🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

UK's CityFibre achieves positive core earnings in Q1

Published 08/05/2024, 08:04
Updated 08/05/2024, 08:05
© Reuters.
GS
-
VOD
-
BT
-

LONDON (Reuters) - British fibre broadband company CityFibre said on Wednesday it recorded positive core earnings in its first quarter, ahead of its target of reaching the milestone in the first half, after it grew its customer connections by 77% to more than 400,000.

The company, which serves more than 40 internet service providers and mobile phone companies including TalkTalk, three and Vodafone (LON:VOD), said it was regularly installing over 1,000 new customers a day.

Chief Executive Greg Mesch said the company, which last year reported 100 million pounds of revenue, was ahead of track in the three months to end-March.

"We were better on our cost control because we did all the work last year, but also our growth has been greater than we thought," he said.

"A steady 1,000 installs a day and that's 25,000 net additions per month."

CityFibre, whose backers include Antin Infrastructure Partners and Goldman Sachs (NYSE:GS), agreed to buy Lit Fibre from Newlight Partners last month, accelerating its roll-out by up to 300,000 premises towards its eventual target of 8 million.

Mesch said more deals were in the pipeline, helping increase its footprint to challenge BT (LON:BT)'s Openreach and Virgin Media O2's networks. He is aiming to do one deal or so a quarter for the next eight quarters.

"That would be somewhere in the neighbourhood of six to eights deals," he said. "We have conversations going with almost all the alt-nets."

"All being small islands is not going to work, but us all coming together to make a large continent, that can make us survive," he added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.