UFB provider Chorus unveils maiden $102m profit

Today Chrous have posted a profit for their first 7-months of business since splitting from Telecom NZ. Net profit after tax was $102 million (or 26c per share) for the period to 30 June 2012 with sales revenue of $613 million.

Mark Ratcliffe, Chorus Chief Executive Officer highlighted 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.

He went on to say “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.