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, with EBITDA steady at $346 million due to disciplined cost management.

• Net loss of $5 million, mainly due to accelerated copper asset depreciation and legacy product decline.

• Fibre uptake reached 71.7% in fibre-available areas, with 14,000 new connections and strong demand for entry-level and high-speed plans.

• Strategy reset focuses on evolving to a simplified, all-fibre network operator, guided by four strategic pillars (L.E.A.P.): 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 deferral of $250–256 million depreciation.

Financial highlights

• Operating revenue declined by $3 million year-over-year to $500 million, mainly from copper revenue decline and a 35,000 line drop in total fixed connections.

• EBITDA remained flat at $346 million, including costs for strategic opportunity exploration.

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

• Gross CapEx fell 14% to $199 million, reflecting reduced fibre installations and copper investment.

• Interim dividend of 23 cents per share declared, with full-year guidance of 57.5cps 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 CapEx guidance unchanged, with sustaining CapEx expected at the lower end of the range.

• Final dividend of 34.5cps expected in August 2025, subject to no material adverse changes.

• 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.