Chorus (CNU) H2 2025 earnings summary

Executive summary

• Achieved resilient FY25 results with 3% growth in fibre connections, 7% fibre revenue growth, and a strategic shift from network builder to operator focused on efficiency, innovation, and customer retention.

• Net profit after tax reached $4m, reversing a $9m loss in FY24, with EBITDA up 1% to $705m and strong cost management offsetting inflation and regulatory pressures.

• Fibre connections grew by 31,000 to 1,115,000, representing 92% of fixed lines, with uptake surpassing 72% and average monthly usage per connection up 7.7% to 671GB.

• Dividend rose 21% to 57.5cps, reflecting confidence in cash flow and capital management.

• Sustainability initiatives led to a 5% reduction in electricity use and a 25% cut in scope carbon emissions.

Financial highlights

• Operating revenue increased to $1,014m, up $4m year-over-year, driven by 7% fibre revenue growth offset by copper decline.

• EBITDA reached $705m, up $5m year-over-year, with EBITDA margin at approximately 70%.

• Operating expenses held at $309m, slightly better than last year, despite inflation and one-off costs.

• Operating cash flow was $559m, up 9% year-over-year.

• Gross CapEx decreased 3% to $415m; sustaining CapEx flat at $205m.

• Net borrowings rose to $2,869m, with net debt/EBITDA at 4.52x.

Outlook and guidance

• FY26 EBITDA guidance set at $710m–$730m, with gross CapEx expected between $375m–$415m and sustaining CapEx $195m–$215m.

• Dividend guidance for FY26 is 60cps, unimputed, reflecting positive cash flow trends and a 4.3% increase from FY24.

• Ongoing focus on fibre uptake, aiming for 80% penetration by 2030, and continued copper network retirement.

• Fibre price changes to take effect from January 2026; legacy revenues expected to continue declining.