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Highlights:
- Hyperoptic expanded its network to 1.73 million homes in 2023 but remains below its initial target of five million.
- Revenue grew by 19%, but rising costs and interest payments pushed total losses to £142 million for the year.
- The company’s financial stability has been supported by cash injections from the UK Infrastructure Bank and investment banks.
Full-fibre broadband provider Hyperoptic has released its annual statement, showing a mix of significant growth and financial strain. The company, which targets urban areas across England by partnering with housing developers and councils, has positioned itself as a key competitor to BT Openreach.
By the end of 2023, Hyperoptic had expanded its network to over 1.73 million homes, with 340,000 active customers. This represents growth from the previous year’s 1.5 million homes passed and 310,000 customers. However, the company remains below its original target of reaching five million homes by 2024, set when private equity firm KKR acquired a stake in 2019. Post-pandemic, the company revised its goal to two million homes, a target it appears on track to achieve.
Despite revenue growth of 19% in 2023, financial challenges persisted. Gross profit margins were squeezed from 79.2% to 78.1% due to rising data centre and infrastructure costs. The most significant financial pressure came from interest payments, which surged by over 140% to £64.5 million, driven by loans from the UK Infrastructure Bank (UKIB) and international investment banks.
As a result, total losses for Hyperoptic nearly doubled, rising from £76 million in 2022 to £142 million in 2023. Nevertheless, the company’s cash balance remained relatively stable at £13.3 million, supported by post-period injections from UKIB, helping to stabilise its financial position.
Hyperoptic remains focused on expanding its network and translating its infrastructure growth into a loyal customer base, while managing the financial challenges posed by its ambitious buildout.
