Spark on Friday posted full-year results that showed a decline in revenue and net profit, but the telco talked up EBITDA growth and the strength of its year-old brand.
The New Zealand operator saw turnover slide by 2.9% to NZ$3.53 billion (€2.09 billion) in the year to the end of June.
Net profit fell by 18.5% to NZ$375 million, although excluding discontinued operations the figure was up by 16.1%, and EBITDA grew by 2.8% to NZ$962 million.
"A clear strategy with solid execution and a greater focus on customers has seen Spark New Zealand continue to gain customer numbers and return to sustainable EBITDA and free cash flow growth," said Spark chairman Mark Verbiest, in a statement.
As a result, the telco has increased its dividend payment to 20 cents per share for the full year, up from 17 cents in 2014.
"For FY16, Spark New Zealand anticipates paying an annual dividend of 22 cents per share and a special dividend of 3 cents per share as a means of returning excess capital, subject to there being no material adverse changes in operating outlook," Verbiest said.
Spark’s home and mobile business is its biggest contributor to revenues, generating NZ$1.85 billion last year, an increase of 3%.
In the mobile space Spark claims to have closed the gap between itself and major rival Vodafone thanks to the additi on of 172,000 connections over the past 12 months. The telco’s mobile customer base stood at 2.18 million at the end of June, putting it just over 150,000 connections behind Vodafone. Three years ago, the gap was around 600,000, Spark said.
It added that its share of revenue in the mobile market grew to 41%, but noted that the sector remains highly competitive, particularly when it comes to business services. The telco’s mobile revenue increased by 8.5% to NZ$807 million.
Fixed revenues declined by NZ$25 million to NZ$998 million, due to competitive pressures, fixed-mobile substitution and take-up of naked broadband. Fixed broadband connections increased by 1.6% to 680,000.
"The bold decision to rebrand as Spark New Zealand continues to be vindicated with the core Spark brands performing well, appealing to a broader customer base and registering big improvements in brand preference measures," he said.
The company adopted the Spark brand just over a year ago, having previously been known as Telecom. The name change was designed to reflect a shift in the nature of the operator’s business from old school telecoms network operator to a digital services provider, Spark said at the time.
