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Bredband2

Bredband2

Bredband2 supplies broadband, IP Telephony, data storage and safety solutions through the fiber network. In addition, the company offers co-location for webservers, e-mail and other operation-critical systems with associated network services such as Internet and VPN. The customer base is mainly private clients, but Bredband2 also offers a variety of different products to companies. Today, Bredband2 is primarily operating in the open city networks, where there is free competition between different operators.

The main risks for Bredband2 are 1) generic product, which makes price an important factor for customers. 2) Market maturity and increased competition, mainly from bigger players, could cause decline in growth without increased margins. 3) High dependence to the net owners, and their continued investments in market expansion.

SEKm 2024 2025e 2026e
Sales 1727 1885 1945
Sales growth (%) 9,4 9,1 3,2
EBITDA 287 299 333
EBITDA margin (%) 16,6 15,9 17,1
EBIT adj. 148 160 195
EBIT adj. margin (%) 8,6 8,5 10
Pretax profit 136 149 186
EPS 0,11 0,12 0,15
EPS growth (%) 27,9 10,4 23,8
EPS adj. 0,14 0,15 0,18
DPS 0,1 0,12 0,14
EV/EBITDA (x) 11,5 10,8 9,5
EV/EBIT adj. (x) 22,2 20,1 16,2
P/E (x) 29 26,3 21,2
P/E adj. (x) 24,1 22,4 18,7
EV/sales (x) 1,91 1,71 1,63
FCF yield (%) 4,5 7,6 8,2
Le. adj. FCF yld. (%) 1,8 4,7 5,4
Dividend yield (%) 3 3,7 4,3
Net IB debt/EBITDA (x) 0,5 0,3 0,1
Le. adj. ND/EBITDA (x) -0,5 -0,7 -0,8
SEKm 2024 2025e 2026e
Sales 1727 1885 1945
COGS -1156 -1275 -1303
Gross profit 571 610 642
Other operating items -285 -310 -309
EBITDA 287 299 333
Depreciation and amortisation -110 -113 -112
of which leasing depreciation -88 -88 -88
EBITA 176 186 221
EO Items 0 0 0
Impairment and PPA amortisation -28 -26 -26
EBIT 148 160 195
Net financial items -12 -11 -9
Pretax profit 136 149 186
Tax -28 -30 -38
Net profit 108 120 148
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 108 120 148
EPS 0,11 0,12 0,15
EPS adj. 0,14 0,15 0,18
Total extraordinary items after tax 0 0 0
Leasing payments -86 -89 -88
Tax rate (%) 20,5 19,9 20,6
Gross margin (%) 33,1 32,3 33
EBITDA margin (%) 16,6 15,9 17,1
EBITA margin (%) 10,2 9,9 11,4
EBIT margin (%) 8,6 8,5 10
Pre-tax margin (%) 7,9 7,9 9,6
Net margin (%) 6,3 6,3 7,6
Sales growth (%) 9,4 9,1 3,2
EBITDA growth (%) 9,1 4,4 11,5
EBITA growth (%) 15,1 5,4 18,9
EBIT growth (%) 23,5 8,2 21,9
Net profit growth (%) 27,9 10,4 23,8
EPS growth (%) 27,9 10,4 23,8
Profitability N/A N/A N/A
ROE (%) 19,7 20,9 24,6
ROE adj. (%) 24,9 25,4 28,9
ROCE (%) 17,8 19 22,8
ROCE adj. (%) 21,2 22,1 25,8
ROIC (%) 20,7 21,6 26,9
ROIC adj. (%) 20,7 21,6 26,9
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 287 299 333
EBITDA adj. margin (%) 16,6 15,9 17,1
EBITDA lease adj. 201 211 245
EBITDA lease adj. margin (%) 11,6 11,2 12,6
EBITA adj. 176 186 221
EBITA adj. margin (%) 10,2 9,9 11,4
EBIT adj. 148 160 195
EBIT adj. margin (%) 8,6 8,5 10
Pretax profit Adj. 164 175 212
Net profit Adj. 136 145 174
Net profit to shareholders adj. 136 145 174
Net adj. margin (%) 7,9 7,7 8,9
SEKm 2024 2025e 2026e
EBITDA 287 299 333
Goodwill 726 729 729
Net financial items -12 -11 -9
Other intangible assets 57 40 25
Paid tax -23 -30 -38
Tangible fixed assets 64 74 75
Non-cash items 2 2 0
Right-of-use asset 262 242 242
Cash flow before change in WC 254 260 286
