Spark chair Justine Smyth. Photo: Supplied / BCFNZ
Telecommunications company Spark's profit has tumbled in what the company is calling "one of the most challenging periods" in its history.
Key numbers for the 12 months ended June compared with a year ago:
- Net profit $260m vs $316m
- Revenue $3.771b vs $3.685b
- Underlying profit $1.06b vs $1.16b
- Final dividend 12.5 cents per share vs 14 cps
Spark chair Justine Smyth said the period was marked by economic headwinds, "materially lower customer spending", and structural changes in markets.
The company's earnings were hit by a 2.3 percent decline in mobile service revenue amid strong competition, a 0.8 percent fall in broadband revenue and a near 10 percent fall in managed data and networks revenue.
IT services revenue also fell 8 percent, while cloud revenue rose just over 4 percent.
Spark's headquarters in Auckland. Photo: RNZ / Kim Baker Wilson
Smyth noted the result came in within updated guidance, with a new five-year strategy and capital management reset in place to help Spark recover.
"Not all the challenges we faced were beyond our control, and at our AGM in November we outlined the significant transformation programme we would implement to improve performance," she said.
"This included a renewed focus on our core business, a strategic review of non-core assets, an expanded cost-out programme, and a focus on realising value from our data centre business."
Spark recently announced plans to sell a 75 percent stake in its data centre business, and expected $486 million in cash proceeds.
Chief executive Jolie Hodson said Spark had taken "decisive action" to shake up the business and cost base, with a focus on connectivity.
"As we have focused on improving market momentum, we have also reshaped our business to deliver a more efficient operating model in the face of changing demand," she said.
Spark provided underlying profit guidance of between $1.01 billion and $1.07b for 2026.
