Highlights

• FY26 EBITDA grew 3% to $726 million, with Operating Revenue up $15 million to $1,029 million and operating expenses down $6 million to $303 million.

• Fibre connections increased 32,000 to 1,147,000, representing 96% of total connections, with uptake at 75.9% of serviceable addresses.

• Total FY26 Dividend of 60 cents per share (up from 57.5 cps in FY25), with the copper retirement date brought forward to 2028.

• FY27 EBITDA guidance of $730-760 million and minimum dividend of 62 cents per share issued.

Chorus Limited (ASX:CNU, NZX:CNU) is New Zealand's largest fibre network provider, operating a nationwide open-access fibre infrastructure network spanning more than 200,000 kilometres of fibre. Chorus owns and operates the fibre-to-the-premises (FTTP) network across New Zealand, providing wholesale connectivity to retail service providers (RSPs) who then sell broadband services to end consumers and businesses. Listed on both the NZX and ASX, Chorus is transitioning to a simpler all-fibre Business as copper network retirement accelerates.

Recent Development

Released on 24 August 2026, Chorus reported FY26 results with operating revenue of $1,029 million (up $15 million on FY25), operating expenses of $303 million (down $6 million), and EBITDA of $726 million — up 3% on FY25. Net profit after tax was $37 million, up from $4 million in FY25. Net cash flows from Operating Activities increased 4% to $740 million. Capital Expenditure reduced by $40 million to $375 million due to lower discretionary growth expenditure.

Total fibre connections increased approximately 32,000 to 1,147,000 (96% of total connections), with fibre uptake reaching 75.9% of serviceable addresses — approaching the 80% aspiration by 2030. Average monthly data usage grew 9% to 731 gigabytes in June 2026. Chorus has brought forward its nationwide copper retirement date to 2028, reflecting the pace of copper decline. The total FY26 dividend was 60 cents per share (up from 57.5 cps). FY27 EBITDA guidance of $730-760 million, gross capex of $375-415 million, and a minimum FY27 dividend of 62 cents per share (partially imputed) were issued.

Sector Context

Chorus operates in an increasingly strategic position as digital infrastructure underpins economic activity. CEO Mark Aue highlighted AI and data centre growth as expected to create the next wave of digital connectivity demand, reinforcing the long-term importance of fibre infrastructure. The company launched several adjacent infrastructure services including Express Connect (data centre connectivity), Unified Transport (data transport), and TimeSync (national precision timing), exploring opportunities beyond wholesale broadband. Chorus also launched Equity Fibre 100 — an affordable wholesale broadband product for eligible low-income households — demonstrating the social infrastructure dimension of its network.

Risks and Uncertainties

Chorus operates in a regulated environment with pricing set under the regulated fibre framework — any adverse regulatory changes to pricing or terms of access could affect revenue. While fibre uptake at 75.9% is progressing well, achieving the 80% by 2030 aspiration will require continued effort in hard-to-reach and low-income segments. The proposed inter-island subsea cable feasibility assessment introduces capital allocation uncertainty. Currency risk affects ASX-listed investors, as Chorus reports in NZD. The feasibility assessment of battery energy storage systems on Chorus properties represents an experimental initiative with uncertain financial outcomes.

Catalysts to Watch

The pace of fibre uptake toward the 80% by 2030 target — currently at 75.9% — is the key operational metric driving ARPU growth as higher-value fibre connections replace copper. Any announcement on the inter-island subsea cable feasibility could be a material catalyst if Chorus proceeds with the project. The AI and data centre growth tailwind, particularly Chorus's Express Connect service for data centre connectivity, represents an emerging revenue Diversification opportunity. FY27 guidance achievability — particularly the $730-760 million EBITDA range — will be the financial benchmark for investors.

Final Thoughts

Chorus (ASX:CNU) is executing its all-fibre transition with discipline, delivering growing EBITDA, reduced operating costs, and an increasing dividend — all from an increasingly essential piece of New Zealand's national digital infrastructure. The AI and data centre tailwind adds a new dimension to the Long-term Growth story, and FY27 guidance signals continued progress toward the 80% fibre uptake aspiration.