Chorus share price lifts as company declares 35 cents per share dividend

Chorus posts earnings today.

| More on:
Smiling man holding Australian dollar notes, symbolising dividends.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Chorus shares are lifting in early trade today 
  • The moves come following the release of the company's FY22 earnings results 
  • The Chorus share price is up more than 6% in the past 12 months 

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.

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.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Earnings Results

Which ASX shares delivered the biggest profit jumps of the earnings season?

These companies revealed at least a 70% profit boost in their latest earnings reports.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Earnings Results

Why this ASX 300 share is leaping 14% despite being branded a 'sell'

Falling profits are putting investors off the fund manager.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Technology Shares

Life360 share price rockets 24% after smashing FY23 earnings expectations

This tech stock delivered a very strong result this morning. How strong was it?

Read more »

a man in a shirt and tie holds his chin in thoughtful contemplation and looks skywards as if thinking about something while a graphic of a road with many ups and downs unfurls behind him.
Earnings Results

What's with the Neuren Pharmaceuticals share price today?

The full market reaction to the Daybue developer's FY23 earnings report won't be seen until tomorrow.

Read more »

Two workers at an oil rig discuss operations.
Earnings Results

2 ASX energy shares going gangbusters on today's earnings results

The ASX energy shares are drawing investor interest today after releasing their half-year earnings results.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

This ASX 300 stock just jumped 12%! Here's why

The ASX 300 stock is impressing investors with its half-year earnings results.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Earnings Results

Mesoblast share price tumbles on US$32.5m half-year loss

This biotech continues to burn cash.

Read more »

Man and woman sitting at casino table playing poker
Earnings Results

Star Entertainment share price jumps 5% on strengthening outlook

ASX 200 investors are bidding up the Star Entertainment share price on Thursday.

Read more »