In This Article:
Release Date: February 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Chorus Ltd (CHRYY) reported steady results despite ongoing economic headwinds, showcasing resilience in a challenging market.
-
The company added 14,000 new fiber connections, with fiber uptake nearing 72% of addresses passed.
-
Data usage on fiber continues to grow, reaching a record average of 644 gigabytes per month in December.
-
Chorus Ltd (CHRYY) confirmed an unimputed interim dividend of $0.23, aligning with their capital management policy.
-
The company is on track with its strategy to transition to an all-fiber business by 2030, with significant progress in copper line reduction.
Negative Points
-
Revenues were slightly down by 1% to $500 million, primarily due to the migration away from legacy services.
-
The company recorded a net loss of $5 million for the half, impacted by the decline in legacy revenues.
-
ARPU decreased by $0.37 to $55.34, influenced by strong uptake of the entry-level fiber plan and delayed price changes.
-
Chorus Ltd (CHRYY) faces ongoing challenges in the property developer sector, affecting greenfield activity.
-
The economic recession has led to some customer downtrading, impacting the uptake of higher-speed fiber plans.
Q & A Highlights
Q: Can you discuss the target customers and pre-build commitment levels for the subsea cable project? A: We met with large data center operators and their connectivity teams at the PTC conference to discuss our design and capacity planning. We are currently in follow-up meetings to gather feedback. The build and routes of the cable will depend on demand from these key customers. We haven't released pre-sales commitments yet, but we aim to build momentum based on customer demand. (Respondent: Unidentified_2)
Q: How are local telco operators involved in the subsea cable project? A: We have shared our designs with local telco operators and received positive feedback. We are considering their expected capacity demands and preferred routes as part of our planning process. (Respondent: Unidentified_2)
Q: What is the timeline for a decision on the subsea cable project, and what is the likely investment envelope for Chorus? A: We expect to reach a go/no-go decision by the end of this calendar year after working with OTT players to meet their future demand. The project is likely to be completed by the end of calendar year 2028. The investment will depend on pre-build commitments and demand. (Respondent: Unidentified_2)