Q4 2026 Chorus Ltd Earnings Call

August 23, 2026

Operator 2: Thank you for standing by, and welcome to the Chorus FY2026 results. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you would like to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Mark Aue, CEO. Please go ahead.

Operator: Thank you for standing by, and welcome to the Chorus FY2026 results. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you would like to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Mark Aue, CEO. Please go ahead.

Speaker #1: If you would like to ask a question, you'll need to press the star key, followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Marco Weir, CEO.

Speaker #1: Please go ahead.

Speaker #2: Morning. 10:08 o'clock. I now mark attendance in my key records. Good morning, and welcome to the Chorus results presentation for the 12 months ended 30 June 2026.

Mark Aue: Morena. Tena koutou katoa. Nau mai, haere mai ki te Chorus. Good morning, and welcome to the Chorus results presentation for the 12 months ending 30 June 2026. I am Mark Aue, Chief Executive, and joining me is Drew Davies, our Chief Operating Officer. I will begin today with an overview of our results for the FY2026 year and cover the progress we are making on our strategy. Drew will cover the financials and FY2027 guidance before I close out with our outlook and the role we see Chorus playing as core infrastructure for New Zealand's rapidly evolving AI future. We characterize FY2026 as strong financial and operational performance, reflecting the resilience of our business model, disciplined execution, and focus on driving simplicity and efficiency as we transition to an all-fiber business. Fiber connections increased by 3% at over 1.1 million connections.

Speaker #2: I'm Marco Weir, Chief Executive, and joining me is Drew Davies, our Chief Operating Officer. I'll begin today with an overview of our results for the FY26 year and cover the progress we're making on our strategy.

Speaker #2: Drew will cover the financials and FY27 guidance before I close out with our outlook and the role we see Chorus playing as core infrastructure for New Zealand’s rapidly evolving AI future.

Speaker #2: We'd characterize FY26 as a year of strong financial and operational performance, reflecting the resilience of our business model, disciplined execution, and our focus on driving simplicity and efficiency as we transition to an all-fiber business.

Speaker #2: Fiber connections increased by 3%, to over 1.1 million connections. Uptake continued to strengthen, reaching 75.9%, with fiber revenue growth of 6% during the year.

Mark Aue: Uptake continued to strengthen, reaching 75.9% with fiber revenue growth of 6% during the year. EBITDA increased 3% to NZD 726 million, underpinned by continued revenue growth and disciplined cost management. We delivered further efficiencies across the business and maintained tight control of discretionary spend, helping offset persistent inflationary pressure, particularly in non-tradable costs. Net profit improved significantly to NZD 37 million, and strong cash generation reinforced the quality of earnings with operating cash flow up 4% to NZD 740 million. Gross CapEx was NZD 375 million, and while lower than FY2025, this primarily reflected the timing and phasing of projects rather than any change in our commitment to maintaining and enhancing network quality. Reflecting our confidence in the business and consistent with our previously signaled guidance, the total FY2026 dividend increased 4.3% to NZD 0.60 per share.

Speaker #2: EBITDA increased 3% to $726 million, underpinned by continued revenue growth and disciplined cost management. We delivered further efficiencies across the business and maintained tight control of discretionary spend, helping offset persistent inflationary pressure, particularly in non-tradable costs.

Speaker #2: Net profit improved significantly to $37 million, and strong cash generation reinforced the quality of earnings, with operating cash flow up 4% to $740 million.

Speaker #2: Gross capex was $375 million, and while lower than FY25, this primarily reflected the timing and phasing of projects rather than any change in our commitment to maintaining and enhancing network quality.

Speaker #2: Reflecting our confidence in the business and consistent with our previously signaled guidance, the total FY26 dividend increased 4.3% to 60 cents per share. We're now firmly in Horizon 2 of our multi-phase strategy, a four-year program through to the end of FY29, focused on driving growth, simplicity, and efficiency.

Mark Aue: We are now firmly in Horizon 2 of our multi-phase strategy, a four-year program through to the end of FY29 focused on driving growth, simplicity, and efficiency. Fibre uptake continued to progress during the year. Our opportunity still sits with around 400,000 addresses where fibre is available but not yet connected. We have taken further steps to simplify the business, streamlining our plan suite and introducing new retailer incentives whilst retaining a strong debt profile and our BBB or equivalent credit rating. We are encouraged by the positive regulatory change, and we are accelerating copper retirement, with fewer than 1,000 copper lines now remaining in fibre areas. In parallel, our copper recycling program is fully operational, and our multi-year property optimization program is underway.

Speaker #2: Fibre uptake continued to progress during the year. Our opportunity still sits with around 400,000 addresses where fibre is available but not yet connected. We’ve taken further steps to simplify the business, streamlining our plan suite and introducing new retailer incentives, whilst retaining a strong debt profile and our BBB, or equivalent, credit rating.

Speaker #2: We're encouraged by the positive regulatory change, and we're accelerating copper retirement. With fewer than 1,000 copper lines now remaining in fibre areas, our copper recycling program is fully operational and our multi-year property optimization program is underway in parallel.

Speaker #2: We're also building momentum across a number of infrastructure initiatives. With the launch and expansion of new products like Express Connect and Unified Transport, and the recent announcement of TimeSync, a precision timing service—all of which are creating future growth opportunities.

Mark Aue: We are also building momentum across a number of infrastructure initiatives with the launch and expansion of new products like Express Connect and Unified Transport and the recent announcement of TimeSync, a precision timing service, all of which creating future growth opportunities. Finally, while maintaining our disciplined investment approach, we are evaluating several medium-term infrastructure opportunities, including a potential interisland subsea cable and a trial for the deployment of distributed Battery Energy Storage Systems. While the financial results this year are important, they also reflect something deeper, how we are bringing our purpose to life and embedding it in the way we work. Our core purpose, unleashing potential through connectivity, enabling better futures for Aotearoa resonates widely. During the year, we clarified the purpose-led areas that matter most for Chorus. That work has shaped three interconnected pillars for connectivity, being future fit, resilient, and equitable.

Speaker #2: Finally, while maintaining our disciplined investment approach, we're evaluating several medium-term infrastructure opportunities, including a potential inter-island subsea cable and a trial for the deployment of distributed battery energy storage systems.

Speaker #2: While the financial results this year are important, they also reflect something deeper—how we're bringing our purpose to life and embedding it in the way we work.

Speaker #2: Our core purpose—unleashing potential through connectivity and enabling better futures for Aotearoa—resonates widely. During the year, we clarified the purpose-led areas that matter most for Chorus.

Speaker #2: That work has shaped three interconnected pillars for connectivity: being future-fit, resilient, and equitable. Together, these bring focus to where Chorus's strengths align with the needs of our wider ecosystem and where we can create the most meaningful shared value.

Mark Aue: Together, these bring focus where Chorus's strengths align with the needs of our wider ecosystem and where we can create the most meaningful shared value. We are continuing to deliver value beyond financial performance. One example is our focus on driving digital inclusion with the launch of our Equity Fibre product. Fundamentally, we believe everyone deserves to benefit from the potential that connectivity unlocks. By combining affordable fibre access alongside community partners, we can help remove barriers to digital participation and create lasting benefits for New Zealanders. Feedback to date has been positive, and we have over 3,000 connections on plan. With climate, we have reduced scope 1 and 2 emissions by 43% from our FY20 baseline. Almost all waste has been diverted from landfill, and electricity consumption has reduced by 7% compared with prior year, despite the growth in data traffic. Our people remain central to our success.

Speaker #2: So we're continuing to deliver value beyond financial performance. One example is our focus on driving digital inclusion with the launch of our equity fiber product.

Speaker #2: Fundamentally, we believe everyone deserves to benefit from the potential that connectivity unlocks. By combining affordable fiber access alongside community partners, we can help remove barriers to digital participation and create lasting benefits for New Zealanders. Feedback to date has been positive, and we have over 3,000 connections on plan.

Speaker #2: With climate, we've reduced Scope 1 and 2 emissions by 43% from our FY20 baseline. Almost all waste has been diverted from landfill, and electricity consumption has reduced by 7% compared with the prior year, despite the growth in data traffic.

Speaker #2: Our people remain central to our success. Employee engagement remains strong, with a score of 8.4 out of 10—well within the top quartile—and we continue to compare favorably with the industry on safety performance.

Mark Aue: Employee engagement remains strong with a score of 8.4 out of 10, well within top quartile, and we continue to compare favorably with industry on safety performance. Turning now to performance across our four strategic leap pillars. First, in lead, fibre uptake increased to 75.9%. Original UFB1 areas increased to 77.3% and UFB2 areas at 67.5%, with major urban areas like Wellington and Dunedin now close to our 80% fibre uptake target. Encouragingly, as the right-hand chart shows, without the copper withdrawal tailwind of past, we are still maintaining new fibre connection growth. As we noted previously, we have two clear fibre growth pools, around 200,000 premises where an ONT is already installed, and we can win the customer back to fibre, and another 200,000 brownfield and infill addresses where fibre has passed the premise, but the ONT still needs to be installed. Turning to connection trends.

Speaker #2: Turning now to performance across our four Strategic Leap pillars. First, in lead, fiber uptake increased to 75.9%. Original UFB1 areas increased to 77.3%, and UFB2 areas to 67.5%, with major urban areas like Wellington and Dunedin now close to our 80% fiber uptake target.

Speaker #2: Encouragingly, as the right-hand chart shows, without the copper withdrawal tailwind of the past, we’re still maintaining new fiber connection growth. As we noted previously, we have two clear fiber growth pools.

