LONDON (Alliance News) - Fibre-optic network owner and operator CityFibre Holdings PLC on Monday said it is "enthusiastic" about its prospects for 2016, as it reported a narrowed pretax loss for 2015.
CityFibre reported a pretax loss of GBP6.4 million for 2015, reduced from a pretax loss of GBP7.1 million in 2014, as a rise in revenue to GBP6.4 million from GBP3.8 million was only partly offset by higher administrative expenses.
During the year the company continued to expand its network footprint coverage, adding three new cities, and increased its service provider relationships to 41 from 25 in December 2014, including a new order from Vodafone Ltd, part of Vodafone Group PLC.
CityFibre attributed the increase in its administrative costs to higher staff costs as it nearly doubled its average headcount to 83 staff from 46 in 2014.
The company said its fibre-to-the-home network trial in York, under a joint venture with Sky PLC and TalkTalk Telecom Group PLC, continues to progress and it has recently launched commercial propositions into this market.
Following the year end, CityFibre acquired metro and long-distance duct and fibre assets from KCOM Group PLC for GBP90 million. This was paid for under a GBP180.0 million funding package the company put in place, including GBP80.0 million raised through a share placing and GBP100.0 million of committed debt facilities.
"The addition of the former KCOM assets to the portfolio now gives us significant presence in 37 cities across the UK, and now opens up our wholesale model to 24 of the top 30 cities outside London. So far in 2016, we've demonstrated rapid commercialisation of the acquired assets, which further underlines the strong demand for an alternative to BT Openreach at a national level," said Chief Executive Greg Mesch in a statement.
Shares in CityFibre were up 2.6% at 59.00 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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