Chorus has been granted various waivers and rulings from NZX Main Board listing rules: Summary of NZX Waivers year to 30 June 2020 [64.45 KB, pdf] NZX Waiver 3 April 2020 [253.02 KB, pdf] Summary of NZX Waivers – year to 30 June 2019 [62.43 KB, pdf]
Average dividend is 10.43 cents.
Dekker has a neutral rating on Chorus, in part because of the regulatory uncertainty (although the 5G fixed-wireless threat also lurks; more on that soon). Revenue - hit by Covid as new connections paused during the first lockdown - was $959m vs the year-ago $970m, but it was balanced by a fall in expenses during the same period. And it is picking a full-year dividend: 25 cents per share, "subject to no material adverse changes in circumstances or outlook. The second was on July 12, when it made two announcements.
But he also said Chorus was on track to transition to its new dividend policy - that is, paying out a majority of free cash flow - after 2022. The stock is up 59.6 per cent for the year. Chorus might have to cut the price of its lower-end UFB product to compete, Jarden says - potentially crimping its short-term free cash-flow. Chorus Limited (CNU) is a telecommunication business operating a nationwide fixed line access network infrastructure in New Zealand. But the company's largest shareholder - Crown Infrastructure Partners, with its 58 per cent stake (albeit in non-voting shares) - will have to wait four years for is dividends, however.
Jarden says it will be watching Spark (which reports tomorrow) closely for any update on its plans for 5G-enabled fixed-wireless.
The network operator reported net profit for the year June 30 of $52 million against the previous year's $53m, a nose behind Jarden's expectation of $54.4m. Capital expenditure will be $630m - $670 million. Dekker and Lowe see the really fat payouts from FY2023, when they're picking 40cps, then 45cps then 50cps over the following two years - rising to 54cps by 2029 as Chorus sits back and enjoys the big boost in free cash flow after the heavy-spending UFB rollout years. 24 Aug, 2020 05:57 AM 11 minutes to read. Collins said this morning that it could be mid-2021 before the new regulatory regime was finalised. In the meantime, Jarden notes that by cutting prices on its top plans and raising them on its cheapest, Chorus has been "taking the alternative and logical approach of incentivisingRSPs to push end users towards a 1Gbp product that is raising ARPU" [average revenue per user per month". Chorus provides a full suite of regional aviation support services that encompasses every stage of an aircraft’s lifecycle, including: aircraft acquisitions and leasing; aircraft refurbishment, engineering, modification, repurposing and preparation; contract flying; aircraft and component maintenance, disassembly, and parts provisioning. We believe using more recent dividend history can provide better dividend analysis for a company. Retailers have also banded together to call on Chorus to delay a $1/month wholesale price increase on the most popular type of UFB fibre plan )100 megabits per second) from October 1, so far with no success.
Chorus says it needs to raise the cost to continue investing.
Some of the benefits of participating in the DRIP include the current discount of 4%, the convenience of automatic reinvestment, savings from not having to pay brokerage fees or other service charges for shares purchased under the DRIP, and the ability to acquire fractional shares. Chorus had already warned that level 4 lockdowns would hit UFB installations, which it today said fell by around 15,000 during its financial year fourth quarter because of restrictions on non-essential activity. Necessary cookies are absolutely essential for the website to function properly.