Broadband provider showcases encouraging growth
Gigaclear, the leading rural broadband provider, has submitted its 2019 accounts report, detailing a significant increase in revenue, properties passed and homes Ready for Service (RFS), as well as 26 percent more customers and a 38 percent rise in assets, all signs of clear business growth.
In 2019, Gigaclear saw revenue increase by 26 percent to £11.3m, up from £9.0m in 2018. The increase was, in part, driven by selling into new network areas and increasing the company’s penetration across some of its already established networks.
The consolidated operating loss for the year was £32.6m, up from £26.7m in 2018, however this was as predicted due to Gigaclear’s continued focus on building new network areas, which carry significant initial costs. The business becomes increasingly profitable as customers sign up to already existing networks and the rate of new network construction decelerates.
Gareth Williams, CEO at Gigaclear, comments: "2019 was a year of change for us as a business. We implemented an approach that allowed us to get into a position from which we can now scale up, and quickly. With this in mind, we are satisfied with the numbers, especially given that building infrastructure like ours requires huge upfront investment that will see returns over time. In fact, we made enormous progress in 2019 thanks to our investments to increase our resource and regionalise key parts of our workforce.
“Our network spans hundreds of miles of some of the most rural areas in England and because it is completely future proofed, we will continue to see returns on our investment for decades to come.”
At the end of 2019, Gigaclear’s network passed 129,000 properties, which is 39 percent more than last year, whilst the number of pots that are declared as RFS surged by 48 percent when compared to 2018’s numbers.
In terms of business expansion, Gigaclear increased its customer base by 26 percent, whilst it’s net assets also rose, expanding by 38 percent, reflecting the ongoing investment in the construction of new networks.
Looking internally, at year-end 2019, Gigaclear employed 337 staff, compared to 272 at the same time a year ago. On top of that, it is looking to take on full-time field engineers into its in-house team by the end of March 2021, in a bid to increase its build capacity.
Gareth Williams continues: “We are more committed than ever to bring ultrafast broadband to undeserved rural communities, empowering them to be able to do more. The fact that we were granted key worker status during the ongoing COVID-19 pandemic shows just how important the work we are doing really is.
“As we look to build on our already expanding network, we are now including larger rural communities and market towns that boarder our existing infrastructure in our build plans. This is the next logical move for the business, and one that highlights our dedication to the areas we serve.
“With our network growing at a rapid rate, and our supportive shareholders and substantial refinancing backing us, we can’t wait to transform the lives of countless communities, both in our established network areas, and those that we are yet to reach.”
To read the annual report in full, just click here.