Chorus Ltd Surpasses NZ$1 Billion Revenue Mark Amid Data Demand Surge

Highlights:

• Record Revenue: Chorus Ltd surpasses NZ$1 billion in annual revenue, marking a 3% increase year-over-year.
• Dividend Boost: Despite a net loss of NZ$9 million, Chorus Ltd increases its dividend, rewarding shareholders.
• Data Demand Surge: Unprecedented data usage drives revenue growth, positioning Chorus Ltd as a key player in the broadband market.

Revenue Growth and Dividend Increase

Chorus Ltd (NZX: CNU) has marked a significant milestone by surpassing NZ$1 billion in revenue for the first time, driven by soaring data demand. The broadband infrastructure provider reported NZ$1.01 billion in revenue for the financial year ending June 30, 2024, reflecting a 3% growth from the previous year’s NZ$980 million. This achievement has allowed the company to increase its dividend, rewarding shareholders despite facing several financial challenges.

Net Loss Amid Tax and Depreciation Pressures

Despite the impressive revenue figures, Chorus Ltd reported a net loss of NZ$9 million, a stark contrast to the NZ$25 million profit recorded the previous year. The loss is attributed to a non-cash tax expense resulting from the removal of tax depreciation deductible for buildings, which had a significant impact on the company’s financials. Additionally, the company faced an NZ$11 million increase in the depreciation of its copper assets and rising interest costs, further contributing to the financial shortfall.

Impact of Data Demand on Performance

The surge in data demand played a crucial role in Chorus Ltd’s revenue growth. The company experienced unprecedented levels of data usage, surpassing the previous peak witnessed during the COVID-19 lockdowns. This heightened demand underscores the growing reliance on broadband services, positioning Chorus Ltd as a key player in New Zealand's telecommunications landscape.

Looking Ahead

As Chorus Ltd navigates the evolving market dynamics, its ability to adapt to financial pressures while capitalizing on increasing data demand will be critical. The company’s performance in the coming year will likely be influenced by ongoing infrastructure investments and strategic initiatives aimed at enhancing service delivery and sustaining revenue growth.

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