Chorus (CNU) H2 2025 earnings summary

Executive summary

• Achieved solid operational and financial results with 3% growth in fiber connections and 7% fiber revenue growth, despite challenging macroeconomic conditions and continued execution of the copper exit strategy.

• EBITDA increased 1% to NZD 705 million, with strong cost management offsetting inflation and regulatory pressures.

• Strategic reset underway, shifting from network builder to network operator, focusing on efficiency, innovation, and customer retention.

• Dividend rose 21% to NZD 0.575 per share, 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

• EBITDA reached NZD 705 million, up NZD 5 million year-over-year, in line with guidance.

• Total revenue was NZD 1.014 billion, up NZD 4 million, driven by 7% fiber revenue growth offset by copper decline.

• Net profit after tax was NZD 4 million for the year, improving from a NZD 9 million loss in FY24.

• Operating cash flow was NZD 559 million, up 9% year-over-year.

• Gross CapEx decreased 3% to NZD 415 million; sustaining CapEx flat at NZD 205 million.

Outlook and guidance

• FY2026 EBITDA guidance set at NZD 710 million–NZD 730 million, with the lower end likely if macroeconomic headwinds persist.

• Gross CapEx guidance for FY2026 is NZD 375 million–NZD 415 million; sustaining CapEx NZD 195 million–NZD 215 million.

• Dividend guidance for FY2026 is NZD 0.60 unimputed, reflecting positive cash flow trends.

• Ongoing focus on fiber 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.