Spark New Zealand Ltd (ASX:SPK)
A$ 1.45 -0.030 (-2.03%) Market Cap: 2.74 Bil Enterprise Value: 4.56 Bil PE Ratio: 11.87 PB Ratio: 2.50 GF Score: 67/100

Half Year 2025 Spark New Zealand Ltd Earnings Call Transcript

Feb 20, 2025 / 10:00 PM GMT
Release Date Price: A$2.64

Key Points

Positve
  • Spark New Zealand Ltd (NZTCF) reported a 67.4% increase in free cash flow to $77 million, showing improved cash management.
  • The company declared a half-year dividend of $0.12 per share, consistent with its FY25 total dividend guidance of $0.25 per share.
  • Spark New Zealand Ltd (NZTCF) is focusing on strategic priorities, including driving momentum in its telco core and simplifying its portfolio.
  • The company has entered into a new strategic partnership with Microsoft to improve cloud economics and enhance customer offerings.
  • Data center revenue increased by 13.6% to $25 million, with a commitment to expanding its 118-megawatt development pipeline.
Negative
  • Reported revenue declined by 1.9% to $1.93 billion, driven by declines in mobile, IT services, and legacy voice.
  • Reported EBITDA declined by 20.9% to $419 million due to lower IT services project activity and supply cost inflation.
  • The company reduced its FY25 adjusted EBITDA guidance to $1.04 billion to $1.1 billion, reflecting ongoing economic challenges.
  • Mobile service revenue declined by 3.7%, with significant declines in the enterprise and government sectors.
  • Spark New Zealand Ltd (NZTCF) is facing aggressive price competition and shrinking mobile fleets, impacting its market share.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SPK.NZ - Spark New Zealand Ltd
Half Year 2025 Spark New Zealand Ltd Earnings Call
Feb 20, 2025 / 10:00PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for standing by and welcome to the Spark New Zealand HY 25 results call.

All participants are in a listen-only mode. There will be a presentation followed by a question and answer session.

If you wish to ask a question, you will need to press the star key, followed by the number one on your telephone keypad.

I would now like to hand the conference over to Jolie Hodson, CEO of Spark. Please go ahead.

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Unidentified_2 [2]
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Thank you, Kora koto katoa. Good morning, everyone.

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