Chorus Limited has delivered a sharp improvement in profitability for the 12 months to June 2026, with net profit of $37 million compared to just $4 million in the prior year. This turnaround reflects the telecommunications company’s disciplined approach to managing costs while growing its fibre revenue base, and signals confidence in the business model as it transitions to an all-fibre operation serving New Zealand’s critical infrastructure.
The headline numbers reveal solid momentum across the core business. Operating revenue reached $1,029 million, up $15 million year-on-year, while operating expenses declined $6 million to $303 million. EBITDA increased 3 percent to $726 million, and operating cash flow rose 4 percent to $740 million. For investors, these figures demonstrate that Chorus is not merely defending market position but actively improving operational efficiency even as it navigates a transitional period from legacy services to fibre-based offerings.
The fibre segment is the growth engine. Revenue from fibre services expanded 6 percent despite persistent decline in legacy revenue streams. Fibre connections grew by approximately 32,000 during the year to reach 1,147,000, now representing 96 percent of Chorus’ total customer base. More telling is the uptake metric: fibre penetration across addressable markets reached 75.9 percent, bringing the company closer to its 2030 target of 80 percent. This trajectory matters because fibre services command higher pricing and greater switching costs than traditional copper networks.
Average revenue per user from fibre rose to $59.51 per month from $58.28, indicating pricing resilience. Data consumption patterns underscore the foundation supporting this pricing power. Average monthly data usage climbed 9 percent to 731 gigabytes per user, reflecting both growing demand and Chorus’ advantage as operator of New Zealand’s largest fibre network spanning more than 200,000 kilometres. The company’s management team identified artificial intelligence and data centre growth as the next wave of demand that will test network capacity and underscore fibre’s strategic value.
Dividend policy provides another signal of management confidence. Chorus increased its full-year dividend to 60 cents per share from 57.5 cents, with an unimputed final dividend of 36 cents. The modest increase reflects both the improved earnings profile and the company’s commitment to capital discipline as it continues infrastructure investment.
The results support the strategic reset Chorus announced, repositioning the business toward growth, simplicity and efficiency through FY29. Investors should monitor several factors: the pace of fibre uptake toward the 80 percent target, the trajectory of fibre ARPU as the customer base matures, and capital expenditure levels required to maintain competitive network capabilities. The durability of data growth and the company’s ability to capture value from AI and data centre connectivity will be critical to long-term returns. 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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