How Is Chorus Driving Fibre Growth and Profit Turnaround in HY26?

Robust Financial Performance Amid Transition

Chorus Limited has delivered a robust financial result for the six months ending 31 December 2025, showcasing the strength of its fibre-led strategy despite a challenging economic environment. The company reported operating revenue of NZD 506 million, a modest increase from the previous year, underpinned by a 7% rise in fibre broadband revenue to NZD 387 million. This growth more than offset the expected decline in legacy copper services as customers continue migrating to fibre and alternative technologies.

Notably, Chorus returned to profitability with a net profit after tax of NZD 15 million, reversing a net loss of NZD 5 million in the prior comparable period. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3% to NZD 357 million, reflecting disciplined cost management and operational efficiencies.

Fibre Uptake and Network Simplification Drive Growth

The company’s fibre network continues to gain momentum, with total fibre connections increasing by approximately 31,000 to 1.13 million. Fibre uptake now stands at 72.4% of serviceable addresses outside local fibre company areas, edging closer to Chorus’ target of 80% uptake by 2030. The transition away from copper is accelerating, with only around 3,000 copper lines remaining in Chorus fibre areas and full withdrawal expected by mid-2026.

Chorus also highlighted the success of its nationwide fibre speed boost initiative implemented in June 2025, which raised base plan speeds to 100Mbps and 500Mbps. Over 80% of fibre customers are now on 500Mbps plans or higher, with steady demand for gigabit-plus speeds. This positions Chorus well to meet the growing data demands driven by cloud services, multiple connected devices, and emerging technologies such as artificial intelligence.

Efficiency Gains and Capital Discipline

Operating expenses decreased by NZD 5 million year-on-year to NZD 149 million, supported by lower labour costs, reduced consulting spend, and savings from a streamlined operating model. Network maintenance costs fell by NZD 7 million, reflecting fewer faults as fibre penetration deepens. Gross capital expenditure was reduced by NZD 41 million to NZD 158 million, focusing on sustaining network quality and targeted growth initiatives.

Chorus continues to exercise strong capital discipline, balancing investment in network performance with financial strength and long-term value creation. The company’s net debt to EBITDA ratio remains within comfortable levels, supported by recent refinancing activities and a diversified debt maturity profile.

Digital Inclusion and Strategic Initiatives

In a significant move towards social impact, Chorus launched its Equity Fibre product aimed at providing affordable and accessible connectivity to households facing financial hardship. Nearly 400,000 New Zealand households currently cannot afford meaningful digital access, and this initiative is designed to help bridge that digital divide through targeted eligibility criteria and community collaboration.

Chorus is also advancing strategic programmes including copper recycling, property optimisation, and exploring fibre expansion opportunities. The company is actively engaging with government on regulatory reforms and anticipates clarity on key regulatory settings later in the year.

Outlook and Dividend

Chorus reaffirmed its full-year EBITDA guidance of NZD 710 million to NZD 730 million, currently tracking towards the upper half of this range. The company declared an interim dividend of 24 cents per share, up 4% from the prior year, payable on 14 April 2026. The dividend reinvestment plan will not be available for this interim dividend.

CEO Mark Aue emphasised the company’s focus on maximising the value of its fibre network while supporting customers’ growing data needs. With copper retirement nearing completion and fibre adoption accelerating, Chorus is well positioned for the next phase of growth, simplicity, and efficiency.