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

Business people discussing project on digital tablet.
Earnings Results

2 ASX All Ords shares surging over 10% on strong results

Investors are buying these shares in response to strong results this morning.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Earnings Results

Xero share price rockets to record high on explosive half-year growth

The tech star delivered another impressive half year results this morning.

Read more »

A man cheers after winning computer game while woman sitting next to him looks upset.
Earnings Results

2 high-flying ASX 200 gaming shares splitting ways today

Which gaming giant is winning the admiration of investors amid results?

Read more »

Male building supervisor wearing high vis vest and hard hat stands and smiles with his arms crossed at a building site
Industrials Shares

This $23 billion ASX 200 stock is surging 6% while the market sinks. Here's why

This ASX 200 stock is shrugging off the wider market sell down today and racing higher. But why?

Read more »

Unsure man analysing data on laptop.
Earnings Results

ASX 200 tech stock sees red as investors punish Q3 results

Investors continue digesting the numbers.

Read more »

Female miner smiling in front of mining vehicle.
Resources Shares

Guess which ASX lithium share is racing 8% higher on record production

Investors are sending the ASX lithium share racing higher on Wednesday.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Earnings Results

CBA shares on watch after delivering $2.5b quarterly profit

The banking giant has made a big quarterly profit. But will it be enough for the market?

Read more »

a farmer kneels on one leg and closely examines soil from his farm against a blue sky backdrop.
Earnings Results

ASX 200 consumer stock surges despite loss and dividend cut

Investors were quick to overlook the negatives.

Read more »