Cityfibre Share Discussion Threads

[opodio] 16/4/2014 15:21

is the forecast losses for three years or am i reading that wrong?

[oregano] 16/4/2014 10:43

From Liberum

A desirable metro partner
The JV gives CityFibre a major stamp of credibility and desirability, making it even more attractive to city councils when choosing their fibre network deployment partners. We therefore expect additional city contracts to come through both this year and beyond, in addition to Coventry. Management has also shown a high degree of credibility by delivering on expectations provided at the time of its IPO within the suggested time period. Growth prospects are therefore expected to be well above our current forecasts which assume no additional contracts with city councils or ISPs. The underlying business model is also set to deliver attractive cashflows and investor returns in the longer term. Strong buy reiterated.

[rajaster] 16/4/2014 10:18

really wide spread, great rns and coverage over the last few days.

[oregano] 15/4/2014 14:46

huge press coverage of this given the disruption to BT. On the first page of the FT website currently.

[purple11] 15/4/2014 14:39

great rns/ buying today gla

[oregano] 15/4/2014 10:10

having IPOd in Dec and raised £16m, they are pretty well funded. York cost them £4.5m to develop. Look at the extract from the Beaufort note on York. Shows why todays deal is so good, into the excess returns camp.

Case Study City of York
£550,000 revenue; £512,000 network EBITDA; 93% gross margin

Phase 1 – Anchor contract
 Secured with Pinacl Solutions, the Information and Communication Technology (ICT) provider to
City of York Council – 105 education and council sites
 10 year initial contract – £4.2m contracted revenue (TCV)
 Network build – £4.5m for 94km network (94% TCV to capex)

Phase 2 – Targeted growth
 Additional £1.75m of contracted revenue added – CCTV connectivity, NHS, further schools and
council sites
 Gigabit business services launched in June 2013 in collaboration with Level3 – first customers being
connected
 York has c.8,000 businesses


Phase 3 – Driving excess returns
 Potential city for Fibre To The Home (FTTH) and mobile backhaul connectivity

[rambutan2] 15/4/2014 09:43

The recent droop in price had made me think that perhaps they were in the process of a placing to raise some funds for Coventry and future expansion. But today's news makes me think perhaps it's not needed. Good news whatever. imho

[oregano] 15/4/2014 09:07

I am staggered there is not more interest here.

Look who these guys have got into bed with. TT & Sky investing £5m each, CFHL nothing. it adds huge leverage to their York infrastructure and is a sign of things to come elsewhere.

From Megabyte.

Talk Talk, Sky and CityFibre bowl a yorker at BT

Talk Talk and BSkyB have throw down the gauntlet to BT by announcing a JV with recently IPOd CityFibre to bring fibre to the home to the lucky citizens of York at a cost of £10m. The immediate impact will be small, but could represent the start of a fundamental shift in the UK broadband landscape, at least outside of major metropolitan areas.

In something of a coup for CityFibre, Talk Talk and Sky are to form a JV with it to build a pure fibre to the home network in York, leveraging CityFibre's existing network, covering 20,000 homes and businesses. The build will be overseen by Fujitsu. Talk Talk and Sky (and probably other service providers) will then compete to sell services over the network. Another two cities are promised, plus obviously more if and when the concept is proven.
Talk Talk and Sky will both contribute £5m to the JV, implying an average build cost of about £500 per premise, and CityFibre is contributing its existing York network assets. The JV hopes to tap into debt funding for subsequent cities. On a call this morning, Talk Talk reinforced its short term targets of 4% revenue growth and 25% EBITDA margins, suggesting that this is the start of a long term process which will take time to impact the top line.