Speaker #2: Around 200,000 premises where ONT is already installed, and we can win the customer back to fiber, and another 200,000 brownfield and infill addresses where fiber has passed the premise, but the ONT still needs to be installed.

Speaker #2: Turning to connection trends, with ongoing cost-of-living pressures, our Home Fibre Starter plan continues to play an important role in keeping customers on fibre.

Mark Aue: With ongoing cost of living pressures, our Home Fibre Starter plan continues to play an important role in keeping customers on fibre while demand for higher speeds continues to grow. More than 4 out of 5 customers are now on a 500 megabit plan or faster. Hyperfibre continues to gain momentum as our premium growth platform, offering symmetrical plans from 2 to 8 gigabits with around 54% of total addresses already network ready. We expect ongoing growth in higher speed services supported by increasing household data usage and emerging AI-driven requirements. Our medium-term ambition is to reach 80% address availability with 70,000 Hyperfibre connections by 2030. In parallel, we continue to be buoyed by research highlighting the relative differences in broadband technology with first choice preference for fibre at 66%, compared to 12% for fixed wireless.

Speaker #2: While demand for higher speeds continues to grow, more than four out of five customers are now on a 500-megabit plan or faster. Hyperfibre continues to gain momentum as our premium growth platform.

Speaker #2: Offering symmetrical plans from 2 to 8 gigabits, with around 54% of total addresses already network ready. We expect ongoing growth in higher speed services, supported by increasing household data usage and emerging AI-driven requirements.

Speaker #2: Our medium-term ambition is to reach 80% address availability, with 70,000 Hyperfibre connections by 2030. In parallel, we continue to be buoyed by research highlighting the relative differences in broadband technology, with first-choice preference for fiber at 66% compared to 12% for fixed wireless.

Speaker #2: Data consumption continues to grow strongly, reinforcing the importance of high-capacity fiber infrastructure. Average monthly fiber usage reached 731 gigabytes per connection in June 2026, up 9% on the prior year.

Mark Aue: Data consumption continues to grow strongly, reinforcing the importance of high capacity fibre infrastructure. Average monthly fibre usage reached 731 gigabytes per connection in June 2026, up 9% on prior year. Heavy usage is also increasing, with 21% of fibre customers now consuming more than 1 terabyte of data per month and 5% of those customers using over 2 terabytes per month. Total network traffic grew nearly 10% on FY25. I often like to put this in context. That increase alone is the equivalent of over 30,000 years of continuous HD video streaming. Speaking of streaming, our congratulations to TVNZ successfully running the recent FIFA World Cup tournament predominantly online. This demonstrated delivery credibility and bodes well for the future with the retirement of legacy broadcast services. This represents another growth opportunity for fibre uptake that we've highlighted as services increasingly move to IP-based delivery.

Speaker #2: Heavy usage is also increasing, with 21% of fiber customers now consuming more than one terabyte of data per month, and 5% of those customers using over two terabytes per month.

Speaker #2: Total network traffic grew nearly 10% in FY25, and I often like to put this in context. That increase alone is the equivalent of over 30,000 years of continuous HD video streaming.

Speaker #2: Speaking of streaming, our congratulations to TVNZ for successfully running the recent FIFA World Cup tournament predominantly online. This demonstrated delivery credibility and bodes well for the future, with the retirement of legacy broadcast services.

Speaker #2: And this represents another growth opportunity for fiber uptake that we've highlighted as services increasingly move to IP-based delivery. During the tournament, we were pleased but unsurprised by the fiber network's performance, peaking at over 180,000 concurrent streams for the final, with each game in high resolution accounting for about 5 gigabytes of data.

Mark Aue: During the tournament, we were pleased but unsurprised by the fibre network's performance, peaking at over 180,000 concurrent streams for the final, with each game in high resolution accounting for about 5 gigabytes of data. We continue to drive the expansion of fibre. Whilst new property development was subdued in FY26, we still passed 22,000 new lots, strengthening relationships with developers and renewing key partnership agreements. Beyond our core fibre network, we're continuing to expand and diversify our infrastructure portfolio. As I noted, we've launched several new products with Express Connect, Unified Transport, and more recently, TimeSync, the precision timing service. With the intent of expanding further through FY27, all are designed to simplify our offering and speed to market for customers.

Speaker #2: We continue to drive the expansion of fiber. Whilst new property development was subdued in FY26, we’re still past 22,000 new lots, strengthening relationships with developers and renewing key partnership agreements.

Speaker #2: Beyond our core fiber network, we're continuing to expand and diversify our infrastructure portfolio. As I noted, we've launched several new products with Express Connect, Unified Transport, and more recently, Time Sync.

Speaker #2: The precision timing service, with the intent of expanding further through FY27, is designed to simplify our offering and speed time to market for customers.

Speaker #2: In mobile infrastructure, demand for fiber backhaul remains strong as operators continue investing in network densification. We see steady demand for rack space in our regional edge centers, where access diversity is becoming more prevalent.

Mark Aue: In mobile infrastructure, demand for fibre backhaul remains strong as operators continue investing in network densification. We see steady demand for rack space in our regional edge centers, where access diversity is becoming more prevalent. Together, these initiatives broaden our addressable market, increase utilization of existing network assets, and support sustainable long-term growth beyond traditional fibre connections. To our Adapt pillar, we've continued to evolve our operating model and capabilities. In Q4, Matt Bolton was appointed as Executive GM for infrastructure, further strengthening our leadership team. In regulation, we've made a material step forward. The final report from the telco sector review highlighted opportunities to simplify legacy regulatory settings with the prior shareholder caps to be removed. This is an outcome we've been advocating for over some time and removes an unnecessary layer of complexity.

Speaker #2: Together, these initiatives broaden our addressable market, increase utilization of existing network assets, and support sustainable long-term growth beyond traditional fiber connections. With regard to our ADAPT pillar, we've continued to evolve our operating model and capabilities.

Speaker #2: In Q4, Matt Bolton was appointed as Executive GM for Infrastructure, further strengthening our leadership team. In regulation, we've made a material step forward. The final report from the telco sector review highlighted opportunities to simplify legacy regulatory settings, with the prior shareholder caps to be removed.

Speaker #2: This is an outcome we've been advocating for over some time, and removes an unnecessary layer of complexity. There are still formal steps to work through, including seeking shareholder approval at our annual shareholder meeting later this year.

Mark Aue: There are still formal steps to work through, including seeking shareholder approval at our ASM later this year. We are also seeing progress in copper services when we continue to work with government and industry stakeholders to establish a clear and efficient pathway for retiring copper services in areas where fibre is not available. This obviously has a benefit to us, but equally provides certainty to the market and to customers. Finally, to our Pioneer pillar. Copper to fibre transition is now largely complete across New Zealand's fibre footprint, with fewer than 1,000 copper connections remaining to migrate. A total of 48,000 copper lines disconnected in the year, leaving roughly 44,000 services, nearly all in areas where fibre is not available.

Speaker #2: We're also seeing progress in copper services. We continue to work with government and industry stakeholders to establish a clear and efficient pathway for retiring copper services in areas where fiber is not available.

Speaker #2: This obviously has a benefit to us, but equally provides certainty to the market and to customers. And finally, to our pioneer pillar: copper-to-fiber transition is now largely complete across New Zealand's fiber footprint, with fewer than 1,000 copper connections remaining to migrate.

Speaker #2: A total of 48,000 copper lines were disconnected in the year, leaving roughly 44,000 services—nearly all in areas where fiber is not available. Given the rate of decline, we announced earlier this year that we would bring forward the estimated date of the copper network retirement to the end of 2028.

Mark Aue: Given the rate of decline, we announced earlier this year that we would bring forward the estimated date of the copper network retirement to the end of 2028. The right-hand chart continues to show the efficiency gains from retirement with a NZD 7 million reduction in reactive fault spend this year. Progress continues on a number of other initiatives to highlight two. Copper recycling has transitioned from a successful trial to a scaled operational program, contributing NZD 4 million in EBITDA for the year. With metals pricing at historic highs, our estimates for cumulative returns are now in the NZD 50 to 70 million range from where we started the program out to 2030. We are also progressing our property optimization program. As the copper network is retired, the focus is not only on value realization, but also on reducing future operating costs and avoiding unnecessary capital expenditure.

Speaker #2: The right-hand chart continues to show the efficiency gains from retirement, with a $7 million reduction in reactive fault spend this year. And progress continues on a number of other initiatives—to highlight two.

Speaker #2: Copper recycling has transitioned from a successful trial to a scaled operational program, contributing $4 million in EBITDA for the year. With metals pricing at historic highs, our estimates for cumulative returns are now in the $50 to $70 million range, from where we started the program out to 2030.

Speaker #2: We're also progressing our property optimization program. As the copper network is retired, the focus is not only on value realization but also on reducing future operating costs and avoiding unnecessary capital expenditure.

Speaker #2: I'll now hand over to Drew to take us through the financials.

Mark Aue: I will now hand over to Drew to take us through the financials.

Speaker #3: Thank you, Mark, and Kiyora, everyone. Overall, we delivered a strong set of financial results. Looking firstly at our income statement, which aligns with the IFRS 18 standard presentation, EBITDA was $726 million, in line with the upper end of guidance and ahead of FY25 by $21 million.

Drew Davies: Thank you, Mark, and kia ora everyone. Overall, we delivered a strong set of financial results. Looking firstly at our income statement, which aligns the IFRS 18 standard presentation, EBITDA was NZD 726 million, in line with the upper end of guidance and ahead of FY2025 by NZD 21 million. For operating expenses, which declined by NZD 6 million from the prior year, we made cost savings from the changed operating model, incurred lower consulting costs, and reduced copper costs. That helped us absorb inflation in a number of cost lines. Accelerated depreciation in our copper assets in Chorus UFB areas occurred in the prior period, resulting in lower depreciation and amortization in FY2026 of NZD 439 million. Net finance expense was NZD 5 million higher year on year.

