# SPK - Spark New Zealand



## ronny05 (4 May 2006)

Hi all

Do any of you have any thoughts on the regulatory changes made in NZ that have seen TEL plummet over 12% in two days?

From what I understand, that market should have already factored this into the price before the release of the government report. I personally think this is an over reaction. It may just be a matter of waiting to see what impact it does actually have on the bottom line of TEL.

Does anyone have any thoughts on this?

Regards
Aaron.


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## 3 veiws of a secret (4 May 2006)

*Re: TEL - Telecom Corporation of New Zealand*

Aspect Huntley's have 'ACCUMULATE ' all over this stock - seems only because of 'yield'.......can only agree with {ronny 05} ....so is it over sold? It's on my radar!


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## GreatPig (3 November 2006)

*Re: TEL - Telecom Corporation of New Zealand*

Looks like a head & shoulders bottom formed on this one now. Bounced back off the neck line today, currently at $4.01.

Upside target of around $4.60, if this follows the textbooks... 

GP


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## GreatPig (30 November 2006)

*Re: TEL - Telecom Corporation of New Zealand*

Dipped back through the neckline, but heading up again, albeit on low volume.

Cheers,
GP


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## Hopeful (10 June 2010)

*Re: TEL - Telecom Corporation of New Zealand*

TEL has been in a big down trend for a long time. Why? Is the same thing going to happen to TLS.ax ?


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## akkopower (10 June 2010)

*Re: TEL - Telecom Corporation of New Zealand*

GreatPig,
Believe it or not buddy tls is in a downtrend and has been for a very long time, has given big dividends though. Where will it end up 5 yrs from now?


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## piggybank (28 February 2014)

*Re: TEL - Telecom Corporation of New Zealand*

*DAVID YUILE TO DEPART TELECOM*​
Telecom has today announced that David Yuile, CEO of AAPT, will be leaving AAPT effective 28 February 2014, and will accordingly cease to be an officer of Telecom Corporation of New Zealand Limited on that date. Telecom Chief Executive, Simon Moutter, said that Mr Yuile has been instrumental in driving the transformation of AAPT over the past few years into a highly competitive data and internet provider. This work has culminated in the sale of AAPT to TPG for A$450million, due to be settled on 28 February 2014.

*28 February 2014 - Telecom completes sale of AAPT to TPG Telecom Limited​*
Telecom is pleased to announce it has today completed the sale of AAPT for A$450 million to TPG Telecom Limited. As announced at its investor strategy day in May 2013, Telecom’s strategic ambition is to become a growing New Zealand company and a future-oriented, competitive provider of communication, entertainment and IT services delivered over its networks and the Cloud.

“The sale of AAPT was consistent with this strategy and with our desire to focus principally on our New Zealand operations and on the needs of New Zealand customers” said Telecom Chief Executive, Simon Moutter. Following a period of cost reduction and operational improvement, AAPT has.....

The rest can be read here:- http://stocknessmonster.com/news-item?S=TEL&E=ASX&N=785625

​


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## piggybank (30 April 2014)

*Re: TEL - Telecom Corporation of New Zealand*

A P&F Daily Chart

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## VSntchr (30 April 2014)

*Re: TEL - Telecom Corporation of New Zealand*



piggybank said:


> A P&F Daily Chart
> 
> View attachment 57784​




I'm short this in a pair, please send it down PB!

I've noticed that a few of the NZ related Aus-listed stocks I monitor have been strong the last couple of weeks: TEL, FBU, SKT


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## McLovin (30 April 2014)

*Re: TEL - Telecom Corporation of New Zealand*



VSntchr said:


> I've noticed that a few of the NZ related Aus-listed stocks I monitor have been strong the last couple of weeks: TEL, FBU, SKT




The NZD has been caning the AUD over the last few months. That might partially explain it.


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## oldblue (1 May 2014)

*Re: TEL - Telecom Corporation of New Zealand*



McLovin said:


> The NZD has been caning the AUD over the last few months. That might partially explain it.




Perhaps. But although the stronger NZD reflects better business conditions in NZ - and therefore the prospect of better profits for NZ companies - it should also result in the AUD shareprice increasing, given that the NZD is now buying more in AUD terms. That hasn't happened in the case of the three companies mentioned.


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## System (10 August 2014)

*Re: TEL - Telecom Corporation of New Zealand*

On August 8th, 2014, Telecom Corporation of New Zealand Limited (TEL) changed its name and ASX code to Spark New Zealand Limited (SPK).


