Chorus (CNU) H2 2024 earnings summary

Executive summary

• Achieved strong FY24 results with EBITDA at the top end of guidance, resilient performance amid economic challenges, and fibre uptake rising to 71.4%–71.5%.

• Accelerated transition to an all-fibre business, reducing copper lines by 35%, with fibre now 87% of fixed lines and RAB at $5.9 billion.

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

• New operating model and leadership team established, with updated capital management and regulatory clarity for CapEx and OpEx allowances for the next four years.

• Electricity use reduced by 3% in FY24, contributing to a 39% reduction in Scope 1 and 2 emissions since FY20.

Financial highlights

• Operating revenue increased 3% to $1.03 billion (NZD 1,010m), driven by fibre connections and ARPU growth.

• EBITDA grew 4% to $728 million (NZD 700m), at the top end of guidance.

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

• Final unimputed dividend of 28.5cps, totaling 47.5cps for FY24.

• Capital expenditure reduced to $427 million, with net capex at $372 million.

Outlook and guidance

• FY25 EBITDA guidance set at $700m–$720m.

• Dividend guidance for FY25 is 57.5cps, unimputed.

• Gross CapEx guidance for FY25 is $400m–$440m; sustaining CapEx at $200m–$220m.

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

• Targeting 80% fibre uptake by 2030, with modest, low single-digit OpEx growth expected.