Full Year 2024 Chorus Ltd Earnings Call Transcript
Key Points
- Chorus Ltd (CHRYY) reported a strong financial performance for FY24, with EBITDA reaching the top end of their guidance range.
- The company has successfully increased Fibre uptake to 71.5%, with a significant rise in average monthly data usage.
- Chorus Ltd (CHRYY) has managed to keep operating costs largely flat year-over-year, despite inflationary pressures.
- The company has achieved a 39% reduction in Scope 1 and 2 emissions, thanks to increased renewable energy usage and the decommissioning of legacy equipment.
- Chorus Ltd (CHRYY) has a clear strategy to transition to an all-Fibre business by 2030, aiming for 80% Fibre uptake, which aligns with global broadband trends.
- Copper connections have decreased significantly, which may lead to challenges in managing the transition and associated costs.
- The company faces headwinds from the reduction of legacy network services, which are expected to impact revenue in FY25.
- Net interest expenses have increased due to higher debt levels and rising interest rates.
- Chorus Ltd (CHRYY) reported a net loss for the year, partly due to a one-off non-cash tax expense.
- There is uncertainty around the timing and impact of proposed price changes, which are subject to regulatory approval and market conditions.
Good morning, and welcome everyone to our full year results announcement for FY24. I'm Mark Aue This is my first results presentation as the CEO, of course, having taken over the role earlier this year, alongside me as Katrina Smith as our acting CFO.
I'd like to start with an overview of how we've delivered against our plans in FY24. Katrina, then pick up and cover the financials and then the guidance for FY25, after which I'll come back and provide an update on our capital management review and the step changes we're making in our strategy to FY25 and beyond to deliver better outcomes for the longer term horizon. We're really pleased to be reporting another positive financial result, particularly given the challenging macroeconomic environment facing New Zealand businesses, and that demonstrates the resilience of our core Fibre business.
FY24 has reflected our continued momentum to becoming an all-Fibre business with an EBITDA result of the top end of our guidance range. Demand for Fibre has grown to almost 71.5%, with average monthly data usage now higher
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