Chorus Limited (ASX:CNU) Announces Strategic Reset and FY25 Guidance

Chorus Limited conducted its Investor Day 2024, presenting significant updates on its strategic direction. The company is transitioning from a network builder to a network operator, with a new purpose aimed at enhancing connectivity across New Zealand.

Strategic Reset and Future Aspirations

Chorus is committing to becoming a simplified all-fibre business with an uptake goal of 80% by 2030. CEO Mark Aue emphasized the company’s renewed focus, stating, “We aspire to unleash potential through connectivity, enabling better futures for Aotearoa.” The company plans to retire its legacy copper network, aiming to save approximately $50 million per annum in direct operating expenses by 2030.

Growth and Optimisation Opportunities

Chorus is actively exploring several growth initiatives, including a recycling program for large copper cabling, which could yield $30 million to $50 million. The company is also reviewing non-core assets with a net book value of around $20 million and investigating further fibre expansion to rural areas.

Financial Performance and FY25 Guidance

Chorus has confirmed its FY25 financial guidance, projecting EBITDA of $700 million to $720 million and gross capital expenditure of $400 million to $440 million. The board has declared a dividend of 57.5 cents per share. Aue remarked, “Our strategy hinges on a disciplined capital investment framework that prioritises sustainable dividend growth.”

Chorus expects average monthly data usage to rise to 1,000 gigabytes by 2029 as demand for broadband services continues to accelerate with the shift towards online content consumption.

Conclusion

Chorus Limited’s framework positions the company for significant growth through the transition to an all-fibre network and highlights its commitment to delivering a reliable, scalable digital infrastructure for New Zealand.

View Original Accouncement

here

Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.