Full Year 2024 Spark New Zealand Ltd Earnings Call Transcript
Key Points
- Mobile service revenues surpassed $1 billion for the first time, indicating strong growth in this segment.
- Customer satisfaction grew by 7 points, reflecting improved service quality.
- Employee engagement remains strong, maintaining top quartile sustainability benchmarking.
- Data center revenue growth exceeded targets, increasing by 54.2% to $37 million.
- High-tech revenues grew by 21.5%, driven by IoT and other technological advancements.
- Adjusted revenue decreased by 1.2% to $3.861 billion due to challenging economic conditions.
- Adjusted EBITDAI reduced by 2.5% to $1.163 billion, impacted by lower revenue and higher costs.
- Adjusted NPAT declined by 21% to $342 million, affected by higher finance expenses and depreciation.
- Free cash flow reduced by 32.5% to $330 million, contributing to higher net debt.
- Intensified competition in the business mobile segment led to a 3.5% decline in revenue.
(spoken in foreign language) and thanks for joining us today for Spark's full-year results for the period ending June 30, 2024. I'm joined today by CFO, Stefan Knight. And as always, we'll leave time for questions at the end of our presentation.
As you know, our FY24 financial results are cycling with significant revenue and net profit declared in FY23, following the TowerCo and Spark Sport transaction. As such, both reported and adjusted year-on-year comparisons are provided. I'll speak to the adjusted numbers, which strip out the impact of the one-off gain to provide a like-for-like performance comparison.
Fair to say, it's been a challenging year for Spark with recessionary economic conditions creating a tough operating environment. We saw growth in key markets with mobile service revenues surpassing $1 billion for the first time and IT products, data centers and high-tech continuing to grow. This was offset as economic conditions impacted demand in IT services with our intensified competition in
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