Chorus Ltd [NZX:CNU] has experienced a stock value increase of over 5% in trading today.
Chorus is one of the largest companies in New Zealand. It is a key provider of telco infrastructure, maintaining everything from copper phone lines to fibre-optic networks.
At the time of writing, it has a market capitalisation of $2.975 billion. Its share price currently sits at $6.705.
Why has the [NZX:CNU] stock price gone up today?
The market sentiment became bullish today following a positive announcement by the company.
The management cited financial gains from 2019 to 2020.
Here are the key highlights:
- Chorus has experienced a half-year net profit increase from $30m to $31m, a change of 3.3%.
- Shareholders will enjoy a dividend rise of 9.5c to 10c, a change of 5.3%.
- CEO JB Rousselot declared that Chorus would be more aggressive in its efforts to push out Ultra-Fast Broadband.
What does the future for [NZX:CNU] look like?
In the short- to medium-term, we’ll see a fair amount of enthusiasm for this stock. This comes on the back of Chorus’ success in the roll-out of Ultra-Fast Broadband.
However, there is a level of risk looming on the horizon. Vodafone and Spark have both unveiled plans to transition to 5G fixed wireless.
In the long-term, this creates competition that may just cut into Chorus’ bottom line.
For now, it’s a case of wait-and-see.