Chorus Limited (NS) Analysis

Overview

Chorus is New Zealand's largest fixed line telecommunications network operator. It was listed on the NZSX in 2011 after it was chosen by the Crown to build a fibre network under a public-private partnership agreement. This fibre network will pass more than 1.3 million homes, businesses and schools by the end of 2022. Chorus also operates a nationwide copper access network. It provides access to its fibre and copper network on a wholesale basis to approximately 100 retail service providers.

CNU has been granted Listing with a 'Non-Standard' ("NS") designation. This designation was granted because there are provisions in CNU's constitution regarding ownership restrictions that require the consent of the New Zealand government. For further information, please see a copy of the waiver under Documents on CNU's homepage on nzx.com

Performance

The following information was extracted from Chorus Limited's Full Year results, released 25 August 2025

Resilient financial result with good progress on strategy

Key FY25 results

• Operating revenue $1,014m (FY24: $1,010m), with fibre revenue up 7%
• Solid year-on-year EBITDA of $705m (FY24: $700m)
• Net profit after tax $4m (FY24: net loss $9m)
• Cash flows from operating activities of $559m (FY24: $513m)
• Unimputed final dividend of 34.5 cents per share (total FY25 dividends: 57.5cps)
• Increase in fibre connections: by 31,000 to a total of 1,115,000
• Fibre uptake increased to 72.1% addresses, up 1%
• Remaining copper connections: down 41% to 92,000
• Network traffic up 10% to 8,741 petabytes

Chorus has delivered a resilient result for the year ended 30 June 2025, despite a difficult year for the New Zealand economy and revenue headwinds from the retirement of legacy services.

Fibre connections grew by 31,000 and made up 92 per cent of Chorus' fixed lines, with fibre uptake at 72.1 per cent of addresses passed. The growing importance of digital connectivity was underlined with data demand growing 10 per cent in the year to 8,741 petabytes. Average monthly usage for fibre connections grew 7.7 per cent to 671GB through FY25

Revenue lifted from $1,010 million to $1,014 million despite copper-related revenues reducing by $39 million during the year. We more than offset this decline through continued growth in both fibre connections and the average revenue per user.

Our simplification strategy and strong cost management held operating expenditure at $309 million, down $1 million from FY24. This was achieved despite continued inflation across numerous expense lines and increased regulatory levies, together with one-off costs for operating model changes and the exploration of new revenue opportunities.

As a result, EBITDA was $705 million for FY25, a 1 per cent increase on FY24 EBITDA of $700 million. After the deduction of depreciation, amortisation, interest and tax, net earnings were $4 million compared to a loss of $9 million in FY24.