<a id="bm-comp-c79b59c8-de93-474c-b031-f08292b8c11d" name="bm-comp-c79b59c8-de93-474c-b031-f08292b8c11d" class="BMCustomAnchor"></a><table><tr><td bm-component-id="c79b59c8-de93-474c-b031-f08292b8c11d" style="vertical-align: top; width:100.000000%;"><ul><li>PTS has published new statistics for the SE fibre market</li><li>BRE2 market share: 14% vs 13% in 2023</li><li>BRE2's H1 focus is on customer adds; margins to improve in H2e</li></ul></td></tr></table><a id="bm-comp-e583f283-d11e-4e8e-a331-5243d1c86fc2" name="bm-comp-e583f283-d11e-4e8e-a331-5243d1c86fc2" class="BMCustomAnchor"></a><table><tr><td bm-component-id="e583f283-d11e-4e8e-a331-5243d1c86fc2" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Bredband2 is the number 3 fibre actor in Sweden</h3><p>PTS has now published its annual statistics for the Swedish fibre market. In terms of subscribers, <strong>Bredband2</strong> held 14.3% of the private fibre market in 2024, which is slightly up from 12.7% in 2023 (and 13.3% in 2022). This increase was expected and is a result of recent marketing activities and M&amp;A (e.g. Bredbandsson). In terms of value, however, Bredband2's share only increased marginally (9.8% vs. 9.7% in 2023), likely reflecting its greater focus on lower prices than many competitors.</p><p><strong>Telia,</strong> meanwhile, continued to gain market share (33.8% of subscribers, up from 33.1% in 2023), likely driven by the deployment of fibre infrastructure in rural areas and the market's continued transition from xDSL to fibre subscribers (-54% y-o-y), although the effect of the latter is now diminishing. Furthermore, <strong>Telenor</strong> continued on its negative trajectory (with a market share of 18.9%, down from 19.7% in 2023 and 30% in 2014), while <strong>Bahnhof</strong> increased its share marginally (with a market share of 10.1% in subscribers, up from 9.9% in 2023, and a 11.6% share in value, which remained unchanged y-o-y).</p><h3 class="bm-h3">84% fibre penetration means that the market is almost mature</h3><p>In terms of value, the total Swedish private fibre market grew by 9% y-o-y to SEK 12bn. This represented a deceleration from the 12% y-o-y increase in 2023, primarily due to lower price increases as CPIs have slowed. As the market continues to mature in terms of subscribers &#8212; fibre now accounts for 84% of all private fixed connections &#8212; we expect this decelerating growth trajectory to continue. Nevertheless, the 84% penetration rate suggests that the fibre architecture could potentially capture an additional ~700k customers over time. However, this is more theoretical than practical, as it is unlikely that all connections will convert.</p><h3 class="bm-h3">Bredband2's focus in H1'25 is to improve customer adds</h3><p>Although the market is maturing, Bredband2 is currently focusing on improving organic growth rates, primarily by increasing the number of new customers. This had an adverse impact on margins in Q1, and we expect this trend to continue into Q2. However, we anticipate that margins will start to improve in H2e and into 2026e, driven by price hikes. We estimate only +2% EBITA growth in '25e, but +21% in '26e on the back of normalising margins. The stock is currently trading at 13x-11x '25e-'26e EV/EBITA.</p></td></tr></table><a id="bm-comp-5f4c44bb-212d-4164-8540-7265f1a5eae5" name="bm-comp-5f4c44bb-212d-4164-8540-7265f1a5eae5" class="BMCustomAnchor"></a><a id="bm-comp-5e51c621-dcfc-4b90-bf73-b719137c86c9" name="bm-comp-5e51c621-dcfc-4b90-bf73-b719137c86c9" class="BMCustomAnchor"></a><table><tr><td bm-component-id="5f4c44bb-212d-4164-8540-7265f1a5eae5" style="vertical-align: top; width:50.000000%;"><table id="bm-img-d076e64d-2514-428d-b153-f5088fd89333" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Bredband2 market shares (subscribers and value) of the private fibre market...