Chorus (CNU) H2 2026 earnings summary

Executive summary

• Achieved strong financial and operational performance for FY 2026, with fibre connections up by 32,000 to over 1.1 million and uptake reaching 75.9%.

• Fibre revenue grew 6% year-over-year, reflecting disciplined execution and transition to an all-fibre business.

• EBITDA rose 3% to NZD 726 million, net profit increased to NZD 37 million, and total dividend grew 4% to NZD 0.60 per share.

• Strategic focus on growth, simplicity, efficiency, and unlocking value from legacy assets as part of a four-year Horizon 2 program through FY 2029.

• Accelerated copper retirement, with fewer than 1,000 copper lines remaining in fibre areas and a fully operational copper recycling program.

Financial highlights

• Operating revenue reached NZD 1,029 million, up 1% year-over-year, driven by a 6% increase in fibre revenue and a NZD 34 million decline in copper revenue.

• EBITDA margin (excluding copper) improved to 72.5% from 71.9% year-over-year.

• Net cash flows from operating activities rose 4% to NZD 740 million.

• Gross CapEx was NZD 375 million, down 10% due to project timing and lower discretionary growth expenditure.

• ARPU increased 2% to NZD 59.51.

Outlook and guidance

• FY 2027 EBITDA guidance: NZD 730–760 million; CapEx: NZD 375–415 million; sustaining CapEx: NZD 195–215 million.

• Minimum FY 2027 dividend guided at NZD 0.62 per share, a 3.3% increase, with partial imputation expected.

• Fibre price changes effective January 2027; ongoing disciplined cost management.

• Copper business expected to shrink further, with copper assets fully depreciated and retirement targeted by 2028.

• Ongoing focus on fibre growth, AI-driven demand, and adjacent infrastructure opportunities.