Chorus Limited

For the 6 months ended 31 December 2025, Chorus reported revenue of $506 million, up $6 million year on year; EBITDA of $357 million, up $11 million; depreciation and amortization of $216 million, down $19 million; net profit after tax of $15 million versus a $5 million loss; and interim dividend of $0.24 unimputed. Fibre broadband revenue increased 7% or $26 million, while copper broadband, voice, and data revenue fell $18 million, or 43%. Gross CapEx was $158 million, including $79 million sustaining CapEx, and operating expenses were $149 million, down 3%. For FY26, EBITDA guidance remains $710 million to $730 million, with expectations now in the upper half of the range; CapEx guidance remains $375 million to $415 million, with spending now expected in the lower half; sustaining CapEx guidance remains $195 million to $215 million, also expected in the lower half; and full-year dividend guidance remains $0.60 unimputed.

Mark Aue framed the half as proof that fibre remains resilient despite a still-lumpy economy, and said Chorus has moved into Horizon 2 focused on growth, simplicity, and efficiency. He emphasized rising fibre preference, stable-to-improving connection momentum, and multiple growth pools including brownfields infill, new property development, data centers, and other adjacent infrastructure options. His tone was confident and disciplined, with a strong focus on execution, copper exit, and using data and AI to improve targeting and conversion.

Andrew Davies highlighted the main financial drivers: revenue of $506 million, EBITDA of $357 million, NPAT of $15 million, and operating expenses of $149 million, down $5 million or 3%. He said fibre broadband revenue rose 7% on 31,000 more lines and ARPU of $57.73, while copper-related revenue fell 43% as connections declined 60,000. On the balance sheet, net debt was $3.2 billion, up about $100 million from June 30 after issuing $400 million in euro notes, and leverage remained within thresholds, with Moody’s around 4.8x versus a 5.25x down driver and bank covenant leverage at 4.49x. He also said FY26 EBITDA is now expected in the upper half of $710 million to $730 million and CapEx in the lower half of $375 million to $415 million.

Analysts pressed management on why EBITDA guidance moved to the upper half despite a still-weak economy; management pointed to improving January connection momentum, better mix, lower churn, and tight cost control rather than a major macro improvement. Questions also focused on the updated S&P digital infrastructure criteria and NIFFCo securities; Chorus said there is still headroom under all scenarios, Moody’s methodology is unchanged, and the main uncertainty is the outcome of the government’s sale process. Other Q&A topics included infrastructure revenue targets, brownfields infill strategy, Starlink competition, weather impacts on maintenance costs, and whether Chorus will revalue its fibre network, with management generally stressing that copper deregulation and other regulatory reviews remain important catalysts.