</td></tr><tr><td><img bm-img-encrypt="d076e64d-2514-428d-b153-f5088fd89333" bm-img-original-height="362" bm-img-original-width="793" bm-img-svg="image:image_upload/88252_5c5dd90f-eb25-4876-964b-ec4c44123404.svg" bm-img-width-hint="100%" id="bm-id-3e891d72-5f54-4682-9e76-2ca81f1efa6c" src="https://abgsc.bluematrix.com/images/image_upload/88252_5c5dd90f-eb25-4876-964b-ec4c44123404_363.png" svg="/nas/web/clients/abgsc/images/image_upload/88252_5c5dd90f-eb25-4876-964b-ec4c44123404.svg" width="363" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, PTS</td></tr></table></td><td bm-component-id="5e51c621-dcfc-4b90-bf73-b719137c86c9" style="vertical-align: top; width:50.000000%;"><table id="bm-img-35f87254-9176-4bba-b634-337195078a06" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">... vs. Bahnhof</td></tr><tr><td><img bm-img-encrypt="35f87254-9176-4bba-b634-337195078a06" bm-img-original-height="401" bm-img-original-width="793" bm-img-svg="image:image_upload/88252_e43731b7-daac-40e7-9f75-ed198532ab76.svg" bm-img-width-hint="100%" id="bm-id-01272d32-12a5-4fb2-874a-9931cde6c538" src="https://abgsc.bluematrix.com/images/image_upload/88252_e43731b7-daac-40e7-9f75-ed198532ab76_363.png" svg="/nas/web/clients/abgsc/images/image_upload/88252_e43731b7-daac-40e7-9f75-ed198532ab76.svg" width="363" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, PTS</td></tr></table></td></tr></table><a id="bm-comp-fde7830d-32e9-4981-8a2f-81256bcca976" name="bm-comp-fde7830d-32e9-4981-8a2f-81256bcca976" class="BMCustomAnchor"></a><table><tr><td bm-component-id="fde7830d-32e9-4981-8a2f-81256bcca976" style="vertical-align: top; width:100.000000%;"><table id="bm-img-b42f1d3f-a7ed-4e40-8540-be73b7258f06" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Market shares, private fibre connections, Sweden (%)</td></tr><tr><td><img bm-img-encrypt="b42f1d3f-a7ed-4e40-8540-be73b7258f06" bm-img-original-height="403" bm-img-original-width="793" bm-img-svg="image:image_upload/88252_44711ec7-897b-4ecc-8c32-32f8f05ae023.svg" bm-img-width-hint="100%" id="bm-id-b42f1d3f-a7ed-4e40-8540-be73b7258f06" src="https://abgsc.bluematrix.com/images/image_upload/88252_44711ec7-897b-4ecc-8c32-32f8f05ae023_733.png" svg="/nas/web/clients/abgsc/images/image_upload/88252_44711ec7-897b-4ecc-8c32-32f8f05ae023.svg" width="727" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, PTS</td></tr></table></td></tr></table><a id="bm-comp-9297d99e-e251-4c0d-aa2b-a4d37fedae74" name="bm-comp-9297d99e-e251-4c0d-aa2b-a4d37fedae74" class="BMCustomAnchor"></a><table><tr><td bm-component-id="9297d99e-e251-4c0d-aa2b-a4d37fedae74" style="vertical-align: top; width:100.000000%;"><table id="bm-img-df191d66-3a3f-4367-a7ff-7847a9902f4f" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">SE private fibre market value (SEKbn)</td></tr><tr><td><img bm-img-encrypt="df191d66-3a3f-4367-a7ff-7847a9902f4f" bm-img-original-height="367" bm-img-original-width="728" bm-img-svg="image:image_upload/88252_8dd95a21-7be3-46c9-9806-dc7f75058696.svg" bm-img-width-hint="100%" id="bm-id-df191d66-3a3f-4367-a7ff-7847a9902f4f" src="https://abgsc.bluematrix.com/images/image_upload/88252_8dd95a21-7be3-46c9-9806-dc7f75058696_728.png" svg="/nas/web/clients/abgsc/images/image_upload/88252_8dd95a21-7be3-46c9-9806-dc7f75058696.svg" width="727" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, PTS</td></tr></table></td></tr></table><a id="bm-comp-06aff23c-397b-4507-b16c-404984ed65a0" name="bm-comp-06aff23c-397b-4507-b16c-404984ed65a0" class="BMCustomAnchor"></a><table><tr><td bm-component-id="06aff23c-397b-4507-b16c-404984ed65a0" style="vertical-align: top; width:100.000000%;"><table id="bm-img-998b55b4-5f18-4672-9fef-95798e39e042" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Fixed broadband connections, private</td></tr><tr><td><img bm-img-encrypt="998b55b4-5f18-4672-9fef-95798e39e042" bm-img-original-height="368" bm-img-original-width="726" bm-img-svg="image:image_upload/88252_79737874-201e-40ab-90f2-95a0cd0bbb83.svg" bm-img-width-hint="99.86%" id="bm-id-998b55b4-5f18-4672-9fef-95798e39e042" src="https://abgsc.bluematrix.com/images/image_upload/88252_79737874-201e-40ab-90f2-95a0cd0bbb83_726.png" svg="/nas/web/clients/abgsc/images/image_upload/88252_79737874-201e-40ab-90f2-95a0cd0bbb83.svg" width="726" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, PTS</td></tr></table></td></tr></table><a