Chorus FY19 profit plummets

Net profit after tax drops by 43 per cent

Chorus has reported a 43 percent decline in NPAT to $53m for the year to 30 June, on revenues of $970m, down from $990m in FY18. EBITDA was $636m, down from $653m.

Chorus said the profit drop was a result of reduced revenue, increased interest costs of borrowing to fund the UFB rollout, and depreciation and amortisation.

The company said interest costs had increased by $18m year on year due to the issuance of a new $500m domestic bond in December 2018. Depreciation and amortisation increased by $5m to $393m. However these increases were offset by a drop in income tax of $12m, to $25m.

Chorus also announced CEO Kate McKenzie would step down at the end of 2019.

In FY19 the company boosted revenue from its fibre broadband services by $98m to $298m, but this gain was offset by a $77m decline, to $344m in revenue from copper broadband services and $27m in copper voice services.

For FY20 the company is forecasting modest EBITDA growth to $625m - $645mm “subject to no material changes in expected regulatory environment or competitive outlook.”

Chorus chair Patrick Strange announced CEO Kate McKenzie’s decision to step down at year end saying she planned to return to Australia and did not anticipate taking on any other executive role.

“The board has been considering succession planning for some time, and the process to appoint a successor is underway,” he said.

“Kate and the board are committed to an orderly transition, as she remains focused on maintaining the progress made to date. We are sorry to see her go but understand her desire to spend more time with her Sydney-based family.”

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