Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
What Chorus withdrawing dividend guidance means in plain English
Posted on 18-Nov-2013 21:32 by Bill Bennett. | Tags Filed under: News.



There are strict rules about how listed companies like Chorus can communicate financial information to shareholders. And the people doing the communicating for these companies speak what at times sounds like a private language.

So what does Chorus’s statement from earlier today actually mean in plain English?

In light of the ongoing regulatory uncertainty facing Chorus, including the outcome of the Government’s independent review, Chorus has elected to withdraw its FY14 dividend guidance of 25.5 cents per share.

We’ve no idea how the government review of the Commerce Commission ruling about copper access prices will turn out, so we’re withdrawing the predictions we previously made about next year’s dividend.

“At this time of unprecedented levels of investment by Chorus, withdrawing dividend guidance is a regrettable but necessary step in light of the ongoing uncertainty Chorus faces” – Mark Ratcliffe, Chorus CEO.

It costs a lot of money to build a fibre network. The money has to come from somewhere. We hope the government somehow tips a little more into the pot or perhaps overturns the Commerce Commission, but whatever happens now, it’s going to cost shareholders something.

Chorus is investing roughly three dollars in the Ultra-fast Broadband initiative for every dollar of financing provided by the Crown to support the delivery of the upgraded infrastructure, which is of critical importance to New Zealand’s future.

Like we already said, we’re spending a lot of your money on this.

“We are proud of our role as the cornerstone partner in the Ultra-fast Broadband initiative, which is being delivered like clockwork.”

Nobody seems to take any notice of what a good job we’ve done so far.

“We remain hopeful that as the major partner in New Zealand’s largest public private partnership we can work with the government to find a timely solution to the current issues that works for all parties and provides Chorus and its investors with the certainty we need to get on with delivering this once in many generations infrastructure upgrade.”

Can we remind everyone once more that this project is expensive? We’re almost certainly going to take some pain over this, let’s hope the taxpayers, service providers or consumers get to share some of the burden.

[digitl 2013]

digitl on Google+




comments powered by Disqus




Trending now »

Hot discussions in our forums right now:

Gareth Morgan is a genius
Created by Satch, last reply by rmt38 on 9-Dec-2016 10:48 (96 replies)
Pages... 5 6 7


NZ Prime Minister John Key Resigns
Created by ajobbins, last reply by frankv on 9-Dec-2016 08:33 (216 replies)
Pages... 13 14 15


The President Of The USA - Who do you think?
Created by TimA, last reply by DarthKermit on 8-Dec-2016 16:22 (909 replies)
Pages... 59 60 61


Dishwasher not Working Properly
Created by tdgeek, last reply by mdav056 on 5-Dec-2016 20:18 (28 replies)
Pages... 2


Spark wireless broadband and home /lan access: CGNAT limitations
Created by yokkem, last reply by BarTender on 8-Dec-2016 15:57 (19 replies)
Pages... 2


Spark not planning to deploy native IPv6 at all. Ever.
Created by Erayd, last reply by sbiddle on 7-Dec-2016 20:57 (19 replies)
Pages... 2


Wilson's Car Park - When Free is not free
Created by nzkiwiman, last reply by cr250bromo on 9-Dec-2016 09:30 (51 replies)
Pages... 2 3 4


JB Hifi Cost & GST Sale - 7th Dec
Created by Finch, last reply by Kopkiwi on 7-Dec-2016 15:11 (16 replies)
Pages... 2