Business

Cellphone sales drive Spark’s $167m profit

The telecommunications company Spark has made a larger profit off a big boost in mobile sales, with the company's bottom line rising 9.2 percent to $167 million in the six months ended December.

Revenue rose 4 percent to $1.82 billion with increased margins in the mobile, broadband and cloud divisions.

But sales continued to decline in the legacy fixed-line voice division.

"We are heading into the second half with great momentum and some stand-out performances across our core segments," chief executive Jolie Hodson said.

"We outperformed our growth targets in mobile, with a shift to unlimited and high value plans."

Hodson said broadband operating revenue was expected to be flat.

"We made a deliberate decision to limit wireless broadband sales in the lead up to the Rugby World Cup, as a conservative measure to ensure customers had a great viewing experience while we introduced our new streaming service.

"Our capacity was more than sufficient, so we expect this to be a one-off and connection growth to return to trend in the second half."

Costs increased about 5 percent in the period as it launched new businesses and improved the Spark Sport streaming platform.

It sold its content streaming platform, Lightbox, to Sky Network Television in the period, and divested the network assets of its cloud service provider, Computer Concepts.

It said it would join the auction to buy reallocated radio spectrum in March, for the rollout of its 5G mobile network.

"This groundwork stands us in good stead as we work to close out the financial year and look ahead to the next three years," Hodson said.

Spark would release the details of its next three-year strategy in April.

This article was originally published on RNZ and re-published with permission.

Credible information is crucial in a crisis.

The pandemic is pushing us into an unknown and uncertain future. As the crisis unfolds the need for accurate, balanced and thorough reporting will be vital. Newsroom’s team of journalists is working hard to bring you the facts but, now more than ever, we need your support.

Reader donations are critical to what we do. If you can help us, please click the button to ensure we can continue to provide quality independent journalism you can trust.

Comments

Newsroom does not allow comments directly on this website. We invite all readers who wish to discuss a story or leave a comment to visit us on Twitter or Facebook. We also welcome your news tips and feedback via email: contact@newsroom.co.nz. Thank you.

With thanks to our partners