Speaker #3: For operating expenses, which declined by $6 million from the prior year, we made cost savings from the changed operating model, incurred lower consulting costs, and reduced copper costs.

Speaker #3: That helped us absorb inflation in a number of cost lines. Accelerated depreciation in our copper assets in Chorus UFB areas occurred in the prior period, resulting in lower depreciation and amortization in FY26 of $439 million.

Speaker #3: Net finance expense was $5 million higher year on year. While our weighted average interest rate on debt reduced to 4.95%, we repaid the majority of our €300 million notes early, with $9 million of settlement costs.

Drew Davies: While our weighted average interest rate on debt reduced to 4.95%, we repaid the majority of our EUR 300 million notes early with 9 million of settlement costs. Income tax expense was up NZD 15 million from FY2025, primarily driven by higher profits. The FY2026 effective tax rate was 46% versus 81% in FY2025, and higher than the statutory rate of 28%, mainly due to permanent differences arising from the tax treatment of the grants received from the Crown project related funding. As a result, we recorded NZD 37 million of net profit after tax for the year, compared to NZD 4 million in FY2025. Looking in more detail at our revenue categories, total fibre broadband revenues were up 6% or NZD 47 million from FY2025, driven by fibre connections up 32,000 lines, along with an approximate 2% increase in ARPU to end at NZD 59.51 for the year.

Speaker #3: Income tax expense was up $15 million from FY25, primarily driven by higher profits. The FY26 effective tax rate was 46%, versus 81% in FY25, and higher than the statutory rate of 28%, mainly due to permanent differences arising from the tax treatment of the grants received from the Crown Project Related Funding.

Speaker #3: As a result, we recorded $37 million of net profit after tax for the year, compared to $4 million in FY25. Looking in more detail at our revenue categories, total fiber broadband revenues were up 6%, or $47 million, from FY25, driven by fiber connections up 32,000 lines along with an approximate 2% increase in ARPU to end at $59.51 for the year.

Speaker #3: With total copper connections down 48,000, or 52%, this resulted in combined copper broadband, voice, and data revenues being down $34 million, or 45% lower annually, as we continue to execute our multi-year copper exit strategy.

Drew Davies: With total copper connections down 48,000 or 52%, this resulted in combined copper broadband, voice, and data revenues being down NZD 34 million or 45% lower annually as we continue to execute our multi-year copper exit strategy. Field service revenues were up slightly with higher brownfields projects and roadworks, and was partly offset by lower NPD revenue given the lower volume of development activity across New Zealand in FY2026. Other revenues were stable annually and included approximately a NZD 4 million net gain from copper cable recycling sales as activity started to ramp up in the H2. In the prior year, NZD 3 million was from that trial and taken. Total operating expenses were NZD 303 million for the year and were NZD 6 million or 2% lower than the prior period.

Speaker #3: Field service revenues were up slightly, with higher brownfield projects and roadworks, and this was partly offset by lower MPD revenue, given the lower volume of development activity across New Zealand and FY26.

Speaker #3: Other revenues were stable annually and included approximately a $4 million net gain from copper cable recycling sales, as activity started to ramp up in the second half.

Speaker #3: In the prior year, $3 million was from that trial undertaken. Total operating expenses were $303 million for the year, and were $6 million, or 2%, lower than the prior period.

Speaker #3: We continued to drive strong cost management disciplines to offset the persistent inflationary pressures, mainly from non-tradables such as rent, rates, and electricity lines costs.

Drew Davies: We continue to drive strong cost management disciplines to offset the persistent inflationary pressures, mainly from non-tradables such as rent, rates, and electricity lines costs. Labor costs were NZD 81 million, down approximately 5% annually as a result of a new operating model. The lower capitalization rate of 42% was mainly from fewer fibre footprint expansion projects. Network maintenance costs were NZD 11 million lower year on year. The key driver was lower copper fault volumes to premises as copper connections continued to decline, resulting in a 23% reduction in truck rolls. As we noted at the half year, H2 network maintenance costs did not decline as much as prior periods as contractual CPI increases occurred along with the seasonal increase in weather-related faults which impact network-related fault volumes, especially in more rural areas. Other network costs were up NZD 9 million higher than FY2025.

Speaker #3: Labor costs were $81 million, down approximately 5% annually as a result of a new operating model. The lower capitalization rate of 42% was mainly from fewer fiber footprint expansion projects.

Speaker #3: Network maintenance costs were $11 million lower year on year. The key driver was lower copper fault volumes, as the number of copper connections continued to decline, resulting in a 23% reduction in truck rolls.

Speaker #3: As we noted at the half-year, second half network maintenance costs did not decline as much as in prior periods, as contractual CPI increases occurred along with the seasonal increase in weather-related faults, which impact network-related fault volumes, especially in more rural areas.

Speaker #3: Other network costs were up $9 million higher than FY25. This was mainly due to the higher engineering activity as a result of weather events, and higher payments to service companies from better service levels.

Drew Davies: This was mainly due to the higher engineering activity as a result of weather events and higher payments to service companies from better service levels. We also saw timing differences on project spend annually, including the one-off copper cabinet shutdown costs we incur to power down each cabinet. While our electricity consumption declined annually by approximately 7%, electricity expense was up NZD 2 million due to higher lines charges. Consultants expense was NZD 4 million lower, with spend relating to specific investments to explore potential new revenue opportunities. Meanwhile, we focus on lowering discretionary spend, which helps reduce other expenses by NZD 5 million. Moving now to CapEx. Gross CapEx for the year was NZD 375 million, down NZD 35 million from the prior year, and in line with the bottom end of the guidance range. Within gross CapEx, NZD 205 million was sustaining CapEx and NZD 170 million was for growth.

Speaker #3: We also saw timing differences on project spend annually, including the one-off copper cabinet shutdown costs we incurred to pare down each cabinet. While our electricity consumption declined annually by approximately 7%, electricity expense was up $2 million due to higher lines charges.

Speaker #3: Consultants' expense was $4 million lower, with spend relating to specific investments to explore potential new revenue opportunities. Meanwhile, we focused on lowering discretionary spend, which helped reduce other expenses by $5 million.

Speaker #3: Moving now to capex, gross capex for the year was $375 million, down $35 million from the prior year, and in line with the bottom end of the guidance range.

Speaker #3: Within gross capex, $205 million was sustaining capex, and $170 million was for growth. Gross capex was supported by $41 million of customer contributions for roadworks, new property development, and rural broadband upgrades.

Drew Davies: Gross CapEx was supported by NZD 41 million of customer contributions for roadworks, new property development, and rural broadband upgrades. As signaled previously and as noted in the chart, the H1 phasing shows total H2 CapEx was in line with the prior year H2. This included phasing of large national fibre build projects underway, major network property refurbishment projects, and large IT project deliveries. This slide shows CapEx using regulated categories for the fibre regulated asset base, RAB, with the tables noting FY26 allocations, which are subject to audit at the end of the calendar year. CapEx attributable to investing in the RAB, which excludes capital contributions, is estimated to be about NZD 297 million for the year. For the non-RAB CapEx, copper CapEx was NZD 6 million, down annually, and was mainly third party funded.

Speaker #3: As signaled previously, and as noted in the chart, the half-year phasing shows total second-half capex was in line with the prior year’s second half.

Speaker #3: This included phasing of large national fiber build projects underway, major network property refurbishment projects, and large IT project deliveries. This slide shows CapEx using regulated categories for the fiber regulated asset base, or RAB.

Speaker #3: With the tables noting FY26 allocations, which are subject to audit at the end of the calendar year. Capex attributable to investing in the RAB, which excludes capital contributions, is estimated to be about $297 million for the year.

Speaker #3: For the non-RAB capex, copper capex was $6 million, down annually, and was mainly third-party funded. As reported in our information disclosure update in May, total RAB increased by $101 million over the 2025 calendar year to $6.6 billion.

Drew Davies: As reported in our information disclosure update in May, total RAB increased by NZD 101 million over the 2025 calendar year to NZD 6 billion, with core RAB increasing to NZD 5.1 billion, up NZD 221 million, partly offset by the financial loss asset declining by NZD 130 million to NZD 862 million as the FLA appreciates further. Our net debt as of 30 June was NZD 3.2 billion, up NZD 72 million from the prior year, primarily as a result of issuing EUR 400 million in euro notes in November. Proceeds were used to repay EUR 243 million of the EMTN 300 notes due in December 2026, along with paying down entirely the revolving credit facility. Moody's rates Chorus as BAA2 stable, with a threshold of 5.25 times debt to EBITDA, which we are currently at approximately 4.75 times.

Speaker #3: With core RAB increasing to $5.1 billion, up $221 million, partly offset by the financial loss asset declining by $130 million to $862 million, as the flat appreciates further.

Speaker #3: Our net debt as of June 30 was $3.2 billion, up $72 million from the prior year, primarily as a result of issuing €400 million in notes in November.

Speaker #3: Proceeds were used to repay €243 million of the EMTN 300 notes due in December '26, along with paying down entirely the revolving credit facility.

Speaker #3: Moody's rates Chorus as Baa2 stable, with a threshold of 5.25 times debt to EBITDA, which we are currently at approximately 4.75 times. S&P rating is BBB with a positive outlook, with a threshold of 9% funds from operations to debt ratio, which we are currently well above at 17.2%.

