Spark posts 12% rise in full-year profit

21 Aug 2019

New Zealand telco Spark has posted a 12.1% rise in full-year net profit to NZD409 million (USD262.3 million) and an 11.1% improvement in EBITDA to NZD1.09 billion in its financial year ending 30 June 2019. Revenue, however, was unchanged at NZD3.53 billion as growth in the mobile, broadband, cloud and security markets was offset by declines in legacy voice, managed data and networks products. Operating expenses were 4.3% lower, driven largely by lower product and labour costs.

Spark reported a 2.3% rise in mobile subscribers to over 2.51 million at 30 June 2019 while ARPU was up 0.6% to NZD27.57. Total broadband connections fell 0.7% year-on-year to 695,000, with strong growth in fibre and wireless connections (up 28.6% and 20.7% respectively) largely offsetting a 28.0% drop in copper lines. Voice service customers fell 10.5%, although VoIP and voice-over-wireless connections recorded strong growth, rising 19.2% and 85.7% respectively.

Spark chairwoman Justine Smyth said the improved performance was founded on the company’s strong execution of its strategy and a greater customer focus: ‘We’ve grown our business in the highly competitive mobile and cloud services categories, held our broadband position, entered new markets like sports streaming, led on cost management and transformed our company culture. It’s very pleasing to achieve these positive outcomes in a year during which we implemented and embedded massive organisational change with the move to Agile ways of working.’

New Zealand, Spark