Chorus is the largest fixed line wholesale broadband provider in New Zealand. They own and operate the country’s copper and fiber infrastructure, including the Ultra-Fast Broadband (UFB) network. They then sell access on a wholesale basis to retail providers like Spark (SPK) and Vodafone.
CNU reported flat revenue of NZ$500 million for the first half of FY25, with EBITDA steady at NZ$346 million, and raised its interim dividend by 21% to NZ$0.23 per share, reaffirmed full-year guidance, and remains focused on its goal of transitioning to a fully fibre network by 2030. We like the forward thinking direction being taken by CNU, and we view their earnings as very defensive and largely predictable.
- We believe CNU offers good risk/reward around the $8 area – it’s forecasted to yield more than 6.8% unfranked over the coming year.
MM is bullish towards CNU around $8
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