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CHORUS LIMITED — Interim / Quarterly Report 2021
Apr 14, 2021
64680_rns_2021-04-14_3371839b-8d08-4dfb-b3a6-d259c121c603.pdf
Interim / Quarterly Report
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Chorus Limited Level 10, 1 Willis Street P O Box 632 Wellington New Zealand
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Email: [email protected]
STOCK EXCHANGE ANNOUNCEMENT
15 April 2021
Q3 FY21 overview
Total fixed line connections declined by 13k to 1,356,000*
Copper broadband and voice connections declined by 42k (Q2 FY21: -50k; Q3 FY20: -44k)
-
fixed wireless providers are continuing inertia selling campaigns to their fixed line customers
-
2degrees has begun promoting fixed wireless
-
Vodafone introduced new $40 4G fixed wireless plan with 60GB data
Total broadband connections declined by 2k to 1,181,000 * (Q2 FY21: -10k; Q3 FY20: -4k)
-
return of students from holidays helped restore some prior period disconnections
-
COVID-19 impact on net migration and population growth continues to constrain broadband growth
Fibre broadband connections increased by 29k (Q2 FY21: +29k; Q3 FY20: +32k)
-
1Gbps consumer connections increased 7k
-
fibre uptake across the completed UFB footprint grew from 63% to 64%, with Chorus’ managed migrations programme adding another 7k activations
-
average monthly data usage on fibre increased to 491GB, up from 460GB in Dec (including upstream traffic)
-
Sky TV began promoting fibre broadband to its existing customer base towards the end of Q3
*totals exclude the 11,000 broadband connections Chorus is currently providing free to student households
Authorised by: JB Rousselot Chief Executive Officer
ENDS
For further information:
Steve Pettigrew Head of External Communications Mobile +64 (27) 258 6257 Email: [email protected]
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Brett Jackson Investor Relations Manager Phone: +64 4 896 4039 Mobile: +64 (27) 488 7808 Email: [email protected]
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Q3 FY21 Connections Update
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Q3 FY21 CONNECTIONS UPDATE
15 April 2021
Q3 FY21 overview
Total fixed line connections declined by 13k to 1,356,000* (Q2 FY21: -21k)
> Copper broadband and voice connections declined by 42k (Q2 FY21: -50k; Q3 FY20: -44k)
-
fixed wireless providers are continuing inertia selling campaigns to their fixed line customers
-
2degrees has begun promoting fixed wireless
-
Vodafone introduced new $40 4G fixed wireless plan with 60GB data
-
Total broadband connections declined by 2k to 1,181,000 * (Q2 FY21: -10k; Q3 FY20: -4k)
-
return of students from holidays helped restore some prior period disconnections
-
COVID-19 impact on net migration and population growth continues to constrain broadband growth
> Fibre broadband connections increased by 29k (Q2 FY21: +29k; Q3 FY20: +32k)
-
1Gbps consumer connections increased 7k
-
fibre uptake across the completed UFB footprint grew from 63% to 64%, with Chorus’ managed migrations programme adding another 7k activations
-
average monthly data usage on fibre increased to 491GB, up from 460GB in Dec (including upstream traffic)
-
Sky TV began promoting fibre broadband to its existing customer base towards the end of Q3
*totals exclude ~11,000 broadband connections Chorus is currently providing free to student households
2
Connection changes by Zone (indicative)
-
Chorus UFB zone: return to broadband growth reflects return of students and premises growth, while fixed wireless providers continued inertia selling campaigns targeting copper voice and broadband customers
-
LFC zone : disconnections continue at consistent rate reflecting Local Fibre Company and fixed wireless provider activity
-
Non-UFB zone : increasing rural wireless competition as mobile providers expand wireless coverage and capacity
| Chorus UFB zone* |
Non-UFB zone |
Local Fibre Company UFB zone |
|
|---|---|---|---|
| Total connections at 31 March** |
1,074,000 | 188,000 | 80,000 |
| Broadband connections | 980,000 | 151,000 | 50,000 |
| Copper (no broadband) connections |
94,000 | 37,000 | 30,000 |
-
Includes planned Chorus UFB1, 2 and 2+ coverage
-
**Excludes 14k fibre premium and data services (copper) connections
Change in connections (‘000s) by zone**
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-15 -5 5 15
LFC
Q3 FY20 -2 -8 Zone
Q4 FY20 -2 -4
Q1 FY21 -2 -9
Q2 FY21 -3 -6
Q3 FY21 -2 -6
Non-
Q3 FY20 -11
Q4 FY20 -1 UFB
Q1 FY21 -1-2 Zone
Q2 FY21 -1
Q3 FY21 -1-2
Q3 FY20 -5 3
Chorus
Q4 FY20 -5 8
Q1 FY21 -8 -2 UFB Zone
Q2 FY21 -7 -4
Q3 FY21 -8 6
Broadband connections
Copper (no broadband) connections
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3
Fibre comprises 62% of Chorus connections
| 31 March | 30 June | 30 Sept | 31 Dec | 31 March | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2020 | 2020 | 2020 | 2021 | 1,400,000 | Baseband copper | ||||||||
