Chorus FY25: NZD 705m EBITDA, 31,000 New Fibre Connections, Copper Down 41%

Robust Financial Performance Amid Economic Challenges

Chorus Limited has delivered a resilient financial result for the year ended 30 June 2025, navigating a challenging New Zealand economy and the ongoing retirement of legacy copper services. Operating revenue edged up slightly to NZD 1.014 billion, while EBITDA increased by 1% to NZD 705 million. Notably, the company swung to a net profit after tax of NZD 4 million, reversing a loss of NZD 9 million in the prior year.

Strong cost discipline was evident as operating expenses held steady at NZD 309 million despite inflationary pressures and increased regulatory levies. This was supported by a strategic simplification of the operating model and targeted investments in new capabilities.

Fibre Uptake Accelerates, Copper Network Winds Down

Fibre connections grew by 31,000 to a total of 1.115 million, lifting fibre uptake to 72.1% of addresses passed. This progress aligns with Chorus’ ambition to achieve 80% fibre uptake by 2030. The company’s fibre network now carries 96% of its data traffic, which surged 10% to 8,741 petabytes, underscoring the growing demand for high-capacity connectivity.

Conversely, copper connections declined sharply by 41% to 92,000 as Chorus accelerates its copper retirement program, targeting full withdrawal by 2030. The Commerce Commission’s recent recommendation to remove copper regulation further paves the way for this transition, with Chorus committed to a consumer-centric retirement process.

Innovation and Market Positioning Drive Fibre Adoption

Chorus has enhanced its market position by promoting fibre as the superior connectivity standard, highlighted by recent speed boosts to popular plans benefiting over 700,000 homes. The company continues to innovate with advanced fibre offerings, including symmetrical gigabit and multi-gigabit services, catering to evolving consumer and business needs.

New property developments and infrastructure demand remain steady, with Chorus extending fibre to approximately 4,500 additional premises through its Fibre Frontier program and community co-funded initiatives. However, the company notes that government funding remains critical to expanding fibre access beyond current coverage.

Sustainability and Climate Commitments Gain Momentum

Chorus is advancing its sustainability agenda, achieving a 4.8% reduction in electricity consumption in FY25 and maintaining a 25% reduction in scope 1 and 2 emissions against its FY20 baseline. The company has set verified science-based targets to reduce absolute scope 1 and 2 emissions by 62% by FY30 and is engaging suppliers to extend emissions reductions across its value chain.

Renewable energy trials, including solar photovoltaic installations at six exchange sites, are underway to assess long-term feasibility. Chorus’ climate-related disclosures have been independently assured, reflecting transparency and accountability in its environmental performance.

Governance and Strategic Outlook

The Board remains fully independent and continues to enhance governance practices aligned with evolving strategic priorities. Executive remuneration is closely tied to performance metrics including sustainability targets and fibre uptake.

Looking ahead, Chorus has provided FY26 guidance with EBITDA expected between NZD 710 million and NZD 730 million, capital expenditure of NZD 375 million to NZD 415 million, and a final dividend of 60 cents per share. The company is focused on Horizon 2 of its strategy, emphasizing simplicity, efficiency, innovation, and competitiveness as it transitions to an all-fibre business.