Press the button and be introduced to a new random company!

Introduce me >

Social media

facebook   Follow us on Twitter

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 digitalization trend favors Bredband2. There is an increasing demand on faster and more stable network connections. This is due to more and more connected devices, higher TV resolutions, video-on-demand and online games, to mention a few examples. Hence, there is a shift from older network connections to newer ones, like ADSL to fiber. Furthermore, the Swedish government has a set goal that 95% of the Swedish population should have access to broadband by 2020. If this market starts to saturate, there is an opportunity for Bredband2 to seize a better position in the B2B market.

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 2018 2019e 2020e
Sales 600 668 725
Sales growth (%) 13,9 11,3 8,6
EBITDA 65 70 83
EBITDA margin (%) 10,9 10,5 11,4
EBIT adj 41 46 59
EBIT adj margin (%) 6,8 6,9 8,1
Pretax profit 41 46 59
EPS rep 0,05 0,05 0,07
EPS growth (%) 2,8 13,5 27,6
EPS adj 0,05 0,05 0,07
DPS 0,05 0,05 0,06
EV/EBITDA (x) 11,3 8,7 7,1
EV/EBIT adj (x) 17,9 13,2 9,9
P/E (x) 27 20,9 16,3
P/E adj (x) 27 20,9 16,3
EV/sales (x) 1,2 0,9 0,8
FCF yield (%) 5,8 6 6,7
Dividend yield (%) 4,1 4,7 5,6
Net IB debt/EBITDA -1,9 -2 -2
SEKm 2018 2019e 2020e
Sales 600 668 725
COGS -388 -440 -477
Gross profit 212 228 249
Other operating items -147 -158 -166
EBITDA 65 70 83
Depreciation on tangibles -24 -24 -24
Depreciation on intangibles 0 0 0
EBITA 41 46 59
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 41 46 59
Other financial items 0 0 0
Net financial items 0 0 0
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 41 46 59
Tax -10 -10 -13
Net profit 32 36 46
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 32 36 46
EPS 0,05 0,05 0,07
EPS Adj 0,05 0,05 0,07
Total extraordinary items after tax 0 0 0
Tax rate (%) -23,2 -22 -22
Gross margin (%) 35,4 34,2 34,3
EBITDA margin (%) 10,9 10,5 11,4
EBITA margin (%) 6,8 6,9 8,1
EBIT margin (%) 6,8 6,9 8,1
Pretax margin (%) 6,9 6,9 8,1
Net margin (%) 5,3 5,4 6,3
Growth rates Y/Y 2018 2019 2020
Sales growth (%) 13,9 11,3 8,6
EBITDA growth (%) 0,5 7,1 18,7
EBIT growth (%) 0,4 12,3 27,8
Net profit growth (%) 2,8 13,5 27,6
EPS growth (%) 2,8 13,5 27,6
Profitability 2018 2019 2020
ROE (%) 31,5 48,8 60,4
ROE Adj (%) 31,5 48,8 60,4
ROCE (%) 39,4 59,8 74,6
ROCE Adj(%) 39,4 59,8 74,6
ROIC (%) -358,4 -61,4 -59,2
ROIC Adj (%) -358,4 -61,4 -59,2
Adj earnings numbers 2018 2019 2020
EBITDA Adj 65 70 83
EBITDA Adj margin (%) 10,9 10,5 11,4
EBITA Adj 41 46 59
EBITA Adj margin (%) 6,8 6,9 8,1
EBIT Adj 41 46 59
EBIT Adj margin (%) 6,8 6,9 8,1
Pretax profit Adj 41 46 59
Net profit Adj 32 36 46
Net profit to shareholders Adj 32 36 46
Net Adj margin (%) 5,3 5,4 6,3
SEKm 2018 2019e 2020e
EBITDA 65 70 83
Net financial items 0 0 0
Paid tax -10 -10 -13
Non-cash items 0 0 0
Cash flow before change in WC 56 60 70
Change in WC 10 15 14
Operating cash flow 65 64 70
CAPEX tangible fixed assets -16 -19 -20
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 0 0 0
Free cash flow 50 45 50
Dividend paid -35 -35 -35
Share issues and buybacks 0 0 0
Other non cash items 11 11 7
Decrease in net IB debt 25 21 22
Balance Sheet (SEKm) 2018 2019 2020
Goodwill 5 3 0
Indefinite intangible assets 10 12 12
Definite intangible assets 0 0 0
Tangible fixed assets 38 34 32
Other fixed assets 0 0 0
Fixed assets 54 49 44
Inventories 0 0 0
Receivables 117 131 144
Other current assets 0 0 0
Cash and liquid assets 126 146 168
Total assets 296 326 356
Shareholders equity 73 74 78
Minority 0 0 0
Total equity 73 74 78
Long-term debt 4 3 3
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 0 0 0
Short-term debt 0 0 0
Accounts payable 219 249 275
Other current liabilities 0 0 0
Total liabilities and equity 283 321 296
Net IB debt -122 -143 -165
Net IB debt excl. pension debt -122 -143 -165
Capital invested -49 -69 -87
Working capital -102 -117 -131
EV breakdown 2018 2019 2020
Market cap. diluted (m) 855 750 750
Net IB debt Adj -122 -143 -165
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity 0 0 0
EV 733 607 585
Capital efficiency (%) 2018 2019 2020
Total assets turnover (%) 194,4 214,7 212,7
Capital invested turnover (%) -6815,9 -1138,4 -933,7
Capital employed turnover (%) 574,8 865,9 917,4
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 0 0 0
Payables / sales (%) 34 35 36,1
Working capital / sales (%) -16,2 -16,5 -17,1
Financial risk and debt service 2018 2019 2020
Net debt / equity (%) -166,5 -192,6 -211,3
Net debt / market cap (%) -12,9 -19 -22
Equity ratio (%) 24,7 22,8 21,9
Net IB debt adj. / equity (%) -166,5 -192,6 -211,3
Current ratio (%) 110,7 111,4 113,3
EBITDA / net interest (%) -35808,8 208295,2 68478,3
Net IB debt / EBITDA (%) -187 -204,6 -198,8
Interest cover (%) -22571,4 137743 48726,3
SEKm 2018 2019e 2020e
Shares outstanding adj. 701 701 701
Fully diluted shares Adj 701 701 701
EPS 0,05 0,05 0,07
Dividend per share Adj 0,1 0,1 0,1
EPS Adj 0,05 0,05 0,07
BVPS 0,1 0,11 0,11
BVPS Adj 0,1 0,1 0,11
Net IB debt / share -0,2 -0,2 -0,2
Share price 1,35 1,07 1,07
Market cap. (m) 945 750 750
Valuation 2018 2019 2020
P/E 27 20,9 16,3
EV/sales 1,22 0,91 0,81
EV/EBITDA 11,3 8,7 7,1
EV/EBITA 17,9 13,2 9,9
EV/EBIT 17,9 13,2 9,9
Dividend yield (%) 4,1 4,7 5,6
FCF yield (%) 5,8 6 6,7
P/BVPS 11,68 10,12 9,62
P/BVPS Adj 12,57 10,52 9,67
P/E Adj 27 20,9 16,3
EV/EBITDA Adj 11,3 8,7 7,1
EV/EBITA Adj 17,9 13,2 9,9
EV/EBIT Adj 17,9 13,2 9,9
EV/cap. employed 9,5 7,9 7,2
Investment ratios 2018 2019 2020
Capex / sales 2,6 2,8 2,7
Capex / depreciation 65,7 79,6 81,9
Capex tangibles / tangible fixed assets 41,2 56 61,8
Capex intangibles / definite intangibles N/A N/A N/A
Depreciation on intangibles / definite intangibles N/A N/A N/A
Depreciation on tangibles / tangibles 62,7 70,3 75,4

