KCOM on target with its fibre-to-the-premises rollout
KCOM in Carr Lane, Hull; Bill Halbert, chief executive, KCOM Group plc
By Hull Daily Mail | Posted: 24 Jul 2017
Hull company KCOM has reported an “encouraging start” to its financial year and said it is still on track to reach 150,000 premises in the region with its ultrafast fibre broadband service by December.
The communications and IT firm, which directly employs almost 900 people in the area, gave a trading update ahead of its annual meeting today.
Bill Halbert, chief executive of KCOM Group plc, said: “There has been an encouraging start to the current financial year and the business is trading in line with our expectations.
“Our fibre deployment in Hull and East Yorkshire remains on schedule to reach 150,000 premises, representing approximately two-thirds of our addressable market, by December 2017 and we continue to see high levels of customer take-up.”
In its Enterprise business, having strengthened sales, delivery management and technical capability, KCOM was able to respond quickly to customer demand using a scalable operating model that could expand according to demand, said Mr Halbert.
“We have seen a number of new customers in the first quarter,” he said. “We continue to execute our stated strategic plans to create shareholder value through a combination of the completion of fibre rollout in Hull and East Yorkshire, launching ‘over the top’ services that build average revenue per user on top of existing sustainable revenue streams and a focus on the company’s higher growth, higher margin, capital light Enterprise business.
“The board is confident the transition of KCOM into a provider of regional fibre-based services and complex IP solutions to the enterprise market will in time drive a rerating of the company’s valuation.
“As previously indicated, while we expect to make further progress in both Hull and East Yorkshire and Enterprise, as we transition away from commoditised services, we expect there to be a decline in revenues and margins associated with our legacy activities.”
The company was due to hold its annual meeting at Hull’s KCOM Stadium this afternoon.
Subject to shareholder approval at the meeting, and consistent with the company’s stated dividend policy, a final dividend of 4p per share will be paid on August 1 to shareholders who were on the register on June 23.