Chorus Limited has submitted its 2025 Information Disclosure for fibre fixed line access services to the Commerce Commission, revealing a regulated asset base that expanded to approximately $6.0 billion from $5.9 billion in 2024. The disclosure outlines the financial mechanics underlying the company’s regulated fibre business and provides key metrics that investors will scrutinise for clues about the sustainability of Chorus’ regulated revenue streams and its position within New Zealand’s regulatory framework.
Within the total RAB, the core regulated asset base grew by $0.2 billion to $5.1 billion, while the Financial Loss Asset was reduced to $0.9 billion. These movements reflect both the ongoing capital intensity of fibre infrastructure deployment and the regulatory treatment of accumulated losses within the pricing model. More significantly, Chorus calculated that it under-earned its maximum allowable revenue by $101 million during 2025. This under-earning, combined with various other adjustments, resulted in a wash-up balance of $76.3 million that will be carried forward to PQP3, the third price-quality path period.
For investors, the under-earning position demonstrates that Chorus’ actual 2025 revenues fell short of what the Commerce Commission’s regulatory framework permitted. While this might appear negative on the surface, the wash-up mechanism creates future revenue recovery potential. The $76.3 million balance carried forward to PQP3 represents a claim on future allowed revenues, providing a partial offset to current period shortfalls and suggesting that regulatory constraints, rather than commercial weakness, are limiting Chorus’ ability to capture its full allowable returns.
The regulatory environment for New Zealand’s fibre monopoly operator remains complex and evolving. These Information Disclosure submissions are subject to Commerce Commission review, which means the calculations underlying the RAB, under-earning position, and wash-up balance are not yet final. The Commission may adjust methodologies, interpretations, or assumptions, potentially affecting both the historical wash-up balance and the forward-looking revenue implications for PQP3. Investors should monitor the timing and outcome of that review, as any material adjustments could shift the economics of Chorus’ regulated fibre business.
The full implications of this disclosure will become clearer as the Commerce Commission completes its review of Chorus’ Information Disclosure calculations. The wash-up mechanism and the trajectory of capital expenditure relative to the expanding RAB are critical indicators of Chorus’ long-term cash generation capacity under regulation. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Chorus Limited (ASX: CNU)
Chorus Limited is New Zealand’s largest fixed-line communications infrastructure company. It provides wholesale broadband, data, and voice services through a network of fiber and copper cables across New Zealand. The company was created as an independent entity following its demerger from Telecom New Zealand in 2011.
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