SPK

Spark New Zealand, the NZ teleco operator.

When the CEO describes the result as “incredibly strong” in the MD&A section, you know you are on for a good outcome.

Steady growth in mobile offsets the near finished decline in voice, alongside rising network services.

Strong cashflows continue…

The dividend rose for the first time in years. Margins expanded thanks to cost out initiatives and scale.

Overall, a very pleasing result.

We remain happy holders in our direct equity portfolios.

As a sectoral comment, we like the telecos.

You’ve got leverage to the resumption of travel, you’ve got a (broadly) non-discretionary product, helpful in an uncertain macroeconomic environment, with some additional optionality to monetising the streaming/SVOD re-bundling, you’ve got rising ARPUs, all underpinned by generally good cashflows.

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Please note that past performance is not a reliable indicator of future performance.

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