Core Insights - The mobile core network (MCN) market experienced a year-on-year growth of 19% in Q2, with the 5G segment growing by 31% and the voice core segment by 18% [2] - The growth of 5G standalone (5G SA) networks is driven by an increase in the number of users and mobile network operators (MNOs) launching more 5G SA services, with 71 MNOs confirmed to have launched 5G SA services for consumers [2][5] - The adoption of new technologies such as NR RedCap and dynamic network slicing is expected to enhance the performance and reduce costs for IoT devices connected to 5G networks [2][8] Market Growth and Projections - The growth rate for the MCN market is projected to double to 10% by 2025 due to strong performance in the first two quarters of the year [2] - Despite only 10% of MNOs having launched 5G SA, the core space is accelerating due to the low penetration rate of 5G SA users, with only 14% of mobile users expected to have 5G SA services by the end of 2024 [5] - The revenue for 5G MCN is expected to grow at a compound annual growth rate (CAGR) of 6% from 2024 to 2029 [7] Technological Advancements - The introduction of NR RedCap is anticipated to lower costs and improve performance for IoT devices, with new 5G smartwatches expected to launch soon [8] - Multi-access edge computing (MEC) is also seeing significant growth, with a 32% year-on-year increase in Q2 2025 and an expected 44% growth for the year [11] - The integration of new voice technologies such as VoNR with cloud-native IMS Core is enhancing user experience and driving growth in voice core and 5G packet core markets [9] Industry Trends - MNOs are increasingly recognizing the potential of cloud-native networks, leading to upgrades in voice core systems, which is contributing to market growth [2][9] - The trend of migrating 5G core workloads to public cloud options is re-emerging, allowing MNOs to evaluate the best solutions for their markets [10] - The use of artificial intelligence in network operations is expected to drive demand for more core capacity as MNOs offer advanced AI tools to customers [9][10]

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][46] 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, indicating decent momentum despite reduced promotional activities [22] - The FMC quota increased to 58.3%, reflecting a trend towards bundled products [23] Market Data and Key Metrics Changes - The competitive environment showed signs of rationalization in mobile pricing, with net prices increasing post-Black Friday [52] - The company noted a fragile situation in the market, with smaller players still operating at low price points [52][54] - The promotional intensity in the fixed market remained stable, with little to no improvement in pricing [54] Company Strategy and Development Direction - The company is focusing on technology leadership with the launch of 5G standalone technology, achieving 99.5% coverage in Switzerland [20][21] - The strategy includes a shift towards innovation, service, and loyalty rather than solely relying on price promotions [55] - The company is progressing towards the delisting of ADS, which is expected to simplify operations and reduce costs [40][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a softer trading environment in Q1, with expectations for continued softness in Q2 due to reduced promotional activities [22][45] - The price increases implemented are expected to positively impact ARPU and revenue generation moving forward [46] - Management expressed confidence in achieving financial guidance and highlighted the strength of the business [46] Other Important Information - The company reported a decline in adjusted free cash flow due to increased CapEx and seasonal factors [29][35] - The dividend payment was executed following the AGM, with a total of €2,580,000,000 in reserves available for future dividends [39][40] Q&A Session Summary Question: Competitive environment and response from competitors - Management noted that net prices in mobile have increased, indicating a rationalization in pricing behavior among competitors [51][52] Question: Reduction in promotional spend - The reduction in promotional spend during price increases was explained as a strategic decision to avoid discounting while raising prices [56] Question: Softer trading in Q2 - Management clarified that the reference to softer trading in Q2 pertains to net additions, while revenue is expected to benefit from price rises [60][62] Question: Evolution of non-subscription revenues - Management expects normalization in non-subscription revenues throughout the year, with potential impacts from new product launches [64] Question: Plans for ADS delisting and cost savings - Management confirmed that cost savings from deregistration will begin to appear in 2026, following a multi-step process [66]