KC details fibre rollout progress as it publishes half-yearly results

28 Nov 2013

Hull-based telecoms provider KCOM Group has revealed that its fibre-based infrastructure now covers 24,700 premises, of which 20,800 are consumer and the remainder businesses. Having said it is committed to increasing the number of premises passed to 45,000 by 2015, the telco has highlighted the solid uptake for services over the new infrastructure. In terms of residential subscribers, at the end of September 2013 KCOM has reported that 4,700 homes had signed up for one of its ‘Lightstream’ branded services, representing a penetration rate of 23%, an uptake level it has claimed it ‘well above those seen in other parts of the UK’. Of those residential customers are connected via fibre, KCOM confirmed that 94% of those were existing subscribers which have upgraded, while it also noted that 90% are taking a bundled plan. In the business sector, meanwhile, some 1,200 customers have taken up a fibre-based plan, meaning a penetration rate of 31%.

Alongside detailing the progress of its fibre offerings, KCOM has also reported its financial results for the six months ended 30 September 2013, posting a 1.7% year-on-year decline in total turnover to GBP185.5 million (USD286 million), while operating profit and EBITDA fell by 4.9% and 1.8%, respectively, to GBP27.3 million and GBP37.4 million. Profit before tax for the first half of the company’s 2013/14 fiscal year, meanwhile, stood at GBP24.7 million, down from GBP26.1 million a year earlier.

Commenting on the group’s financial performance, executive chairman Bill Halbert said: ‘The half year position is encouraging and represents further good progress towards achieving our strategic ambitions. We continue to invest in support of the competitive position of our brands, our core IT applications and infrastructure and our broadband fibre deployment. While, as expected, this contributes to a short term decline in certain financial metrics, our strategy and plans continue to yield positive results. We remain confident about the Group’s longer term prospects and success and expect the full year outturn to be in line with market expectations.’

United Kingdom, KCOM