SUNRISE COMMUNICATIONS AG (-) : 1Q26 Conf. Call Feedback

研报英文原文证据摘录

SUNRISE COMMUNICATIONS AG (-) : 1Q26 Conf. Call Feedback

EQUITIES

TELECOM OPERATORS

SUNRISE COMMUNICATIONS AG UNDERPERFORMPRICE* CHF43.1  TARGET PRICE CHF42 (DOWNSIDE 3%)

FLASH NOTE

1Q26 Conf. Call Feedback

13 MAY 2026 Securities Research Report Production time: 10:58* (London time)

Research Analyst & Publishing Entities

Joshua Mills, CFA BNP Paribas London Branch (+44) 203 430 8670 Joshua.Mills@uk.bnpparibas.com

What happened?

The Sunrise 1Q26 conference call has just concluded with shares now -1%, investor feedback this morning

suggest that concern around the weaker service revenue growth (particularly in B2C) remains the key concern.

See below for 3 key takeawyas, and for our recent deep-dive report (downgrading Sunrise to Underperform, see

Sunrise (-): Clouds on the Horizon).

1) Service revenue declines and quarterly outlook: Sunrise service revenue declined -2.7% this quarter (vs. -

2.6% last Q), consumer -4.1% (deteriorating from -2.9% last Q). This is the worst consumer service revenue

trend across EU telcos, and whilst mgmt highlighted a few reasons why trends should recover in the medium

term (impact of upcoming price increases, lapping previous sub losses, B2B growth), they also confirmed that 2Q

service revenue trends will likely weaken further, before recovering in Q4/4 when the 1-5% backbook price

increases hit. There was some discussion on how the allocation of FMC discounts has distorted the consumer

mobile/ fixed trends in recent quarters, but taken in combination this is still a challenging outlook. The main

challenges we see are brand mix (CH Mobile will be having an impact here, even if mgmt maintain it is not as

severe as some have feared) and ‘ongoing retention activities’ in fixed line. As we detailed in Sunrise (-): Clouds