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]
Sunrise Communications AG(SNRE) - 2025 Q1 - Earnings Call Transcript