id="bm-comp-dcdcf7f6-16da-4341-b2b7-22a35172f2f9" name="bm-comp-dcdcf7f6-16da-4341-b2b7-22a35172f2f9" class="BMCustomAnchor"></a><a id="bm-comp-049f21f6-526c-411e-b5b4-78da9a36bed6" name="bm-comp-049f21f6-526c-411e-b5b4-78da9a36bed6" class="BMCustomAnchor"></a><table><tr><td bm-component-id="dcdcf7f6-16da-4341-b2b7-22a35172f2f9" style="vertical-align: top; width:50.000000%;"><table id="bm-img-77f2451d-7714-4a44-8840-b541c424d339" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Org. sales y-o-y, quarterly (%)</td></tr><tr><td><img bm-img-encrypt="77f2451d-7714-4a44-8840-b541c424d339" bm-img-original-height="385" bm-img-original-width="793" bm-img-svg="image:image_upload/88252_8f4d3ada-e61c-41d4-aa5f-81562403922d.svg" bm-img-width-hint="100%" draggable="false" id="bm-id-1a2c3e2a-6f2f-4815-96a2-f69af356960b" src="https://abgsc.bluematrix.com/images/image_upload/88252_8f4d3ada-e61c-41d4-aa5f-81562403922d_659.png" svg="/nas/web/clients/abgsc/images/image_upload/88252_8f4d3ada-e61c-41d4-aa5f-81562403922d.svg" width="363" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, company data</td></tr></table></td><td bm-component-id="049f21f6-526c-411e-b5b4-78da9a36bed6" style="vertical-align: top; width:50.000000%;"><table id="bm-img-fc004685-586d-44d5-af1b-2649832c2ec5" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Organic sales y-o-y (%)</td></tr><tr><td><img bm-img-encrypt="fc004685-586d-44d5-af1b-2649832c2ec5" bm-img-original-height="433" bm-img-original-width="694" bm-img-svg="image:image_upload/88252_c380cd4a-3c34-45f4-aef7-6f323cd14be5.svg" bm-img-width-hint="100%" id="bm-id-7d7fb70f-2c70-4140-af15-7cef717ec413" src="https://abgsc.bluematrix.com/images/image_upload/88252_c380cd4a-3c34-45f4-aef7-6f323cd14be5_659.png" svg="/nas/web/clients/abgsc/images/image_upload/88252_c380cd4a-3c34-45f4-aef7-6f323cd14be5.svg" width="363" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, company data</td></tr></table></td></tr></table><a id="bm-comp-5c43c593-c8bb-48be-a6cf-952b48953f13" name="bm-comp-5c43c593-c8bb-48be-a6cf-952b48953f13" class="BMCustomAnchor"></a><a id="bm-comp-9d11c034-2688-4d35-b1aa-b9358d1767a4" name="bm-comp-9d11c034-2688-4d35-b1aa-b9358d1767a4" class="BMCustomAnchor"></a><table><tr><td bm-component-id="5c43c593-c8bb-48be-a6cf-952b48953f13" style="vertical-align: top; width:50.000000%;"><table id="bm-img-8e7fcf5d-d9fc-4074-b756-bf487e0217e2" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Gross margin, EBITA margin, EBITDA margin</td></tr><tr><td><img bm-img-encrypt="8e7fcf5d-d9fc-4074-b756-bf487e0217e2" bm-img-original-height="398" bm-img-original-width="693" bm-img-svg="image:image_upload/88252_d352e71c-12c8-417a-b54b-bd1915138ca3.svg" bm-img-width-hint="100%" id="bm-id-0cca0624-f743-4723-88e9-653bb6e3452e" src="https://abgsc.bluematrix.com/images/image_upload/88252_d352e71c-12c8-417a-b54b-bd1915138ca3_659.png" svg="/nas/web/clients/abgsc/images/image_upload/88252_d352e71c-12c8-417a-b54b-bd1915138ca3.svg" width="363" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, company data</td></tr></table></td><td bm-component-id="9d11c034-2688-4d35-b1aa-b9358d1767a4" style="vertical-align: top; width:50.000000%;"><table id="bm-img-7850eebc-c789-400f-83bb-d9b78597933a" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">EV/EBITA f12m (x)</td></tr><tr><td><img bm-img-encrypt="7850eebc-c789-400f-83bb-d9b78597933a" bm-img-original-height="399" bm-img-original-width="793" bm-img-svg="image:image_upload/88252_392c5006-c512-4986-b89a-e798bc1152a0.svg" bm-img-width-hint="100%" id="bm-id-7850eebc-c789-400f-83bb-d9b78597933a" src="https://abgsc.bluematrix.com/images/image_upload/88252_392c5006-c512-4986-b89a-e798bc1152a0_363.png" svg="/nas/web/clients/abgsc/images/image_upload/88252_392c5006-c512-4986-b89a-e798bc1152a0.svg" width="363" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, FactSet</td></tr></table></td></tr></table>