Chorus Profit Surges Ninefold, Sets Minimum Dividend at 62 Cents
Chorus Limited's NZX:CNU net profit surged to NZ$37 million in FY26, up from NZ$4 million in the previous year. This significant increase led to a minimum dividend of 62 cents for FY27, indicating a cash yield of 6.49%. The forecast EBITDA for FY27 is between NZ$730 million and NZ$760 million.
The company's fibre revenue grew by 6% due to stronger uptake and pricing, while fibre connections reached 1.147 million, an increase of about 32,000 year-on-year. Chorus CEO Mark Aue stated the company is 'building momentum towards a simpler, more focused business.' The accelerated nationwide copper withdrawal is now expected in 2028.
The dividend is increasing at a greater rate than EBITDA, and investors will assess whether fibre revenue growth can support this higher dividend without putting pressure on finances. Net debt remains at 4.37 times EBITDA, presenting potential risks such as increased interest expenses or softer fibre prices.