Surprisingly high costs, but solid top-line and customer intake
We cut '25e EBITA by 7%, but raise '26e-'27e by 1%
12x-10x '25e-'26e EV/EBITA (vs. 5Y f12m avg. of 12x)
Sales 2% ahead of ABGSCe alongside elevated costs
Bredband2 is a comparatively predictable business, but despite management's guidance of an increased focus on growth in 2025, Q1 costs were surprisingly high. As a result, EBITA came in 17% below our forecast and was down 13% y-o-y. However, the higher costs related to marketing activities that benefited both customer intake and sales, which both came in above our expectations (sales +2% vs. ABGSCe, +10% y-o-y). Interestingly, at +5k q-o-q, the customer intake was higher than at its closest competitor, Bahnhof (+2.1k q-o-q). Finally, lease adj. FCF of SEK 38m was strong and grew 90% y-o-y, partly driven by the solid customer intake (prepayments).