Spark has grown its bottom line and announced plans to return $350 million to shareholders, following the partial sale of its cell towers.
Spark has returned to revenue growth says chief executive Jolie Hodson Photo: RNZ / Nate McKinnon
Key numbers for the year ended June compared to a year ago:
- Net profit $410m vs $384m
- Revenue $3.72b vs $3.59b
- Underlying profit $1.12b vs $1.15b
- Final dividend 25 cents per share vs 25 cps
The telecommunications company's chief executive, Jolie Hodson, said the company had returned to revenue growth, with a market leading result in its mobile business and expansion in its growth markets.
Mobile service revenue rose 5.5 percent on the year earlier to $899m, driven by 13 percent increase of customers shifting to its high-yielding endless data plans.
Earnings in the competitive broadband market was down 4.6 percent to $639m, but the company said customer churn had stabilised at 704,000.
Spark's internet of things and health platform, which are part of its future markets division, recorded revenue growth of 22 percent and 46 percent respectively.
However, the individual financial performances of these businesses were lumped in, along with Spark Sport's earnings, into "other operating revenue".
The better bottom line result was also boosted by better cost management and a stabilisation in its depreciation bill.
"We are on track to deliver the substantial investments we are making in the digital infrastructure that underpins Aotearoa's digital economy and our growth," Hodson said.
"At the end of FY22 5G was live in 21 locations across the country and our Takanini data centre expansion is over 85 percent contracted and on track for completion in 2023."
The company added 98 staff over the year, taking its headcount total headcount to 5,132.
It said female representation across senior roles had increased from 42 percent to 47 percent and it had reduced its median gender pay gap from 28 percent to 24 percent.
Outlook
The company forecast underlying earnings of between $1.185 billion and $1.225b for the current financial year.
"We are well placed to adapt to an inflationary environment, with resilient products and services positioned well in the market," Hodson said.
Spark chair Justine Smyth said following the completion of the company's partial divestment of its passive mobile towers for $900m, it planned to return $350m of value to investors through a share buy-back.
"This will be subject to market conditions at the time, and we may investigate alternative return options," Smyth said.
"A further $350m will be invested in future growth opportunities, such as digital infrastructure, scaling Spark health and Spark IoT, and accelerating the commercialisation of emerging technology."
Spark also expected to grow its free cash from $296m to between $460m and $500m, which would allow the company to raise its full year dividend for the first time in 7 years to 27 cps.
