Spark profit boost on one-offs, amid review of non-core businesses
Last month, the telcom company re-organised its operations to sharpen its focus on core services.
Telecommunications firm Spark experienced a remarkable surge in annual profit, soaring 91 percent to $499 million, primarily driven by one-off gains from the sale of data centre assets. The adjusted net profit stood at $225 million, a slight 0.9 percent decrease from the previous year. Adjusted revenue remained stable at $3.7 billion. Reported EBITDA, or underlying operating profit, rose by 23 percent to $1.295 billion; however, after accounting for one-off items, it declined by 2.4 percent to $1.035 billion.
Spark's mobile revenue expanded by 4.4 percent to $1.52 billion, while mobile service revenue grew 1.1 percent to $998 million. The telecommunications giant recently restructured its operations into two divisions to concentrate on core services. The connectivity division will bring together Spark's core telecommunications and IT services businesses, whereas the digital services division will oversee its digital and technology-related operations.
In a bid to maximise value and returns for shareholders, Spark has embarked on a comprehensive review of activities deemed non-core, including cloud and IT services, which now fall under the digital services division. The review aims to identify how to optimise profit and returns for shareholders, with completion expected in the first half of FY27. Spark's chief executive, Jolie Hodson, attributed the stellar result to robust execution in areas crucial to customers.
Hodson emphasized that the company's primary focus for the year was to translate the SPK-30 strategy into superior customer outcomes and measurable performance enhancements for shareholders. She reiterated that returning to growth in underlying operating earnings remained a top priority. Hodson outlined their approach, highlighting their commitment to leveraging the strong mobile growth observed this year, embedding structural productivity improvements across the business, reducing exposure to declining legacy products, and further streamlining their portfolio.
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