Chorus sees drop in first-half revenues and profits

24 Feb 2015

New Zealand communications network operator Chorus has reported first-half net profit of NZD64 million (USD48 million) for the six months ended 31 December 2014, down from NZD78 million in the year-ago period. Revenue fell from NZD535 million in H1 2013/14 to NZD527 million in the first half of the current fiscal year. The firm, which was created in November 2011 when the network operations of Telecom New Zealand (now Spark) were spun off to form a new wholesale company, claimed 1.782 million lines in service at end-2014, up by around 5,000 from a year earlier, with broadband connections increasing by 23,000 to 1.186 million. The number of fibre-optic subscriptions offered under the government-backed Ultra Fast Broadband (UFB) and Rural Broadband Initiative (RBI) programmes rose by 55% year-on-year to reach 65,000.

Mark Ratcliffe, Chorus CEO, commented: ‘A large number of revenue, operating cost and capital expenditure initiatives have now been implemented and Chorus will continue to limit discretionary spending.’ He went on to add: ‘Chorus has invested more than NZD1.7 billion in fibre networks and capability since it was established in 2011, with about half a million end users now within reach of better broadband through our UFB and RBI rollouts.’

New Zealand, Chorus (New Zealand)