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Spark New Zealand
(OTC:SPKKY)
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Rating:69Neutral
Price Target:
$6.00
â–¼(-5.51% Downside)
Action:Reiterated
Date:08/22/26
The score is supported most by attractive valuation (low P/E and high dividend yield) and improving cash-flow strength. This is tempered by only moderate overall financial quality due to margin volatility and meaningful leverage, plus a technically strong but overbought setup. Earnings call takeaways were constructive on cash flow and deleveraging, but cautious given EBITDA pressure and Digital Services uncertainty.
Positive Factors
Mobile market position and growth
Mobile revenue growth and the leading service-revenue position support customer scale and brand strength in a core connectivity market. The sharply reduced share decline suggests competitive momentum is improving, which can underpin recurring revenue and retention over coming quarters.
Negative Factors
EBITDA and margin-mix pressure
Falling adjusted EBITDA indicates that portfolio change is currently weighing on operating earnings. The continued loss of higher-margin legacy voice creates an unfavorable mix effect, limiting margin expansion and making future earnings growth more dependent on mobile growth and productivity.
Read all positive and negative factors
Positive Factors
Negative Factors
Mobile market position and growth
Mobile revenue growth and the leading service-revenue position support customer scale and brand strength in a core connectivity market. The sharply reduced share decline suggests competitive momentum is improving, which can underpin recurring revenue and retention over coming quarters.
Read all positive factors
Spark New Zealand (SPKKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.07B
Dividend Yield9.21%
Average Volume (3M)6.12K
Price to Earnings (P/E)7.4
Beta (1Y)0.55
Revenue Growth-0.70%
EPS Growth88.57%
CountryUS
Employees3,416
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.37
Shares Outstanding379,107,760
10 Day Avg. Volume0
30 Day Avg. Volume6,120
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)2.15
Price to Sales (P/S)0.95
P/FCF Ratio5.20
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit4.70
Enterprise Value/Ebitda3.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.38
Revenue Forecast (FY)$2.18B
Spark New Zealand Business Overview & Revenue Model
Company Description
Operating from its base in Auckland, New Zealand, Spark New Zealand Limited, along with its various subsidiaries, stands as a leading provider of telecommunications and digital solutions across the nation. Its comprehensive portfolio encompasses a...
How the Company Makes Money
Spark makes money primarily by selling telecommunications and related digital services on recurring and usage-based pricing models. Key revenue streams typically include: (1) Mobile services: recurring monthly plan fees and other charges for mobil...
Spark New Zealand Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call highlights solid progress on strategic execution (SPK-30) with strong free cash flow growth (+18.5%), successful portfolio monetization (data center sale), deleveraging (net debt to ~1.7x), mobile revenue momentum (+4.4%) and tangible productivity gains and cost reductions. These positives are tempered by near-term margin pressure (adjusted EBITDA -2.4%), declines in Digital Services, broadband and business connectivity, and some one-off costs and execution risks from the strategic review. On balance, the company strengthened its financial position and established a clearer strategic focus while acknowledging areas requiring further work.Positive Updates
Stable Adjusted Revenue
Adjusted revenue was stable at $3.7 billion year-on-year, providing a steady top-line base despite portfolio changes (5 fewer months of data center contribution).
Negative Updates
Adjusted EBITDA Decline
Adjusted EBITDA declined 2.4% to $1.035 billion, driven by mix shifts (continued decline in higher-margin legacy voice) and the part-year loss of data center earnings.
Read all updates
Q4-2026 Updates
Positive
Negative
Stable Adjusted Revenue
Adjusted revenue was stable at $3.7 billion year-on-year, providing a steady top-line base despite portfolio changes (5 fewer months of data center contribution).
Read all positive updates
Company Guidance
Spark guided FY27 adjusted EBITDA of $1,010–$1,080 million, BAU CapEx of $350–$380 million (down from FY26 BAU CapEx of $401m, 10.8% of revenue), and free cash flow of $300–$350 million; the Board expects to return 90%–100% of free cash flow as dividends, implying a FY27 dividend target of $0.16–$0.18 per share. Management reiterated its FY27 productivity ambition of $110–$140 million of annualised savings (having delivered $101m to date), aims to maintain net debt around ~1.7x net debt/EBITDA consistent with its credit rating, and expects FY27 EBITDA to be driven by mobile service revenue growth and productivity while being partially offset by the exit of the data‑center contribution, digital services pressure and diminishing legacy products.Spark New Zealand Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
70
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.73B | 3.62B | 3.76B | 4.49B | 3.69B |
| Gross Profit | 646.98M | 1.81B | 1.94B | 2.01B | 1.94B |
| EBITDA | 1.01B | 1.03B | 1.10B | 1.75B | 1.15B |
| Net Income | 511.64M | 260.00M | 316.00M | 1.14B | 410.00M |
Balance Sheet | |||||
| Total Assets | 4.28B | 4.53B | 4.63B | 4.48B | 4.19B |
| Cash, Cash Equivalents and Short-Term Investments | 156.52M | 34.00M | 59.00M | 100.00M | 71.00M |
| Total Debt | 1.95B | 2.35B | 2.36B | 1.86B | 1.87B |
| Total Liabilities | 2.64B | 3.00B | 3.04B | 2.54B | 2.71B |
| Stockholders Equity | 1.64B | 1.52B | 1.59B | 1.94B | 1.48B |
Cash Flow | |||||
| Free Cash Flow | 679.79M | 240.00M | 174.00M | 310.00M | 408.00M |
| Operating Cash Flow | 1.06B | 680.00M | 764.00M | 791.00M | 833.00M |
| Investing Cash Flow | 98.43M | -112.00M | -550.00M | 425.00M | -492.00M |
| Financing Cash Flow | -1.04B | -593.00M | -255.00M | -1.20B | -350.00M |
Spark New Zealand Technical Analysis
Negative
6.35
Price Trends
5.78
Negative
5.55
Negative
5.83
Negative
Market Momentum
-0.10
Positive
40.84
Neutral
16.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPKKY, the sentiment is Negative. The current price of 6.35 is above the 20-day moving average (MA) of 5.72, above the 50-day MA of 5.78, and above the 200-day MA of 5.83, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.84 is Neutral, neither overbought nor oversold. The STOCH value of 16.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPKKY.
Spark New Zealand Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $35.65B | 28.63 | 10.22% | 3.49% | 8.46% | 7.38% | |
72 Outperform | $3.75B | 8.35 | 22.58% | 8.64% | -1.72% | -18.30% | |
69 Neutral | $2.07B | 7.41 | 33.26% | 9.21% | -0.70% | 88.57% | |
66 Neutral | $9.31B | 8.98 | 7.21% | 4.30% | 5.40% | 39.37% | |
63 Neutral | $38.88B | -75.71 | -0.79% | 3.19% | 16.69% | 87.12% | |
61 Neutral | $13.88B | 26.93 | 5.74% | 1.73% | -7.65% | -32.07% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
SPKKY
Spark New Zealand
5.49
-0.94
-14.60%
CHT
Chunghwa Telecom Co
46.15
4.20
10.00%
KT
KT
19.01
-0.51
-2.61%
PHI
PLDT
18.15
0.28
1.56%
SKM
Sk Telecom
36.40
14.96
69.78%
VOD
Vodafone
16.79
5.92
54.50%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.