Chorus Limited (ASX: CNU) is a leading fixed-line communication infrastructure provider based in New Zealand. Established in 2008, Chorus started as a telecom business, providing services and access to all service providers to local fixed-line networks. Chorus also maintains, builds and expands the network to improve performance, hoping the reach of internet access will help everyone in New Zealand explore opportunities in different areas. Chorus was listed on the ASX on 21st November 2011 at an issue price of AUD 2.52 per share.
Financial Performance
Chorus reported an operating revenue of AUD 500 million, a slight decrease from AUD 503 million in FY24 because of the decline in copper-related revenues.
EBITDA remains steady at AUD 346 million, slightly lower than the previous period of AUD 347 million. The company also has a net AUD 5 million loss because of the accelerated depreciation of copper-related assets as the company is going to transition to a fibre-only infrastructure. Apart from this, the company’s overall performance is on track with the financial guidance, showing resilience in a challenging economic environment.
Strategic Development & Growth Timeline
Chorus continues its fibre expansion strategy, increasing the number of fibre broadband connections by 14,000, leading to a total of 1,098,000 fibre connections. The company also aims to adopt 80% fibre by 2030. To support the fibre transition, Chorus has issued closure notice to all copper customers in fibre-covered areas and hopes to withdraw the remaining 28,000 copper connections by FY26, trying to have six months ahead of schedule. The company expects the transition to improve network efficiency and customer reliability.
Besides residential growth, Chorus is exploring new revenue streams, including expanding its fibre infrastructure into underdeveloped areas and emerging technologies such as the Internet of Things (IoT) and distributed computing technologies. This strategy allows Chorus to meet its long-term vision of becoming a fully digital infrastructure provider.
Market Trends
New Zealand remains one of the global pioneers in fibre broadband adoption, with Chorus ranking among the top European telecommunication for shifting to optic fibre from copper. The company’s data usage continues to grow, with a monthly average fibre consumption of 644GB in December 2024, reflecting the demand for high-speed internet connectivity.
Also, peak traffic events are becoming more frequent. For example, gaming, live sports streaming, and the shift from traditional TV broadcasts to digital streaming platforms are all new trends driving the demand for higher speed and reliable internet connection, further proving the necessity of transitioning to a fibre connection.
Future Outlook
Chorus remains focused on becoming a full fibre business by 2030. The company also launched a program to help around 1500 low-income households enjoy fibre network internet.
The company also acknowledges FY25 financial guidance and projected expenditure between AUD 400 million and 440 million, and it continues to optimise its investment strategy to balance infrastructure expansion with economic sustainability.
As the company progresses towards copper retirement, it will also work with regulatory bodies to ensure a smooth transition, particularly in non-fibre areas where alternative connectivity solutions may be required.
With the ongoing fibre adoption, emerging growth opportunities, and a clear strategic timeline, Chorus is well-positioned to shape the country’s digital infrastructure landscape.