Drew Davies: S&P rating is BBB positive outlook with a threshold of 9% funds from operations to debt ratio, which we are currently well above at 17.2%. The table on the slide provides our bank covenant calculation under the revolving credit facility, and we are currently at 4.37 times. Moody's rating trigger of 5.25 times debt to EBITDA is the focus of our capital management policy. The board considers that a credit rating of at least BBB or equivalent credit rating is appropriate for a company such as Chorus. It intends to maintain capital management and financial policies consistent with these credit ratings. Lastly, about 65% of our interest rate exposure is fixed for the next three years.

Speaker #3: The table on the slide provides our bank covenant calculation under the revolving credit facility, and we are currently at 4.37 times. Moody's rating trigger of 5.25 times debt to EBITDA is the focus of our capital management policy.

Speaker #3: The board considers that a credit rating of at least BBB, or an equivalent credit rating, is appropriate for a company such as Chorus. It intends to maintain capital management and financial policies consistent with these credit ratings.

Speaker #3: Lastly, about 65% of our interest rate exposure is fixed for the next three years. On August 7th, the New Zealand Government announced that it agreed to the sale of the securities NIF held in Chorus to a select group of domestic and international institutional investors, with settlement occurring by the end of August 2026.

Drew Davies: On 7 August, the New Zealand government announced it agreed to the sale of the securities NIFF held in Chorus to a select group of domestic and international institutional investors, with settlement occurring by the end of August 2026. For reference, the key terms of the securities are set out on the left-hand side of the slide, and the face value of the combined securities is NZD 1.16 billion. Chorus' obligations remain the same as pre-sale, but those obligations will now be owed to a number of parties and not just NIFF. From a ratings agency perspective, we expect S&P may treat the NZD 683 million equity securities as debt rather than equity, which will increase our calculated leverage per S&P towards 5.5 times debt to EBITDA. Meanwhile, we believe Moody's will maintain the status quo with their equity attribution of 50% to debt and 50% to equity.

Speaker #3: For reference, the key terms of the securities are set out on the left-hand side of the slide, and the face value of the combined securities is $1.16 billion.

Speaker #3: Chorus's obligations remain the same as pre-sale, but those obligations will now be owed to a number of parties and not just NIF. From a ratings agency perspective, we expect S&P may treat the $683 million equity securities as debt rather than equity, which will increase our calculated leverage per S&P towards 5.5 times debt to EBITDA.

Speaker #3: Meanwhile, we believe Moody's will maintain the status quo with their equity attribution of 50% to debt and 50% to equity. This year, we adopted the fair value approach for our network assets.

Drew Davies: This year, we adopted the fair value approach for our network assets. We completed our first independent valuation of these assets. This resulted in a NZD 983 million uplift in asset values and a NZD 708 million increase in equity through the asset revaluation reserve net of deferred tax. Turning now to the year ahead, FY27 will be a transition year for the copper business. We expect copper connections revenue in this year to be in the high teens of millions of dollars, reflecting the ongoing decline of copper customers in non-UFB areas. At the same time, net copper recycling gains are expected to be in the low teens of millions of dollars, supported by the continuing retirement of legacy infrastructure. We are also seeing a continued reduction in copper maintenance costs as the network footprint shrinks.

Speaker #3: We completed our first independent valuation of these assets. This resulted in a $983 million uplift in asset values, and a $708 million increase in equity through the asset revaluation reserve, net of deferred tax.

Speaker #3: Turning now to the year ahead, FY27 will be a transition year for the copper business. We expect copper connections revenue in this year to be in the high teens of millions of dollars, reflecting the ongoing decline of copper customers in non-UFB areas.

Speaker #3: At the same time, net copper recycling gains are expected to be in the low teens of millions of dollars, supported by the continuing retirement of legacy infrastructure.

Speaker #3: We are also seeing a continued reduction in copper maintenance costs as the network footprint shrinks. There will be a further step down in copper depreciation in FY27, as illustrated in this chart, and we expect copper assets to be fully depreciated by 2028.

Drew Davies: There will be a further step down in copper depreciation in FY27, as illustrated in this chart, and we expect copper assets to be fully depreciated by 2028. Finally, we are progressing plans to exit high cost sites and exchanges that are no longer required in a fiber first environment with a further update anticipated at the H2 2027 result in February. Overall, the copper business is becoming smaller, simpler, and less capital intensive, while the benefits of lower depreciation and reduced operating costs support the transition to a fully fiber focused network over the next few years. Finally, on dividend and guidance for the year ahead. The board has approved a final dividend of NZD 0.36 per share, unimputed, to be paid in October. This brings the total dividend for the fiscal year 2026 to NZD 0.60 per share.

Speaker #3: Finally, we're progressing plans to exit high-cost sites in exchanges that are no longer required in a fiber-first environment, with a further update anticipated at the half-year '27 result in February.

Speaker #3: Overall, the copper business is becoming smaller, simpler, and less capital-intensive, while the benefits of lower depreciation and reduced operating costs support the transition to a fully fiber-focused network over the next few years.

Speaker #3: Finally, on dividend and guidance for the year ahead. The Board has approved a final dividend of 36 cents per share, unimputed, to be paid in October.

Speaker #3: This brings the total dividend for the fiscal year '26 to $0.60 per share. Noting, our adoption of IFRS 18 means that our net cash flows from our operating activities now exclude net interest.

Drew Davies: Noting our adoption of IFRS 18 means that our net cash flows from operating activities now exclude net interest. In the table, we show how we arrive at our free cash flows for capital allocation. For the fiscal year 2027, year ahead, our EBITDA guidance range is NZD 730 million to NZD 760 million. For total CapEx, guidance is NZD 375 million to NZD 415 million, and sustaining CapEx is between NZD 195 million to NZD 215 million, remaining the same for both as in the prior year. For dividends, we are guiding to a minimum of NZD 0.62 per share, partially imputed. At NZD 0.62 per share, this would be an increase of 3.3% over fiscal year 2026 and maintains our policy of a growing dividend in real terms.

Speaker #3: In the table, we show how we arrive at our free cash flows for capital allocation. For the fiscal year '27, year ahead, our EBITDA guidance range is $730 million to $760 million.

Speaker #3: For total CapEx, guidance is $375 million to $415 million, and sustaining CapEx is between $195 million to $215 million, remaining the same for both as in the prior year.

Speaker #3: For dividends, we are guiding to a minimum of 62 cents per share, partially imputed. At 62 cents per share, this would be an increase of 3.3% over fiscal year '26 and maintains our policy of a growing dividend in real terms.

Speaker #3: Overall, we continue to track well, and we're pleased with the progress we are making in the early phase of our strategic objectives for Horizon 2 through fiscal year 2029.

Drew Davies: Overall, we continue to track well, and we are pleased with the progress we are making in the early phase of our strategic objectives, Horizon 2, through fiscal year 2029. I will now hand back to Mark to run through the outlook.

Speaker #3: I'll now hand back to Mark to run through the outlook.

Speaker #2: Thank you, Jerry. Looking ahead, we see data centers and AI creating the next major wave of demand for network connectivity. These long-term demand drivers continue to support fiber growth opportunities.

Mark Aue: Thank you, Drew. Looking to our outlook, thematically we see data centers and AI creating the next major wave of demand for network connectivity. These long-term demand drivers continue to support fibre growth opportunities. While AI is not yet a significant contributor to traffic volumes in New Zealand, the direction of travel is clear. We are seeing growing investment in local data center capacity, increasing use of cloud-based AI applications, and we forecast a material shift in upload-intensive data traffic. Combined with ongoing growth in streaming quality and the number of connected devices, these trends support a sustained increase in bandwidth demand over time. Importantly, fibre is the only access technology with a proven roadmap to multi-gigabit plans, defined by low latency and symmetrical speeds, positioning Chorus well for the next generation of digital demand. The scaling of AI requires four key infrastructure components: land, power, cooling, and fibre.

Speaker #2: While AI isn't yet a significant contributor to traffic volumes in New Zealand, the direction of travel is clear. We're seeing growing investment in local data center capacity, increasing use of cloud-based AI applications, and we forecast a material shift in upload-intensive data traffic.

Speaker #2: Combined with ongoing growth in streaming quality and the number of connected devices, these trends support a sustained increase in bandwidth demand over time. Importantly, fiber is the only access technology with a proven roadmap to multi-gigabit plans.

Speaker #2: Defined by low latency and symmetrical speeds, positioning Chorus well for the next generation of digital demand. The scaling of AI requires four key infrastructure components.

Speaker #2: Land, power, cooling, and fiber. While the first three are often spoken about, fiber is the connecting enabler—a digital highway. The announcements for major data center developments for Makadawa and Stratford are a clear signal that this is no longer a hypothetical scenario.

Mark Aue: While the first three are often spoken about, fibre is the connecting enabler as a digital highway. The announcements for major data center developments for Makarewa and Stratford are a clear signal that this is no longer a hypothetical scenario. Large-scale computing infrastructure is being planned and built here, bringing significant new requirements for power, connectivity, and network capacity, with estimates forecasting the quadrupling of capacity over the next decade. The Chorus fibre network gives us the ability to move enormous amounts of data at scale with the resilience, speed, latency, and capacity to grow as demand grows. Unlike compute capacity, which can be added relatively quickly, building new fibre routes takes time, capital, and access to infrastructure corridors. Thematically, as this evolves, there is a clear opportunity and advantage for Chorus.

Speaker #2: Large-scale computing infrastructure is being planned and built here, bringing significant new requirements for power, connectivity, and network capacity, with estimates forecasting the quadrupling of capacity over the next decade.

