YORKSHIRE-BASED telecoms company KCOM said “strong demand” for its superfast “fibre” broadband service had enabled profits to remain steady despite a fall in revenues.
The company, which announced plans to treble its fibre network, posted a 4.7 per cent reduction in revenues to £188.7m in the half-year to October, which it blamed on “challenging conditions”. Pre-tax profit, however, rose marginally to £27.6m.
It said that its fibre service had been a big driver of growth, with demand better than expected.
KCOM operates in and around Hull, one of the few areas that BT – and companies such as Sky that use BT’s network – does not have a presence. Its only competition comes from mobile broadband services.
However, it has not been immune to the economic conditions, seeing a slowdown in long-term business contracts. This did not prevent the board keeping its earlier promise to raise its interim dividend by 10 per cent though.
“Despite the economic headwinds, there are opportunities for us to provide more services to our existing customers, as well as winning new contracts in both the enterprise and public sector,” chief executive Bill Halbert said.