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 recession impacts.

• EBITDA remained stable at $346 million, with disciplined cost management offsetting inflationary pressures.

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

• Fibre connections increased by 14,000 to 1,098,000, with uptake reaching 71.7% of addresses passed.

• Regulatory certainty achieved for fibre through 2028/2029, supporting operational certainty and investment planning.

Financial highlights

• Operating revenue declined 1% year-over-year to $500 million, mainly due to legacy service migration and copper revenue decline.

• EBITDA was $346 million, nearly unchanged from $347 million in HY24.

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

• Gross CapEx down 14% to $199 million, with sustaining CapEx at $94 million and growth CapEx at $105 million.

• Interim dividend of 23 cents per share declared, with FY25 guidance for 57.5 cents per share and a final dividend of 34.5 cents per share expected in August 2025.

Outlook and guidance

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

• CapEx guidance unchanged at $400–$440 million, with sustaining CapEx at $200–$220 million.

• FY25 dividend guidance of 57.5 cents per share, with 23 cents to be paid in April 2025.

• Focus remains on accelerating fibre uptake, operational efficiency, and exploring new revenue streams, including the Tasman Ring subsea cable and digital inclusion initiatives.

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