First Thoughts
This announcement comes almost three years to the day since Talk Talk and Sky first tried to break BT's stranglehold on fibre broadband in an ambitious £1.5-2bn venture with Fujitsu to pass 5m UK homes. That project was dependent on tapping into significant public funding for rural broadband and on pole and duct sharing with BT, but came to nothing with BT winning the vast majority of rural broadband tenders.
This time round, things look very different, as CityFibre already has a network in York which has an anchor tenant serving local government; hence the project does not depend on public subsidy and, by taking fibre direct to the home, will not have to touch BT infrastructure. The economics should also be more attractive; as Talk Talk noted on the call this morning, reselling BT Openreach's fibre to the cabinet delivers only up to 75Mbps at a definite premium price, whereas FTTH will support up to 1Gbps, giving so much more flexibility and scope for innovative services and 'value pricing'.
The JV also has a path to other cities given CityFibre's existing and forthcoming networks in towns such as Peterborough, Coventry and Bournemouth. However, assuming that the JV proves the FTTH concept in York, there will be no shortage of investors to fund an acceleration of CityFibre's existing plans. CityFibre has already identified 100 tier two towns and cities covering 16% of UK homes and businesses, though it is worth noting that the economics of the JV would be far less attractive both in Virgin media areas and in large metropolitan areas where build costs can be far higher.
On a UK plc perspective, it is worth noting that the UK is rapidly becoming the odd man out in Europe, with BT (and Virgin Media) focusing on a Fibre to the cabinet model in contrast to the future-proof fibre to the home model of most of its incumbent and challenger peers in Europe. The FTTH footprint in the UK is currently below 1%, versus 12/13% in Italy and Spain, 24/25% in France and Netherlands, 47% in Sweden and 59% in Portugal, and this move will at least start to move the UK in the right direction, and may even spur BT to be more innovative in its build. We will return to this topic in a forthcoming Telecom and Networks Insight report.

[ricgains] 03/4/2014 21:48

The Tempus column in the Times reports that Cityfibre "will announce tomorrow that it is the preferred bidder to acquire the Coventry Metropolitan Area Network".



Which is an interesting development!

[purple11] 18/3/2014 08:59

2xcool 1million buys @76

[purple11] 13/3/2014 15:26

and off we go! gla

[purple11] 12/3/2014 19:13

courtesy of xtuk27 lse
curious rise

Until I spotted the post on the main website.

In short, we have partnered up with "businesscoms" a Peterborough based company that specialises in providing business communications.

"Businesscoms will work closely with CityFibre to provide businesses with symmetrical Gigabit services made possible by the pure fibre network. What this means to customers is that they can expect download and upload speeds of up to 1000 Megabits per second, enabling them to transfer large data files simultaneously with no delays. In addition, Businesscoms will be able to help over 500 of its customers take advantage of these unparalleled connection speeds, providing state of the art VOIP services and other solutions to reduce businesses' overall costs and increase their productivity."

It also states "The partnership follows CityFibre's successful 'Gig Up' launch campaign, which after just four weeks has generated registrations from over 200 local businesses interested in gaining access to the new fibre network."

So not only have we now partnered up with a company which has at least 500 customers, we have also doubled the number of interested businesses in the "Gig Up" campaign.

[purple11] 10/3/2014 11:00

nice to see abit of traction

[dlku] 06/3/2014 12:51

Scott says this outfit look greasy and could sell snow to eskimons. It's not my usual cup of tea, being a loss-making growth stock, and I'm sceptical of companies that build telecomes infrastructure, since they often go bust and someone else snaps up the asset for a fraction of the original cost.

lol thats just what they did is nt it....

[purple11] 25/2/2014 21:22

jumped in today-been watching since listing waiting for it to make a move-going to see how it goes with a stop around listing price.dont want to miss it incase its a biggy gla

[brokerdaw] 23/2/2014 11:04

Yep, bit by bit.

[pinkalltheway] 18/2/2014 11:15

Told ya, enjoy the ride a way to go yet I thinks

[ltinvestor] 18/2/2014 07:32

Soros backed Hyperoptic in this space.I tend to agree but frustratingly it is a private company at the moment.LT