CNU
27/08/2012 08:30
FLLYR
REL: 0830 HRS Chorus Limited (NS)
FLLYR: CNU: Chorus announces inaugural result
27 August 2012
Chorus announces inaugural result
$399m EBITDA and 14.6 cps dividend for seven months
Chorus Limited today reported its inaugural profit result for the seven
months to 30 June 2012, following its establishment as a standalone company
on 1 December 2011.
The telecommunications infrastructure provider reported earnings before
interest, tax, depreciation and amortisation (EBITDA) of $399 million for the
period. Fixed line connections remained largely static at 1,776,000 while
broadband connections grew steadily to total 1,040,000.
Earnings before interest and tax (EBIT) were $210 million. The result
includes unusual income of $11 million relating to insurance claims from the
Canterbury earthquakes.
Net profit after tax (NPAT) for the period was $102 million, with adjusted
NPAT of $94 million.
The Chorus Board approved a final dividend of 14.6 cents per share to be paid
on 5 October 2012. The dividend will be fully imputed with a supplementary
dividend paid to non resident shareholders. The Board also anticipates that
Chorus will pay a fully imputed full year dividend of 25.5 cents per share
for FY13, subject to there being no material or adverse changes in
circumstances or operating outlook over that period.
Chief Executive Mark Ratcliffe said the result reflected a pleasing start to
Chorus' busy first seven months of operations as a publicly listed company.
"We've focused on supporting our customers during what is a period of complex
industry transition and it has been good to see their success in adding about
50,000 broadband connections to the network.
"Our rollout of the ultra-fast broadband network is also gaining momentum
with about 57,000 end users already within reach and we're working closely
with our customers to facilitate the transition to fibre as this network
continues to grow."
Fibre related capital expenditure, principally for the ultra-fast broadband
rollout and Rural Broadband Initiative, accounted for 79% of Chorus' $346
million gross capital expenditure. This was within Chorus' guidance of $335
million to $355 million for the period. Chorus expects to spend $560 million
to $610 million in gross capital expenditure in FY13.
"While fibre demand is uncertain, there are early signs that it is emerging.
We've begun, for example, to see new growth in demand for our high grade
business fibre service following the introduction of UFB pricing.
"While fibre prices are set and provide certainty, copper pricing remains
highly uncertain at a time of significant transition for the industry and
significant investment through public private partnerships. This means the
regulatory framework and pending regulatory processes remain central to how
incentivised or aligned the industry will be in making choices that support
the Crown's UFB policy. We continue to remain highly engaged with the
Commerce Commission in the regulatory processes", Ratcliffe said.
Results summary
o Chorus achieved solid EBITDA for the seven months ending 30 June of $399
million
o In line with the demerger scheme booklet, Chorus will pay a prorated
dividend for the seven months of 14.6 cents per share
o A fully imputed dividend of 25.5 cents is anticipated for FY13
o Gross capital expenditure for the seven months was $346 million with 79%,
or $274 million, spent on fibre related projects
o There were 1,776,000 total fixed connections on Chorus' network at 30 June
o Demand for broadband grew steadily with about 50,000 connections added
since demerger, for a total of 1,040,000 connections
Chorus' Chief Executive, Mark Ratcliffe, and Chief Financial Officer, Andrew
Carroll, will discuss the results at a briefing in Wellington from 10am (NZ
time). The webcast will be available at: www.chorus.co.nz/webcast
ENDS
For media queries, please contact:
Robin Kelly
External Media Manager
Mobile: +64 (27) 455 5139
Email: [email protected]
For investor relations queries, please contact:
Brett Jackson
Investor Relations Manager
Mobile: +64 (27) 488 7808
Email: [email protected]
End CA:00226452 For:CNU Type:FLLYR Time:2012-08-27 08:30:04
