Spark sees drop in FY sales, though net income up 16%

21 Aug 2015

Spark (formerly Telecom New Zealand) has reported a 2.9% drop in sales for the financial year ended 30 June 2015, with operating revenue of NZD3.53 billion (USD2.33 billion). Revenues from mobile services rose 4.4% to NZD1.02 billion, while IT services revenue jumped 5.5% to NZD592 million, though these gains were moderated by continuing declines in income from calling and access. EBITDA from continuing operations climbed 2.8% to NZD962,000, as net earnings increased 16.2% to NZD373,000. CAPEX for the year – including spectrum fees – was up by 25.5% at NZD576 million, though excluding fees related to spectrum there was an 8.9% drop to NZD418 million.

In operational terms, Spark saw the number of mobile connections increase by 172,000 in twelve months as it ended June 2015 with 2.18 million subscribers. Broadband subscriptions were up 1.6% to 680,000. In a statement, the company said that ‘a return to long-term, sustainable growth in free cash flow, revenue and earnings over the coming years is both realistic and achievable’.

New Zealand, Spark