UK's largest independent fibre network reaches £100m revenue milestone

Corporate news

UK's largest independent fibre network reaches £100m revenue milestone

Trading Update for the Year Ended 31 December 2023

26 January 2024

City Fibre Hat Installation
  • CityFibre added 1 million Ready for Service (RFS) homes in 2023, taking total RFS premises to over 3.2 million.
  • Doubled take-up on the network reaching total of 337,000 live customer connections.
  • Secured four new contracts worth £387m under UK Government’s “Project Gigabit”.
  • CityFibre on track to deliver EBITDA breakeven in H1 2024.

CityFibre, the UK’s largest independent full fibre platform, delivered £100m in revenue in 2023, representing a significant milestone for the business as its scaling continues at pace.

Its continued network expansion saw CityFibre deliver 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 over 3.2 million are RFS, firmly establishing it as the UK’s largest independent fibre network.

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 Internet Service Provider (ISP) partners continued to improve, driving take-up on the network. Over 165,000 new customer connections were added, a transformational increase of 98% versus those delivered in 2022 and bringing CityFibre’s live customer connections to over 337,000.

On the CityFibre footprint, large ISPs are typically selling at two-to-three times the rate they do over BT Openreach’s fibre network. CityFibre is also consistently gaining a 40-50% 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% 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% 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 £387m 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 over 450,000 premises.

CityFibre 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 £3.9bn financing, and has a further £550m 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.”