Spark New Zealand (NZSE:SPK) Reports Decline In Sales And Net Income

Spark New Zealand (NZSE:SPK) recently announced earnings results for the year ending June 2025, revealing declines in sales and net income. Additionally, the company decreased its dividend, distributing a total of NZD 0.141 per share. Despite these developments, Spark's stock price remained flat over the last quarter. This stability mirrors broader market trends, as key indexes like the Nasdaq and S&P 500 reached record highs, primarily driven by optimism surrounding potential Federal Reserve interest rate cuts. The company's strategic presentation of a new five-year plan likely added some weight to the broader upward market sentiment.

We've discovered 2 possible red flags for Spark New Zealand (1 is a bit unpleasant!) that you should be aware of before investing here.

We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Over the past year, Spark New Zealand's total return, combining share price changes and dividends, fell 20.97% as of September 15, 2025. This performance lagged behind the NZ Telecom industry's return of 18.8% and the NZ market's return of 2.9% over the same period. Such a disparity illustrates Spark's relative struggle amidst broader market gains.

Despite the recent flattening of Spark's share price, the stock is trading at a significant discount to consensus analyst fair value targets, which stand at NZ$2.91 compared to the current price of NZ$2.34. These forecasts incorporate the company's recent performance, indicating potential for appreciation, though investor confidence may remain cautious given the company's negative earnings growth and lower profit margins.

The declines in revenue and net income, alongside the reduced dividend, may have subdued earnings forecasts and investor sentiment. However, the introduction of Spark's new five-year plan could signal a strategic shift aiming to stabilize and enhance future profitability. Nevertheless, future price movements remain uncertain, especially in consideration of forecasts slightly below NZ market growth rates.

Gain insights into Spark New Zealand's past trends and performance with our report on the company's historical track record.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com