Zzoomm to cease build and focus on profitability 

Mon, 1/07/2024 - 09:38

Zzoomm will cease the construction of new network from the end of Q2 and shift its focus to increasing take up from 12% across its existing build, according to its results for the year to 31 December 2023.

This reflects a focus on profitability with the altnet reporting an operating loss £21.0m due to its continued investment in growing the network and infrastructure.

ZZoomm reports over 30% market penetration in its more mature build areas and its revenue increased to £3.6m as its recurring subscription revenue momentum built.

CEO Matthew Hare said: “We are now concentrating on profitably commercialising our network and brand position, as our current build phase closes. With ARPU continuing to increase, we are now moving towards profitability. Those towns with over 30% market penetration are largely profitable already.”

“We are well positioned to make acquisitions in fragmented and competitive markets. An enlarged group, based around our established operational and effectiveness and technical infrastructure, would benefit from the economies of scale.”

By the end of May 2024, the altnet had over 200,000 properties ready for service across 29 market towns and small urban communities and over 27,000 customers contracted.