Bredband2: Feedback from ABGSC Investor Days - ABG
Tämä on kolmannen osapuolen analyysi, eikä välttämättä vastaa Inderesin näkemystä tai arvoja
CEO Daniel Krook emphasised the increased growth focus
Improved growth in '24e on price hikes and a better customer intake
11x '24e EV/EBITA, and 7% lease adj. FCF yield
Early cost synergies with Stockholms Stadsnät
Today, we hosted Bredband2's CEO Daniel Krook at ABGSC's Investor Days. Mr Krook both highlighted the successful integration of A3 - where the realised cost synergies have been greater than anticipated - and Stockholms Stadsnät, which was consolidated 1 Feb and has already been integrated fully, resulting in early reaped cost synergies. On prices, we note that Bredband2 has recently commenced price hikes. This was confirmed by the CEO, who said that the price hikes are partly done to mitigate increased network prices. Although price hikes, all else equal, usually means higher churn, Mr Krook emphasised that increased marketing activities should be offsetting, which as such bodes well for continued positive net adds in Q2 (we estimate +1,000 q-o-q). Finally, we discussed other levers for growth, including voice services and security solutions, both which the company is positive about.
Improved growth in '24e on price hikes and a better customer intake
11x '24e EV/EBITA, and 7% lease adj. FCF yield
Early cost synergies with Stockholms Stadsnät
Today, we hosted Bredband2's CEO Daniel Krook at ABGSC's Investor Days. Mr Krook both highlighted the successful integration of A3 - where the realised cost synergies have been greater than anticipated - and Stockholms Stadsnät, which was consolidated 1 Feb and has already been integrated fully, resulting in early reaped cost synergies. On prices, we note that Bredband2 has recently commenced price hikes. This was confirmed by the CEO, who said that the price hikes are partly done to mitigate increased network prices. Although price hikes, all else equal, usually means higher churn, Mr Krook emphasised that increased marketing activities should be offsetting, which as such bodes well for continued positive net adds in Q2 (we estimate +1,000 q-o-q). Finally, we discussed other levers for growth, including voice services and security solutions, both which the company is positive about.