KCOM to deliver EBITDA ahead of expectations despite revenue headwinds
Source - SMW
KCOM said it remains on track to deliver an overall EBITDA performance that is slightly ahead of the Board's expectation, but revenue performance is expected below expectation, for the financial year ending 31 March 2018. 'Hull and East Yorkshire continues to enjoy a successful year, with revenue tracking in line with the Board's expectations,' the group said. The company said that it achieved its target in December of making fibre available to 150,000 premises.
The group said that in enterprise, its contract with NFUM has been renewed and extended to include the provision of additional cloud services. While in December, KCOM signed a 12 month extension to its contract with HMRC, taking this contract through to 2020.
The group also said that HMRC's decision to re-phase its timeline for its internal transformation programme is expected to have a negative impact on project-based revenue for enterprise in the final quarter of this financial year.
KCOM announced that Gary Young, the Executive Vice President responsible for Hull and East Yorkshire, will leave the Group to pursue another opportunity.
Bill Halbert, Chief Executive said: 'We continue to execute against our strategy, bringing fibre to the final corners of Hull and East Yorkshire, refining our propositions in Enterprise and winning the trust of new and existing customers, and managing National Network Services for value.'
'I would like personally to thank Gary Young for his significant contribution to our Group. I've worked closely with Gary over the past 6 years, a period in which he has led successfully our Hull and East Yorkshire business and overseen our successful deployment of fibre broadband. All of us at KCOM wish him every success in his new role.'
At 8:08am: (LON:KCOM) KCOM Group PLC share price was +0.4p at 88.6p