Bulletin: Chorus' Results Signal Telco's Well-Wired Position

MELBOURNE (S&P Global Ratings) Aug. 26, 2020--S&P Global Ratings said today that New Zealand-based telco Chorus Ltd. (BBB/Stable/--) has taken COVID-19 operational and financial disruptions in its stride. Indeed, we see COVID-19 as strengthening Chorus' importance to New Zealand consumers and the broader economy. Results for the year ended June 30, 2020, show cost reductions offsetting COVID-19-related revenue pressure, resulting in EBITDA of NZ$648 million (NZ$636 million in fiscal 2019). The company expects to deliver EBITDA in the range of NZ$640 million to NZ$660 million in fiscal 2021, including a NZ$10 million COVID-19 allowance, which should enable modest dividend growth to 25 cents per share. We anticipate Chorus will materially improve its free operating cash generation from fiscal 2022 as

...August 25, 2020 MELBOURNE (S&P Global Ratings) Aug. 26, 2020--S&P Global Ratings said today that New Zealand-based telco Chorus Ltd. (###/Stable/--) has taken COVID-19 operational and financial disruptions in its stride. Indeed, we see COVID-19 as strengthening Chorus' importance to New Zealand consumers and the broader economy. Results for the year ended June 30, 2020, show cost reductions offsetting COVID-19-related revenue pressure, resulting in EBITDA of NZ$648 million (NZ$636 million in fiscal 2019). The company expects to deliver EBITDA in the range of NZ$640 million to NZ$660 million in fiscal 2021, including a NZ$10 million COVID-19 allowance, which should enable modest dividend growth to 25 cents per share. We anticipate Chorus will materially improve its free operating cash generation from fiscal 2022 as New Zealand's fiber broadband rollout unwinds, improving Chorus' financial flexibility. Consequently, the company is looking to transition to a free cash flow-based dividend policy...

Bulletin