Chorus (CNU) H2 2024 earnings summary

Executive summary

• Achieved strong FY 2024 results with EBITDA at the top end of guidance, resilient performance amid economic challenges, and fiber uptake reaching 71.5%.

• Accelerated transition to an all-fiber business, reducing copper lines by 35% and growing the fiber regulatory asset base (RAB) to NZD 5.9 billion.

• Strategic reset targets 80% fiber uptake by 2030, focusing on operational efficiency, simplification, and property optimization.

• Regulatory clarity achieved for CapEx and OpEx allowances for the next four years, supporting future planning.

• New operating model and leadership team established, with a clear strategy and updated capital management framework.

Financial highlights

• Revenue increased 3% to NZD 1.03 billion, driven by fiber connections and ARPU growth; EBITDA grew 4% to NZD 728 million, at the top end of guidance.

• Net loss of NZD 9 million due to a one-off non-cash tax expense of NZD 15 million and higher interest costs.

• Dividend increased to NZD 0.475 per share, with a final unimputed dividend of NZD 0.285.

• Capital expenditure down 6% to NZD 427 million; net capex at NZD 372 million.

• Net debt increased to NZD 3,097 million, with leverage steady at 4.42x net debt/EBITDA.

Outlook and guidance

• FY 2025 EBITDA guidance set at NZD 700 million–NZD 720 million, with continued low single-digit underlying growth expected.

• Dividend guidance for FY 2025 is NZD 0.575 per share, unimputed; gross CapEx guidance is NZD 400 million–NZD 440 million.

• Focus on fiber penetration, aiming for 80% uptake by 2030 and transitioning to a simplified all-fiber business.

• Price changes deferred to January 2025 due to regulatory constraints; legacy network service revenues expected to decline sharply.

• Modest, low single-digit OpEx growth expected, mainly from inflation and copper withdrawal costs.