Highlights

  • Chorus shares traded modestly higher on 29 May 2026 following the company’s latest fibre regulatory disclosure.
  • The company reported its regulated asset base (RAB) increased to approximately NZ$6.0 billion in 2025 from NZ$5.9 billion in 2024.
  • Core RAB rose by NZ$221 million to NZ$5.1 billion.
  • Chorus disclosed a NZ$76.3 million wash-up balance that will roll into the next regulatory period, PQP3.
  • Revenue received during 2025 was NZ$101 million below the maximum allowable revenue level.

Chorus Limited (ASX:CNU) shares edged higher during the afternoon Trading session on 29 May 2026 after the telecommunications infrastructure company released its 2025 Information Disclosure report for fibre fixed line access services (FFLAS). The stock traded at AUD 8.08, up 0.12% for the session, while extending its gains to more than 8% over the past year.

The market reaction followed the release of updated regulatory and financial information tied to Chorus’ fibre network operations in New Zealand. Investors appeared to focus on the continued expansion in the company’s regulated asset base, additional commissioned Assets and the carry-forward mechanism tied to under-earned revenue that will move into the next price-quality regulatory period.

Chorus Continues Expanding Fibre Infrastructure Footprint

Chorus is one of New Zealand’s largest telecommunications infrastructure providers and operates an extensive fibre broadband network across the country. The company plays a central role in the delivery of fixed-line communications infrastructure, including fibre and copper network services.

The latest Information Disclosure submission, which has also been provided to the New Zealand Commerce Commission, gives insight into the financial and operational performance of Chorus’ regulated fibre assets during the 2025 disclosure year.

A key focus of the update was the growth in the regulated asset base, commonly referred to as the RAB. The RAB represents the value of regulated infrastructure assets used in providing fibre fixed line access services and plays an important role in determining future regulated returns and allowable revenues.

According to the disclosure, Chorus calculated that its total fibre RAB increased from NZ$5.9 billion in 2024 to approximately NZ$6.0 billion by the end of 2025.

Within this figure, the company’s core RAB rose to NZ$5.1 billion, compared with NZ$4.9 billion in the previous year. Meanwhile, the Financial Loss Asset declined from NZ$992 million to NZ$862 million.

The increase in the core regulated asset base was supported by continued network Investment activity, lower Depreciation movements and higher Inflation-linked Revaluation adjustments during the year.

Asset Commissioning and Inflation Revaluations Lift RAB

The disclosure showed that Chorus commissioned NZ$343 million worth of RAB assets during 2025, up from NZ$306 million in 2024. Shared assets added to the core RAB totalled NZ$29 million during the year.

At the same time, depreciation expenses reduced to NZ$464 million in 2025 from NZ$508 million in 2024, contributing positively to the movement in regulated asset values.

Another notable Factor was the increase in revaluations, which climbed to NZ$183 million from NZ$131 million a year earlier. Chorus attributed this rise to higher inflation rates, with actual inflation reaching 3.11% in 2025 compared to 2.22% in 2024.

The company also noted that the opening 2025 RAB was approximately NZ$10 million higher than the closing 2024 balance because of updates to asset allocation methodologies.

These movements collectively pushed the total closing RAB value to NZ$6.004 billion by 31 December 2025.

Revenue Shortfall Creates NZ$76.3 Million Wash-Up Balance

Another major aspect of the update related to Chorus’ maximum allowable revenue (MAR) calculations under the regulated pricing framework.

The company disclosed that it under-earned its allowable revenue during 2025. According to the filing, Chorus generated NZ$863.2 million in FFLAS revenue during the year, compared with maximum allowable revenue of NZ$963.9 million.

This resulted in an under-earn position of approximately NZ$100.7 million before other regulatory adjustments were applied.

After incorporating cost allocator updates, pass-through cost adjustments, CPI smoothing impacts and RAB true-up adjustments, Chorus calculated a final wash-up balance of NZ$76.3 million.

Importantly, this wash-up amount will be carried forward into the next regulatory cycle, known as PQP3.

