Chorus (NZX:CNU): What were highlights of recently held ASM?

Highlights

• Chorus released presentation slides with Chairman’s and CEO’s address during the ASM.
• The Chairman stated that there was marginal growth of EBITDA in FY21 results for the year ended June this year.
• The Company’s strategy for FY22 is to attain 1 million connections for Chorus Fibre.

Telco infrastructure provider Chorus Limited (NZX:CNU; ASX:CNU) conducted its Annual Shareholders Meeting (ASM) last week.

Later, the Company released presentation slides with Chairman’s and CEO’s address during the meeting.

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In the Chairman’s words

During the ASM, Patrick Strange, the Company’s Chairman, highlighted the significant part the broadband network has played in helping NZ’s economic and social activities amid the lockdown period.

He further laid stress on the fact that in the six-week period of the latest lockdown, the Company carried above exabyte of data. It was one billion gigabytes and more data than they carried in 2015.

He also highlighted how the workforce remained resilient amid the pandemic, which resulted in the marginal growth of EBITDA in FY21 results for the year ended June this year.

The Company has been able to distribute a dividend of 25 cps for the year and gave dividend guidance for FY22 but would update on it by February.

Related article; How did Chorus (NZX:CNU) perform? What is its FY22 strategy?

Impact of 2020 vs 2021 lockdown on Chorus

The CEO of the Company highlighted that there was around a 30% surge in data demand amid the lockdown. Also, there was a rise in upstream data demand during pre- and post-lockdown periods.

What were the strategies discussed for FY22?

The strategy for FY22 is to attain 1 million connections for Chorus Fibre. The Company is on the right track for this as it has already gained 900K fibre connections (mass market and premium).

Related article; How is Chorus (NZX:CNU) progressing with fibre installation?

The fibre would also enable sustainability and make NZ better since shifting to fibre is anticipated to cut electricity consumption by 30-40%. The Company aims to lessen 80% carbon emissions from the FY12 level by the year 2030.

The Company intends to create a long-duration future of the business by creating an adaptive organisation, improve its resources and their capabilities and solidify upcoming collaborations.

Chorus intends to win in the core fibre business by delivering a winning proposition, leading consumer experience and successful regulatory transition.

Also read; Competition Commission’s Lens on Chorus’ Plan to Spend NZ$1.6b Over three years

On increasing new revenue fronts, the Company intends to achieve Hyperfibre & Edge portfolio (subject to the regulatory outcome) and develop a plan for 2025 and ahead growth.

Further, Chorus intends to optimise non-fibre assets by maximising RONZ value, optimise both copper footprint and property assets.

Do read; Chorus Limited (NZX:CNU) witnesses mixed results in Q2FY21

On 4 November, Chorus was trading down by 0.31% at NZ$6.4, at the time of writing.

Bottom Line

Chorus has its priority clear, which is to concentrate on keeping the gigabit advantage that NZ has developed in the last 10 years. Similar to other telecommunications companies worldwide, the Company also consider fibre to be the best technology to meet the ever-increasing demand in the digital space.