Speaker #2: The Chorus fiber network gives us the ability to move enormous amounts of data at scale, with the resilience, speed, latency, and capacity to grow as demand grows.

Speaker #2: And unlike compute capacity, which can be added relatively quickly, building new fiber routes takes time, capital, and access to infrastructure corridors. Thematically, as this evolves, there is a clear opportunity and advantage for Chorus.

Speaker #2: A strong fiber footprint, one with over 200,000 kilometers of existing fiber, is a strategic asset that is very difficult to replicate. Our expectations of network speed keep changing.

Mark Aue: A strong fibre footprint, one with over 200,000 kilometers of existing fibre, is a strategic asset that is very difficult to replicate. Our expectations of network speed keep changing, and it is worth remembering just how quickly that occurs. There was a time when 56 kilobits per second was standard, and we had to accept that down or uploading a file could take hours because that is simply what the technology allowed. Fibre changed the equation. Now we are moving into the next phase, where we see multi-gigabit fibre becoming mainstream. As users, when we have more capacity, we find new things to do with it: higher quality video, cloud applications, connected devices, massive file transfers, and now AI. What seemed like more capacity yesterday becomes the baseline for tomorrow.

Speaker #2: And it's worth remembering just how quickly that occurs. There was a time when 56 kilobits per second was standard, and we had to accept that downloading or uploading a file could take hours, because that's simply what the technology allowed.

Speaker #2: Fiber changed the equation. Now we're moving into the next phase, where we see multi-gigabit fiber becoming mainstream. As users, when we have more capacity, we find new things to do with it.

Speaker #2: Higher quality video, cloud applications, connected devices, massive file transfers, and now AI—what seemed like more capacity yesterday becomes the baseline for tomorrow. As the table shows, a one-gigabyte file that could take over 40 hours to upload over a dial-up connection can now happen in around four seconds over a two-gigabit fiber connection.

Mark Aue: As the table shows, a 1 gigabyte file that could take over 40 hours to upload over a dial-up connection can now happen in around 4 seconds over a 2 gigabit fibre connection. Even with alternate technologies today, that might take 2.5 minutes or more on a fixed wireless or LEO sat link. On fibre, that is not just a faster connection, it truly changes what is practical and repeatable. Again, noting where Chorus has an advantage through coverage and availability of high capacity fibre. Not just giving people more speed, but creating the headroom for the next generation of applications, businesses, and experiences that we have not even imagined yet. The key point is that New Zealand's fibre network is already built for the AI era, with the scale and performance required to support next-generation digital services without significant network redesign.

Speaker #2: Even with alternative technologies today, that might take two and a half minutes or more on a fixed wireless or LEO sat link. On fiber, that's not just a faster connection.

Speaker #2: It truly changes what is practical and repeatable—again, noting where Chorus has an advantage through coverage and availability of high-capacity fiber. Not just giving people more speed, but creating the headroom for the next generation of applications, businesses, and experiences that we haven't even imagined yet.

Speaker #2: The key point is that New Zealand's fibre network is already built for the AI era, with the scale and performance required to support next-generation digital services—without significant network redesign.

Speaker #2: As we look ahead, we see multiple pathways to growth and becoming an all-fiber business. In Lead, under-penetrated segment growth in Winbacks, Brownfields, and Infill remain live, shorter-term opportunities, and we expect to benefit from the structural demand growth driven by AI.

Mark Aue: As we look ahead, we see multiple pathways to growth in becoming an all fibre business. In Lead, under penetrated segment growth in win backs, brownfields, and infill remain live shorter term opportunities. We expect to benefit from the structural demand growth driven by AI. In Expand, we are building a pipeline of adjacent growth opportunities. We enter FY27 with a strong order book among previous product launches. TimeSync has also moved into build phase. We are advancing opportunities, including the Battery Energy Storage System and the feasibility of the inter-island subsea cable. In Adapt, we see favorable pathways emerging on regulation. We will seek shareholder approval to remove legacy ownership restrictions whilst continuing to refine our operating model as our Horizon 2 gathers momentum. Finally, in Pioneer, full copper retirement remains on track for completion by 2028. We are focused on unlocking value from legacy assets.

Speaker #2: And as we expand, we're building a pipeline of adjacent growth opportunities. We enter FY27 with a strong order book. Among previous product launches, Time Sync has also moved into the build phase, and we're advancing opportunities including battery energy storage and the feasibility of the inter-island subsea cable.

Speaker #2: And at that, we see favorable pathways emerging on regulation. We'll seek shareholder approval to remove legacy ownership restrictions, while continuing to refine our operating model as our Horizon 2 gathers momentum.

Speaker #2: And finally, in Pioneer, full copper retirement remains on track for completion by 2028, and we're focused on unlocking value from legacy assets. To close, FY26 demonstrates the strength of the Chorus business model.

Mark Aue: To close, FY26 demonstrates the strength of the Chorus business model. We delivered growth in fibre connections, solid earnings and cash flow, increased the value of our asset base, and returned more value to shareholders through a higher dividend. As we move further into Horizon 2, our focus remains clear: driving fibre uptake, simplifying the business, improving efficiency, and pursuing disciplined growth opportunities. We are increasingly an all fibre business. With copper retirement firmly in sight, we are unlocking new opportunities to simplify our operation and realize further value from our asset portfolio. We have a clear view of where future growth can come from. We are building a pipeline of opportunities beyond our core business that will remain disciplined. Any investment must leverage our core capabilities, be strategically aligned, and deliver scalable returns. We remain very confident in the long-term outlook for fibre. Data consumption continues to grow.

Speaker #2: We delivered growth in fiber connections, solid earnings and cash flow, increased the value of our asset base, and returned more value to shareholders through a higher dividend.

Speaker #2: As we move further into Horizon 2, our focus remains clear: driving fiber uptake, simplifying the business, improving efficiency, and pursuing disciplined growth opportunities. We're increasingly an all-fiber business, with copper retirement firmly in sight. We're unlocking new opportunities to simplify our operation and realize further value from our asset portfolio.

Speaker #2: We have a clear view of where future growth can come from. We're building a pipeline of opportunities beyond our core business, but we'll remain disciplined.

Speaker #2: Any investment must leverage our core capabilities, be strategically aligned, and deliver scalable returns. We remain very confident in the long-term outlook for fiber. Data consumption continues to grow, AI is accelerating demand for high-capacity, low-latency connectivity, and fiber remains the technology best placed to meet those needs.

Mark Aue: AI is accelerating demand for high capacity, low latency connectivity, and fibre remains the technology best placed to meet those needs. The future itself is increasingly digital, AI-enabled, and dependent on fibre. Chorus is uniquely positioned to power that digital future. Thank you. Let's go to the phone line operator, please, for any questions.

Speaker #2: The future itself is increasingly digital, AI-enabled, and dependent on fiber. And Chorus is uniquely positioned to power that digital future. Thank you. Let's go to the phone line operator, please, for any questions.

Speaker #1: Thank you. If you would like to ask a question, please press star one on your telephone and wait for your name to be announced.

Operator 2: Thank you. If you would like to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Ben Crozier from Forsyth Barr. Please go ahead.

Operator: Thank you. If you would like to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Ben Crozier from Forsyth Barr. Please go ahead.

Speaker #1: If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question.

Speaker #1: Your first question today comes from Ben Crozier from Fawcett Bar. Please go ahead.

Speaker #2: Good morning, guys. Just keen to touch on the rationale for the price increases this year. They've been slightly smaller than the last couple of price increases.

Ben Crozier: Morning, guys. Just keen to touch on the rationale for the price increases this year being slightly smaller than the last couple of price increases. You are still under-earning the maximum regulatory revenue in my estimate this year. When do you expect that gap to close, and why was this slightly lower price increases this year?

Speaker #2: But you're still under owning the maximum regulatory revenue in my estimate this year. Sort of when do you expect that gap to close? And sort of why was this sort of slightly lower price increases this year?

Speaker #3: Good morning, Ben. Thank you. Yeah, look, I mean, we obviously take a number of factors into account when we're looking at pricing. It's probably a pretty volatile time.

Mark Aue: Yeah. Morning, Ben. Thank you. Well, look, we obviously take a number of factors when we are looking at pricing. It has been a pretty volatile time over the last few years from a macro perspective and headwinds. I think, at the half, we are seeing some signs of economic recovery, and obviously that has flipped back around with more of the geopolitical sensitivity and Middle East conflict. So we are always mindful of a number of things that are happening in market. We use CPI as a reference, both historic and forward-looking. And so we take a view across the plan. So I think on a weighted average basis, we are at 3.8%. At the top end, we have actually held our multi-gigabit plans or prices flat, so they are a 0% increase, and that is indicative of us wanting to move customers in the market actually into our symmetrical multi-gigabit plans as well. Look, you are right.

Speaker #3: Over the last few years, from a macro perspective and headwinds, I think at the half we're seeing some signs of economic recovery, and obviously that flipped back around with more of the geopolitical sensitivity and Middle East conflict.

Speaker #3: So, we're always mindful of a number of things that are happening in the market. We use CPI as a reference, both historic and forward-looking. And so, we take a view across the plane.

Speaker #3: So I think on a weighted average basis, we're at 3.8%. At the top end, we've actually held our multi-gigabit plans or prices flat, so there are 0% increases.

Speaker #3: And that's indicative of us wanting to move customers and the market actually into symmetrical multi-gigabit plans. As well, look, you're right. I mean, from a MAR perspective, it's something that we look at over the course of the regulatory period.

