Chorus profit slips but UFB on track
- 24 February, 2014 09:28
Broadband infrastructure company, Chorus, recorded a net profit after tax (NPAT) of $78 million in the first half of the 2014 fiscal year, down from $84m in the previous corresponding period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) also slipped to $329 in the six months ended December 31, down from last year’s $331m.
Total revenue is calculated at $535m, most of which, unsurprisingly, came from basic copper services ($279m).
Commenting on the results, Chorus chief executive officer (CEO), Mark Ratcliffe, said, “We are getting on with managing our costs and revenues without reliance on any regulatory outcomes.”
“The reality of our situation is that like all of the telecommunications industry, we are adapting our business to significantly lower revenues.”
Chorus said it is on track with its Ultra-Fast Broadband (UFB) rollout, having completed 24 per cent; 199,000 premises have been passed, putting 259,000 end users in reach of UFB. The Rural Broadband Initiative (RBI) now extends to 61,700 lines.
Total fibre connections amount to 27,000. Cost per premises passed is in line with 2014 financial year guidance of $2900 to $3200.
“Chorus has spent more than $1.1 billion on fibre networks and capability in the two years since the demerger,” Ratcliffe said. “Both the UFB and RBI are comfortably on track.”