SOURCE: Urban Communications Inc.

Urban Communications Inc.

May 05, 2016 04:00 ET

Urban Communications Inc. Reports Record Month for Recurring Revenue

April Shows Strong Building Acquisition, Record Revenue Growth and Customer Acquisition Rate All Exceeding Targets

VANCOUVER, BC--(Marketwired - May 05, 2016) - Urban Communications Inc. (TSX VENTURE: UBN), one of the country's first telecommunications companies to deliver Gigabit Internet service to the home, today announced record levels in key performance indicators to start the second quarter including building acquisition, revenue growth and customer acquisition rate.

  • Building acquisition -- ahead of schedule with 76 buildings connected to the network to date, 7 currently under construction and plans to reach 183 residential and commercial buildings by the end of 2016. Adding new buildings increases both the potential enterprise and residential customer reach, increases revenue and adds fibre to the network, increasing overall enterprise value.
  • Revenue growth -- Monthly recurring revenue reached a new record in April surpassing $100,000 with 30% month over month growth in Urban's enterprise segment. The increase reflects building acquisition growth and our focused effort to grow our business and enterprise verticals.
  • Customer Acquisition Rate -- exceeding expectations of almost 20% customer acquisition rate in buildings that have been connected to the network for more than 12 months. Newly connected buildings in downtown Vancouver are performing particularly well, with customer acquisition rates approaching 10% in first month.

"We are very pleased with performance so far this quarter with strong gains across high-value enterprise and residential verticals. Our team executed well and is working hard to see the trend continue," said John Farlinger, Urban's CEO. "Early 2016 has demonstrated the impact of transitioning the company from a fibre construction business to a high margin, recurring revenue, residential and commercial services business and we are strongly positioned to be a dominant provider of ultra high-speed Internet service in the Lower Mainland of British Columbia."

Urbanfibre residential Internet at 1,000 Mbps and unlimited data transfer is the fastest residential Internet available in Canada and more than 50 times faster than the average. Priced at $79/month, it is the overall best value price and performance offering available anywhere. Urbanfibre is unique in delivering symmetrical residential speeds - 1,000 Mbps download and upload - which allows customers to get more out of the Internet: stream more video, upload and share more photos faster, play more online games, all worry free and at the same or lower cost than slower, non-ultra high-speed services currently offered by other providers.

"BC residents deserve ultra high-speed Internet at an affordable price and are telling us they want faster speeds at lower prices than existing providers can deliver," said Jon Paul Janze, Urban's VP of Product. "Across the company we strive to deliver to our customers a superior Internet experience and our ultra high-speed service is quite simply the best by a very large margin. It is exciting and gratifying to deliver the next generation Internet service that customers are clamoring for and have been unable to get until now."

For more information about Urbanfibre Gigabit Internet or to request service in your building, please visit www.urbanfibre.ca.

ABOUT URBAN COMMUNICATIONS INC.

Urban Communications Inc. (TSX VENTURE: UBN) is a telecommunications company providing a full suite of Internet, voice, video and broadband application products over its 200 km. state-of-the-art carrier grade fibre optic network in Metro Vancouver and Victoria to commercial, residential and public sector customers. Urban has recently launched high-speed Internet service to residential and commercial subscribers on its network at 1,000 Mbps (1 Gbps).

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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