Chorus Ltd.

Overview Key strengths Key risks Strong market position as owner of the dominant fixed-line telecommunications wholesale access network in New Zealand. Network volume risks associated with wireless substitution and line loss to local fiber companies. Earnings predictability and stability from the new regulatory framework. Organic growth potential limited by household numbers. Track record of leverage management to underpin creditworthiness. Maintenance of legacy copper network. . We consider the company?s earnings to be more stable and predictable following the commencement of New Zealand's new regulatory model for fiber that took effect in January 2022. Fiber revenues subject to the regulatory regime should account for almost three-quarters of Chorus' revenue by the end of the current regulatory period in fiscal 2024 (ended

...The introduction of a utility-like "building block" regulatory framework, which determines an annual maximum allowable revenue, underpins our view of the robust business profile of the Chorus. We consider the company's earnings to be more...

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