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 FY21 – First Impressions</h2>
There is nothing materially new in Chorus’s (CNU) FY21 result. Revenue, EBITDA, capex, and dividends were all in line with our forecast. NPAT was ahead on lower interest costs.
The main new information was FY22 guidance, including capex and dividend guidance. Dividend guidance is lower than both our and consensus forecasts, seemingly reflecting (1) higher capex from expected fibre network connections, and (2) payout constraints from CNU’s BBB credit rating. It appears the market may have to moderate its expected ramp-up in CNU’s short to medium-term dividend profile, although the end outcome should not change. &nbsp;
Guidance
CNU’s FY22 guidance:
<ul>
<li>EBITDA NZ$640-660m vs. Forbar NZ$651m / consensus NZ$643m.</li>
<li>Capex NZ$550-290m vs. Forbar NZ$481m / consensus NZ$516m principally due to higher expected fibre connections.</li>
<li>Dividend NZ26cps vs. Forbar NZ30cps / consensus NZ29cps.</li>
</ul>
Investor briefing
Conference call: 10:00am (NZ time), NZ 0800 452 257, AU 1800 093 431, HK +852 3005 2399, Singapore 800 120 6856, US 1877 788 9032, int’l +61 2 8047 9393. Passcode: 17331551#.
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=1629763935865000&amp;usg=AFQjCNGeH2Zvfq3_KgN0qbsszO_Oip_Zbg" rel="noopener">www.chorus.co.nz/webcast</a>
FY21 result summary
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/225/426/original/image_84003626931629678847741.png?1629678849" class="editor-image img-responsive" data-smartkarma-image-id="225426"></figure>
Source: Company reports, Forsyth Barr analysis

Chorus FY21 – First Impressions
There is nothing materially new in Chorus’s (CNU) FY21 result. Revenue, EBITDA, capex, and dividends were all in line with our forecast. NPAT was ahead on lower interest costs.
The main new information was FY22 guidance, including capex and dividend guidance. Dividend guidance is lower than both our and consensus forecasts, seemingly reflecting (1) higher capex from expected fibre network connections, and (2) payout constraints from CNU’s BBB credit rating. It appears the market may have to moderate its expected ramp-up in CNU’s short to medium-term dividend profile, although the end outcome should not change. &nbsp;
Guidance
CNU’s FY22 guidance:

EBITDA NZ$640-660m vs. Forbar NZ$651m / consensus NZ$643m.
Capex NZ$550-290m vs. Forbar NZ$481m / consensus NZ$516m principally due to higher expected fibre connections.
Dividend NZ26cps vs. Forbar NZ30cps / consensus NZ29cps.

Investor briefing
Conference call: 10:00am (NZ time), NZ 0800 452 257, AU 1800 093 431, HK +852 3005 2399, Singapore 800 120 6856, US 1877 788 9032, int’l +61 2 8047 9393. Passcode: 17331551#.
Webcast:&nbsp;www.chorus.co.nz/webcast
FY21 result summary

Source: Company reports, Forsyth Barr analysis

Chorus Ltd

Chorus: FY21 – First Impressions