CityFibre Reports Record Growth, First Profitable Year & Landmark Sky Partnership
CityFibre has announced record-breaking results for 2024, marking its first full year of profitability alongside significant customer growth and a major strategic partnership with Sky. The UK’s largest independent wholesale fibre network continues to scale at pace, strengthening its position as the leading alternative to Openreach.
2024 Highlights:
- Revenue increased by 34% to £134m, with consumer revenue up 73%
- Achieved profitability for the first time, reporting an EBITDA of £5m
- 181,000 new customers added, bringing total live customers to 518,000
- Long-term strategic partnership secured with Sky, doubling CityFibre’s addressable market to cover nearly half of UK broadband consumers
- Over 4.3 million premises now passed, with more than 900,000 Ready for Service (RFS) premises added in 2024
- Nine BDUK Project Gigabit contracts secured, totalling £865m in subsidies, with early take-up running 60% higher than non-intervention areas
- Acquisition of Lit Fibre completed, adding 280,000 premises and successfully integrating into CityFibre’s wholesale platform in under nine months
- Continued rollout of XGS-PON technology, providing multi-gig symmetrical speeds
Expansion Accelerates: Over 8 Million Premises in Sight
CityFibre is rapidly expanding its footprint, now halfway to its target of passing 8 million UK premises. 2024 saw a shift in strategy, balancing organic build with government-backed Project Gigabit rollouts and acquisitions.
Project Gigabit has been a key driver of growth, with CityFibre securing nine contracts and £865m in subsidies. Over 20,000 subsidised premises are already Ready for Service, and early adoption rates suggest strong demand, with take-up running 60% higher than in traditional rollout areas.
Sky Partnership Doubles Addressable Market
A major milestone in 2024 was the announcement of a long-term partnership with Sky, one of the UK’s largest broadband providers. With Sky set to launch services over CityFibre’s network in 2025, the deal nearly doubles CityFibre’s addressable market, with ISPs on its platform now accounting for 49% of UK broadband market share.
Surging Customer Growth & Record Take-Up
CityFibre added 181,000 new customers in 2024, reaching a total of 518,000 live connections—an increase of 54% year-on-year. Penetration rates in mature areas, such as Milton Keynes and Stirling, now exceed 40%, while newer build areas are seeing take-up rates nearly double compared to 2021.
The company’s wholesale model continues to strengthen, with an average of eight ISPs selling in each location. ISPs using CityFibre’s network are outperforming their market share on Openreach, securing twice the share in CityFibre-served areas.
Key factors driving ISP adoption:
- Competitive pricing: The wholesale-only model enables ISPs to offer lower prices and increase margins
- Superior technology: The UK’s largest XGS-PON network, delivering multi-gig symmetrical speeds
- High service levels: 99% of customers receive an installation date within five working days, with a 95% first-time installation success rate
M&A Strategy Strengthens Wholesale Footprint
In May 2024, CityFibre completed the acquisition of Lit Fibre, adding 280,000 premises and over 10,000 retail customers to its network. The acquired ISP was sold back to its co-founders, aligning with CityFibre’s wholesale-only model, while the network was fully integrated into CityFibre’s platform within nine months.
As the UK’s largest independent fibre challenger, CityFibre is positioned to play a leading role in the ongoing consolidation of the altnet market, with further acquisitions expected to accelerate network expansion.
Looking Ahead to 2025
- Sky set to launch services over CityFibre’s network, providing ISPs access to nearly half of the UK broadband market
- Another million premises to be added, focusing on Project Gigabit expansion and further acquisitions
- Continued expansion of the XGS-PON network, enhancing CityFibre’s wholesale product offering
- Increased revenue and stable operating costs, creating a scalable and sustainable high-margin business
Greg Mesch, CEO at CityFibre, commented:
“2024 was a defining year for CityFibre. The business achieved its first full year of profitability, secured a landmark partnership with Sky, and reinforced its position as the UK’s leading independent wholesale network. Looking ahead, the focus remains on profitable growth, continued expansion through Project Gigabit, and further industry consolidation. The wholesale-only model is proving its value—not just for ISPs, but for consumers and the UK’s digital future.”
CityFibre’s results paint a picture of a company rapidly scaling both its network and its customer base. With a major ISP partnership, strong financials, and government-backed expansion opportunities, the company is well-positioned for further growth in 2025. As the altnet market continues to evolve, CityFibre is emerging as the dominant challenger to Openreach—one that ISPs, investors, and industry watchers will be keeping a close eye on.