Equity research

Read earlier research

Media

Bredband2 - Interview with CEO Daniel Krook (in Swedish)
Bredband2 - Company presentation with CEO Daniel Krook (in Swedish)

View more media

Main shareholders

Bredband2

Main shareholders Share capital % Voting shares % Verified
Anders Lövgren 16.6 % 16.6 % 30 Jun 2019
Dan Örjan Berglund 13.3 % 13.3 % 30 Jun 2019
Leif Danielsson 7.2 % 7.2 % 30 Jun 2019
BI Asset Mgmt Fondsmaeglerselskab A/S 4.0 % 4.0 % 30 Jun 2019
Ulf Östberg 3.8 % 3.8 % 30 Jun 2019
Berenberg Funds 3.7 % 3.7 % 30 Jun 2019
Veralda Investment Ltd 2.4 % 2.4 % 30 Jun 2019
Daniel Krook 2.0 % 2.0 % 30 Jun 2019
Avanza Pension 1.8 % 1.8 % 30 Jun 2019
Pelagus Konsult AB 1.7 % 1.7 % 30 Jun 2019
Source: Holdings by Modular Finance AB

Insider list

Bredband2

Name Quantity Code Date
Claes Fägersten +1 300 000 BUY 23 Aug 2019
Rolf Johansson + 250 000 BUY 31 May 2019
Rolf Johansson + 250 000 BUY 27 May 2019
Advokat Rolf Johansson AB + 200 000 BUY 26 Nov 2018
Marand Group AB +2 000 000 BUY 29 Oct 2018
Mats Robert Burén + 92 911 BUY 29 Oct 2018
Mats Robert Burén + 64 000 BUY 29 Oct 2018
Mats Robert Burén + 16 000 BUY 29 Oct 2018
Mats Robert Burén + 24 279 BUY 29 Oct 2018
Mats Robert Burén + 2 810 BUY 29 Oct 2018

Show More