Chorus : Q2 FY22 Connections Update

For personal use only

Chorus Limited

Level 10, 1 Willis Street

P O Box 632

Wellington

New Zealand

Email: [e-mail]

STOCK EXCHANGE ANNOUNCEMENT

21 January 2022

Q2 FY22 overview

Total fibre connections increased by 24k to 918,000 (Q1 FY22: +23k)

Fibre uptake across the completed UFB footprint grew from 66% to 67%

• fibre broadband connections increased by 24k despite ongoing effects of COVID alert levels on our migration programme and Q2 typically being a softer period for demand (e.g. student holidays)
• uptake reached 72% (+1%) in UFB1 areas and 46% (+2%) in UFB2 areas
• the fibre rollout was recently completed in Mahurangi, Russell, Duvauchelle and Fairlie

Total broadband connections increased 4k to 1,187,000* (Q1 FY22: +3k)

• 9k connections were added in Chorus UFB areas
• strong demand for high quality broadband saw 1Gbps uptake grow to 23% (Q1 FY22: 20%) of mass market fibre connections
• more than half a million consumer plans were upgraded from 100Mbps to 300Mbps in December and Ookla Global Speedtest Index results show NZ has jumped from 22nd to 11th in the world with median download speeds of 122Mbps (note: this result was from mid-December and is expected to improve once the full effect of the upgrade is measured)

Copper broadband and voice connections declined by 30k (Q1 FY22: -32k)

• voice only disconnections slowed slightly to 10k (Q1 FY22: -12k)
• total fixed line connections declined by 6k to 1,325,000* (Q1 FY22: -9k)

Average monthly data usage was 479GB in December (Sept: 539GB) reflecting the end of COVID lockdowns and the start of the summer holiday period

• average monthly data usage on fibre was 554GB vs 621GB in September

*totals exclude 10,000 broadband connections Chorus is partly subsidising for student households

Authorised by:

JB Rousselot

Chief Executive Officer

ENDS

For further information:

For personal use only

Steve Pettigrew

Head of External Communications

Mobile [phone]

Email:[e-mail]

Brett Jackson

Investor Relations Manager

Phone: [phone]

Mobile: [phone]

Email: [e-mail]

only	Q2 FY22 Connections Update
use
ersonal

Q2 FY22 CONNECTIONS UPDATE

21 January 2022

Q2 FY22 overview

Total fibre connections increased by 24k to 918,000 (Q1 FY22: +23k)

>

only> use

Fibre uptake across the completed UFB footprint grew from 66% to 67%

• fibre broadband connections increased by 24k despite ongoing effects of COVID alert levels on our migration programme and Q2 typically being a softer period for demand (e.g. student holidays)
• uptake reached 72% (+1%) in UFB1 areas and 46% (+2%) in UFB2 areas
• the fibre rollout was recently completed in Mahurangi, Russell, Duvauchelle and Fairlie

Total broadband connections increased 4k to 1,187,000* (Q1 FY22: +3k)

• 9k connections were added in Chorus UFB areas
• strong demand for high quality broadband saw 1Gbps uptake grow to 23% (Q1 FY22: 20%) of mass market fibre connections
• more than half a million consumer plans were upgraded from 100Mbps to 300Mbps in December and Ookla Global

Speedtest Index results show NZ has jumped from 22nd to 11th in the world with median download speeds of 122Mbps

(note: this result was from mid-December and is expected to improve once the full effect of the upgrade is measured)

>

Copper broadband and voice connections declined by 30k (Q1 FY22: -32k)

• voice only disconnections slowed slightly to 10k (Q1 FY22: -12k)
• total fixed line connections declined by 6k to 1,325,000* (Q1 FY22: -9k)

*totals exclude ~10,000 broadband connections Chorus is partly subsidising for student households

>ersonal

Average monthly data usage was 479GB in December (Sept: 539GB) reflecting the end of COVID lockdowns and the start of the summer holiday period

• average monthly data usage on fibre was 554GB vs 621GB in September

2 21 January 2022

Q2 FY22 CONNECTIONS UPDATE

Connection changes by Zone (indicative as at 31 December)

Quarterly change ('000s) by zone**

only				-15	-5			5	15
	Q2 FY21			-3		-6
							Other fibre	Broadband connections	39,000	Disconnections continue due to Local Fibre
	Q3 FY21			-2		-6
							company (LFC)			Company and fixed wireless provider activity,
	Q4 FY21			-2		-5
							zone	Copper line (no broadband)	23,000	with some slowdown due to COVID-19 effects.
	Q1 FY22			-3	-3
	Q2 FY22			-2-3					TOTAL	62,000
	Q2 FY21					-1				Non-UFB zone	Broadband connections	147,000	Some expansion of wireless broadband footprint
use
	Q3 FY21					-1-2							through Government backed programme. New
	Q4 FY21					-2-1					Copper line (no broadband)	32,000	housing outside of UFB zone driving fibre
	Q1 FY22					-1-1					TOTAL	179,000	premises growth.
	Q2 FY22					-2-2
	Q2 FY21			-7		-4				Chorus UFB zone*	Broadband connections	1,001,000	Continued broadband growth driven by Chorus
										incentives and migration campaigns. Copper
	Q3 FY21			-8		6
						Copper line (no broadband)	70,000	voice disconnections reflect migration to fibre
	Q4 FY21			-10			5
									and targeted fixed wireless activities.
	Q1 FY22			-8		7
						TOTAL	1,071,000
	Q2 FY22					-6		9
ersonal			Broadband connections
				Copper (no broadband) connections
	* Includes planned Chorus UFB1, 2 and 2+ coverage
	**Excludes 10k partly subsidised education connections and 13k fibre premium and data services (copper) connections
		3			21 January 2022					Q2 FY22 CONNECTIONS UPDATE