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Bredband2

Bredband2

Broadband via fiber network

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 2023 2024e 2025e
Sales 1580 1688 1757
Sales growth (%) 3,2 6,9 4
EBITDA 263 284 297
EBITDA margin (%) 16,6 16,8 16,9
EBIT adj. 120 144 160
EBIT adj. margin (%) 7,6 8,5 9,1
Pretax profit 108 133 150
EPS 0,09 0,11 0,12
EPS growth (%) 17,6 24 12,9
EPS adj. 0,12 0,14 0,15
DPS 0,09 0,11 0,13
EV/EBITDA (x) 6,8 6,2 5,8
EV/EBIT adj. (x) 14,8 12,3 10,8
P/E (x) 19,6 15,8 14
P/E adj. (x) 15 12,9 11,8
EV/sales (x) 1,12 1,05 0,99
FCF yield (%) 13,4 11 13,7
Le. adj. FCF yld. (%) 8,2 5,5 8,2
Dividend yield (%) 5,2 6,3 7,5
Net IB debt/EBITDA (x) 0,4 0,4 0,2
Le. adj. ND/EBITDA (x) -0,8 -0,8 -0,9
SEKm 2023 2024e 2025e
Sales 1580 1688 1757
COGS -1038 -1099 -1142
Gross profit 542 590 615
Other operating items -279 -306 -317
EBITDA 263 284 297
Depreciation and amortisation -110 -110 -110
of which leasing depreciation -92 -92 -92
EBITA 153 174 188
EO Items 0 0 0
Impairment and PPA amortisation -33 -30 -28
EBIT 120 144 160
Net financial items -12 -11 -10
Pretax profit 108 133 150
Tax -23 -27 -31
Net profit 85 106 119
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 85 106 119
EPS 0,09 0,11 0,12
EPS adj. 0,12 0,14 0,15
Total extraordinary items after tax 0 0 0
Leasing payments -87 -92 -92
Tax rate (%) 21,3 20,6 20,6
Gross margin (%) 34,3 34,9 35
EBITDA margin (%) 16,6 16,8 16,9
EBITA margin (%) 9,7 10,3 10,7
EBIT margin (%) 7,6 8,5 9,1
Pre-tax margin (%) 6,9 7,9 8,6
Net margin (%) 5,4 6,3 6,8
Sales growth (%) 3,2 6,9 4
EBITDA growth (%) 8,9 8 4,8
EBITA growth (%) 19 13,7 7,9
EBIT growth (%) 26,6 19,9 11,5
Net profit growth (%) 17,6 24 12,9
EPS growth (%) 17,6 24 12,9
Profitability N/A N/A N/A
ROE (%) 16 19,3 21,2
ROE adj. (%) 22,2 24,9 26,1
ROCE (%) 14,4 17,1 18,7
ROCE adj. (%) 18,4 20,7 21,9
ROIC (%) 17,9 21,3 23
ROIC adj. (%) 17,9 21,3 23
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 263 284 297
EBITDA adj. margin (%) 16,6 16,8 16,9
EBITDA lease adj. 176 192 205
EBITDA lease adj. margin (%) 11,1 11,4 11,7
EBITA adj. 153 174 188
EBITA adj. margin (%) 9,7 10,3 10,7
EBIT adj. 120 144 160
EBIT adj. margin (%) 7,6 8,5 9,1
Pretax profit Adj. 142 164 178
Net profit Adj. 119 136 147
Net profit to shareholders adj. 119 136 147
Net adj. margin (%) 7,5 8,1 8,4
SEKm 2023 2024e 2025e
EBITDA 263 284 297
Goodwill 653 665 665
Net financial items -12 -11 -10
Other intangible assets 71 91 79
Paid tax -23 -27 -31
Tangible fixed assets 53 55 61
Non-cash items 5 0 0
Right-of-use asset 260 260 260
Cash flow before change in WC 234 246 257
Total other fixed assets 13 13 13
Change in working capital 18 21 11
Fixed assets 1048 1084 1077
Operating cash flow 252 267 268
Inventories 0 0 0
Capex tangible fixed assets -14 -17 -19
Receivables 85 101 105
Capex intangible fixed assets -14 -17 -19
Other current assets 0 0 0
Acquisitions and Disposals 0 -50 0
Cash and liquid assets 161 196 193
