Chorus (CNU) H1 2025 earnings summary

Executive summary

• Revenue for HY25 was $500 million, down 1% year-over-year, reflecting ongoing decline in legacy copper revenues and recessionary impacts, while EBITDA remained stable at $346 million due to disciplined cost management.

• Net loss after tax was $5 million, compared to a $5 million profit in HY24, mainly due to accelerated depreciation of copper assets and legacy product decline.

• Fibre connections increased by 14,000 to 1,098,000, with uptake reaching 71.7% of addresses passed and strong demand for entry-level and high-speed plans.

• Strategic focus is on transitioning to an all-fibre network by 2030, guided by four pillars: Lead (fibre uptake), Expand (new revenue streams), Adapt (operational excellence), and Pioneer (copper retirement).

• Regulatory certainty achieved for fibre, with maximum allowable revenue confirmed through 2029 and Commerce Commission deferring $250–256 million of fibre asset depreciation.

Financial highlights

• Operating revenue declined 1% year-over-year to $500 million, mainly from copper revenue decline and a 35,000 line drop in total fixed connections.

• EBITDA was $346 million, nearly unchanged from $347 million in HY24, including costs for strategic opportunity exploration.

• Net loss of $5 million, with fibre broadband revenues up $20 million to $361 million and ARPU down to $55.34.

• Gross capital expenditure was $199 million, down 14% year-over-year, reflecting reduced fibre installations and copper investment.

• Interim dividend of 23 cents per share declared, with full-year guidance of 57.5 cents unimputed unchanged.

Outlook and guidance

• FY25 EBITDA guidance remains at $700–$720 million, tracking toward the lower half due to economic softness and customer downtrading.

• Gross and sustaining capital expenditure guidance unchanged at $400–$440 million and $200–$220 million, respectively.

• FY25 dividend guidance of 57.5 cents per share, with 23 cents to be paid in April 2025 and a final dividend of 34.5 cents expected in August 2025.

• Focus remains on accelerating fibre uptake, operational simplification, and exploring new revenue streams such as the Tasman Ring subsea cable.

• Fibre price increases effective January 2025; speed upgrades planned for end FY25.