The company blamed ongoing regulatory pricing decisions for its poor financial performance.
The operating profit fell 7.2% to $602 million from $649 million in the previous corresponding period, earnings before interest and tax fell 14.9% to $278 million from $327 million and the reported profit of $91 million was down 38.5% on the $148 million in the pcp.
Revenue was down 4.9% to $1billion from $1.05 billion but Chorus managed to cut expenses by 1.2% to $404 million.
Chief executive Mark Ratcliffe said the regulatory pricing remained under review and the ongoing uncertainty had overshadowed positive increases in fixed line and broadband connections as well as the work carried out on ultra fast and rural broadband roll outs that continued to deliver better broadband ahead of schedule.
''The business initiatives we implemented in managing for cash have delivered results ahead of target for the year, going some way towards offsetting the very significant reduction in regulated pricing.''
Together with the slightly improved draft copper pricing, that had helped the share price recover some value although the company remained unable to pay a dividend, he said.
Chorus was well placed to help New Zealand realise the socioeconomic benefits of broadband as demand for digital connectivity grew.
''We are seeing growing demand for better broadband for educational, business and entertainment purposes, reinforcing Chorus' role as an essential utility provider. A fit for purpose regulatory framework will help New Zealand realise even greater broadband potential,'' Mr Ratcliffe said.
Chorus provided 2016 guidance of gross capital expenditure for the financial year of between $580 million and $630million and for a fall in adjusted operating profit of $546million.
Forsyth Barr broker Suzanne Kinnaird said initial impressions were of a significant fall in profit guidance but that assumed no change from the price Chorus saw today for broadband and copper lines.
''We are of the view the Commerce Commission will confirm prices from December that will be consistent with its further draft, effectively a price increase relative to Chorus' guidance.''
Forsyth Barr expected dividends to restart from 2016 but they would be affected by Chorus' cash flow and driven by fibre take up rates and the expansion of the UFB programme, she said.
In the medium term, Chorus would work through the regulatory process to do with the upcoming Telecommunications Act review. Key issues from that process would include the model for setting future fibre prices, potential support for copper to fibre migration and reviewing the role of the Commerce Commission.
Because of the uncertainty ahead, Forsyth Barr was unlikely to change its current recommendation of underperform for Chorus, Ms Kinnaird said.
Figures suppled by Chorus showed 100% of fibre roll out had been completed in Oamaru, past 5800 premises; 52% in Dunedin past 44,500; 60% in Invercargill, past 19,700; and 82% in Queenstown, past 4900.
Main points
• Reported profit of $91 million, no dividend
• Operating earnings of $602 million
• Operating revenue of $1 billion, down from $1.05 billion
• UFB roll out now 44% complete
• Broadband uptake grew 4% to 1.21 million
