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Chorus Is Back in Profit With 1.13 Million Fibre Connections — Is the Boring Stock Finally Exciting?

New Zealand's Internet Backbone Is Quietly Delivering

Chorus isn't the kind of stock that gets people excited at dinner parties. It builds and maintains the fibre broadband network that most of New Zealand runs on. There are no buzzy product launches, no viral moments — just cables in the ground and data flowing through them. But the latest half-year results suggest this "boring" stock might be worth a closer look.

Chorus returned to profit in H1 2026, posting a net profit of $15 million NZD — a significant turnaround from a $5 million loss in the same period last year. Revenue came in at $506 million (up $6 million), and EBITDA rose 3.2% to $357 million. Not explosive growth, but for a regulated infrastructure monopoly, it's exactly what you want to see: steady, predictable, and heading in the right direction.

The Fibre Story Is Working

The key metric for Chorus has always been fibre uptake — how many New Zealanders are switching from copper to fibre broadband. The numbers continue to trend the right way:

  • •Fibre connections: 1.13 million, up 31,000 on the prior year
  • •Fibre as a share of total connections: 95%
  • •Fibre uptake rate: 72.4% of serviceable addresses

That 72.4% uptake means there's still room to grow. Nearly 28% of addresses that *could* be connected to fibre haven't switched yet. As copper services are eventually retired, these customers will migrate — providing a reliable, if gradual, revenue tailwind.

Chorus completed the government's Ultra-Fast Broadband rollout back in 2022, covering 87% of the population. The network is built; now it's about monetising it.

Key Metrics

  • •Share price: ~$9.34 NZD
  • •Market cap: ~$4.2 billion NZD
  • •Trailing dividend yield: 4.2%
  • •Interim dividend: $0.24 per share (up 4% year-on-year)
  • •Full-year dividend guidance: $0.60 per share (unimputed)
  • •FY2026 EBITDA guidance: $710–$730 million (tracking toward the upper half)
  • •Forward EPS consensus: $0.12 NZD

The 4.2% dividend yield is the headline attraction for income-focused investors. Chorus has been steadily growing its dividend — the interim payout rose from 23 cents to 24 cents — and the full-year guidance of 60 cents per share provides visibility.

The Regulated Monopoly Trade-Off

Chorus operates as a regulated wholesale-only network. It doesn't sell broadband directly to consumers — instead, about 100 retail service providers (like Spark, One NZ, and 2degrees) buy wholesale access and resell it. This means Chorus doesn't have to compete for retail customers, but it also means its pricing is subject to regulatory oversight.

This is both the strength and the limitation. The regulatory framework provides revenue certainty but caps the upside. You won't see Chorus doubling in price overnight, but you also won't see it collapsing. It's a utility-style investment with a decent yield.

What to Watch

  • •EBITDA guidance tracking: Management says they're heading toward the upper half of the $710–$730 million range. Hitting $730 million would be a strong result and could support further dividend growth.
  • •Copper switch-off timeline: As Chorus accelerates the retirement of its copper network, operating costs should decline while fibre revenue grows. The timing matters for margin expansion.
  • •Regulatory review: Any changes to the regulated asset base or pricing framework could materially impact Chorus's earnings power. This is the key risk for the stock.
  • •Full-year results (due August 2026): Investors will be watching for confirmation that the return to profitability is sustainable.

The Bottom Line

Chorus won't make you rich quickly, but it might make you richer slowly. A 4.2% dividend yield, growing fibre connections, a return to profitability, and a regulated monopoly position make it a solid defensive holding. The risk is that regulatory changes or slower-than-expected fibre migration could weigh on returns. For investors looking for steady income and low drama, Chorus ticks a lot of boxes.

*Disclaimer: This article is for educational and informational purposes only. It does not constitute financial advice. Stock data may not be real-time. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.*