Total other fixed assets 4 0 0
Change in working capital 2 24 8
Fixed assets 1114 1085 1070
Operating cash flow 256 284 294
Inventories 0 0 0
Capex tangible fixed assets -32 -12 -16
Receivables 112 113 117
Capex intangible fixed assets -5 -14 -19
Other current assets 0 0 0
Acquisitions and Disposals -77 -20 0
Cash and liquid assets 129 177 232
Free cash flow 142 238 259
Total assets 1354 1375 1420
Dividend paid -86 -96 -115
Shareholders equity 561 584 618
Share issues and buybacks 0 0 0
Minority 0 0 0
Leasing liability amortisation -86 -89 -88
Total equity 561 584 618
Other non-cash items -19 20 0
Long-term debt 19 14 14
Pension debt N/A N/A N/A
Convertible debt N/A N/A N/A
Leasing liability 254 233 233
Total other long-term liabilities 27 25 25
Short-term debt 11 11 11
Accounts payable 170 160 163
Other current liabilities 313 349 357
Total liabilities and equity 1354 1375 1420
Net IB debt 151 80 24
Net IB debt excl. pension debt 151 80 24
Net IB debt excl. leasing -103 -152 -208
Capital employed 844 841 875
Capital invested 712 665 642
Working capital -371 -396 -404
Market cap. diluted (m) 3144 3144 3144
Net IB debt adj. 151 80 24
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity N/A N/A N/A
EV 3295 3224 3168
Total assets turnover (%) 130,5 138,1 139,2
Working capital/sales (%) -21,4 -20,3 -20,5
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) 27 13,7 3,9
Net debt / market cap (%) 4,8 2,6 0,8
Equity ratio (%) 41,4 42,5 43,5
Net IB debt adj. / equity (%) 27 13,7 3,9
Current ratio 0,49 0,56 0,66
EBITDA/net interest 23,8 27 37
Net IB debt/EBITDA (x) 0,5 0,3 0,1
Net IB debt/EBITDA lease adj. (x) -0,5 -0,7 -0,8
Interest coverage 14,6 16,8 24,6
SEKm 2024 2025e 2026e
Shares outstanding adj. 957 957 957
Diluted shares adj. 957 957 957
EPS 0,11 0,12 0,15
Dividend per share 0,1 0,12 0,14
EPS adj. 0,14 0,15 0,18
BVPS 0,59 0,61 0,65
BVPS adj. -0,23 -0,19 -0,14
Net IB debt/share 0,16 0,08 0,03
Share price 3,29 3,29 3,29
Market cap. (m) 3144 3144 3144
P/E (x) 29 26,3 21,2
EV/sales (x) 1,9 1,7 1,6
EV/EBITDA (x) 11,5 10,8 9,5
EV/EBITA (x) 18,7 17,3 14,3
EV/EBIT (x) 22,2 20,1 16,2
Dividend yield (%) 3 3,7 4,3
FCF yield (%) 4,5 7,6 8,2
Le. adj. FCF yld. (%) 1,8 4,7 5,4
P/BVPS (x) 5,61 5,38 5,09
P/BVPS adj. (x) -19,04 -21,78 -28,29
P/E adj. (x) 24,1 22,4 18,7
EV/EBITDA adj. (x) 11,5 10,8 9,5
EV/EBITA adj. (x) 18,7 17,3 14,3
EV/EBIT adj. (x) 22,2 20,1 16,2
EV/CE (x) 3,9 3,8 3,6
Investment ratios N/A N/A N/A
Capex/sales (%) 2,2 1,4 1,8
Capex/depreciation 1,7 1 1,4
Capex tangibles / tangible fixed assets 50,4 15,8 21
Capex intangibles / definite intangibles N/A N/A N/A
Depreciation on intang / def. intang N/A N/A N/A
Depreciation on tangibles / tangibles 34,7 34 32,6

Equity research

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Media

Bredband2 - Company presentation with CEO Daniel Krook
Bredband2 - Fireside chat with CEO Daniel Krook

Main shareholders - Bredband2

Main shareholders Share capital % Voting shares % Verified
Alcur Fonder 13.5 % 13.5 % 30 Jun 2025
Anders Lövgren 13.5 % 13.5 % 26 Jun 2025
ODIN Fonder 7.8 % 7.8 % 30 Jun 2025
Mark Hauschildt 6.4 % 6.4 % 26 Jun 2025
Avanza Pension 3.5 % 3.5 % 26 Jun 2025
Ulf Östberg 2.3 % 2.3 % 31 Dec 2023
SEB Funds 1.7 % 1.7 % 26 Jun 2025
Daniel Krook 1.6 % 1.6 % 26 Jun 2025
Pelagus Konsult AB 1.5 % 1.5 % 26 Jun 2025
Nordnet Pensionsförsäkring 1.4 % 1.4 % 26 Jun 2025
Source: Holdings by Modular Finance AB