The Chorus Ltd (ASX: CNU) share price is down 1.43% to $4.82 this morning after the New Zealand telco reported lower customer and earnings numbers in its full-year results.
What did Chorus announce this morning?
For the year ended 30 June 2019 (FY19), Chorus' earnings before interest, tax, depreciation and amortisation (EBITDA) edged lower to $636 million compared to the prior corresponding period (pcp).
However, this was still within the company's FY19 guidance range as operating revenue and operating expenses also came in marginally lower on FY18 numbers at $970 million and $334 million, respectively.
Net profit after tax (NPAT) came in at $53 million, with lower earnings and higher borrowing costs the biggest factors in the 37.6% fall compared to pcp.
There were some positives in the result, with Chorus reporting an increase in broadband connections to 1,196,000 (FY18: 1,187,000) and a 1 cent per share (cps) in its final dividend to 23 cps.
Chorus' fibre connections also surged 25% to 610,000 (FY18: 445,000) despite a fall in fixed-line connections for the group to 1,450,000 (FY18: 1,526,000).
The New Zealand telco said its ultra-fast fibre broadband (UFB) rollout is now 80% complete, with 842,000 premises passed and uptake increasing from 45% to 53% in FY19.
What about the Chorus CEO?
Alongside its full-year results, Chorus announced that CEO Kate McKenzie is set to step down as CEO and Managing Director at the end of 2019.
Chorus said that Ms McKenzie is set to return to Australia at the end of the year and the process to appoint her successor is underway.
How is FY20 shaping up?
Chorus provided FY20 gross capex guidance of $660 million to $700 million with Fibre accounting for $550 million of that total spend.
The New Zealand telco also said FY20 EBITDA guidance of $625 million to $645 million, representing "modest" EBITDA growth, with an expected reduction in expenses as a result of its various efficiency initiatives.
In terms of distributions, Chorus announced 13.5 cents per share fully-imputed dividend for FY19 with FY20 guidance of 24 cps, subject to no material change in circumstances.
Chrous remains focused on regulatory outcomes that support a "solid fibre utility" as well as optimising its non-fibre business and commercialising new revenue opportunities in FY20.
