Hyperoptic making a loss

There is a report i n the Telegraph which says:

"Hyperoptic, one of the leading challengers to BT broadband, has plunged to a £142m loss as high interest rates mean the cost of servicing its £1bn debt pile has soared.

The company, which is owned by the private equity giant KKR and has gigabit internet connections to 1.5m homes, saw interest payments more than double last year to £66.9m.

The debt servicing costs amounted to more than two-thirds of Hyperoptic’s entire revenue of £93.4m.

It meant that pre-tax losses almost doubled, from £76m to £142m."

Also saw this on ISPreview this morning where Hyperoptic also issued a statement:

https://www.ispreview.co.uk/index.php/2024/10/full-f...

Looks like they not that far away from hitting their homes passed target (remember the article states home passed data is a year old), and without the capital expenditure on footprint, they would have been in profit, so doesnt look too bad to me, providing they got the cash to fund the capital for their footprint increase.

Yes, without the £1.3Billion debt that is costing 60p in every pound they get in revenue to service, the £140Millon loss posted and the total reliance on even further debt facilties to continue trading, they would be in profit.

"One of the leading challengers to BT Broadband" is the quality of writing I'd expect from the Telegraph. Hyperoptic are a blip on the radar, not a serious challenger to either Openreach or BT's retail offerings.

Edited by jpm (Tue 01-Oct-24 22:59:09)

Post deleted by Chrysalis