SPK- Spark NZ (TELCO)

[dibble]

Also in a bit of a downtrend at present, through most of the last 5 years it's traded in a channel of approx $3.12 - $4.32 and it's only really since Sept 2019 that it's broken out of that range and cycled around the $4.50 mark. I'm inclined to watch it a while longer and see if it breaks down or can sustain at current levels as people cycle away from defensive utilities and back towards growth.

Not an unreasonable approach but the yield is consistent and compelling, especially so in a long term low int rate setting. Plus said low/minimal growth ought at least keep pace with inflation. There will continue to be a lot of money (ever growing kiwisaver?) seeking cash-cow-yield so decent chance it has a new floor above $4. Its also in Milford's top NZ holdings.

[peat]

good points guys and I certainly dont disagree. portfolios are quite personal and can be constructed in many different ways to achieve successful outcomes.

Hi Peat, you could say the same thing about most of the utilities, but I suggest that they are useful "ballast" in a portfolio. They never shoot the lights out and they seldom go broke.

Yep, fair comments. Although the technology change risk has always been there and Spark has proven over the years to be pretty good at embracing it, moving with the times, fending it off, reducing cost, or whatever is required to keep trucking along. The only reason I sometimes look at it currently is the rest of the market is starting to look a bit heady, IMO.

[tomm]

4 out of 7 brokers picked Spark for 2021, pretty solid! .It shall go with an up trend to follow Infratil as they mentioned.

[Sideshow Bob]

Ouch - Net Profit down 11.4%!

Spark New Zealand Limited H1 FY21 Results - NZX, New Zealand’s Exchange

[ratkin]

Ouch - Net Profit down 11.4%!

Spark New Zealand Limited H1 FY21 Results - NZX, New Zealand’s Exchange

Pretty ugly result that. Vodafone might not do to well either by the sound of that report.
The trouble with all these companies is the rapid pace of change that we have now. Hard for them to keep up.

[Getty]

Ouch - Net Profit down 11.4%!

Spark New Zealand Limited H1 FY21 Results - NZX, New Zealand’s Exchange

Might be just a sideshow Bob.

To many, the Main Event with this stock is the divvie, and they have kept that intact.

[850man]

Pretty ugly result that. Vodafone might not do to well either by the sound of that report.
The trouble with all these companies is the rapid pace of change that we have now. Hard for them to keep up.

Spark hit by covid and no international roaming revenues as well as businesses overall just tightening their belts or shutting up shop. Voda will be the same I would imagine. Good they are sustaining the divvie but can this continue if the profit remains down?

[Mr Slothbear]

Pretty ugly result that. Vodafone might not do to well either by the sound of that report.
The trouble with all these companies is the rapid pace of change that we have now. Hard for them to keep up.

yes exactly high tech change and 2 degrees is eating their lunch

[Ohdoyle]

Pretty ugly result that. Vodafone might not do to well either by the sound of that report.
The trouble with all these companies is the rapid pace of change that we have now. Hard for them to keep up.

Now I've actually read the results I actually realise not particularly ugly. Revenue within guidance.

Dividend confirmed for upper end of guidance and fully imputed.

Net profit down but a big chunk of that due to depreciation.

I'm inclined to think this is actually a good result. Nothing amazing but slightly better than expected.

The dividend yield continues to look attractive.

[Joshuatree]

How does this work?! Is it using 5G? How do they not use the Fibre.Im a recent convert to Fibre.I can see the advantage for Spark , they keep all the fees and cut Chorus right out.And up to 10 times faster.! Im the first to admit ,this techno phobe cant keep up

NZ Herald
Spark CEO Jolie Hodson wants 30-40 per cent of fixed-line broadband customers on wireless



"A quiet revolution is happening in New Zealand broadband.
Spark and Vodafone are in the process of shifting hundreds of thousands of customers on to fast internet technology that's completely outside the Ultrafast Broadband (UFB) fibre rollout that has cost Chorus and the Crown some $3.5 billion."