Free cash flow 224 184 229
Total assets 1294 1381 1376
Dividend paid -77 -86 -105
Shareholders equity 537 557 571
Share issues and buybacks 0 0 0
Minority 0 0 0
Leasing liability amortisation -87 -92 -92
Total equity 537 557 571
Other non-cash items 5 0 0
Long-term debt 5 35 0
Pension debt N/A N/A N/A
Convertible debt N/A N/A N/A
Leasing liability 248 248 248
Total other long-term liabilities 22 22 22
Short-term debt 27 27 27
Accounts payable 138 152 158
Other current liabilities 316 340 349
Total liabilities and equity 1294 1381 1376
Net IB debt 107 101 69
Net IB debt excl. pension debt 107 101 69
Net IB debt excl. leasing -142 -148 -180
Capital employed 817 867 846
Capital invested 644 658 640
Working capital -369 -391 -402
Market cap. diluted (m) 1669 1669 1669
Net IB debt adj. 107 101 69
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 1776 1770 1738
Total assets turnover (%) 121,4 126,2 127,4
Working capital/sales (%) -22,8 -22,5 -22,6
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) 19,8 18,1 12
Net debt / market cap (%) 6,4 6 4,1
Equity ratio (%) 41,5 40,3 41,5
Net IB debt adj. / equity (%) 19,8 18,1 12
Current ratio 0,51 0,57 0,56
EBITDA/net interest 22,5 26,5 29,7
Net IB debt/EBITDA (x) 0,4 0,4 0,2
Net IB debt/EBITDA lease adj. (x) -0,8 -0,8 -0,9
Interest coverage 13,1 16,3 18,8
SEKm 2023 2024e 2025e
Shares outstanding adj. 957 957 957
Diluted shares adj. 957 957 957
EPS 0,09 0,11 0,12
Dividend per share 0,09 0,11 0,13
EPS adj. 0,12 0,14 0,15
BVPS 0,56 0,58 0,6
BVPS adj. -0,19 -0,21 -0,18
Net IB debt/share 0,11 0,11 0,07
Share price 1,74 1,74 1,74
Market cap. (m) 1669 1669 1669
P/E (x) 19,6 15,8 14
EV/sales (x) 1,12 1,05 0,99
EV/EBITDA (x) 6,8 6,2 5,8
EV/EBITA (x) 11,6 10,2 9,2
EV/EBIT (x) 14,8 12,3 10,8
Dividend yield (%) 5,2 6,3 7,5
FCF yield (%) 13,4 11 13,7
Le. adj. FCF yld. (%) 8,2 5,5 8,2
P/BVPS (x) 3,11 3 2,92
P/BVPS adj. (x) -14,47 -15,42 -17,74
P/E adj. (x) 15 12,9 11,8
EV/EBITDA adj. (x) 6,8 6,2 5,8
EV/EBITA adj. (x) 11,6 10,2 9,2
EV/EBIT adj. (x) 14,8 12,3 10,8
EV/CE (x) 2,2 2 2,1
Investment ratios N/A N/A N/A
Capex/sales (%) 1,8 2 2,2
Capex/depreciation 1,6 1,9 2,2
Capex tangibles / tangible fixed assets 26,6 30,2 31,9
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 33,48 32,02 28,95

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Media

Bredband2 - Company presentation with CEO Daniel Krook
Bredband2 - Company presentation with CEO Daniel Krook (In Swedish)

Main shareholders - Bredband2

Main shareholders Share capital % Voting shares % Verified
Anders Lövgren 13.5 % 13.5 % 27 Dec 2023
Alcur Fonder 12.0 % 12.0 % 30 Nov 2023
ODIN Fonder 9.1 % 9.1 % 31 Jan 2024
Mark Hauschildt 8.2 % 8.2 % 27 Dec 2023
Protector Forsikring ASA 5.7 % 5.7 % 27 Dec 2023
Avanza Pension 4.0 % 4.0 % 27 Dec 2023
Futur Pension 2.2 % 2.2 % 27 Dec 2023
Nordnet Pensionsförsäkring 2.1 % 2.1 % 27 Dec 2023
Ulf Östberg 2.0 % 2.0 % 31 Dec 2022
SEB Fonder 1.9 % 1.9 % 27 Dec 2023
Source: Holdings by Modular Finance AB