CityFibre seeking new funding
October 3, 2024 13.42 Europe/London By Julian Clover


CityFibre has warned that it needs to secure additional funding if it is to be able to continue operations beyond 2025.

On the face of it, Cityfibre is in good financial health with revenues standing at £99.67 million in 2023, an increase from £30.97 million in 2022. It has also added 163,000 new customers as its buildout programme continues.

The UK’s largest challenger broadband provider that entered profitability in May currently has a footprint of 3.8 million. There are plans to expand this to at least 8 million premises in the next few years.

However, part of its success is down to its participation in the government Project Gigabit rural connectivity programme that has transformed download speeds in areas such as Norfolk. To date CityFibre has secured over £782 million in subsidies through the programme.

However, government subsidies may not be enough with CityFibre warning in its report.

“As the Group and Company are reliant on securing further external funding which is not guaranteed, a material uncertainty exists which may cast significant doubt on the ability of the Group and Company to continue as a going concern and as a result they may be unable to realise this assets and discharge their liabilities in the normal course of business,” read the report.

It also believes the market is heading for consolidation as networks look to compete with BT Openreach and Virgin Media O2.

“Given the financial pressures on the market and specifically the challenges for smaller players to raise capital to support their growth, we believe that widespread consolidation of UK alt-nets is inevitable and that as the largest challenger to BT Openreach, we will play a leading role,” said CityFibre.

In August it was announced that Sky would also take advantage of the CityFibre network, starting in 2025.

CityFibre’s wholesale customers also include Vodafone.