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## piggybank (11 December 2014)

Well it took 13 days to go down but only 4 to get back to where it came from. However I don't think it is necessarily going to carry on at that rate!!.

​


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## JJZ (21 April 2016)

SPK seems to have taken a hit in the last day or two, can anyone educate a newbie as what what happened?

I cant seem to find any reason why the stock gapped down.  Is it related to this:   http://www.scoop.co.nz/stories/BU16...stems-sells-new-zealand-spectrum-to-spark.htm



JJZ


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## spreadthewealth (14 June 2017)

What is the current thinking on this stock? Is it a good buy?


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## oldblue (20 June 2017)

The recent announcement re taking over management of all Spark stores has been well received by the market. It's been a solid performer since splitting off the infrastruture business to Chorus and pays a good divvy - if you're a NZ taxpayer!

https://www.nzx.com/companies/SPK/announcements/302756


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## spreadthewealth (20 June 2017)

oldblue said:


> The recent announcement re taking over management of all Spark stores has been well received by the market. It's been a solid performer since splitting off the infrastruture business to Chorus and pays a good divvy - if you're a NZ taxpayer!
> 
> https://www.nzx.com/companies/SPK/announcements/302756




What do you mean to imply by the last statement about it paying a good dividend, but only if you are a NZ taxpayer? Isn't it a good buy for Australians from a dividend perspective?


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## oldblue (21 June 2017)

Australian taxpayers don't get the benefit of  NZ imputation credits, the equivalent of Aust franking credits, in the same way that NZ taxpayers can't use Aust franking credits. Both arise from taxes paid from profits in the respective countries. I'm assuming that Spark doesn't earn sufficient (any?) Aust profits to allow dividends to Australian shareholders to be franked?


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## rnr (11 November 2018)

It looks as though this stock is anxious to keep moving higher. (BO-HR)


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## Cam019 (17 December 2018)

SPK forming a bull flag. Price has just dipped below the 9EMA. Entry here would be 4.08 with an iSL of 3.99. Low side of target range is 4.37, which offers a minimum 3:1 reward to risk.  High side of target range is 4.63, offering reward to risk of over 6:1.


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## Ann (18 December 2018)

I have chosen this for the January Tipping Contest. However I think there is a bearish Head and Shoulders forming which is not so good for a Tipping Contest. However I am not basing my Tipping choices for a win but merely to display what I feel is a good reliable stock, which could live in a portfolio for a long time. I have held this stock in the past and it eventually closed itself out. Up to this date I have never re-entered a stock after being closed out. This was a very good stock to me and made me money. I may well re-enter if I can get it at a much better price than it is now. I will have to wait and see what price tempts me to re-enter.


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## Darc Knight (18 December 2018)

You were so kind to "help" me with my December stock pick @Ann I feel it only fair I help you with yours. 

I took a look at this and noticed a strong and continued upwards trend suggesting continued growth in price. It has, since last Wednesday taken a dive though indicating *NOW* is the time to buy this stock. Waiting to buy will only see you paying a lot higher price.


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## Darc Knight (19 December 2018)

Ann said:


> .
> 
> View attachment 90812




The more one looks at that chart and notices the upward trend with the current dip, the more one thinks NOW is the time to buy this Stock rather than waiting until next month


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## Ann (22 December 2018)

Darc Knight said:


> You were so kind to "help" me with my December stock pick @Ann I feel it only fair I help you with yours.
> 
> I took a look at this and noticed a strong and continued upwards trend suggesting continued growth in price. It has, since last Wednesday taken a dive though indicating *NOW* is the time to buy this stock. Waiting to buy will only see you paying a lot higher price.




It was a pity WSI was your pick DK, I always feel a quandry as to what to do when I see a situation which needs to be addressed. Throughout life there are so many ethical questions even in small ways. Should I act/say something/warn someone. It can be a very hard thing. Although I had no problem attacking PO3 as hard as I did as I could see the poster was using ASF as a dumping ground for his worn out crap. 

