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New Zealand (NZX) Telecom Sector Analysis

UpdatedAug 25, 2026
DataAggregated Company Financials
Companies4
  • 7D3.2%
  • 3M0.3%
  • 1Y-10.0%
  • YTD-4.2%

Over the last 7 days, the Telecom industry has risen 6.1%, driven by gains from Spark New Zealand of 13%. Meanwhile, Chorus actually underperformed within the industry, shrinking 5.1% in the last week. In the past year, the industry is down 6.2%. As for the next few years, earnings are expected to grow by 9.2% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 25 Aug 2026NZ$8.7bNZ$6.1bNZ$597.5m12.3x14.5x1.4x
Thu, 23 Jul 2026NZ$8.3bNZ$5.8bNZ$386.5m14.1x21.5x1.4x
Sat, 20 Jun 2026NZ$8.4bNZ$5.8bNZ$386.5m14.3x21.6x1.4x
Mon, 18 May 2026NZ$8.8bNZ$5.8bNZ$386.5m15.2x22.7x1.5x
Wed, 15 Apr 2026NZ$8.8bNZ$5.8bNZ$386.5m15.3x22.8x1.5x
Fri, 13 Mar 2026NZ$9.0bNZ$5.8bNZ$386.5m16x23.2x1.5x
Sun, 08 Feb 2026NZ$9.0bNZ$5.8bNZ$257.9m22.1x35.1x1.6x
Tue, 06 Jan 2026NZ$9.1bNZ$5.8bNZ$257.9m23.1x35.2x1.6x
Thu, 04 Dec 2025NZ$9.0bNZ$5.8bNZ$257.9m23.8x35x1.5x
Sat, 01 Nov 2025NZ$9.4bNZ$5.8bNZ$257.9m24.4x36.5x1.6x
Mon, 29 Sep 2025NZ$9.2bNZ$5.8bNZ$257.9m21.4x35.6x1.6x
Wed, 27 Aug 2025NZ$9.6bNZ$5.9bNZ$257.3m21.1x37.2x1.6x
Fri, 25 Jul 2025NZ$9.0bNZ$6.0bNZ$176.6m23.9x50.9x1.5x
Sun, 22 Jun 2025NZ$8.7bNZ$6.0bNZ$176.6m21.6x49x1.5x
Tue, 20 May 2025NZ$8.3bNZ$6.0bNZ$176.6m20.3x47x1.4x
Thu, 17 Apr 2025NZ$7.9bNZ$6.0bNZ$176.6m19.3x44.8x1.3x
Sat, 15 Mar 2025NZ$8.1bNZ$6.0bNZ$176.6m19.7x45.6x1.4x
Mon, 10 Feb 2025NZ$9.6bNZ$6.0bNZ$368.2m16.7x26.1x1.6x
Wed, 08 Jan 2025NZ$9.8bNZ$6.0bNZ$368.2m16.6x26.6x1.6x
Fri, 06 Dec 2024NZ$9.7bNZ$6.0bNZ$368.2m16.5x26.4x1.6x
Sun, 03 Nov 2024NZ$9.7bNZ$6.0bNZ$368.2m16.6x26.3x1.6x
Tue, 01 Oct 2024NZ$9.8bNZ$6.0bNZ$368.2m16.6x26.7x1.6x
Thu, 29 Aug 2024NZ$10.9bNZ$6.0bNZ$368.2m17.7x29.5x1.8x
Sat, 27 Jul 2024NZ$11.5bNZ$6.1bNZ$514.4m17.8x22.4x1.9x
Mon, 24 Jun 2024NZ$11.1bNZ$6.1bNZ$514.4m17.2x21.7x1.8x
Wed, 22 May 2024NZ$11.3bNZ$6.1bNZ$514.4m17.8x22x1.9x
Fri, 19 Apr 2024NZ$12.2bNZ$6.1bNZ$514.4m19.8x23.8x2x
Sun, 17 Mar 2024NZ$12.8bNZ$6.1bNZ$514.4m20.8x25x2.1x
Tue, 13 Feb 2024NZ$13.4bNZ$6.6bNZ$1.2b9.5x10.9x2x
Thu, 11 Jan 2024NZ$13.4bNZ$6.6bNZ$1.2b9.6x10.9x2x
Sat, 09 Dec 2023NZ$13.3bNZ$6.6bNZ$1.2b8.8x10.8x2x
Mon, 06 Nov 2023NZ$13.0bNZ$6.6bNZ$1.2b8.7x10.6x2x
Wed, 04 Oct 2023NZ$12.6bNZ$6.6bNZ$1.2b8.7x10.3x1.9x
Fri, 01 Sep 2023NZ$13.4bNZ$6.6bNZ$1.2b9x10.9x2x
Price to Earnings Ratio

10.9x


Total Market Cap: NZ$13.4bTotal Earnings: NZ$1.2bTotal Revenue: NZ$6.6bTotal Market Cap vs Earnings and Revenue0%0%0%
New Zealand Telecom Sector Price to Earnings3Y Average 27.7x202420252026
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 14.9x which is lower than its 3-year average PE of 27.7x.
  • 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 21% per year over the last three years,
  • Revenues have also declined 2.6% 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 Market1.13%
Telecom3.20%
Media4.38%
Telecom Services and Carriers3.10%
Interactive Media and Services0%0
Wireless Telecom0%0
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry even though it's trading below its 3-year average PE ratio of 28.5x.
    • Analysts are expecting annual earnings growth of 10.6%, which is lower than the prior year's growth of 92.9% 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 11% over the next 5 years.
  • However this is lower than its past earnings growth rate of 93% per year.
  • In contrast, the Media industry is expected to see its earnings decline by 8.2% 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$2.1811.5%
+NZ$425.3m		-12.8%PE8.5x
SKT SKY Network TelevisionNZ$3.422.4%
+NZ$11.0m		10.3%PE6.3x
NZM NZMENZ$1.113.7%
+NZ$7.5m		-3.5%PE16x

Latest News

CNU
NZ$8.92
Chorus
7D
-6.8%
1Y
-7.8%
SPK
NZ$2.18
Spark New Zealand
7D
11.5%
1Y
-12.8%
Narrative Update • Aug 20

SPK: Digital Services Review Will Expose Weakness In Earnings Outlook

Analysts have revised their fair value estimate for Spark New Zealand from NZ$1.90 to NZ$1.80. The change reflects slightly higher assumed discount rates, updated expectations for revenue growth returning to positive territory, a modestly improved profit margin outlook, and a lower future P/E multiple in their updated models.
NZM
NZ$1.11
NZME
7D
3.7%
1Y
-3.5%
SKT
NZ$3.42
SKY Network Television
7D
2.4%
1Y
10.3%