Chorus Limited (ASX:CNU): FY26 Fibre Expansion, Earnings and Dividend Update

Aditi Sarkar

14 October 2026 03:50 PM AEDT

Chorus Limited (ASX:CNU): FY26 Fibre Expansion, Earnings and Dividend Update

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Highlights

FY26 operating revenue reached NZ$1,029 million, with EBITDA of NZ$726 million.
Net profit after tax was NZ$37 million for the year ended 30 June 2026.
Fibre connections reached 1,147,000, with uptake at 75.9% of serviceable addresses.
Chorus declared a 36 cents-per-share final dividend, bringing the FY26 total to 60 cents.
The transition from copper to fibre remains central to network planning and operating costs.

Chorus Limited (ASX:CNU) operates New Zealand telecommunications networks and supplies wholesale fibre broadband services to retail service providers. The company is progressing its shift towards a predominantly fibre-based network, with FY26 financial results showing changes in revenue, connections and shareholder distributions. Its operating model links access to essential communications infrastructure with investment in network capacity, maintenance and service availability.

FY26 Revenue and Profit Reflect Fibre Operations

For the year ended 30 June 2026, Chorus Limited (ASX:CNU) recorded operating revenue of NZ$1,029 million and operating expenses of NZ$303 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) reached NZ$726 million, an increase of 3% over the prior corresponding reporting period. Net profit after tax was NZ$37 million. These measures capture different aspects of financial performance: EBITDA reflects earnings before financing and non-cash accounting charges, while net profit includes their effects.

Operating cash flow was NZ$740 million during FY26, representing 4% annual growth. For Chorus Limited (ASX:CNU), cash generated from operations is relevant to both ongoing network commitments and capital allocation. The difference between cash flow and accounting profit is particularly important for infrastructure businesses, where depreciation, investment expenditure and borrowing costs can materially affect reported results.

Fibre Connections and the Copper Transition

Chorus Limited (ASX:CNU) reported approximately 1,147,000 fibre connections at 30 June 2026, an increase of about 32,000 during the financial year. Fibre uptake reached 75.9% of serviceable addresses. Average monthly data use also increased, reaching 731 gigabytes in June 2026. These operating indicators provide context for the company’s access network utilisation and the demand for its wholesale products.

The company continues to retire legacy copper infrastructure as consumers and businesses transition to newer connectivity services. Chorus Limited (ASX:CNU) has outlined a nationwide copper retirement programme scheduled to progress through 2028. The process involves customers shifting to alternative services where available and requires coordination with retail telecommunications providers. Copper retirement may also change the network maintenance requirements associated with older assets.

FY26 Dividend and Capital Allocation

Chorus Limited (ASX:CNU) announced a final dividend of NZ 36 cents per share for FY26, taking total dividends for the year to NZ 60 cents per share. The final dividend was described as unimputed. As Chorus is incorporated and tax resident in New Zealand, Australian shareholders should distinguish New Zealand dividend tax treatment from Australian franking credits. The total is a reported FY26 dividend amount rather than a forecast for future periods.

Dividend capacity depends on the interaction between operating cash generation, network expenditure, financing commitments and the company’s regulatory framework. Shareholder distributions therefore need to be considered alongside ongoing obligations to operate and upgrade fixed-line infrastructure, rather than in isolation from annual earnings.

Regulation and Network Competition

Chorus supplies services under New Zealand’s regulated fibre framework, including oversight by the Commerce Commission. Regulatory decisions influence permissible revenue and quality expectations. The company also operates alongside competing technologies such as fixed-wireless and satellite broadband, particularly where alternatives can reach customers without a conventional fibre connection. These conditions are relevant to future connections, service demand and network investment decisions.

Key Insights

Chorus Limited (ASX:CNU) ended FY26 with higher reported EBITDA, operating cash flows and fibre connections, alongside a total annual dividend of NZ 60 cents per share. Its business remains centred on wholesale network access, with outcomes shaped by customer migration to fibre, regulatory settings and the cost of maintaining telecommunications infrastructure. The FY26 results describe operating progress without predicting future performance.

FAQs

Q: What does Chorus Limited do?

A:It provides wholesale telecommunications infrastructure services in New Zealand, primarily through its fibre network.

Q: What were Chorus’s FY26 operating revenue and EBITDA?

A:Operating revenue was NZ$1,029 million and EBITDA was NZ$726 million.

Q: How many fibre connections did Chorus report in FY26?

A:It reported about 1,147,000 fibre connections at 30 June 2026.

Q: What total dividend did Chorus report for FY26?

A:The FY26 total was NZ 60 cents per share, including a final dividend of NZ 36 cents per share.

Q: What factors affect Chorus’s operations?

A:Fibre adoption, network investment, copper retirement, regulation and competing broadband technologies are relevant factors.

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