28 Aug 2012

Maiden profit lifts Chorus share price

7:04 am on 28 August 2012

The share price of Telecom spin-off Chorus has jumped nearly 7% to $3.37 after reporting its maiden profit as a stand-alone company, and flagged a dividend of 25.5 cent per share for the coming year.

Chorus was separated from Telecom's retail arm at the end of last year and made a profit of $102 million in the seven months to June. Gross earnings stood at $399 million.

Chief financial officer Andy Carroll said a broad comparison with the previous year showed modest growth.

"We have produced revenue growth in the order of 1.5%, on a like-for-like basis," he said on Monday.

"Revenue has increased partly as a result of increased (numbers of) broadband connections, growth in fibre revenue and value-added network services," Mr Carroll said.

New fibre and rural broadband networks accounted for most of the $346 million budget for capital spending, which will rise to between $560 - $610 million this financial year.