Enable Services Limited (ESL) has reported a significant acceleration in the local ultra-fast broadband (UFB) roll-out and an even more aggressive programme for the coming year in its 2014 Annual Result. The business is now setting a target to deliver fibre broadband services to all 180,000 homes, schools and businesses by 31 December 2018 – a year ahead of schedule.

ESL Chair, Mark Bowman says, “It has been a very good year for ESL in its roles as a major investor in Enable Networks Limited (Enable) – the local fibre company – and as the contractor building and operating the fibre broadband network for Enable.”
“ESL completed new network build to over 25,000 home and business premises, increasing the total coverage to 56,553 potential customers. We are almost a third of the way through the project and will be half-way through by this time next year – with 88,000 potential customers with fibre access.”

ESL now has the capacity to deliver services to over 30,000 homes and businesses per year – as evident in reaching 11,700 in the last quarter of FY 2014 alone – which has enabled the business to bring forward its target completion date.

“This result is very satisfying given that Christchurch still presents a challenging post-earthquake operating environment,” adds Mr Bowman.

ESL also reported that Enable had 4,477 homes, businesses and schools connected to its network at year end - an increase from 1,454 total customer connections at the end of the previous year.

“Enable has delivered connection numbers ahead of business plan which is a very strong result with only two retail service providers offering residential services for the majority of the year,” says Mr Bowman.

“The success of ESL’s investment in Enable will ultimately be measured by how quickly customer take up fibre broadband, so the ESL Board was very pleased to see this connection rate and the associated increase in Enable’s revenue at this early stage.”

Enable was recently recognised as the South Island’s fastest growing technology company in the Deloitte Fast 50 Regional Awards and this rate of growth is evident in the businesses monthly connection rate – growing from 42 customer connections in June 2013 to 530 in June 2014. The growth trend has continued into the current year with 600 customers per month being connected on average.

“This monthly connection rate along with the fact that eight retail service providers – including Spark and Vodafone – are now offering residential fibre broadband services positions Enable for much greater uptake numbers this year,” added Mr Bowman.
The business’ network build and connection performance translated into a financial result in line with expectations.

ESL’s construction revenue grew by $18.7m to $65.1m – which largely reflects the increased network build rate and the number of connections ESL completed. ESL returned a net loss of $6.5m.

“ESL is investing in a strategic infrastructure asset that will generate considerable long-term returns. Short-term net losses are expected, and are in line with ESL’s business plan and the expectations of its shareholder,” says Mr Bowman.