Telecommunications company Chorus, based in New Zealand, has announced its forecast for higher earnings in fiscal 2024. Despite facing challenges due to network damage caused by flooding and Cyclone Gabrielle in the past year, the company remains optimistic about the future.
Earnings Projection
Chorus expects its earnings before interest, tax, depreciation, and amortization (EBITDA) for the 12 months through June 2024 to be between NZ$680 million and NZ$700 million. In fiscal 2023, its EBITDA reached NZ$672 million, which includes NZ$10 million in costs associated with flood and cyclone-related damage, as well as operational changes. However, when excluding these one-time costs, the annual EBITDA was within the expected range of NZ$675 million to NZ$690 million.
Weather Challenges
Financial Performance
Despite the difficulties faced, Chorus reported a statutory net profit of NZ$25 million for fiscal 2023. Although this figure represents a 61% decrease from the previous year’s NZ$64 million profit, the company remains committed to its fiber rollout. At the end of June, Chorus had approximately 1.03 million connections. Furthermore, annual revenue experienced a 1.6% increase, reaching NZ$980 million.
Future Outlook
Chorus has outlined its expectations for fiscal 2024. The company plans to increase its dividend to 47.5 New Zealand cents per share, compared to 42.5 NZ cents in the previous period. Additionally, Chorus foresees a capital expenditure range of NZ$400 million to NZ$440 million.