Mark Aue: From a MAR perspective, it is something that we look at over the course of the regulatory period. And in actual fact, for this regulatory period, for RP2, we were asking them a commission to actually smooth some of that headroom based on the wash-ups, et cetera. I think, again, go back to the broader economy perspective, I think 3.8%, we would say on a weighted basis is reasonable at the moment. I think, and it also is reflective of the ongoing cost of living pressures that we are all going through.

Speaker #3: And in actual fact, for this regulatory period, for RP2, we were asking the Commission to actually smooth some of that headroom based on the wash-ups, et cetera.

Speaker #3: I think, again, if we go back to the broader economy perspective, I think 3.8%—we would see on a weighted basis—is reasonable at the moment.

Speaker #3: I think it also is reflective of the ongoing cost-of-living pressures that we're all going through.

Speaker #2: That's clear, thank you. Maybe just touch on the size of these investment opportunities around the subsea cable and the battery energy storage systems.

Ben Crozier: That is clear. Thank you. Maybe just touch on the size of these investment opportunities around that sub-sea cable and the Battery Energy Storage Systems. Not just in FY27, but if the trials and the feasibility studies are successful, what is the CapEx required and the revenue opportunities from them?

Speaker #2: Not just sort of in FY27, but if the trials and the feasibility studies are successful, what's the sort of capex required and the revenue opportunities from them?

Speaker #3: Yeah, look, I mean, I think we've been talking about this for a while now, when we reset the strategy and the opportunity to move what we see as our infrastructure value stream from more of a passive model to being more active. And given the asset base that we have, I think Chorus should absolutely be part of those growth opportunities.

Mark Aue: Yeah, look, I think we have been talking about this for a while now. When we reset the strategy and the opportunity to move what we see as our infrastructure value stream from more of a passive model to being more active, and given the asset base that we have, I think Chorus should absolutely be part of those growth opportunities. I referred to several of the products we have launched this year. I think they are indicative. They are smaller in scale at the moment, but they will build momentum. With Express Connect, we are in eight data centers now. We will look to expand that over the coming year. Unified Transport has been received really well as a product in providing faster and simpler access as well to high-capacity fiber.

Speaker #3: I referred to several of the products we've launched this year. I think they're indicative—they're smaller in scale at the moment, but they'll build momentum.

Speaker #3: With Express Connect, we're in eight data centers now. We're looking to expand that over the coming year. Unified Transport has been received really well as a product, and it's providing faster and simpler access as well to high-capacity fiber.

Speaker #3: Time sync—not that you'd ever want anything to happen in your market and your technology, but some of the timing issues that related to incidents in Australia recently with Telstra, I think, are indicative of an opportunity around precision timing and looking at atomic clock use.

Mark Aue: TimeSync, not that you would ever want anything to happen in your marketing, your technology, but some of the timing issues, related issues that hit in Australia recently with Telstra, I think indicative of an opportunity around precision timing, and looking at atomic clock use. So the feedback on that has been really positive to date as well. And those are ones that we have launched in market. They will take time to scale, obviously. The two that we are exploring that there is excitement about. On BESS, for battery energy, we have had a number of conversations with partners, and there is a lot of excitement around that. Chorus is one of the largest property owners in the country, and that gives us a line of sight to opportunities to diversify and look at how we might use our properties in a different way.

Speaker #3: So, the feedback on that has been really positive to date as well. And those are ones that we've launched in market. They'll take time to scale.

Speaker #3: Obviously, the two that we're exploring that, say, there's excitement about on Biz for battery energy—we've had a number of conversations with partners, and there's a lot of excitement around that.

Speaker #3: Chorus is one of the largest property owners in the country, and that gives us a line of sight to opportunities to diversify and look at how we might use our properties in a different way. So we've got five sites that we're looking at as a trial.

Mark Aue: So we have got five sites that we are looking at a trial. These will be low, so sort of 3 to 5 megawatt BESS installations. But again, quite excited about that potential opportunity and when you look at other markets overseas. And the other is obviously the sub-sea cable with an inter-island cable. And that is in feasibility now. We have contracted a technical partner to undertake the feasibility. And look, that will happen over the next three years or so. But again, see that as a natural fit to the core. It is essentially linking the two islands for terrestrial fiber, and we just think about that as wet fiber.

Speaker #3: These will be low, so sort of three- to five-megawatt biz installations. But again, quite excited about that potential opportunity. And when you look at other markets overseas—and then the other is obviously the subsea cable, with an inter-island cable.

Speaker #3: And that's in feasibility now. We've contracted a technical partner to undertake the feasibility. And look, that will happen over the next three years or so.

Speaker #3: But again, we see that as a natural fit to the core. It's essentially linking the two islands for terrestrial fiber, and we just think about that as wet fiber.

Speaker #3: Look, coming to your question—and I'll go through it in detail because there is a lot there—from a capex perspective, the big one is the subsea cable. That's in a ballpark at the moment of $60 to $80 million that we would see over the three years.

Mark Aue: Look, coming to your question, and I go through it in detail because there is a lot there. From a CapEx perspective, the big one with the subsea cable, that is in a ballpark at the moment of NZD 60 to 80 million that we would see over the three years. The previous product launches would be a lot smaller, and BESS would be dependent on whether there is that successful trial and could you take that a lot further. We are trialing this, but we can see a future where you could scale this significantly. And obviously we have several hundred properties that we could potentially do that through.

Speaker #3: The previous product launches would be a lot smaller, and Biz would be dependent on whether there's that successful trial, and could you take that a lot further?

Speaker #3: I mean, we're not—we are trialing this, but we can see a future where you could scale this significantly. And obviously, we have several hundred properties that we could potentially do that through.

Speaker #2: That's some good color, thank you. And maybe just one last short question—Home Starter Connections, sort of the entry-level fiber product, has been growing super strongly over the last couple of years.

Ben Crozier: That's some good color. Thank you. Maybe last, just a short one, Home Fibre Starter connections, sort of the entry level fibre product that's been growing super strong over the last couple years. Do you expect, again, pretty strong growth in FY27 and beyond, or do you expect that to sort of stabilize from here going forward?

Speaker #2: Do you expect again pretty strong growth in FY27 and beyond, or do you expect that to sort of stabilize from here going forward?

Speaker #3: Yeah, look, I think some of that, again, is relative to the economy and some of the broader macro headwinds. Again, we feel very validated about putting that entry-level fiber product in market.

Mark Aue: Yeah, look, I think some of that, again, is relative to the economy and some of the broader macro headwinds. Again, we feel very validated of putting that entry level fibre product in market. It was originally a 50 meg and we boosted it to 100, and I think the appeal of that continues to grow. Just looking at numbers again this morning, and the premises that have been off net for over a year, are continuing to reconnect. So there's a 30% annual growth in those premises reconnecting. So the plan is appealing, and it's appealing to premises that you would say weren't coming back to fibre previously, whether that was because of fixed wireless availability or other alternatives, or whether the 50 meg plan for fibre wasn't hitting the mark. And that's certainly our sense.

Speaker #3: It was originally a 50-meg, and we boosted it to 100. And I think that's been the appeal—that continues to grow. Just looking at numbers again this morning, the premises that have been off-net for over a year are continuing to reconnect.

Speaker #3: So there's a 30% annual growth in those premises reconnecting. So the plan is appealing, and it's appealing to premises that you would say weren't coming back to fiber previously—whether that was because of fixed wireless availability, other alternatives, or whether the 50 meg plan for fiber wasn't hitting the mark.

Speaker #3: And that's certainly our sense. From the growth in home fibre starter, it's still two-thirds new connects, one-third downgrades. Again, I think that's partly reflective of the economy, and we'd rather provide that optionality.

Mark Aue: From the growth in Home Fibre Starter, it's still two thirds new connects, one third downgrades. Again, I think that's partly reflective of the economy, and we'd rather provide that optionality. But it has stabilized. We're not seeing any particular movement, and obviously we would hope with going forward, as the economy stabilizes and returns to growth again, that actually our push is to move people up the speed stack.

Speaker #3: But it is stabilized. We're not seeing any particular movement, and obviously we would hope, going forward as the economy stabilizes and returns to growth again, that actually our push is to move people up the speed stack.

Speaker #2: Yep, that's clear. Thank you.

Ben Crozier: Yep. That's clear. Thank you.

Speaker #3: Thanks, Ben.

Mark Aue: Thanks, Ben.

Speaker #1: Thank you. Once again, if you'd like to ask a question, please press star one on your telephone and wait for your name to be announced.

Operator 2: Thank you. Once again, if you'd like to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Encho Rekowski from E&P. Please go ahead.

Operator: Thank you. Once again, if you'd like to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Encho Rekowski from E&P. Please go ahead.

Speaker #1: Your next question comes from MJ Rakovsky from ENP. Please go ahead.

Speaker #4: Hi, Mark. Hi, Drew.

Encho Rekowski: Hi, Mark. Hi, Drew.

Entcho Raykovski: Hi, Mark. Hi, Drew.

Speaker #5: Hey, MJ.

Mark Aue: Hey, Encho.

Drew Davies: Hey, Encho.

Speaker #3: Morning, MJ.

Drew Davies: Morning, Encho.

Mark Aue: Morning, Encho.

Speaker #4: So maybe I'll start with a question on connections. I'm just conscious that your connections growth slowed a little in Q4, after a stronger Q3.

Encho Rekowski: So maybe I will start with a question on connections. I am just conscious that your connections growth just slowed a little in Q4 after a stronger Q3. I am just curious if you can just talk about some of the factors impacting that slowdown. I do not know if it was mainly price increases by the RSPs and perhaps some seasonal factors which drove this. As part of the answer to that question, can you talk to how that impacts your connections outlook into FY27? Do you assume the Q4 run rate continues, or do you think there is a level of pickup?

