CityFibre has confirmed that it has delivered its first full year of profitability.
This confirmation was the highlight of the company’s financial and operational update for the year that ended 31 December 2024.
CityFibre’s results also confirmed the company delivered a 34 per cent increase in revenue to reach £134 million, with consumer revenues increasing by 73 per cent. Its adjusted EBITDA was at £5 million.
Take-up is also continuing to grow, with CityFibre adding over 181,000 net new customers. The company now has 518,000 total live customers.
Greg Mesch, chief executive officer, CityFibre, said, “2024 was a definitive year for CityFibre. We achieved our first full year of profitability, signed a new strategic partnership with Sky, which doubled our retail sales capacity, and solidified our position as the UK’s leading independent wholesale network.
“As we look ahead to 2025 and beyond, we are confident in delivering accelerated, profitable growth across our expanding platform, with half the UK broadband market now served by our partners. We will also harness our increased participation in government’s Project Gigabit and make the most of a rapidly emerging altnet consolidation opportunity, realising the benefits of infrastructure competition for consumers, businesses and for the UK.”
The company said its strategic partnership with Sky will double its addressable market, with consumer Internet Service Providers (ISPs) on the platform now accounting for 49 per cent of UK broadband market share.
James Barford, head of telecoms, Enders Analysis, put these results into context. He said, “We think that the highlight of CityFibre’s 2024 full year results announced today was confirmation of the company having broken even in EBITDA terms, the first of the altnets to do this. Most look like they will struggle to ever break even in EBITDA terms as stand-alone entities, let alone earn a decent return on investment, highlighting the need for consolidation.
“CityFibre is well placed to lead this in our view, but it may need to resolve its financing situation and fully onboard Sky as a wholesale customer before it can really get going. In the interim, we expect altnets’ roll-outs to continue to slow, with slowing customer net adds following, improving the environment for the broadband incumbent players.”