The wash-up mechanism forms part of the regulatory model and is designed to maintain net present value neutrality over time. The balance is rolled forward annually using the post-tax weighted average Cost of Capital.

Investors appeared to interpret this disclosure as a manageable regulatory timing issue rather than a structural deterioration in the company’s Earnings framework, particularly as the balance may support future revenue recovery within the next regulatory period.

Operating Expenditure Trends Show Mixed Movement Across Segments

The Information Disclosure also outlined Chorus’ operating expenditure profile across various network and customer categories.

Total operating expenditure reached NZ$191 million across H1 and H2 2025 combined, compared with NZ$180 million in 2024.

Technology-related expenditure increased during the year, with costs reaching NZ$33 million across the second half of 2025 and first half of 2025 combined. Corporate operating expenses also moved higher relative to prior periods.

Meanwhile, maintenance and network operations spending remained a sizeable portion of the overall expenditure base as Chorus continued investing in network reliability and operational support.

Pass-through costs for 2025 totalled NZ$19 million, compared with NZ$16 million in 2024.

The company also indicated that regulatory operating expenditure categories differ from standard financial reporting classifications, meaning direct comparisons with statutory accounts may vary.

Capital Expenditure Remains Elevated

Capital expenditure remained another important area of focus in the filing, reflecting Chorus’ continued fibre network expansion and infrastructure enhancement activities.

Total capex reached NZ$307 million during 2025, excluding contributions.

One of the larger investment categories remained standard installations, although expenditure in this segment moderated compared with earlier years.

Network and customer infrastructure investment remained elevated, while augmentation and transport-related spending also continued during the year.

The company additionally invested across access infrastructure, field sustain activities, site sustain programs and resilience initiatives.

Chorus noted that some changes in reporting classifications occurred from 2024 onward, particularly around provisioning, systems and service desk costs.

The disclosure also highlighted that capital contributions are deducted from asset values for regulated fibre activities and recorded separately within other revenue classifications.

Indicative EBITDA Trends Highlight Regulated Earnings Contribution

The report included indicative EBITDA splits between regulated Price-Quality FFLAS activities and other operations.

For regulated PQ FFLAS operations, EBITDA remained elevated across the reporting periods despite changing expenditure allocations.

In H2 2025, PQ FFLAS revenue stood at NZ$362 million, while EBITDA reached NZ$266 million.

For H1 2025, regulated revenue was NZ$387 million and EBITDA totalled NZ$289 million.

The company noted that changes to shared cost allocators under the PQP2 framework contributed to higher FFLAS operating expenditure levels.

Chorus also flagged the possibility that FFLAS operating costs could rise further if copper network shutdown activity in Chorus fibre areas progresses faster than originally forecast under PQP2 assumptions.

Outside regulated fibre activities, the “Other” category generated EBITDA of NZ$64 million in H2 2025 and NZ$58 million in H1 2025.

Commerce Commission Review Still Pending

While the Information Disclosure provides updated financial and regulatory calculations, Chorus emphasised that several figures remain subject to review by the Commerce Commission.

This includes RAB calculations, wash-up balances and various cost allocation adjustments.

The company stated that all disclosure schedules and calculations have been submitted as part of its ongoing regulatory reporting obligations.

Given the regulatory nature of the update, the market’s favourable reaction likely reflects confidence in Chorus’ underlying infrastructure base and the continued expansion of regulated fibre assets rather than short-term earnings changes alone.

What This Means for Investors

Chorus’ latest regulatory filing provides investors with updated insight into the value and performance of its fibre infrastructure assets.

The increase in the regulated asset base to approximately NZ$6 billion highlights continued investment in network infrastructure, while higher commissioned assets and inflation-linked revaluations supported overall asset growth.

Although the company under-earned its allowable revenue during 2025, the resulting NZ$76.3 million wash-up balance will be carried forward into PQP3, potentially supporting future regulatory recovery mechanisms.

The market reaction suggests investors are closely monitoring the long-term earnings profile tied to Chorus’ regulated infrastructure framework, particularly as fibre assets continue expanding and regulatory reviews progress.