Chorus reported an 18 per cent drop in first-half profit, meeting estimates, as the telecommunications network operator contends with regulated price cuts to sell access to its copper line network, while narrowing the forecast cost to build its nationwide fibre network.
Net profit fell to $64 million, or 14 cents per share, in the six months ended December 31, from $78 million, or 17 cents, a year earlier, the Wellington-based company said in a statement. That was in line with Forsyth Barr's estimate for a profit of $64 million and ahead of First NZ Capital's forecast for $58 million.
Revenue slipped 1.5 per cent to $527 million, while earnings before interest, tax, depreciation and amortisation declined 2.4 per cent to $321 million. Chorus affirmed its annual Ebitda guidance of between $590 million and $605 million.
"This represents another period of solid operating performance by Chorus, underpinned by stable fixed line connection numbers, continuing broadband growth and the ongoing focus on initiatives to address the regulatory price cuts from 1 December 2014," said chief executive Mark Ratcliffe. "A large number of revenue, operating cost and capital expenditure initiatives have now been implemented and Chorus will continue to limit discretionary spending."
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