Entcho Raykovski: So maybe I will start with a question on connections. I am just conscious that your connections growth just slowed a little in Q4 after a stronger Q3. I am just curious if you can just talk about some of the factors impacting that slowdown. I do not know if it was mainly price increases by the RSPs and perhaps some seasonal factors which drove this. As part of the answer to that question, can you talk to how that impacts your connections outlook into FY27? Do you assume the Q4 run rate continues, or do you think there is a level of pickup?

Speaker #4: And I'm just curious if you can talk about some of the factors impacting that slowdown. I don't know if it was mainly price increases by the RSPs, and perhaps some seasonal factors, which drove this.

Speaker #4: And then, as part of the answer to that question, can you talk to how that impacts your connections outlook into FY27? Do you assume the Q4 run rate continues, or do you think there's a level of pickup?

Speaker #3: Thanks, MJ. As you said, there is seasonality in our quarterly connections run rates. And I'd say what we've seen in the last year will be kind of consistent for the year ahead.

Drew Davies: Thanks, Encho. As you said, there is seasonality in our quarterly connections run rates. I would say what we have seen in the last year will be kind of consistent for the year ahead. We work with all of our retail service partners, so it is based on the programs of work they have underway. We had a good July, so we are pleased with the start to the year. We would see that as we typically see in Q2, you have the college students turning off, so you always see reductions there. But also Q3 is always stronger. That kind of connections trend is what we would continue to see going ahead.

Speaker #3: We work with all of our retail service partners, so it's based on the programs of work they have underway. We had a good July, so we're pleased with the start to the year.

Speaker #3: But we would see that, as we typically see in Q2, you have the college students turning off, and so you always see reductions there. But also then Q3 is always stronger.

Speaker #3: So, that kind of connections trend is what we've continued to see going ahead.

Speaker #4: Okay, thanks, Drew. And then my next question is around the dividend. I wonder if you considered increasing the dividend.

Encho Rekowski: Okay. Thanks, Drew. My next question is around the dividend. I wonder if you considered increasing the dividend.

Entcho Raykovski: Okay. Thanks, Drew. My next question is around the dividend. I wonder if you considered increasing the dividend.

Speaker #3: Well.

Drew Davies: Well-

Speaker #4: Remain lower than the Moody's threshold for.

Encho Rekowski: remained lower than the Moody's threshold for-

Entcho Raykovski: remained lower than the Moody's threshold for-

Speaker #3: You just cut out there, and—sorry, could you repeat the question?

Drew Davies: You just cut out there, Encho. Can you repeat the question?

Speaker #4: Yeah, sorry. Can you hear me okay now?

Encho Rekowski: Yeah, sorry. Can you hear me okay now?

Entcho Raykovski: Yeah, sorry. Can you hear me okay now?

Speaker #3: Yeah, I can hear you. Go ahead.

Drew Davies: Yeah, can hear you. Go ahead.

Speaker #4: Okay, sorry. I wondered whether you considered increasing the dividend further, given that you're lower than the Moody's threshold of 5.25 times debt-to-EBITDA, and also the fact that your covenants have been relaxed.

Encho Rekowski: Okay. Sorry. I wondered whether you considered increasing the dividend further, given that you are lower than the Moody's threshold of 5.25 times debt to EBITDA. Also the fact that your covenants have been relaxed. I guess if you are not considering-- Well, you have obviously spoken to a floor of NZD 0.62, so there seems to be some scope for an increase. But if not increasing it further, then any scope for other capital management, given the room to the Moody's threshold?

Entcho Raykovski: Okay. Sorry. I wondered whether you considered increasing the dividend further, given that you are lower than the Moody's threshold of 5.25 times debt to EBITDA. Also the fact that your covenants have been relaxed. I guess if you are not considering-- Well, you have obviously spoken to a floor of NZD 0.62, so there seems to be some scope for an increase. But if not increasing it further, then any scope for other capital management, given the room to the Moody's threshold?

Speaker #4: And I guess if you're not considering—well, you've obviously spoken to a floor of 62 cents, so there seems to be some scope for an increase.

Speaker #4: But if not increasing it further, is there any scope for other capital management given that the room to the Moody's threshold?

Speaker #3: Well, let me—okay, I understand your question. So Moody's has not changed their thresholds. It's still at 5.25 times, and we're at 4.75 times.

Drew Davies: Well, let me-- That is okay. I understand your question. Moody's has not changed their thresholds. It is still at 5.25 times, and we are at 4.75 times in terms of what we are managing to. We do not anticipate them changing anything to the equity attribution, with the NIFFCo sale. So we do not think that will change those numbers. For us, the NZD 0.62, just a reminder of our capital management policy, is that we have a growing sustainable dividend in real terms. The reason we set the minimum NZD 0.62 is given the current geopolitical uncertainty and the impact that has on forecasting CPI for the year ahead.

Speaker #3: In terms of what we're managing to, we don't anticipate them changing anything to the equity attribution with the NIFCO sale, so we don't think that will change those numbers.

Speaker #3: For us, the 62 cents—just a reminder of our capital management policy—is that we have a growing, sustainable dividend in real terms. The reason we set the minimum at 62 cents is given the current geopolitical uncertainty and the impact that has on forecasting CPI for the year ahead.

Speaker #3: If CPI is higher than the 3.3%—which is the $0.62 over $0.60 growth—if it's higher than the 3.3%, then the board will review the annual CPI at the end of the fiscal year to determine if an adjustment is needed.

Drew Davies: If CPI is higher than the 3.3%, which is the NZD 0.62 over NZD 0.60 growth, if it is higher than the 3.3%, then the board will review the annual CPI at the end of the fiscal year to determine if an adjustment is needed. I think for us, I think we have said this analogy before, just because the bank increases your credit card limit does not mean we will spend up to that limit. We look for growth opportunities and appropriate investments, and that is why we set our dividend for the year ahead and how we use the word minimum.

Speaker #3: I think for us—I mean, I think we've used this analogy before—just because the bank increases your credit card limit doesn't mean we'll spend up to that limit.

Speaker #3: We look for growth opportunities and appropriate investments, and that's why we set our dividend for the year ahead—and how we use the word "minimum."

Speaker #4: Okay, maybe perhaps I wasn't so clear, necessarily. Is that half a turn gap to the Moody threshold? Is that something that you feel comfortable with, or do you think there's scope to narrow that a little bit?

Encho Rekowski: Okay. Maybe, perhaps I was not so clear necessarily. Is that half a turn gap to the Moody's threshold, is that something that you feel comfortable with? Or do you think that there is scope to narrow that a little bit?

Entcho Raykovski: Okay. Maybe, perhaps I was not so clear necessarily. Is that half a turn gap to the Moody's threshold, is that something that you feel comfortable with? Or do you think that there is scope to narrow that a little bit?

Speaker #3: No, we're comfortable with that gap.

Mark Aue: No, we are comfortable with that gap.

Drew Davies: No, we are comfortable with that gap.

Speaker #4: Okay, got it. And then, finally, I mean, I sort of query whether that's necessarily so relevant, but the SpaceX IPO has made it a topic also.

Encho Rekowski: Okay. Got it. Finally, I sort of queried whether that is necessarily so relevant, but the SpaceX IPO is a matter topic also. I wanted to ask how you view the threat from satellite, particularly given that Starlink now makes up 27% of rural broadband connections. Is there anything you think you need to do from a product perspective to ensure you remain ahead of the satellite product? Or do you think that usage and capacity provides you with a level of protection?

Entcho Raykovski: Okay. Got it. Finally, I sort of queried whether that is necessarily so relevant, but the SpaceX IPO is a matter topic also. I wanted to ask how you view the threat from satellite, particularly given that Starlink now makes up 27% of rural broadband connections. Is there anything you think you need to do from a product perspective to ensure you remain ahead of the satellite product? Or do you think that usage and capacity provides you with a level of protection?

Speaker #4: I wanted to ask how you view the threat from satellite, particularly given that Starlink now makes up 27% of broadband connections. Is there anything you think you need to do from a product perspective to ensure you remain ahead of the satellite product, or do you think that sort of usage and capacity provides you with a level of protection?

Speaker #3: Yeah, and I think you're right. I mean, when we consider the outlook and evolving trends around AI—the evolution, data center growth, etc.—consumer behavior is changing, always wanting more capacity, and demand continues to grow as the number of connected devices increases.

Mark Aue: Yeah. Andrew, I think you are right. When we consider the outlook and evolving trends around AI evolution, data center growth, et cetera, consumer behavior changing, always wanting more capacity, and demand continues to grow, as do connected devices. Every characteristic you would think now lends itself to a fibre network. Starlink has seen significant growth, as you note, but it has essentially been in rural. In many ways, it has helped us too with the copper migration out and copper retirement. That does not mean to say that there are not any Starlink connections or LEO sat connections in urban areas, and particularly urban fringe, where fibre may not have been as prevalently available. But we still see a significant differential between the technologies, between fibre and Starlink.

Speaker #3: Every characteristic you would think of now lends itself to the fiber network. Starlink has seen significant growth, as you know, but it has essentially been in rural areas, and in many ways it's helped us with the copper migration out and copper retirement.

Speaker #3: So, that doesn't mean to say that there aren't any Starlink connections or LeoSat connections in urban areas, and particularly the urban fringe, where fiber may not have been as prevalently available.

Speaker #3: But we still see a significant differential between the technologies, between fiber and Starlink. And so, look, for us, I think a lot of that—you asked what we would do.

