Chorus forecasts higher EBITDA, dividend in coming year

News Broadband New Zealand 29 AUG 2016
Chorus forecasts higher EBITDA, dividend in coming year
New Zealand wholesale operator Chorus reported a net profit of NZD 91 million for its fiscal year to June, unchanged from a year earlier. EBITDA fell to NZD 594 million from NZD 602 million, at the high end of the company's guidance, and operating revenue edged up to NZD 1.008 billion from NZD 1.006 billion in fiscal 2015. 

Chorus said it benefited from only six months of higher regulated prices during the year, which put pressure on results. The higher prices through 2020 allow it to continue with dividends, and make a final payment for the year of 12 cents per share. 

However, Chorus remains cautious on the regulatory outlook amid the ongoing telecom sector review underway and said its financial position was still not back to the same levels as when it was part of Telecom. As a result, it will take a "measured approach" to investment.

For the current fiscal year, the company forecast capital expenditure to increase slightly to NZD 610-650 million from NZD 593 million last year. EBITDA is expected to grow to NZD 625-645 million and a small increase in the annual dividend is planned, to NZD 0.21 per share. 

Categories:

Fixed

Companies:

Chorus

Countries:

New Zealand

Tags:

Network Access, Wireline, Wholesale, Finance

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