25 Feb 2019

Chorus' profit and revenue down

10:58 am on 25 February 2019

Chorus' first half profit and revenue are down despite an increase in the number of fibre connections and data usage.

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Chorus's half year net profit fell to $30m in the six months to December, down 36 percent. Photo: 123RF

The telecommunications network operator's net profit fell 36 percent to $30 million, in the six months ended in December, with a 2 percent drop in revenue to $489m.

Expenses were little changed at $171m, with underlying profit down 3.3 percent to $318m, but on track to meet full year guidance of $625-$645m.

"The second half of FY19 seems likely to set a new record for fibre demand," said chief executive Kate McKenzie.

She said the company's objective is to return to modest underlying profit growth next year.

"Our objective is simply to connect as many customers to our fibre network as fast as we can, while continuing to lift customer satisfaction.

"Our new target is to be completing 75 percent of installations in a single visit by the end of June, " she said, adding the company was currently completing 50 percent of installations with just one visit.

Chorus installed fibre in 95,000 homes and business in the six months to the end of December, compared to 79,000 installations in the six months to the end of June.

The monthly average household data usage was 235 gigabytes in December, compared to 210GB in June, with fibre customers consuming an average of 315GB.

"While we're starting to plan for when we might start switching off parts of the copper network in our fibre areas, that is still some time in the future and will be on a street-by-street basis, subject to factors such as fibre uptake," Ms McKenzie said.

The company will pay a 9.5 cents interim dividend.

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