You may be right about buying SPK now DK. It has survived a triple top with great robust.
However, as much as I may be a chartist, I also like to ask why something happens to a stock. This is so, so easy to answer when one can chart. Go to the date of a point of a big change, look up the announcements and bingo you have your answer. So let's look at why it took off after its triple top. On October the 26 it took off after it was in a fall from its triple top...."what happened?" she asked. On October 23 a guy by the name of Matt Bain joined the company as Marketing Director and introduced a whole new culture of employment there called 'Agile Model'. This is along the lines of how other major tech firms work. It gives employees the opportunity to work when where and how they please. 
http://stoppress.co.nz/movingsshakings/matt-bain-join-spark-marketing-director

OK, I get this and the excitement but it is not instantaneous and shouldn't drive a price to that extent maybe it did. I like the man's looks and work philosophy. Not too old, not too young and he looks focused.

However as I am seeing a head and shoulders and I have seen many, many of those, I look back on the chart to see if it is in an all time high, as unless a H+S pattern is at an all time high it is unlikely to resolve in a textbook manner. 

I see it is coming up to an all time double top from back in March 2005 of around $4.50, so there is not a whole lot of up space left before a major challenge of a double top. Now what else is currently happening to SPK? From December 18 Vanguard have been buying into this stock they now own 5.210%. This will have been lifting the price with the demand. Not for a second suggesting they were running the price up, just buying into a company without a whole lot of noise.

So another look at the chart and the MACD signal I can see this appears to be in a cross back mode. The chart pattern of a near top H+S, the MACD signal  of a cross down, the potential of a long term double top coming from the early days at around $4.50, the current weakness in the world markets, the current sell off of Vanguard ETFs all leaves me slightly less than confident SPK will go up. It may go up, I may well be wrong, I am always open to that chance. I think a lot of buying support will disappear from this stock as people like what they see, and stand back for the sales to happen if we are indeed in another Kondratieff Wave, there will be some great buys coming up and I am all cashed up and waiting. 

I will be using the Tipping Comp to look for stocks. This time using the Tipping Comp as my theme. Heaven only knows what I may buy. Shock and horror, I may even buy a miner.....aka a big hole in the ground. Hope it isn't full of bullsh!t. Never mind, I am a vegetable gardner, I know manure when I smell it! 

Now DK, I would like a list of all your justifications for your stance in your very emphatic bullish recommendations on SPK and why you believe it will go up. Don't give me wishful thinking, it doesn't cut it.

...and the inevitable chart...


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## Darc Knight (22 December 2018)

Geez @Ann it took off again mid week, but seems to have taken another dive yesterday. Monday might be a good buy? Buy in December and sell in January when it reverts back to it's upwards trend.


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## Ann (31 January 2019)

Let's see how this goes over February for the Tipping Comp. It has cleared a short term overhead falling resistance, and bounced off a short term support of 3.74. I will chart it tomorrow.


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## Ann (1 February 2019)

A two month end-of-day daily chart showing it breaking above a falling resistance line. It has bounced off a short term support of 3.74. It has offered a second point to draw a rising support. The PVI (Positive Volume Index) is still rising, telling me the punters are still liking this stock. It may or may not find strength with this support, let's see what happens.


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## Trav. (16 December 2019)

Potential long entry for me over the next couple of days, as good stopping volume today and looking for conformation now.


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## Trav. (19 December 2019)

Well who would have thought that yesterdays little gain 2% would lead to a price sensitive announcement today 

It is amazing what can happen...Will be interesting to see how SP opens but no amount was mentioned in the sale of the business






holding


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## Trav. (9 January 2020)

still holding for the time being and nice to see this heading up.

follow up from post #28


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## rnr (10 January 2020)

SPK looks adequately set to challenge the overhead resistance from early September 2019.


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## Trav. (10 January 2020)

rnr said:


> View attachment 99586
> 
> 
> SPK looks adequately set to challenge the overhead resistance from early September 2019.



I was also looking to see how much more it had in it as I was worried it might run out of steam. 

Recent resistance is a you highlighted but looking back a bit further we have similar levels in early 2005, so maybe this point is pretty significant.

Market looking good so a good chance to take it out.


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## Joules MM1 (1 March 2020)

comp entry, choice !
like most stocks this week that are on a decent daily  incline SPK got hit with the panic du jour, a small rally is due, give a day or two, 13 week TMF hald above zero, retail fell thru zero, cracked the ice and currently drowning in a sea of frozen fear, so if the stock is green at the end of march it'll be  a good sign the trend remains in tact, an across-the-board shake-up comes with excuses not because of excuses, in that respect the stock remains healthy for mine

looking for a bounce (then a follow-on trounce, maybe next month)
View attachment 100900


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## divs4ever (23 February 2022)

Spark delivers strong first half performance and announces plans to establish Spark TowerCo

