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New Zealand (NZX) Telecom Sector Analysis

UpdatedJul 02, 2026
DataAggregated Company Financials
Companies4
  • 7D3.3%
  • 3M-1.4%
  • 1Y-4.9%
  • YTD-5.5%

The Telecom industry is up 1.4% in the last week, with Spark New Zealand up 8.2%. However, the industry is down 5.3% over the past year. As for the next few years, earnings are expected to grow by 14% per annum.

Sector Valuation and Performance

Has the New Zealand Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 02 Jul 2026NZ$8.6bNZ$5.8bNZ$386.5m14.5x22.2x1.5x
Sat, 30 May 2026NZ$8.6bNZ$5.8bNZ$386.5m14.7x22.2x1.5x
Mon, 27 Apr 2026NZ$8.8bNZ$5.8bNZ$386.5m15x22.9x1.5x
Wed, 25 Mar 2026NZ$8.7bNZ$5.8bNZ$386.5m15.2x22.5x1.5x
Fri, 20 Feb 2026NZ$8.7bNZ$5.8bNZ$280.9m22.1x31x1.5x
Sun, 18 Jan 2026NZ$9.3bNZ$5.8bNZ$257.9m23.3x35.9x1.6x
Tue, 16 Dec 2025NZ$9.0bNZ$5.8bNZ$257.9m23.3x34.9x1.5x
Thu, 13 Nov 2025NZ$9.2bNZ$5.8bNZ$257.9m24.5x35.6x1.6x
Sat, 11 Oct 2025NZ$9.3bNZ$5.8bNZ$257.9m22.8x36x1.6x
Mon, 08 Sep 2025NZ$9.8bNZ$5.9bNZ$255.1m21.2x38.4x1.7x
Wed, 06 Aug 2025NZ$9.2bNZ$6.0bNZ$176.6m23.4x51.8x1.5x
Fri, 04 Jul 2025NZ$9.1bNZ$6.0bNZ$176.6m23.6x51.3x1.5x
Sun, 01 Jun 2025NZ$8.4bNZ$6.0bNZ$176.6m21.1x47.3x1.4x
Tue, 29 Apr 2025NZ$8.0bNZ$6.0bNZ$176.6m19.6x45.4x1.3x
Thu, 27 Mar 2025NZ$7.8bNZ$6.0bNZ$176.6m19.1x44.2x1.3x
Sat, 22 Feb 2025NZ$9.8bNZ$6.0bNZ$215.4m20.9x45.6x1.6x
Mon, 20 Jan 2025NZ$10.0bNZ$6.0bNZ$368.2m17.1x27.1x1.7x
Wed, 18 Dec 2024NZ$9.8bNZ$6.0bNZ$368.2m16.6x26.6x1.6x
Fri, 15 Nov 2024NZ$10.0bNZ$6.0bNZ$368.2m16.8x27.1x1.7x
Sun, 13 Oct 2024NZ$10.0bNZ$6.0bNZ$368.2m17x27.3x1.7x
Tue, 10 Sep 2024NZ$10.7bNZ$6.0bNZ$368.2m17.7x29.1x1.8x
Thu, 08 Aug 2024NZ$12.0bNZ$6.1bNZ$514.4m18.7x23.3x2x
Sat, 06 Jul 2024NZ$11.3bNZ$6.1bNZ$514.4m17.3x22x1.9x
Mon, 03 Jun 2024NZ$11.3bNZ$6.1bNZ$514.4m17.7x21.9x1.9x
Wed, 01 May 2024NZ$12.4bNZ$6.1bNZ$514.4m20.3x24x2x
Fri, 29 Mar 2024NZ$12.6bNZ$6.1bNZ$514.4m20.2x24.4x2.1x
Sun, 25 Feb 2024NZ$13.4bNZ$6.6bNZ$1.2b14.6x10.9x2x
Tue, 23 Jan 2024NZ$13.5bNZ$6.6bNZ$1.2b9.6x11x2x
Thu, 21 Dec 2023NZ$13.2bNZ$6.6bNZ$1.2b9.2x10.8x2x
Sat, 18 Nov 2023NZ$13.2bNZ$6.6bNZ$1.2b8.9x10.7x2x
Mon, 16 Oct 2023NZ$12.9bNZ$6.6bNZ$1.2b8.9x10.5x2x
Wed, 13 Sep 2023NZ$12.9bNZ$6.6bNZ$1.2b9.1x10.5x2x
Fri, 11 Aug 2023NZ$13.8bNZ$6.5bNZ$1.2b8.4x11.9x2.1x
Sun, 09 Jul 2023NZ$13.3bNZ$6.5bNZ$1.2b8.1x11.5x2.1x
Price to Earnings Ratio

11.5x


Total Market Cap: NZ$13.3bTotal Earnings: NZ$1.2bTotal Revenue: NZ$6.5bTotal Market Cap vs Earnings and Revenue0%0%0%
New Zealand Telecom Sector Price to Earnings3Y Average 27.2x202420252026
Current Industry PE
  • Investors are pessimistic on the New Zealander Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 22.1x which is lower than its 3-year average PE of 27.2x.
  • The 3-year average PS ratio of 1.7x is higher than the industry's current PS ratio of 1.5x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have declined 31% per year over the last three years,
  • Revenues have also declined 3.3% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the New Zealand Telecom sector?

NZ Market1.14%
Telecom3.29%
Telecom Services and Carriers3.47%
Media1.12%
Interactive Media and Services0%0
Wireless Telecom0%0
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry, which is trading close to its 3-year average PE ratio of 27.9x.
    • Analysts are expecting annual earnings growth of 16.0%, which is lower than the prior year's growth of 48.6% per year.
  • Investors are most pessimistic about the Media industry, which is trading below its 3-year average of 109x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 16% over the next 5 years.
  • However this is lower than its past earnings growth rate of 49% per year.
  • In contrast, the Media industry is expected to see its earnings decline by 6.9% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
SPK Spark New ZealandNZ$1.850.5%
+NZ$18.9m		-25.4%PE12.7x
SKT SKY Network TelevisionNZ$3.291.5%
+NZ$6.9m		8.6%PE6.1x
NZM NZMENZ$1.110.9%
+NZ$1.9m		-5.6%PE15.9x

Latest News

SPK
NZ$1.85
Spark New Zealand
7D
0.5%
1Y
-25.4%
Narrative Update • Jun 26

SPK: Dividend Reset And Data Centre Shift Will Shape Earnings Outlook

Analysts have trimmed their price target for Spark New Zealand to NZ$1.90 from NZ$2.20, reflecting slightly lower assumptions for revenue growth, profit margins and future P/E, partially offset by a modestly reduced discount rate. What’s in the News for Spark New Zealand Spark New Zealand has reduced its dividend, resetting what had previously been a historically steady payout to reflect lower profitability, according to recent news reports.
CNU
NZ$9.62
Chorus
7D
-2.3%
1Y
12.5%
Narrative Update • Jun 24

CNU: Future Returns Will Depend On Stable Dividends And Discount Rate Assumptions

Analysts have trimmed their Chorus price target slightly to NZ$9.46 as lower assumed discount rates, together with a small adjustment to the future P/E expectation, feed through into updated valuation work. What’s in the News for Chorus No recent company specific news items for Chorus have been identified in the provided sources.
NZM
NZ$1.11
NZME
7D
0.9%
1Y
-5.6%
SKT
NZ$3.29
SKY Network Television
7D
1.5%
1Y
8.6%