Cityfibre Sign 3702 New Customer FTTP Connections in H1 2016

Fibre optic network builder Cityfibre has today issued a brief trading update for the first six months of 2016 to 30th June, which reveals that they signed 3,702 new customer connections in the period and that’s over three times the total amount sold in all of 2015 (1,110).

Part of this is likely to have occurred as a direct result of their £90m deal to gobble KCOM’s UK network assets (excluding Hull and KCOM’s surrounding network). The full results aren’t due out until September, but some comparisons with their full year 2015 report (here) can already be made.

Of the new connections sold, new anchor contracts represented 55%, and incremental business comprised 45%. Excluding the legacy KCOM customer connections in the acquired footprint, 93% of new connections sold in the period were actually incremental sales on existing assets.

Apparently initial contract value added in the first six months totalled £53.8m, which is more than double the amount added in all of 2015 (£23.2m) and over six times the level added in H1 2015 (£8.1m).

Cityfibre ended the first half with 49 service provider relationships, up from 33 one year ago and 41 at the end of 2015. Notable additions in the period were new trading relationships with Level 3 and SSE Enterprise Telecoms, who join CityFibre’s growing ranks of national partners, including KCOM, Vodafone, MBNL, Three UK, Capita, Serco, Interoute and Logicalis etc.

Sadly we’ll have to wait another couple of months in order to get the full progress update.