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Third party research

Bredband2: Focus on top line over margins in 2025 - ABG

Bredband2

This is a third party research report and does not necessarily reflect our views or values

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In-line Q4 report, increased focus on sales growth in 2025
We cut '25e-'26e EBITA by 5-2% on lower margin assumptions
11x-9x '25e-'26e EV/EBITA (vs. 5Y f12m avg. of 12x)


Solid Q4, broadly in line with our estimates

Bredband2 delivered a solid Q4 report with organic growth of 6% (ABGSCe 6%) and EBITA of SEK 45m, 1% below ABGSCe. Customer additions were +1,900, a decent number given the recent price increases. The latter led to a sequential improvement in the gross margin to 32.6% (32.2% in Q3), albeit slightly below our forecast of 32.8%. Costs were lower than we had expected, probably due to earlier-than-expected synergies from recent acquisitions (Bredbandsson).