Financial Data and Key Metrics Changes - Revenues decreased by 3.3%, impacted by lower hardware sales and pricing adjustments from the previous year [8][27] - EBITDAaL increased by 0.4% year on year, with operational optimizations contributing to growth despite revenue decline [8][28] - The company confirmed its full-year guidance, including a 2.7% expected growth in dividend per share for 2025 [9][46] Business Line Data and Key Metrics Changes - The mobile postpaid segment saw 12,000 net additions, while the Internet segment had 5,000 net additions, despite reduced promotional activities [21] - The FMC (Fixed Mobile Convergence) quota increased to 58.3%, reflecting a positive trend in bundled product offerings [22] - ARPU for mobile decreased to CHF 28.6, a reduction of CHF 1.1 year on year, primarily due to lower roaming usage [22][23] Market Data and Key Metrics Changes - The company launched a new product portfolio called Swiss Connect, which includes enhanced roaming services and loyalty rewards [11][12] - Price increases were implemented across all brands, with the main brand seeing a 1.8% increase and the flanker brand a 1.5% increase [14] - The company is the first operator in Switzerland to launch 5G standalone technology, achieving 99.5% POP coverage [19][20] Company Strategy and Development Direction - The company is focusing on a "more for more" strategy, enhancing customer offerings while increasing prices [11][45] - There is an emphasis on technology leadership, particularly with the rollout of 5G standalone technology [20][46] - The company aims to improve customer loyalty through new product offerings and rewards programs [12][15] Management's Comments on Operating Environment and Future Outlook - Management noted a softer trading environment in Q1, which is expected to continue into Q2 due to reduced promotional activities [6][45] - The competitive landscape is described as fragile, with a need for rationalization in pricing behavior among competitors [52][54] - Management remains optimistic about revenue growth from price increases and new product launches in the coming quarters [61][62] Other Important Information - The company plans to delist its ADS in August 2025, with 82% of Class A and 98% of Class B shares already converted [10][41] - The dividend payment for 2024 has been executed, and the company expects to propose a dividend of CHF 3.42 for Class A shares for 2025 [9][40] Q&A Session Summary Question: Competitive environment and promotional spend - Management observed 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 [55] Question: Clarification on softer trading in Q2 - Softer trading refers to net additions, while revenue is expected to benefit from price rises [59][61] Question: Evolution of non-subscription revenues - A significant decline in non-subscription revenues is expected to normalize in the coming quarters [63] Question: Impact of ADS delisting on savings - Savings from deregistration will start to appear in 2026, following a three-step process [65][66]
Sunrise Communications AG(SNRE) - 2025 Q1 - Earnings Call Transcript