Company Reports

Chorus' fiscal 2026 EBITDA grew 3% to NZD 726 million. Net profit jumped to NZD 37 million, from NZD 4 million, due to lower depreciation on copper asset declines. The board declared a final dividend of NZD 0.36 per share, unimputed, bringing the full-year total to NZD 0.60, up 4% from a year ago.

Chorus was demerged from Telecom New Zealand in 2011 and is the largest fixed-line access telecommunications infrastructure (copper and fiber) provider in New Zealand. It owns and operates a national fixed-line network that includes local phone exchanges and copper and fiber cables. Chorus partnered with the government in rolling out fiber to the premises through the ultra-fast broadband, or UFB, initiative. As a near-monopoly operator, Chorus' wholesale prices are regulated by the Commerce Commission, or ComCom.

New Zealand Commerce Commission, or ComCom, released the 2025 Telecommunications Monitoring Report on June 29, 2026. We delve into its key findings as they relate to Chorus' investment case, with a particular focus on risks to the group's earnings.

Chorus was separated from Telecom New Zealand in 2011 and is the largest fixed-line access telecommunications infrastructure (copper and fiber) provider in New Zealand. It owns and operates a national fixed-line network that includes local phone exchanges and copper and fiber cables. Chorus partnered with the government in rolling out fiber to the premises though the ultra-fast broadband, or UFB, initiative. As a near-monopoly operator, Chorus' wholesale prices are regulated by the Commerce Commission, or ComCom.

Chorus was separated from Telecom New Zealand in 2011 and is the largest fixed-line access telecommunications infrastructure (copper and fiber) provider in New Zealand. It owns and operates a national fixed-line network that includes local phone exchanges and copper and fiber cables. Chorus partnered with the government in rolling out fiber to the premises though the ultra-fast broadband, or UFB, initiative. As a near-monopoly operator, Chorus' wholesale prices are regulated by the Commerce Commission, or ComCom.

Chorus lifted fiscal 2026 interim EBITDA by 3% to NZD 357 million, on revenue growth of 1% to NZD 506 million. With lower depreciation, this led to net profit of NZD 15 million, from a NZD 5 million loss a year ago. Interim DPS of NZD 0.24 unimputed was up 4% and guidance reaffirmed on all metrics.

Chorus was separated from Telecom New Zealand in 2011 and is the biggest fixed-line access telecommunications infrastructure (copper and fiber) provider in New Zealand. It owns and operates a national fixed-line network that includes local phone exchanges and copper and fiber cables. Chorus partnered with the government in rolling out fiber to the premises though the ultra-fast broadband, or UFB, initiative. As a near-monopoly operator, Chorus' wholesale prices are regulated by the Commerce Commission, or ComCom.

Chorus' BBB long-term credit rating was reaffirmed by S&P Global on Nov. 11, 2025. However, its outlook was upgraded to positive, from stable, citing the resilience of the group's regulated cash flow, prudent capital management, and robust balance sheet.

Chorus was separated from Telecom New Zealand in 2011 and is the largest fixed-line access telecommunications infrastructure (copper and fiber) provider in New Zealand. It owns and operates a national fixed-line network that includes local phone exchanges and copper and fiber cables. Chorus partnered with the government in rolling out fiber to the premises though the ultra-fast broadband, or UFB, initiative. As a near-monopoly operator, Chorus' wholesale prices are regulated by the Commerce Commission, or ComCom.

Chorus delivered a 1% rise in fiscal 2025 adjusted EBITDA to NZD 710 million, contributing to an adjusted net profit of NZD 9 million compared with a loss of NZD 7 million a year ago. The group declared a final unimputed dividend of NZD 0.345, bringing the total for the year to NZD 0.575, up 21%.

Reserve Bank of Australia modelling suggests US tariffs could wipe around one percentage point from Australian GDP growth over the next few years. While the chance of a recession is higher, its impact and duration may be mitigated by monetary and/or fiscal responses deployed.

Chorus was demerged from Telecom New Zealand in 2011 and is the largest fixed-line access telecommunications infrastructure (copper and fiber) provider in New Zealand. It owns and operates a national fixed-line network that includes local phone exchanges and copper and fiber cables. Chorus partnered with the government in rolling out fiber to the premises though the ultra-fast broadband, or UFB, initiative. As a near-monopoly operator, Chorus' wholesale prices are regulated by the Commerce Commission, or ComCom.

Chorus' first-half fiscal 2025 EBITDA was flat from a year ago at NZD 346 million and full-year EBITDA is "tracking to lower half" of NZD 700 million to NZD 720 million guidance range. However, the interim DPS grew 21% to NZD 23 cents and the NZD 57.5 cents guidance for the full year was reaffirmed.

Shares in no-moat-rated Chorus are trading 16% above our unchanged NZD 7.80 per share fair value estimate, or AUD 7.10 at current exchange rates. The stock is buoyed by growing investor comfort regarding its dividend outlook and regulatory certainty. Management added to the positive sentiment by providing clarity to Chorus' "All-Fiber" vision at the investor day.

Chorus was demerged from Telecom New Zealand in 2011 and is the largest fixed-line access telecommunications infrastructure (copper and fiber) provider in New Zealand. It owns and operates a national fixed-line network that includes local phone exchanges and copper and fiber cables. Chorus partnered with the government in rolling out fiber to the premises though the ultra-fast broadband, or UFB, initiative. As a near-monopoly operator, Chorus' wholesale prices are regulated by the Commerce Commission, or ComCom.

Chorus was demerged from Telecom New Zealand in 2011 and is the largest fixed-line access telecommunications infrastructure (copper and fiber) entity in New Zealand. It owns and operates a national fixed-line network that includes local phone exchanges and copper and fiber cables. Chorus partnered with the government in rolling out fiber to the premises though the ultra-fast broadband, or UFB, initiative. As a near-monopoly operator, Chorus' wholesale prices are regulated by the Commerce Commission, or ComCom.

Chorus' NZD 57.5 cent unimputed dividends per share guidance for fiscal 2025 leads to a 15% step-up in our dividend forecast for the year and an average 10% increase beyond. Confidence in the dividend maintainability is underpinned by the group's resilient earnings, regulatory certainty, and a heightened commitment to an all-fiber future. Consequently, dividend payout guidance has been raised to 70%-90% of free cash flow from 60%-80%—music to the ears of a shareholder register filled with income-focused investors.

Chorus was demerged from Telecom New Zealand in 2011 and is the largest fixed-line access telecommunications infrastructure (copper and fiber) entity in New Zealand. It owns and operates a national fixed-line network that includes local phone exchanges and copper and fiber cables. Chorus partnered with the government in rolling out fiber to the premises though the ultra-fast broadband, or UFB, initiative. As a near-monopoly operator, Chorus' wholesale prices are regulated by the Commerce Commission, or ComCom.

Chorus was demerged from Telecom New Zealand in 2011 and is the biggest fixed-line access telecommunications infrastructure (copper and fiber) entity in New Zealand. It owns and operates a national fixed-line network that includes local phone exchanges and copper and fiber cables. Chorus partnered with the government in rolling out fiber to the premises though the ultra-fast broadband, or UFB, initiative. As a near-monopoly operator, Chorus' wholesale prices are regulated by the Commerce Commission, or ComCom.

Chorus generated NZD 555 million in EBITDA in 2023, or 82% of group total, from its fiber fixed-line access network. That correlates closely with the percentage of Chorus line connections on fiber across the year. Fiber fixed-line has since risen to 86% of total connections by the end of March 2024. This penetration tailwind will continue to drive fiber earnings, as takeup across the 1.5 million fiber-passed premises increases from the current 71% level.