Spark announces 2.5% growth in full-year revenue

26 Aug 2020

New Zealand telco Spark has announced revenue growth of 2.5% to NZD3.623 billion (USD2.368 billion) for the year ending 30 June 2020, highlighting sustained momentum in mobile service revenue growth, which was 3.9% higher, and a 10.8% increase in cloud, security and service management revenue. EBITDAI rose 2.1% during the period to NZD1.113 billion, which the company attributed to its strong performance in key markets and a continued focus on cost discipline, while net profit increased 4.4% to NZD427 million, driven by growth in EBITDAI and lower tax expense. CAPEX declined 10.3% to NZD374 million in FY20, despite sustained investment in the company’s mobile network and IT systems.

At 30 June 2020 Spark reported a total of 2.495 million telephone subscribers, an increase of 0.3% y-o-y, while the number of post-paid customers notably grew by 6.3% to 1.330 million. Total mobile ARPU rose 2.5% y-o-y to NZD28.27. Total broadband connections stood at 709,000, up 2.0% compared with FY19, with a 25.3% decline in copper connections to 186,000 more than offset by a 19.9% increase in fibre subscriptions (367,000) and 11.4% growth in wireless plans (156,000).

Spark chairwoman Justine Smyth said: ‘Agile ways-of-working have improved our speed to market and customer focus, and we have seen a significant increase in both customer and people engagement during this time. Our sustained network investment has underpinned our ability to innovate and grow and provided secure connectivity for our country during COVID-19. It is a credit to Spark’s people that we have delivered such a strong result, with growth on nearly all key metrics, despite the impact of COVID-19 in the final quarter.’

New Zealand, Spark