Fibre optic network builder CityFibre has posted their final results for 2016 which reveals their business plan has accelerated by up to seven years.
The group has increased turnover to £15.4m and gross profit is up to £13.5m for the year ending 31 December 2016. The cable duct and fibre optic network laid by the business is up 3,383km from 743km in 2015, which is now serving 3,962 customer premises, up from 1,200.
The operator also has an additional 29 cities within its coverage area and has signed up 54 new partners for its fibre optic network.
“2016 was truly a transformational year for CityFibre. Alongside delivering on our stated growth strategy, the acquired network footprint has accelerated our original business plan by up to seven years,” said Greg Mesch, CEO of CityFibre.
“Over the last twelve months we have more than doubled our contracted revenue base, added twenty nine new cities and increased our service provider partner base to 54.”
The company announced it had also made a net loss after tax of £12.6m but is capitalising on momentum for alternative fibre optic providers after BT’s separation of its Openreach network and wider customer group at Ofcom’s order.
“CityFibre now has significant presence in 42 cities across the UK and the rapid commercialisation of the Group’s assets underlines the strong demand for an alternative to BT Openreach at a national level,” said Mesch.
“We continue to see significant levels of demand from both business and public services sectors alongside increasing interest from mobile operators and residential broadband providers.
“With the regulatory and political landscapes now both favouring alternative fibre investment, CityFibre has never been better placed to capitalise on expanding its existing footprint and a growing number of near term strategic opportunities.
“Current trading continues in line with management’s expectations.”
In March’s Spring Budget, the Chancellor revealed that alternative providers of fibre optic cable would receive a £200m investment boost to encourage industry competition and support the roll-out of superfast broadband across the UK.