based compensation is attributed to the employee share program, with expectations for elevated costs this year [64][66] Question: Performance Improvement for 5G SA Customers - The 15% to 20% performance improvement for 5G SA customers is based on latency, uplink, and downlink metrics compared to regular 5G [74][75] Question: Interim Dividend Consideration - Management is evaluating the possibility of an interim dividend but noted legal complexities involved [77][78] Question: Cost Savings from U.S. Delisting - Expected savings from the U.S. delisting will materialize in 2027, with some potential savings in 2026 [79][80] Question: Maintaining EBITDA Growth Momentum - Management indicated that while revenue is expected to strengthen, the trajectory of EBITDA growth will depend on various operational factors [84][88]

Financial Performance - Q2 2025 revenue decreased by 0.8% year-over-year to CHF 732 million, while H1 2025 revenue decreased by 2.1% year-over-year to CHF 1,454 million[40] - Q2 2025 Adjusted EBITDAaL increased by 1.9% year-over-year to CHF 254 million, representing 34.7% of revenue, while H1 2025 Adjusted EBITDAaL increased by 1.1% year-over-year to CHF 494 million, representing 34.0% of revenue[40] - Q2 2025 CAPEX decreased by 7.9% year-over-year to CHF 116 million, representing 15.9% of revenue[40] - Q2 2025 Adjusted Free Cash Flow was CHF 153 million[40] - Sunrise reconfirmed its FY 2025 guidance, expecting broadly stable revenue, stable to low-single digit growth in Adjusted EBITDAaL, CAPEX/Revenue between 15-16%, and Adjusted FCF between CHF 370-390 million[13, 61] Commercial Developments - Sunrise completed the 3G switch-off, becoming the first operator in Europe with a modern 4G/5G Standalone only network[13] - Sunrise launched new product offerings, including a refresh of the Yallo Portfolio and completion of the UPC customer base migration[13] - Fixed Mobile Convergence continued to increase, up by 1.4% year-over-year[35] - Sunrise extended Swiss National League hockey rights until 2035[25] Customer Metrics - Mobile ARPU trend is improving as subscription revenue stabilizes due to price increases[35] - Fixed ARPU is declining year-over-year but showing an upward trend due to price increases[35] - Net additions growth in Q2 2025 was softer due to reduced commercial activity and price increases[35] Debt and ADS - Sunrise priced new EUR 550 million Senior Secured Notes due 2032 to refinance existing Term Loans[13] - Sunrise Class A American Depositary Shares were delisted from Nasdaq on August 15, 2025, with termination of the sponsored ADS programs planned for around mid-November 2025[13]

Core Insights - Edward Schneider is a managing director at Quan Management LLC with over 30 years of investment experience, including 25 years in managing technology funds [1] - Quan Management has achieved a 17% annual return since 1995, outperforming the Nasdaq's 11% return during the same period [1] Company Profile - Quan Management LLC specializes in technology funds, both in quoted equities and venture capital [1] - The firm has a strong track record of performance, indicating effective management and investment strategies [1] Leadership Background - Edward Schneider holds a CFA designation, an MBA from Thunderbird, and a BA from Emory University, showcasing a solid educational foundation in finance [1]

Financial Performance - Q1 2025 revenue decreased by 33% YoY to CHF 722 million, driven by lower hardware sales and right-pricing activities [45] - Q1 2025 Adjusted EBITDAaL increased by 04% YoY to CHF 240 million, with a margin of 332% [45] - Capex increased by 95% YoY, reaching 198% of revenue, totaling CHF 143 million [45] - Adjusted FCF was negative CHF 117 million, impacted by higher Capex and supplier payments [45] - FY 2025 guidance confirmed, expecting broadly stable revenue and stable to low-single digit growth in Adjusted EBITDAaL, with Capex/Revenue at 15-16% and Adjusted FCF between CHF 370-390 million [13, 61] Customer Growth and ARPU - Continued net customer additions growth, but YoY slowdown due to reduced commercial activity and UPC customer base migration [38, 41] - Mobile ARPU declined by 36% YoY due to reduced roaming usage, reaching CHF 286 [38] - Fixed ARPU declined by 53% YoY due to right-pricing efforts, reaching CHF 580, but supported by a one-off correction of ~CHF 030 [38] - FMC (Fixed-Mobile Convergence) as % of base increased to 583% [38] Strategic Initiatives - Launched a new "More-for-More" mobile portfolio focusing on customer loyalty [15, 20] - Sunrise's mobile network is now "5G Standalone" ready, the first in Switzerland [15, 32] - Shareholders approved FY 2024 dividend payment of CHF 240 million [15] - Delisting of Class A ADS from Nasdaq scheduled for August 2025, with ~82% of Class A ADS and ~98% of Class B ADS converted [15]

Financial Data and Key Metrics Changes - Revenues decreased by 3.3%, impacted by lower hardware sales and pricing activities from the previous year [9][28] - EBITDAaL increased by 0.4% year on year, with operational optimizations contributing to growth despite revenue decline [9][28] - The company confirmed its full-year guidance, including a 2.7% expected growth in dividend per share for 2025 [10][38] Business Line Data and Key Metrics Changes - The new product portfolio, Swiss Connect, was launched, focusing on customer loyalty and increased roaming services [12][13] - Mobile postpaid net additions were 12,000, while internet net additions were 5,000, despite reduced promotional activities [22] - The FMC (Fixed Mobile Convergence) quota increased to 58.3%, indicating a positive trend in bundled product offerings [23] Market Data and Key Metrics Changes - The company experienced a softer trading environment in Q1, influenced by intentional reductions in commercial activities due to upcoming price rises [6][22] - Price increases of 1.8% for the main brand and 1.5% for the flanker brand were implemented, with expectations of positive impacts on revenue and ARPU in future quarters [15][25] Company Strategy and Development Direction - The company is positioning itself as a technology leader with the launch of 5G standalone technology, achieving 99.5% coverage in Switzerland [20][21] - The strategy includes a focus on innovation, service, and loyalty rather than solely on price promotions [54] - The company plans to delist its ADS in August 2025, which is expected to simplify operations and reduce costs [10][41] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive environment is fragile, with a need for rationalization in pricing behavior across the industry [52][54] - The company anticipates softer trading in Q2, primarily in terms of net additions, but expects revenue to benefit from price increases [60][62] - Management expressed confidence in achieving financial guidance and highlighted the importance of the new product portfolio in driving future growth [46][38] Other Important Information - The company reported a decline in non-subscription revenues, primarily due to lower hardware sales, but expects normalization in the coming quarters [30][64] - Adjusted free cash flow was reported at minus €117 million, influenced by capital expenditures and seasonal factors [29][36] Q&A Session Summary Question: Competitive environment and promotional spend - Management acknowledged that net prices in mobile have increased, and competitors have followed suit with price rises [51][52] - Promotional spend was reduced during the price increase process to avoid conflicting messages about discounts [56] Question: Trading in Q2 and hardware revenue evolution - Management confirmed that Q2 trading would be softer in terms of net additions, but revenue would benefit from price rises [60][62] - Non-subscription revenue decline is expected to normalize, with future hardware launches anticipated to improve performance [64] Question: Split of net adds and revenue phasing - Management did not provide a split of net adds by brand but indicated stability in brand dynamics [72] - Revenue decline was partially driven by hardware-related revenues, with expectations for stabilization in subsequent quarters [73]