SPK- Spark NZ (TELCO)

[Sideshow Bob]

https://www.nzx.com/announcements/426966

• Growth in adjusted1revenue and EBITDAI2 underpinned by strong performance in mobile andmomentum in data centres and high-tech. On a reported basis revenue and EBITDAI declined asSpark cycled the significant net profit declared in FY23 following the TowerCo and Spark Sporttransactions
• NPAT3 decreased on an adjusted basis by 4.8% to $157 million
• H1 FY24 dividend of 13.5 cents per share declared, 100% imputed
• Reaffirmed FY24 EBITDAI, capital expenditure, and total dividend guidance

[nztx]

A bit of a surprise sting on the B^m incoming from this outfit today:

We’re no longer offering Xtra Mail for free

Xtra Mail has kept New Zealanders like you connected for almost 30 years. However, costs to run the service have increased significantly and it’s no longer sustainable to offer it for free.

So, from 16 May 2024, Xtra Mail will cost $5.95 a month for Spark broadband, pay monthly mobile and landline customers and $9.95 a month for everyone else.

That's a $71 pa spike in cost for those on Broadband

Likely to affect all their Customers using XTRA email accounts

[thedrunkfish]

Most people wont use it though mate, can't remember the last time i laid eyes on an xtra.co.nz email address tbh

[dobby41]

Most people wont use it though mate, can't remember the last time i laid eyes on an xtra.co.nz email address tbh

You need to get out more - there are thousands of them.
Back in 2018 they had 720k.

[percy]

Very reasonable price to pay for an excellent service.
Yes we are a Spark shareholder and my email address is with xtra.
Only issue I have had was poor wireless reception,which caused me to go to fibre.[which has been great].

[nztx]

Just one question - how do they work out that something part of their existing offering is now actually recoverable at an $71 pa extra walloping of their customer ?

What have they added to justify all that extra loot being charged out ? About an extra month's wifi broadband cost being added on that charge spike up ..

How about all those who were sold Xtra plans with free Xtra email addresses ?

Do gmail charge or only above certain space quota ? for a fair wack of xtra email accounts - the messages are pulled off their mail servers & therefore only stored a brief time ?

It looks rather like a Price hike to me in times when data storage etc is supposedly reducing in price

Will they be charging for sending their monthly Xtra bills out to non-Xtra email addresses next ?


A bit like the Petrol stations charging for their fuel and then looking at charging patrons to use the bowsers to put the stuff into the wagon, as an example

[clip]

Just one question - how do they work out that something part of their existing offering is now actually recoverable at an $71 pa extra walloping of their customer ?

What have they added to justify all that extra loot being charged out ? About an extra month's wifi broadband cost being added on that charge spike up ..

How about all those who were sold Xtra plans with free Xtra email addresses ?

Do gmail charge or only above certain space quota ? for a fair wack of xtra email accounts - the messages are pulled off their mail servers & therefore only stored a brief time ?

It looks rather like a Price hike to me in times when data storage etc is supposedly reducing in price

Will they be charging for sending their monthly Xtra bills out to non-Xtra email addresses next ?


A bit like the Petrol stations charging for their fuel and then looking at charging patrons to use the bowsers to put the stuff into the wagon, as an example

They are providing a service (email) which incurs costs to provide (storage space, hosting costs, antispam, security enhancements, software upgrades - among other things).

Over time these costs will have increased/will continue to increase due to - ever increasing storage sizes, software going out of date, needing to be patched, eventually needing to be completely rebuilt/replaced when the software meets end of life. Completely understandable to charge for it and surprising it has taken so many many years to do so

[nztx]

They are providing a service (email) which incurs costs to provide (storage space, hosting costs, antispam, security enhancements, software upgrades - among other things).

Over time these costs will have increased/will continue to increase due to - ever increasing storage sizes, software going out of date, needing to be patched, eventually needing to be completely rebuilt/replaced when the software meets end of life. Completely understandable to charge for it and surprising it has taken so many many years to do so

Let's see how many others follow SPK's lead, or otherwise to try to harvest some market share

Currently have a free deal elsewhere .. they require email box cleared regularly off their mail servers
on multiple mail accounts and offer all the same bells & whistles for Zero cost.

Some of the Competitors might view SPK's move as a wonderful marketing opportunity to get a leg up on SPK

[clip]

Let's see how many others follow SPK's lead, or otherwise to try to harvest some market share

Currently have a free deal elsewhere .. they require email box cleared regularly off their mail servers
on multiple mail accounts and offer all the same bells & whistles for Zero cost.

Some of the Competitors might view SPK's move as a wonderful marketing opportunity to get a leg up on SPK

The thing with xtra mail is that the people who have had it for 20+ years and not bothered to move to other, better, free options, are likely to be one of a few things:

1) don't want to change their email address so will pay to keep it
2) don't know how to change their email address so will pay to keep it
3) won't look at their bill/ever notice the cost increase and will pay to keep it

I don't think it's a big deal like you are making it out to be

[Jay]

The thing with xtra mail is that the people who have had it for 20+ years and not bothered to move to other, better, free options, are likely to be one of a few things:

1) don't want to change their email address so will pay to keep it
2) don't know how to change their email address so will pay to keep it
3) won't look at their bill/ever notice the cost increase and will pay to keep it

I don't think it's a big deal like you are making it out to be

I'm one of those, not 2 & 3 but easier than trying to change everything. Thought I think the Firbre price is not too far away from anyone else, all these so called cheaper options are only for the first 3, 6 months etc or the speed or data amount limited

May Find the other will do the same e.g. 2 degrees etc

Vodafone (ONE) just ditched it all together, had no option!