Key Highlights

  • The final dividend was 36 cents per share, unimputed, taking the FY26 dividend to 60 cents from 57.5 cents.
  • FY27 guidance is a dividend of at least 62 cents, with partial imputation expected.
  • EBITDA was NZ$726 million, up 3%, and net profit after tax was NZ$37 million against NZ$4 million.
  • The approximate yield is near 6.2%, with no franking and a reinvestment plan.

Chorus Limited (ASX:CNU) released its results for the year ended 30 June 2026 on 24 August 2026, reporting higher revenue, EBITDA and net profit and a total dividend of 60 cents per share. Figures are in New Zealand dollars. Chorus Limited (ASX:CNU) is New Zealand's largest fibre network provider. It builds and maintains the fibre network that connects homes and businesses across much of the country, spanning more than 200,000 kilometres, and sells wholesale access to retail service providers, which in turn sell broadband to consumers. The company is based in Wellington and is listed on the NZX and ASX.

At 30 June 2026 Chorus had about 1,147,000 fibre connections, representing 96% of its total connections, and fibre uptake of 75.9% of serviceable addresses. Revenue comes from regulated wholesale prices, and the company has been shifting from a mixed copper and fibre business to an all-fibre one, with the copper retirement date now brought forward to 2028. Because it is a regulated infrastructure business with capital spending that has begun to fall, it has a stated policy of paying a rising dividend.

The Dividend Picture

CNU has an approximate yield of about 6.2% at a price near $6.74, no franking and a reinvestment plan available. Imputation credits are the New Zealand equivalent of Australian franking, and the final dividend is unimputed, so no credits attach. The release states a final dividend of 36 cents per share and a total FY26 dividend of 60 cents, against 57.5 cents in FY25, an increase of about 4.3%. For FY27 the company expects a dividend of at least 62 cents per share, subject to no material adverse changes, and expects to partially impute the FY27 dividends. Net profit after tax of NZ$37 million is small next to the dividend, so the payout relies on cash flow rather than on reported profit, an observation from the stated figures.

Understanding the Dividend Data for Chorus

At a share price of approximately $6.74, the approximate yield is 6.2%. There is no franking, so the grossed-up yield is the same as the cash yield and no tax credits are attached to the payments. A distribution reinvestment plan is available, which allows holders to take additional securities in place of cash. As an illustration of the arithmetic only, a holding worth $10,000 at that price and yield would correspond to roughly $616 of cash distributions over a year before tax, calculated from the stated percentage. The guided FY27 dividend of at least 62 cents is above the 60 cents paid for FY26. Yields of this kind depend on the share price on the day and on which payments are counted, so they move as the share price changes and are not a forecast.

Results

Operating revenue rose to NZ$1,029 million, with 6% growth in fibre revenue more than offsetting declines in legacy services. EBITDA was NZ$726 million, up 3%, and net profit after tax was NZ$37 million, up from NZ$4 million. Capital expenditure fell NZ$40 million to NZ$375 million, driven by lower discretionary growth spending.

Fibre Network Performance

Total fibre connections rose by about 32,000 to 1,147,000, or 96% of total connections. Fibre uptake reached 75.9% of serviceable addresses, and the company aspires to 80% by 2030. Closing fibre revenue per user rose from NZ$58.28 to NZ$59.51. Copper connections fell by 48,000, and the transition from copper to fibre is described as largely complete across the fibre footprint.

Outlook

For FY27 Chorus expects EBITDA of NZ$730 million to NZ$760 million and gross capital expenditure of NZ$375 million to NZ$415 million, along with the minimum dividend. It launched an affordable wholesale product called Equity Fibre 100 for eligible low-income households, with six retailers signed up.

Copper Retirement and Cost Savings

Chorus has brought forward its nationwide copper retirement date to 2028, reflecting the pace of the move from copper to fibre. Copper connections fell by 48,000 in FY26, with fewer than 1,000 connections left to migrate within fibre footprints and 43,000 where fibre is not available. As the legacy network winds down, Chorus is simplifying the property footprint that supported it, and cost savings came from declining copper fault volumes, lower consulting and discretionary spending, and energy efficiency measures such as legacy equipment removal and cooling optimisation.

Investment Framework and Capital Spending

Gross capital expenditure of NZ$375 million was NZ$40 million lower than the prior year, and FY27 capex is guided at NZ$375 million to NZ$415 million. The company is assessing growth opportunities through a disciplined investment framework, including a feasibility assessment for a potential new interisland subsea cable and trials for battery energy storage systems. The guided minimum dividend of 62 cents for FY27 sits alongside EBITDA guidance of NZ$730 million to NZ$760 million, so the dividend depends on that earnings range and on the stable regulatory setting for fibre. The final dividend is unimputed, and the company expects to partially impute FY27 dividends.

How the Payout Measure Works

The measure that matters for this dividend is EBITDA and cash flow. Chorus reports EBITDA of NZ$726 million and a net profit of NZ$37 million, so the dividend of 60 cents is funded mainly from operating cash flow after capital spending, not from reported net profit. Investors comparing the figure with a yield should remember that the yield is calculated on a price, while the payout compares the dividend with the company's own earnings measure, so the two answer different questions. A high payout can leave little retained cash, while a low payout can leave room for growth or debt reduction, and the right balance depends on the business.

Key Dates and Timing

The results were released on 24 August 2026. The final dividend is unimputed, and FY27 dividends are expected to be partially imputed. Dividend and distribution amounts can change from period to period, and the announcement is the source for amounts and dates. Anyone relying on a date should confirm it against the company's notice, because record dates and payment dates vary by security.