New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<h2>Chorus</h2>
FY19 result – First Impressions
There is nothing materially new in CNU’s FY19 result.
Revenue was in line with our forecast, with EBITDA slightly ahead on lower network maintenance and IT operating costs.
Capex of NZ$804m was below guidance NZ$820-860m and our NZ$864m, helped by mix and cost per connection coming near the bottom of the expected range. &nbsp;
Guidance
The key new information in today’s release is FY20 guidance.
<ul>
<li>EBITDA NZ$625-645m vs. Forbar NZ$620 / consensus NZ$638m supported by “a continued reduction” in opex.</li>
<li>Capex NZ$660-700m vs. Forbar NZ$685m / consensus NZ$689m.</li>
<li>Dividend NZ24cps in line with Forbar and consensus.</li>
</ul>
Investor briefing
Conference call: 11:00am (NZ time), NZ 0800 452 257, AU 1800 093 431, US 1877 788 9032, int’l +61 2 8047 9393. Passcode: 16691517#.
Webcast:&nbsp;<a href="http://www.chorus.co.nz/webcast" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://www.chorus.co.nz/webcast&amp;source=gmail&amp;ust=1566870038773000&amp;usg=AFQjCNEeapeP_xwMoWzrFKmGokTV6wWU1g" rel="noopener">www.chorus.co.nz/webcast</a>
FY19 result summary
<table class="table table-striped"><colgroup> </colgroup>
<tbody>
<tr>
<td>NZ$m</td>
<td>Fy18</td>
<td>FY19</td>
<td>% chg</td>
<td>Forbar</td>
<td>% diff</td>
</tr>
<tr>
<td>Revenue</td>
<td>990</td>
<td>970</td>
<td>-2.0%</td>
<td>970</td>
<td>0.0%</td>
</tr>
<tr>
<td>EBITDA</td>
<td>653</td>
<td>636</td>
<td>-2.6%</td>
<td>629</td>
<td>1.1%</td>
</tr>
<tr>
<td>EBITDA</td>
<td>266</td>
<td>243</td>
<td>-8.6%</td>
<td>231</td>
<td>5.1%</td>
</tr>
<tr>
<td>Reported NPAT</td>
<td>85</td>
<td>53</td>
<td>-37.6%</td>
<td>49</td>
<td>7.7%</td>
</tr>
<tr>
<td>Underlying EPS (cps)</td>
<td>20.2</td>
<td>12.2</td>
<td>-39.7%</td>
<td>11.3</td>
<td>7.7%</td>
</tr>
<tr>
<td>Dividend (cps)</td>
<td>22.0</td>
<td>23.0</td>
<td>4.5%</td>
<td>23.0</td>
<td>0.0%</td>
</tr>
</tbody>
</table>
Source: Company reports, Forsyth Barr analysis
Matt Henry&nbsp;&nbsp;CFA
Director / Senior Analyst, Equities&nbsp;
<table class="table table-striped">
<tbody>
<tr>
<td>
T:&nbsp;
</td>
<td>
+64 9 368 0115
</td>
</tr>
<tr>
<td>
TF:&nbsp;
</td>
<td>
0800 367 227
</td>
</tr>
<tr>
<td>
F:&nbsp;
</td>
<td>
+64 9 368 0092
</td>
</tr>
<tr>
<td>
P:&nbsp;
</td>
<td>
PO Box 97, Auckland 1140
</td>
</tr>
<tr>
<td>
&nbsp;
</td>
<td>
&nbsp;
</td>
</tr>
<tr>
<td>
W:&nbsp;
</td>
<td>
<a href="http://www.forsythbarr.co.nz/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://www.forsythbarr.co.nz&amp;source=gmail&amp;ust=1566870038773000&amp;usg=AFQjCNFQ-o7GFNPMxDpFHgUg1fG6ZgTE8A" rel="noopener">www.forsythbarr.co.nz</a>
</td>
</tr>
<tr>
<td>Twitter:</td>
<td>
<a href="http://twitter.com/forsythbarr" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://twitter.com/forsythbarr&amp;source=gmail&amp;ust=1566870038773000&amp;usg=AFQjCNHDz-k-lOD45WWvuomPZPaBYh9i4A" rel="noopener">@forsythbarr</a>
</td>
</tr>
</tbody>
</table>

Chorus
FY19 result – First Impressions
There is nothing materially new in CNU’s FY19 result.
Revenue was in line with our forecast, with EBITDA slightly ahead on lower network maintenance and IT operating costs.
Capex of NZ$804m was below guidance NZ$820-860m and our NZ$864m, helped by mix and cost per connection coming near the bottom of the expected range. &nbsp;
Guidance
The key new information in today’s release is FY20 guidance.

EBITDA NZ$625-645m vs. Forbar NZ$620 / consensus NZ$638m supported by “a continued reduction” in opex.
Capex NZ$660-700m vs. Forbar NZ$685m / consensus NZ$689m.
Dividend NZ24cps in line with Forbar and consensus.

Investor briefing
Conference call: 11:00am (NZ time), NZ 0800 452 257, AU 1800 093 431, US 1877 788 9032, int’l +61 2 8047 9393. Passcode: 16691517#.
Webcast:&nbsp;www.chorus.co.nz/webcast
FY19 result summary
 


NZ$m
Fy18
FY19
% chg
Forbar
% diff


Revenue
990
970
-2.0%
970
0.0%


EBITDA
653
636
-2.6%
629
1.1%


EBITDA
266
243
-8.6%
231
5.1%


Reported NPAT
85
53
-37.6%
49
7.7%


Underlying EPS (cps)
20.2
12.2
-39.7%
11.3
7.7%


Dividend (cps)
22.0
23.0
4.5%
23.0
0.0%



Source: Company reports, Forsyth Barr analysis
Matt Henry&nbsp;&nbsp;CFA
Director / Senior Analyst, Equities&nbsp;




T:&nbsp;


+64 9 368 0115




TF:&nbsp;


0800 367 227




F:&nbsp;


+64 9 368 0092




P:&nbsp;


PO Box 97, Auckland 1140




&nbsp;


&nbsp;




W:&nbsp;


www.forsythbarr.co.nz



Twitter:

@forsythbarr





Chorus: FY19 Result – First Impressions

Chorus Ltd

Chorus: FY19 Result – First Impressions