In This Article:
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Revenue: Increased by $30 million to over $1 billion.
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EBITDA: Grew by 4% or $28 million to $700 million.
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Net Income: Recorded a net loss of $9 million due to a one-off noncash cost.
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Dividend: Final dividend of $0.285 per share, in line with guidance of $0.475 per share for the full year.
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Fibre Uptake: Grew to over 71%, with 53,000 new connections.
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Fibre Revenue: Increased by $75 million.
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Capital Expenditure: Down 6% to $427 million.
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Net Debt to EBITDA Ratio: Increased to 4.42 times.
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Interest Expense: Up $22 million, with total debt increasing by $108 million.
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Operating Expenses: Largely flat year-over-year.
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Depreciation on Copper Assets: Increased by $11 million to $19 million.
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Fibre RAB: $5.9 billion at the end of 2023.
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Scope 1 and 2 Emissions: Reduced by 39% from the FY24 base year.
Release Date: August 25, 2024
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 strong financial performance for FY24, with EBITDA reaching the top end of their guidance range.
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The company has successfully increased Fibre uptake to 71.5%, with a significant rise in average monthly data usage.
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Chorus Ltd (CHRYY) has managed to keep operating costs largely flat year-over-year, despite inflationary pressures.
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The company has achieved a 39% reduction in Scope 1 and 2 emissions, thanks to increased renewable energy usage and the decommissioning of legacy equipment.
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Chorus Ltd (CHRYY) has a clear strategy to transition to an all-Fibre business by 2030, aiming for 80% Fibre uptake, which aligns with global broadband trends.
Negative Points
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Copper connections have decreased significantly, which may lead to challenges in managing the transition and associated costs.
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The company faces headwinds from the reduction of legacy network services, which are expected to impact revenue in FY25.
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Net interest expenses have increased due to higher debt levels and rising interest rates.
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Chorus Ltd (CHRYY) reported a net loss for the year, partly due to a one-off non-cash tax expense.
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There is uncertainty around the timing and impact of proposed price changes, which are subject to regulatory approval and market conditions.
Q & A Highlights
Q: Can you discuss the proposed price changes and their impact on copper migration and Fibre penetration goals? A: Mark Aue, CEO: We consider market trends and CPI inflation for pricing. As we phase out copper, we aim for an 80% retention rate on our broadband network. There's a global willingness to pay for higher-speed broadband, not just for speed but also for quality and reliability. We're also developing new market propositions, like the home Fibre data product, to cater to segments we don't currently serve.