The Chorus Ltd (ASX: CNU) share price is lifting 2% higher in morning trade following the release of its FY22 results.
At the time of writing, Chorus shares are swapping hands at $7.13 apiece.
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Chorus lifts revenue, earnings in FY22
Key takeouts from the 12 months include:
- Reported revenue came in at $965 million, up from $955 million the year prior
- Earnings before interest and tax (EBIT) of $248 million, up from a FY21 result of $230 million
- Net profit after tax (NPAT) of $64 million ahead of the previous year's $51 million
- Chorus' fibre rollout reportedly now 98% completed
- Declared FY22 dividend of 35 cents per share
What else happened during this period for Chorus?
The company added over 88,000 connections, bringing its total to now sit at 959,000 connections.
Operating expenses came in relatively flat at $299 million which led to underlying EBITDA of $660 million and EBIT of $248 million.
Chorus brought this down to an NPAT of $64 million, a substantial gain from last year's bottom-line result.
The performance was a turnaround for Chorus, with the company returning to "earning more than it was investing in the network for the first time in a decade".
This permitted management to authorise a 35 cents per share dividend in FY22, and increased guidance for the FY23 and FY24 dividends' respectively.
Management commentary
Speaking on the announcement, Chorus CEO, JB Rousselot said:
FY22 was a crossroads year for Chorus with the core elements of our utility-style regulatory framework now settled and the finish line in sight for our 11-year fibre rollout. Our fibre rollout is now 98% complete, and we have just 17,000 premises left to pass by Christmas. We added 88,000 new fibre connections to the network, and overall uptake increased from 65% to 69%.
We were pleased to see strong growth in our major centres of Auckland and Wellington, where uptake increased to 79% and 68%, respectively. During the pandemic, our digital inclusion initiatives focused on student broadband connections, helping seniors with their connected lives, and supporting the charitable sector to embrace digital tools.
What's next for Chorus?
The company expects the following ranges of guidance, per the release:
- EBITDA: $655–$675 million
- Capital expenditure: $410–$450 million
- FY23 dividend: increased to 42.5 cents per share
- FY24 dividend guidance: a minimum of 47.5 cents per share
The Chorus share price is up more than 6% in the past 12 months.
