Chorus' chief executive JB Rousselot said copper broadband and voice connections had dropped by about a third, or 104,000. Photo: RNZ
The telecommunications lines company Chorus has posted a 61 percent drop in net profit, with flat revenue growth.
It said increased fibre connections, the uptake of high-speed plans and inflation-linked price changes helped drive revenue growth.
Key numbers for the 12 months ended June compared with a year ago:
- Net profit $25m vs $64m
- Revenue $980m vs $965m
- Operating earnings $682m vs $675m
- FY dividend 42.5 cents per share vs 35 cps
Chorus said the bottom-line reflected increasing interest rates and higher depreciation costs as it shutdown the copper network in fibre areas.
Otherwise, it said costs were stable, despite inflationary pressures.
It said it was transitioning to focus more on operating the network, with the rollout of the ultra-fast broadband rollout finished and the new regulatory regime for fibre established.
"Customers value fibre above other technologies as it offers fast, reliable, and resilient service," chief executive JB Rousselot said.
"Where the long-term value of the connection justifies the cost, we're willing to invest in connecting more addresses or locations to fibre, and our new operating model aligns with this strategy."
He said data consumption trends continued to reinforce the benefits of fibre compared with other technologies, though not all consumers were benefiting.
"It is disappointing to see some retailers not offering all our products to their customers, especially the low-cost Home Fibre Starter service or our multi-gigabit Hyperfibre range," Rousselot said.
"It is often too hard for consumers to find our full range of fibre products, which is unfair as ultimately there is no such thing as 'fibre-like'. Either you're on fibre, or you're not."
He said copper broadband and voice connections had dropped by about a third, or 104,000, with about 240,000 copper connections remaining.
"With copper nearing the end of its technological life, New Zealanders without access to fibre will need to consider alternative technologies."
Chorus expected to pay a dividend of 47.5 cents a share in the current year, with an underlying EDITDA in the range of $680m to $700m.
