This article first appeared on GuruFocus .
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Total Fiber Connections:Up 3% to over 1.1 million, with uptake at 72.4%.
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Fiber Revenue Growth:Increased by 7%.
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Operating Expenses:Reduced by 3%.
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EBITDA:$357 million, up $11 million from the previous half.
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Gross CapEx:$158 million, with sustaining CapEx at $79 million.
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Interim Dividend:Declared at $0.24 per share.
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Net Profit After Tax:$15 million, compared to a loss of $5 million in the previous half.
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Fiber Broadband Revenue:Up 7% or $26 million.
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Copper Connections:Down 60,000, with revenue declining by $18 million.
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Net Debt:$3.2 billion as of December 30th.
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Dividend Guidance:Full-year dividend guidance remains at $0.60 per share.
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FY26 EBITDA Guidance:Expected to be in the upper half of $710 million to $730 million range.
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CapEx Guidance for FY26:Expected to be in the lower half of $375 million to $415 million range.
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Release Date: February 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Chorus Ltd ( CHRYY ) reported a 3% increase in total fiber connections, reaching over 1.1 million, with fiber revenues growing by 7%.
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Operating expenses were reduced by 3% despite inflationary pressures, showcasing effective cost management.
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EBITDA increased by $11 million compared to the previous half, reaching $357 million.
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The company declared an unimputed interim dividend of $0.24 for the half.
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Chorus Ltd ( CHRYY ) is making significant progress in copper retirement, with only 3,000 lines remaining in USB areas, opening opportunities for recycling and regulatory changes.
Negative Points
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The economic recovery remains uneven, impacting overall business conditions.
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Copper legacy revenue continues to decline, with total copper connections down by 60,000, resulting in a 43% annual decrease in related revenues.
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Field service revenues decreased slightly due to lower new property development activity.
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Net finance expenses increased by $6 million, partly due to early repayment of notes with settlement costs.
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The company faces challenges in commercializing new infrastructure opportunities, which take time to bring to market.
Q & A Highlights
Q: You've moved EBITDA guidance to the top half of the range. Are you seeing any improvement in underlying economic conditions, or is it a better mix than expected? A: Drew Davies, Chief Operating Officer, explained that while the economy remains challenging, there are opportunities in increasing connections growth and disciplined cost management. Mark Aue, CEO, added that January results were strong, with encouraging trends in churn reduction and reactivation rates for long-term off-net premises.
Q: Can you provide an update on infrastructure revenue targets and progress? A: Mark Aue, CEO, stated that infrastructure revenue remains at similar levels to previous years, with aspirations to reach $180 million to $200 million in Horizon 2. Several initiatives are being explored, but some, like the Laura and IoT trial, have been discounted due to scalability concerns.
Q: How are you addressing the regulatory reviews and potential changes in capital management policy? A: Drew Davies, COO, noted that the capital management policy remains focused on sustainable dividends. The outcome of the NCO security sale will influence S&P's leverage calculations, but Moody's criteria remain unchanged. The company is managing to a 5.25 times debt to EBITDA threshold.
Q: What is your strategy for fiber infill and reaching the 80% uptake aspiration? A: Mark Aue, CEO, emphasized the use of data analytics and AI for targeted execution in fiber infill. The focus is on under-penetrated pools, including 200,000 brownfields infill premises and inactive fiber connections, to achieve the 80% uptake target.
Q: Are there any impacts from recent weather events on maintenance costs, particularly for copper versus fiber? A: Drew Davies, COO, explained that fiber faults are significantly lower than copper, which is more affected by weather events. The company is focused on resilience and quick response to such events, with inherent cost assumptions for maintenance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
