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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This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

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

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