Spark New Zealand Full Year 2024 Earnings: Misses Expectations

Simply Wall St

August 27, 2024

Spark New Zealand (NZSE:SPK) Full Year 2024 Results

Key Financial Results

Revenue: NZ$3.86b (down 14% from FY 2023).
Net income: NZ$316.0m (down 72% from FY 2023).
Profit margin: 8.2% (down from 25% in FY 2023). The decrease in margin was primarily driven by lower revenue.
EPS: NZ$0.17 (down from NZ$0.61 in FY 2023).

revenue-and-expenses-breakdown — NZSE:SPK Revenue and Expenses Breakdown August 27th 2024

All figures shown in the chart above are for the trailing 12 month (TTM) period

Spark New Zealand Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) also missed analyst estimates by 24%.

The primary driver behind last 12 months revenue was the Mobile segment contributing a total revenue of NZ$1.47b (38% of total revenue). Notably, cost of sales worth NZ$2.64b amounted to 68% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Depreciation & Amortisation (D&A) costs, amounting to NZ$527.0m (58% of total expenses). Explore how SPK's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Telecom industry in Oceania.

Performance of the market in New Zealand.

The company's shares are down 12% from a week ago.

Risk Analysis

It is worth noting though that we have found 3 warning signs for Spark New Zealand (1 is significant!) that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.