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Trading statements

KCOM in line with expectations

21 July 2017 07:40

KCOM has made an encouraging start to its current financial year and is trading in line with expectations, shareholders at today's annual general meeting will be told.

An update said: "Our fibre deployment in Hull & East Yorkshire remains on schedule to reach 150,000 premises, representing approximately two-thirds of our addressable market, by December 2017 and we continue to see high levels of customer take-up.

"In Enterprise, having strengthened our sales, delivery management and technical capability, we are able to respond quickly to customer demand using a scalable operating model that can expand as demand grows.

"We have seen a number of new customers in the first quarter.

"We continue to execute our stated strategic plans to create shareholder value through a combination of the completion of fibre roll-out in Hull and East Yorkshire, launching 'over the top' services that build average revenue per user on top of existing sustainable revenue streams and a focus on the Company's higher growth, higher margin, capital light Enterprise business.

"The Board is confident the transition of KCOM into a provider of regional fibre-based services and complex IP solutions to the enterprise market will in time drive a re-rating of the Company's valuation.

"As previously indicated, whilst we expect to make further progress in both Hull & East Yorkshire and Enterprise, as we transition away from commoditised services, we expect there to be a decline in revenues and margins associated with our legacy activities."

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