Chorus Faces Business Operations Setbacks Despite Revenue Growth in Networking

Networking Industry Impact Post

Chorus, a major player in the networking industry, has announced a net loss of $9 million for the year ending June 2024. This loss starkly contrasts a profit of $25 million the previous year.

Key Financial Highlights

• One-Time Expense: A $15 million non-cash tax expense played a pivotal role in the loss.
• Depreciation Changes: An $11 million hike in depreciation was attributed to the accelerated write-down of copper assets.
• Revenue growth of 3% was reported, climbing from $980 million to $1 billion.

Operational Excellence Amidst Challenges

Despite a slight increase of $2 million in operating expenditure to reach $310 million, strict cost management aided by favorable weather conditions helped counter inflation effects.

Future of Fiber Connectivity

Chorus's EBITDA increased by 4% to $700 million, indicating operational resilience. Fiber connections surged by 53,000, representing 87% of Chorus’s fixed lines, with the goal to achieve 80% uptake by 2030. Data demands are also on the rise, with a growth of 8% to 7,974 petabytes, driven largely by their fiber network, which handles 94% of this traffic.

CEO Mark Aue expressed optimism during the recent shareholder meeting, emphasizing the company's commitment to simplifying its operations and transitioning fully to a fiber-based infrastructure.