| Unbundled copper (no broadband) |
17,000 | 15,000 | 14,000 | 13,000 | 11,000 | 1,200,000 | Unbundled copper | |||||||
| Baseband copper (no broadband) |
185,000 | 179,000 | 169,000 | 159,000 | 150,000 | 1,000,000 | Copper ADSL | |||||||
| Copper ADSL | 261,000 | 245,000 | 218,000 | 197,000 | 180,000 | |||||||||
| (includes naked) | 800,000 | VDSL | ||||||||||||
| VDSL | 228,000 | 221,000 | 202,000 | 184,000 | 170,000 | |||||||||
| (includes naked) | ||||||||||||||
| Fibre broadband | 713,000 | 740,000 | 773,000 | 802,000 | 831,000 | 600,000 | ||||||||
| (GPON) | ||||||||||||||
| Data services | 4,000 | 4,000 | 3,000 | 3,000 | 3,000 | 400,000 | ||||||||
| (copper) | Fibre (GPON) | |||||||||||||
| Fibre premium (P2P) |
11,000 | 11,000 | 11,000 | 11,000 | 11,000 | 200,000 | ||||||||
| Total connections | 1,419,000 | 1,415,000 | 1,390,000 | 1,369,000 | 1,356,000 | 0 | ~~Business premium~~ | |||||||
| 31-Mar-20 30-Jun-20 |
30-Sep-20 | 31-Dec-20 | 31-Mar-21 |
> 1,181,000 broadband connections comprises:
-
831,000 fibre (GPON) connections
-
350,000 VDSL/ADSL (copper) connections
Note : 11,000 free education connections are excluded from this data
4
Consumer 1Gbps uptake grew by 7k connections
Total mass market fibre uptake by plan type
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100
Business/Education plans
1Gbps $60 p.m. $56 p.m.
90 from 1 July
80 200Mbps $55 p.m. $56.38 p.m.
from 1 Oct
70
60 100Mbps $46 p.m. $47.15 p.m.
from 1 Oct
% of
plans 50
40
30
20
10
50Mbps $42.50 p.m. $43.56 p.m.
from 1 Oct
0
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
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29,000 mass market fibre connections added
-
Consumer 1Gbps connections grew from 136k to 143k and comprise 17% of GPON connections
-
small business connections grew from 11k to 24k
-
50Mbps connections are declining and now comprise ~10% of GPON connections
5
UFB uptake reaches 64%
-
UFB uptake increased from 63% to 64% within completed footprint in Q3*
-
uptake in UFB1 areas grew from 66% to 68%
-
uptake in UFB2 areas grew from 39% to 40%
-
810,000 connections (Q2: 783,000) now within completed footprint, including business premium connections
-
1,268,000 customers able to connect (Q2: 1,246,000)
-
986,000 premises passed** (Q2: 966,000) out of 1,054,000 target = UFB rollout 94% complete
-
(note: data includes some UFB2 areas that have been partially built, but not yet submitted for Crown sign-off)
> 40,000 fibre installations completed in Q3 (Q2: 44k)
-
customer satisfaction steady at 8.2
-
WIP steady at ~15k
-
field crews reduced from 689 to 657
-
includes ~3k free education connections
Fibre now 82% of Chorus broadband connections in planned UFB zone
No. of
connections
1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000
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0
Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 ADSL VDSL Fibre
**under the UFB contract, a multi-dwelling unit or single office block is one premises
6
UFB1 uptake: 68%
% uptake relative to capable addresses
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80.00%
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
70.00%
Average uptake
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
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7
Managed migration activity lifts fibre connections
13k installations completed in Q3
-
managed migration installations (i.e. ONT only without active service) reduced in Q3 due to summer holiday period
-
7k ONT activations
-
3k of activations were at offnet addresses
Managed migration programme
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16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21
Installations Connections
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8
Monthly average data usage on fibre 491 gigabytes
Monthly average data usage per connection on our network*
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500 491
450
416
400
350
300
Data
241
250
usage
(GB) 200
150
100
50
Copper Fibre Average
0
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-
monthly average data usage per connection on our network grew to 416GB in March, up from 390GB (Dec) ▪ 491GB on fibre (Dec:460GB)
-
241GB on copper (Dec:241GB)
-
Average peak throughput on our network at peak time (~9pm) was 2.75Tbps, up from 2.44Tbps in December 2019
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- includes upstream traffic from June 2020 onwards
9
Commission report: fibre leads for low latency
- The Commerce Commission’s Measuring Broadband New Zealand , Summer Report (April 2021) shows fixed line services outperform fixed wireless significantly on key measures such as download speeds and latency
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Source: Commerce Commission
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10 15 April 2021 Q3 FY21 CONNECTIONS UPDATE
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