New Zealand operator Chorus announced that Kate McKenzie is to step down as CEO and Managing Director at the end of 2019. She plans to return to Australia after three years in the role of CEO. The announcement came alongside annual results for the company showing EBITDA down in line with guidance and strong take-up on the national fibre network. Chorus said it aims to return to EBITDA growth in the new year as it starts looking at winding down parts of the copper network.
No successor has been named yet for McKenzie. Chorus said it was sorry to see her go and thanked it for the "superb work" done. The company will consider internal and external candidates for her replacement.
Chorus reported revenues for the year to June down at NZD 970 million from NZD 990 million a year earlier due mainly to the decline in legacy voice services, and EBITDA dropped to NZD 636 million from NZD 653 million. EBITDA was in line with the company's guidance range for the year. Net profit fell to NZD 53 million from NZD 85 million, also hurt by increased interest costs of borrowing to fund the UFB roll-out.
The company proposed a final dividend of 13.5 cents a share, up from 13 cents a year ago and said it aims for a further modest increase in the new year. Annual EBITDA in the new year is estimated at NZD 625-645 million, supported a continued focus on costs and gradual improvement in ARPU on demand for gigabit speeds. Capex is estimated at NZD 660-700 million this year. Chorus said capex peaked last year at NZD 804 million, which was also below the forecast range.
Chorus ended the year with 610,000 fibre connections, up from 445,000 a year earlier. Total broadband connections rose by a net 9,000 to 1.196 million, while the fixed line base was down by 76,000 to 1.450 million.
The operator said its UFB roll-out was 80 percent complete, and take-up in built areas had improved to 53 percent from 45 percent. In total, over 1.1 million premises can connect to the fibre network, after another 176,000 passed in the past year.
Chorus said it was starting to think about parts of its copper network that could be shut down as operations switch to fibre. The regulator is expected to present an industry plan for the copper shutdown by mid-2020. The reduced reliance on copper is already helping the company save on maintenance costs and capex.
