Chorus shares fall after swing to first-half loss
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The news: Chorus shares fell after the New Zealand telecoms company swung to a first-half net loss, driven by lower revenue from its legacy copper network as it shifts to an "all-fibre digital infrastructure company".
The numbers: Chorus shares were down 4.8% to $7.62 at 3pm AEDT.
The company reported a net loss after tax of NZD5 million ($4.5 million), compared to a net profit of NZD5 million in the prior corresponding period.
Chorus declared an interim dividend of 23 NZ cents per share and reaffirmed its guided full-year dividend of 57.5 NZ cents per share.
However, it noted that EBITDA is tracking towards the lower half of its guided range of NZD700 million to NZD720 million
The context: Chorus said the half-year result was impacted by "the challenges of New Zealand's prolonged economic recession" during the period.
Operating expenditure lowered year on year, as Chorus' strategy to simplify its business and reduce legacy costs helped to offset inflationary cost pressures and costs to explore new revenue opportunities.
Chorus said 10% of its connections remain on copper and is targeting the retirement of its entire copper network by 2030.
The source: ASX
