New Zealand wholesale operator Chorus reported a net profit after tax of NZD 85 million and EBITDA of NZD 653 million for the year ended 30 June. These results are “modestly above" the top end of its FY18 guidance range of NZD 625-650 million, Chorus said. However, net profit declined from NZD 113 million in the twelve months ended 30 June 2017, while EBITDA was almost flat year-on-year.
Operating revenue for the period also declined, to NZD 990 million from NZD 1.04 billion in FY17, while operating expenses shrunk to NZD 337 million from NZD 388 million.
According to Chorus, its financial results for the year show the company's shift to becoming an active wholesaler and concentration on tight cost management, allowing it to deliver on financial and operational targets.
"Demand for fibre was stronger than ever, and our ongoing fibre rollout means there are now more than 900,000 homes and businesses with our fibre available at their door. During the financial year, we completed a record 156,000 fibre installations and this helped grow our fibre uptake from 35 percent to 45 percent," said Chorus CEO Kate McKenzie.
During the year, Chorus invested NZD 20 million in a project to upgrade copper broadband performance for about 270,000 addresses across rural and local fibre company areas. The deployment of vectoring and new VDSL broadband electronics saw a more than 40 percent average increase in download speed for customers already on VDSL and a further 85,000 rural addresses who could benefit from improved broadband performance.
By June, 64 percent of Chorus’ broadband connections were on VDSL or fibre services, up nearly 20 percent year-on-year. The operator also reported 156,000 fibre installs in FY18, which represents a 20 percent increase year-on-year. Fibre uptake increased from 35 percent to 45 percent, while the number of total fixed line connections went down 5 percent to 1.52 million. The number of broadband connections increased by 1,000 to 1.18 million at 30 June 2018.
Chorus has announced that it will pay a final dividend of 13 cents per share. A dividend reinvestment plan will apply for the final dividend at a discount rate of 3 percent. Applications to participate must be received by 26 September.
For the year ending 30 June 2019, Chorus expects to reach an EBITDA of NZD 625–645 million and plans capex ranging between NZD 820 and NZD 860 million. The company also expects to pay a dividend of 23 cents per share for FY19.
