The company’s continued network expansion delivered more than 1 million Ready For Service (RFS) premises to its partners during 2023. CityFibre’s network has now passed 3.5 million premises, of which more than 3.2 million are RFS.
The network expansion was delivered at target cost, which has remained flat in nominal terms over the past four years, as build partner and portfolio optimisation and performance improvements, alongside CityFibre’s scale, has offset input cost inflation and the volatile operating backdrop.
During 2023, the performance of CityFibre’s 41 consumer ISP partners continued to improve, driving take-up on the network. More than 165,000 new customer connections were added, an increase of 98 per cent versus 2022 and bringing CityFibre’s live customer connections to more than 337,000.
Large ISPs are typically selling at two-to-three times the rate on the CityFibre footprint than they do over BT Openreach’s fibre network. CityFibre is also consistently gaining a 40-50 per cent share of the homes switching broadband provider within its footprint.
In Milton Keynes, CityFibre’s most mature market, where the build programme was completed in 2022, more than 30 per cent of the homes have already chosen to move over to CityFibre’s network. The first areas served in the city have now achieved approximately 40 per cent take-up and penetration continues to grow month-on-month.
The business has also become an integral delivery partner to government for rural connectivity, securing four new contracts with a total value of £387 million under its Project Gigabit programme. These will subsidise the roll-out of gigabit-capable infrastructure to 262,000 rural properties across the country that would otherwise be excluded from commercial rollouts. The awards also unlocked an additional commercial expansion by CityFibre in the target regions of more than 450,000 premises.
CityFibre also continues to benefit from its established, multi-vertical model across consumer, business, public sector and mobile sectors. This provides management with confidence that the business will deliver EBITDA breakeven in H1 2024.
In 2022, CityFibre completed a £3.9 billion financing and has a further £550 million of available equity, reflecting strong ongoing support from its investors and putting it on a firm financial footing to deliver its 8 million premises target. In 2024, CityFibre expects to deliver a further 1 million RFS premises to its partners through continued build and pursuing a well-developed pipeline of M&A opportunities.
Greg Mesch, chief executive officer at CityFibre, said, “In spite of a challenging operating environment, CityFibre continues to go from strength-to-strength. During 2023, we generated over £100m in revenues, delivered our target of 1 million Ready For Service premises, and doubled take-up across our footprint. We look forward to building on this firm foundation and exploring opportunities to transform our expansion ambitions in 2024 and beyond.”