Spark New Zealand Ltd
ASX:SPK
Spark New Zealand Ltd
Spark New Zealand Ltd, rooted deeply in the technology and telecommunications landscape, stands as a beacon of connectivity in the region. Historically, the company traces its origins to Telecom New Zealand, which underwent a significant transformation to become the dynamic entity it is today. This evolution reflects its commitment to adapting and thriving amidst technological advancements. Headquartered in Auckland, Spark has crafted its route to success by providing an extensive range of telecommunications and digital services, including mobile, internet, and broadband services, to both individual consumers and businesses. The company plays a pivotal role in enhancing the digital fabric of New Zealand, consistently focusing on customer-centric innovations and robust service delivery.
The company's revenue engine functions through a multi-stream model, leveraging both traditional and contemporary telecommunication services. A significant portion of its income stems from mobile network services, where Spark competes vigorously to capture market share in a competitive landscape. Additionally, broadband and internet services form another vital pillar, underpinned by its expansive fiber optic network. Beyond these core services, Spark has ventured into digital services, including cloud computing and cybersecurity solutions, catering to the increasing digitalization needs of businesses. By aligning with technological trends and embracing new technologies such as 5G, Spark strategically positions itself not just as a telecom provider, but as a pivotal player in the digital transformation journey of New Zealand.
Spark New Zealand Ltd, rooted deeply in the technology and telecommunications landscape, stands as a beacon of connectivity in the region. Historically, the company traces its origins to Telecom New Zealand, which underwent a significant transformation to become the dynamic entity it is today. This evolution reflects its commitment to adapting and thriving amidst technological advancements. Headquartered in Auckland, Spark has crafted its route to success by providing an extensive range of telecommunications and digital services, including mobile, internet, and broadband services, to both individual consumers and businesses. The company plays a pivotal role in enhancing the digital fabric of New Zealand, consistently focusing on customer-centric innovations and robust service delivery.
The company's revenue engine functions through a multi-stream model, leveraging both traditional and contemporary telecommunication services. A significant portion of its income stems from mobile network services, where Spark competes vigorously to capture market share in a competitive landscape. Additionally, broadband and internet services form another vital pillar, underpinned by its expansive fiber optic network. Beyond these core services, Spark has ventured into digital services, including cloud computing and cybersecurity solutions, catering to the increasing digitalization needs of businesses. By aligning with technological trends and embracing new technologies such as 5G, Spark strategically positions itself not just as a telecom provider, but as a pivotal player in the digital transformation journey of New Zealand.
Strong Financial Performance: Spark delivered growth across revenue, EBITDAI, NPAT, and free cash flow, meeting or exceeding guidance for FY23.
Dividend Growth: The FY23 dividend increased 8% to $0.27 per share, with FY24 dividend guidance raised further to $0.275 per share.
Mobile Leads Growth: Mobile service revenue grew 9%, with strength in both prepaid and postpaid, and roaming recovering to 86% of pre-COVID levels.
Cost Management: Spark achieved disciplined cost control despite inflation, targeting another $40–$60 million of gross cost out for FY24.
Strategic Investments: Significant investments are underway in 5G, data centers ($250M–$300M planned), and AI/data capabilities to drive future growth.
Sustainable Practice: ESG achievements included a 29.8% reduction in Scope 1 and 2 emissions and recognition in top international benchmarks.
Guidance and Outlook: FY24 EBITDAI guidance set at $1.215B–$1.26B, with free cash flow targeted at $490M–$530M, and continued focus on margin stability and technology-led growth.
