CityFibre turns first profit
April 19, 2016
CityFibre made a first profit as the fibre broadband group benefits from demand for alternatives to BT’s Openreach network. The AIM listed company builds and operates fibre optic networks for customers such as Vodafone to help connect mobile calls and provide broadband.
Adjusted earnings before interest, tax, depreciation and amortisation, moved into profit in the first three months of 2016. The £90 million (€114m) acquisition of a national fibre network from KCom, the regional telecoms group, helped it to become profitable six months earlier than it had planned.
In 2015 revenues increased 67 per cent to £6.4 million, with a pre-tax loss of £6.4 illionm, 9 per cent lower than 2014. Adjusted ebitda declined by 20 per cent to £2.9 million, in line with expectations.
CityFibre’s network covers around 20 per cent of the UK.
CityFibre has signed deals with Vodafone and Three, and is working on a joint venture with Sky and TalkTalk to provide high-speed fibre connections to homes in York.