Mark Aue: So, look, for us, I think a lot of that, and you asked what we would do, it is not really a product change, it is actually more an awareness piece. Fibre has been around for a while, and I think there is a risk that maybe there is some complacency around what fibre is and whether it is aging versus the new technology. The reality is fibre is fit for a lifetime. It runs at the speed of light. So whilst you can line all these broadband technologies up against each other, they are significantly different. Even so, when you come to the difference between fibre and Starlink. But we will remain vigilant obviously in urban areas. As I say, there are some places where that makes sense, but I think a lot of what we have talked to is driving the awareness again about fibre being fit for a lifetime.

Speaker #3: It's not really a product change. It's actually more of an awareness piece. Fiber's been around for a while, and I think there's a risk that maybe there's some complacency around what fiber is and whether it's aging versus the new technology.

Speaker #3: And the reality is, fiber's fit for a lifetime. It runs at the speed of light. So, whilst you can line all these broadband technologies up against each other, they are significantly different.

Speaker #3: And even so, when you come to the difference between fibre and Starlink. But we'll remain vigilant, and obviously in urban areas, as I say, there are some places where that makes sense. But I think a lot of what we've talked to is driving the awareness again about fibre being fit for a lifetime.

Speaker #4: And if I could just follow on from that, is there any opportunity for you to work with satellite operators in terms of providing backhaul to some of their ground station infrastructure?

Encho Rekowski: And maybe I will just follow on to that. Is there any opportunity for you to work with satellite operators in terms of providing backhaul to some of their ground station infrastructure? Is that something that you are considering at the moment?

Entcho Raykovski: And maybe I will just follow on to that. Is there any opportunity for you to work with satellite operators in terms of providing backhaul to some of their ground station infrastructure? Is that something that you are considering at the moment?

Speaker #4: Is that something that you're considering at the moment?

Speaker #3: Oh, no, no, no. There is, absolutely.

Mark Aue: No, there is, absolutely.

Speaker #4: Okay, great. Thank you.

Encho Rekowski: Okay, great. Thank you.

Entcho Raykovski: Okay, great. Thank you.

Speaker #3: Thanks, Enjoy.

Mark Aue: Thanks, Arie.

Speaker #2: Thank you. Your next question comes from Phil Campbell from UBS. Please go ahead.

Operator 2: Thank you. Your next question comes from Phil Campbell from UBS. Please go ahead.

Operator: Thank you. Your next question comes from Phil Campbell from UBS. Please go ahead.

Speaker #5: Yeah, morning guys. Just on the network revaluation, Drew, I was just wondering, is there like an implied EV-to-RAB multiple that was derived from that revaluation?

Phil Campbell: Yeah. Morning, guys. Just on the network revaluation, Drew, I am just wondering, is there, like, an implied EV to RAB multiple that was derived from that revaluation? Just to make sure I check my numbers.

Speaker #5: Just to make sure, I check my numbers.

Speaker #3: No, sorry, no. Phil, it was done independently as a DCF model. And in the annual report, you'll see the methodology that was used to do the DCF.

Drew Davies: No. Sorry, no, Phil. It was done independently as a DCF model, and in the annual report, you will see the methodology that was used to do the DCF.

Speaker #5: Yeah, okay. Awesome. Great. Just coming back, the second question—just coming back in terms of the, I suppose, the gearing of the business. I suppose the Board is committed to a triple-B rating.

Phil Campbell: Yeah. Okay. Awesome. Great. The second question, just coming back on terms of the, I suppose the gearing of the business. I suppose the board is committed to a BBB rating. But I suppose when you look at the ratios, like, with the S&P threshold, I think their downdriver is going to be 6 times. So you should be reasonably comfortably within that. There is a possibility that Moody's obviously is going through the same evaluation of their methodology. They could see their 5.25 times going up a little bit. So you could end up potentially kind of reasonably within those kind of thresholds. I suppose with S&P, there is even a chance you could get a rating upgrade. So is the board mindful of that? Does that drive any dividend policy, or are they just pretty much taking a more conservative view at the moment?

Speaker #5: But I suppose when you look at the ratios, like with the S&P threshold, I think their debt/EBITDA is going to be six times. So you should be reasonably comfortable within that.

Speaker #5: And then there is a possibility that Moody's, obviously, is going through the same evaluation of their methodology. They could see their 5.25 times going up a little bit.

Speaker #5: So you could end up potentially, kind of reasonably, within those kinds of thresholds. I suppose with S&P, there's even a chance you could get a rating upgrade.

Speaker #5: So is the Board mindful of that, and does that drive any dividend policy, or are they just pretty much taking a more conservative view at the moment?

Speaker #3: Well, a dividend policy is set through Horizon 2, right? A growing dividend in real terms. As to S&P, obviously they haven't come out with their final determination of the NIFCO equity attribution to debt.

Drew Davies: Well, our dividend policy is set through Horizon 2, growing dividend in real terms. As to S&P, obviously they haven't come out with their final determination of the NIFFCo equity attribution to debt, where I said earlier that we'd be at approximately 5.5 times. Again, if they come out with and they're at 6 times, we'd be about half turn underneath that number. Again, we're waiting for their final determination. Under Moody's, I haven't seen the request for comment period is open for another number of months. We don't want to speculate in terms of what they may do. At this point, we're at 5.25 times downdriver, and that's what we're focused on.

Speaker #3: Where I said, I'm like, earlier that we'd be at approximately 5.5 times. So again, if they come out with—and they're at six times—we'd be about half a turn underneath that number.

Speaker #3: But again, we're waiting for their final determination. Under Moody's, yeah, I haven't seen—the request for comment period is open for another number of months.

Speaker #3: So we don't want to speculate in terms of what they may do. But at this point, we're at five and a quarter times debt down driver, and that's what we're focused on.

Speaker #5: Right, awesome. And then I suppose just coming back on the subsea capex, how much is—because obviously it seems as though within the FY27 guidance, it does seem as though there is some capex for some of these new projects contained within.

Phil Campbell: Great. Awesome. I suppose just coming back on the subsea CapEx. Obviously it seems as though within the FY27 guidance, it does seem as though there is some CapEx for some of these new projects contained within it. Do we know how much of the CapEx within the guidance range is attributable to the new projects?

Speaker #5: Do we know how much of the capex within the guidance range is attributable to the new projects?

Speaker #3: There is some allocation for a variety of the projects, not just the ones that Mark talked to on subsea and BES, but the ones we've already previously announced.

Mark Aue: There is some allocation for a variety of the projects, not just the ones that Mark talked to on subsea and VAS, but the ones we've already previously announced. It's not a material driver of the 2027 CapEx. Phil, just to overlay that to that as well, I think we see a real opportunity for the, I talked to the brownfields and infill opportunity. The 200,000 or so premises that we've passed the premise with fibre today, but it hasn't had an installation. Our ability to go back now and look at where those infill is or look at where premises that weren't installed previously, now that fibre is really well known and the market has changed. That's another opportunity we'd see for the install CapEx.

Drew Davies: There is some allocation for a variety of the projects, not just the ones that Mark talked to on subsea and VAS, but the ones we've already previously announced. It's not a material driver of the 2027 CapEx.

Speaker #3: But it's not a material driver of the '27 capex.

Mark Aue: Phil, just to overlay that to that as well, I think we see a real opportunity for the, I talked to the brownfields and infill opportunity. The 200,000 or so premises that we've passed the premise with fibre today, but it hasn't had an installation. Our ability to go back now and look at where those infill is or look at where premises that weren't installed previously, now that fibre is really well known and the market has changed. That's another opportunity we'd see for the install CapEx.

Speaker #2: Phil, just to overlay that as well, I think we see a real opportunity for the—I talked to the brownfields and Phil opportunity.

Speaker #2: So the 200,000 or so premises that we've passed with fiber today, but haven't had an installation yet. So our ability to go back now and look at where those infill opportunities are, or look at premises that weren't installed previously, now that fiber is really well known in the market, has changed.

Speaker #2: So that's another opportunity we'd see for the install CapEx.

Speaker #5: Okay, awesome. And then just the last one, just at the ASM with the shareholder vote on the shareholder cap — is that a 50% voting threshold, or is it a 75% voting threshold?

Phil Campbell: Okay. Awesome. Just the last one, just at the ASM with the shareholder vote on the shareholder cap. Is that a 50% voting threshold or is it a 75% voting threshold?

Speaker #2: 75.

Mark Aue: Seventy-five.

Speaker #5: Okay, awesome. Great. Thanks, guys.

Phil Campbell: Okay. Awesome. Great. Thanks, guys.

Speaker #3: Thanks, Phil.

Mark Aue: Thanks, Bill.

Speaker #2: Thanks, Phil.

Speaker #5: Thank you. There are no further questions at this time. I'll now hand back to Mr. Aware for any closing remarks.

Drew Davies: Thanks, Bill.

Operator 2: Thank you. There are no further questions at this time. I will now hand back to Mr. O'Ware for any closing remarks.

Operator: Thank you. There are no further questions at this time. I will now hand back to Mr. O'Ware for any closing remarks.

Speaker #2: Thanks, Darcy. And look, thank you to everyone who joined today. Thank you to those who also asked questions. I appreciate that this is a really busy time of year, so again, we all appreciate you taking the time to join us.

Mark Aue: Thanks, Tasi, and look, thank you to everyone who joined today. Thank you to those that have also asked questions. Appreciate that this is a really busy time of year. Again, we all appreciate you taking that time to join us. Thanks again, and we look forward to meeting with some of you over the coming days and weeks. Thanks very much. Take care.

Speaker #2: So thank you again, and we look forward to meeting with some of you over the coming days and weeks. Thanks very much. Take care.

Operator 2: That does conclude our conference for today. Thank you for participating. You may now disconnect.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.

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