Chorus Limited

Chorus Ltd :SALE OF UFB FUNDING SECURITIES TO PROCEEDSECURITIES HAVE A TOTAL FACE VALUE OF NZ$1.16 BILLION

Reuters

Chorus Limited (NS) Says Sale Of UFB Funding Securities To Proceed

Chorus Limited has issued EUR400 million in wholesale notes under its 2025 Euro Medium Term Notes programme. This issuance is part of the company's strategy to secure funding through international markets, aiming to enhance financial flexibility and support operational goals.

Tip Ranks

Chorus Limited Issues EUR400 Million in Wholesale Notes

New Zealand's S&P/NZX 50 index rose 0.6% to 13,506, led by technology services shares. Gentrack Group surged over 18% after surpassing earnings estimates. Other gainers included Briscoe Group, Serko, Sanford Limited, Chorus Limited, and Tourism Holdings. Markets focus on the Reserve Bank's monetary policy decision, with expectations of a rate cut. Traders await economic data releases.

Trading Economics

New Zealand Stocks End Higher

The word on The Street in general, suggests a Hold analyst consensus rating for Chorus Limited.

Chorus Limited (CHRUF) Gets a Buy from Macquarie

The analyst consensus on Chorus Limited is currently a Hold rating.

Macquarie Reaffirms Their Buy Rating on Chorus Limited (CHRUF)

The New Zealand government is considering selling its UFB funding securities in Chorus Limited (CHRUF), as announced by the Ministers of Finance and Infrastructure. This feasibility investigation by NIFFCo is not expected to change the terms of the securities, and Chorus will monitor the process closely. Chorus Limited operates in the telecommunications sector, focusing on broadband infrastructure and the Ultra-Fast Broadband (UFB) build programs in New Zealand.

Government Considers Sale of Chorus UFB Securities

Chorus Limited (NZSE:CNU) has a low Return on Equity (ROE) of 0.7%, significantly below the Telecom industry average of 3.8%. This suggests sub-optimal performance, although there may be opportunities for improvement through leverage, given its high debt-to-equity ratio of 6.75. While ROE is a useful metric for assessing business quality, investors should consider other factors, such as profit growth rates, before making investment decisions. Overall, Chorus may not be the best stock to buy, and investors are encouraged to explore alternatives with higher ROE and lower debt.

Simplywall

Can Chorus Limited (NZSE:CNU) Improve Its Returns?

Chorus Limited (NZSE:CNU) has a significant debt burden, with NZ$3.74 billion in net debt and liabilities totaling NZ$5.29 billion, exceeding its market capitalization of NZ$4.14 billion. The company's high net debt to EBITDA ratio of 5.8 and weak interest coverage (EBIT at 1.1 times interest expense) raise concerns about its financial health. Despite some free cash flow, the overall outlook is cautious, indicating that shareholders should monitor liquidity closely due to the risks associated with its balance sheet.

Is Chorus (NZSE:CNU) Using Too Much Debt?

MUFG

Chorus Limited (CHRUF) has reported a reduction in substantial shareholding, with Mitsubishi UFJ Financial Group and its subsidiaries decreasing their stake from 5.022% to 4.313% of the ordinary shares. This change signifies a notable shift in the company's shareholder composition.

Mitsubishi UFJ Financial

Chorus Limited Sees Reduction in Substantial Shareholding

Chorus Limited has opened the nomination period for its Board of Directors, closing on September 11, 2025, ahead of the Annual Shareholders’ Meeting on November 5, 2025. The company received a waiver from NZX listing rules to restrict certain telecommunications service associates from being appointed as directors, which may influence its governance and strategic direction. Chorus Limited operates in the telecommunications sector, providing essential network infrastructure services in New Zealand.

Chorus Limited Opens Director Nominations Ahead of Annual Meeting

Investing in Chorus Limited (NZSE:CNU) five years ago would have yielded a total shareholder return (TSR) of 52%, despite a share price increase of only 18%. The company's earnings per share (EPS) dropped 35% annually during this period, indicating a disconnect between share price and earnings. However, the dividend has increased, attracting dividend investors. Recent performance shows a 18% TSR over the past year, suggesting potential business momentum. Investors should be aware of two warning signs before investing.

Investing in Chorus (NZSE:CNU) five years ago would have delivered you a 52% gain

Chorus Limited (CHRUF) reported strong fibre growth in its Q4 FY25 update, highlighting a significant increase in data demand due to seasonal streaming and gaming. The company achieved net growth in fibre connections while upgrading home fibre plans at no extra cost to retailers. Chorus plans to retire copper services in fibre areas by mid-2026 and aims to expand fibre coverage to 95% of New Zealanders, supported by the government’s Infrastructure Commission.

Chorus Limited Reports Strong Fibre Growth and Connectivity Enhancements in Q4 FY25

Chorus Limited (NZSE:CNU) has increased its debt to NZ$3.72 billion, with a net debt of NZ$3.64 billion after accounting for cash reserves. The company's liabilities exceed its cash and receivables by NZ$1.69 billion, raising concerns about its financial health. With a weak interest cover of 1.1 times and a high net debt to EBITDA ratio of 5.8, Chorus is considered to have a heavy debt load. Although EBIT improved by 4.3% over the past year, the company's weak cash flow conversion poses challenges in managing its debt, making it a risky investment.

These 4 Measures Indicate That Chorus (NZSE:CNU) Is Using Debt Extensively

Chorus Limited has updated the timetable for its $170 million capital notes offer, which will now open on May 26, 2025. The issuance is expected on June 6, 2025, with listing on the NZX Debt Market on June 9, 2025. This adjustment follows a delay to confirm equity content treatment with S&P Global Ratings, aiming to strengthen Chorus's financial position and market presence.

Chorus Limited Updates Timetable for $170 Million Capital Notes Offer

Chorus Limited (CHRUF) announced a minor change in substantial holding by Mitsubishi UFJ Financial Group, Inc. and its subsidiaries, with their stake decreasing from 5.011% to 4.999%. This adjustment reflects a slight shift in their investment portfolio, potentially affecting their influence in Chorus Limited's shareholder decisions. The current market cap of Chorus Limited is $2.11B, with a year-to-date price performance of 2.38%.