UK's Hyperoptic shifts focus to customer growth after reaching 2 million homes

By Paul Sandle

LONDON, July 24 (Reuters) - Hyperoptic, a British fibre broadband company majority owned by KKR, said on Friday its network had reached 2 million homes and businesses as it shifts its focus from expanding coverage to signing up more customers.

Chief Executive Dana Tobak, who co-founded the company in 2011, said subscribers grew 18% in 2025 to more than 440,000, helping drive a 22% rise in annual revenue to £139 million ($185 million). Continued growth in the first half of 2026 had put core earnings on track to exceed £110 million this year, up from £69 million in 2025.

With most of its planned network now built, the company is focusing on increasing take-up.

Hyperoptic connects high-rise buildings and new urban developments. It began by serving London before expanding to other cities. 

"When we do a new build, we do the complete installation, including the customer equipment and fibre termination," Tobak said. "That, to us, is the trade-off because we get 70% take-up." 

Hyperoptic targets average penetration of 35%, up from 31% in 2025. Mature parts of its network already achieve more than 60%, while new-build developments exceed 70%, it said.

Britain's biggest broadband provider BT said on Thursday it had achieved 40% take-up across its Openreach nationwide fibre network.

Tobak said Hyperoptic competed with Openreach in 95% of new build developments, but customers appreciated being able to connect immediately without waiting for an engineer visit or a router to arrive.

Hyperoptic is one of Britain's longest standing altnets, or alternative networks, alongside the likes of London-focused Community Fibre and the biggest, CityFibre.

Heavy investment by private equity and infrastructure funds earlier this decade left many altnets carrying significant debt, while competition squeezed returns, triggering a wave of consolidation.

Earlier this year, nexfibre, co-owned by Virgin Media O2's parent companies, agreed to buy Netomnia for £2 billion.

The Financial Times reported last month that KKR had contacted potential buyers for Hyperoptic.

Tobak, however, said Hyperoptic's strategy was not dependent on any deal. "If and when there is an opportunity that makes sense because it builds value, I think KKR will be leading it," she said.

($1 = 0.7518 pounds)

(Reporting by Paul Sandle; Editing by Susan Fenton)