• Strong half year performance with revenue1, EBITDAI2, and NPAT all in growth
• Mobile a standout, with Spark the fastest growing provider by connections and revenue year-on-year3
• H1 FY22 dividend of 12.5 cents per share declared, 100% imputed
• Plans to establish Spark TowerCo to drive improved utilisation and capital efficiency of passive mobile
assets, and create opportunities to introduce third-party capital
Spark New Zealand (Spark) today announced a strong H1 FY22 result, with revenue, EBITDAI, and NPAT all
in growth.
Revenue increased 5.2% to $1,890 million, driven by a standout performance in mobile. Spark was the fastest
growing NZ mobile provider by connections and revenues year-on-year3, with mobile service revenue up 5%.
A successful launch of simplified broadband plans stabilised Spark’s base at 702,000 connections. While
broadband revenue fell 3.9% in a highly competitive market, gross margin was maintained as the benefits of
wireless broadband (WBB) growth offset increased fibre costs.
Cloud, security, and service management revenues grew 3.2%, driven by demand for public cloud and growth
in the health sector.
Spark’s investment behind future markets continued to gain momentum. Spark IoT connections increased 31%
to 623,000, supporting strong revenue growth; Spark Health won the first national contract for digital services
under the newly established Health New Zealand and grew revenues 25%4; and Spark Sport grew revenues
despite the sporting calendar being significantly impacted by Covid-19.
Growing revenues drove a 7.6% increase in EBITDAI to $538 million. NPAT increased 21.8% to $179 million,
driven by EBITDAI growth, a reduction in finance expense and lease liability interest, and lower depreciation
and amortisation.
Spark declared an H1 FY22 dividend per share of 12.5 cents, 100% imputed, supported by free cash flow of
$183 million.
Spark New Zealand Chair Justine Smyth said: “While we continued to experience ongoing disruption from
Covid-19 during the half, Spark delivered strong revenue and profit growth, with a standout performance in
mobile, a stabilisation in broadband, and continued business digitisation driving cloud adoption.
“We are pleased to see the strategic ambition Spark set back in 2020 coming to fruition, with future markets
now making a significant contribution to revenue growth, and targeted investments in simple, digital customer
experiences, data and artificial intelligence, and critical infrastructure differentiating Spark in the market.
“The Board and I are particularly pleased to see this growth driven by highly engaged people – with Spark
achieving its highest employee engagement to date during the half.
“A number of infrastructure investments are progressing to plan and supporting future growth, and in the
second half Spark intends to establish Spark TowerCo to improve the utilisation and capital efficiency of its
passive mobile assets and open up opportunities to introduce third-party capital.”
1 Operating revenues and other gains
2 Earnings before finance income and expense, income tax, depreciation, amortisation and net investment income (EBITDAI) is a non-Generally Accepted Accounting
Practice performance measure that is defined and reconciled to net earnings in Spark New Zealand’s Financial Statements 3 Market share estimates sourced from IDC
4 Revenues grew 51% including procurement
Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand
Spark expects to be around the top half of its FY22 EBITDAI guidance range of $1,130 million to $1,160 million
and confirmed total FY22 dividend guidance of 25.0 cents per share, 100% imputed5.
Reflecting on the half-year results and Spark’s progress executing its three-year strategy, Spark CEO Jolie
Hodson said: “Despite closed borders keeping roaming revenues suppressed, we delivered a market-leading
mobile performance3, underpinned by precision marketing and increasing customer demand for data, with 48%
growth in our Endless plans year-on-year.
“We have stabilised our broadband connection base with the launch of a simpler broadband line-up and
maintained margins in a highly competitive market with continued growth in wireless. We are building on this
momentum with further competitive wireless broadband offers launched in the second half.
“While we saw continued growth in cloud, security, and service management revenues, it was lower than where
we want it to be, with the shift in portfolio mix towards public cloud continuing to put pressure on pricing. Our
service management growth trajectory was also impacted by access to client sites due to Covid, however our
second half pipeline remains strong.
“As we execute our three-year strategy, it is pleasing to see our focus on building core capabilities delivering
differentiation in the market. Our customer experiences are increasingly digital, and our simplification
programme is progressing to plan. Precision marketing is delivering a 16% uplift in conversion, we are
accelerating our shift from legacy to modern technology, and we are building a world-class culture.
"We are on track to deliver our overall FY23 future market revenue aspirations, and while Spark Sport’s
contribution will be lower than expected, it is offset by the strong growth we are experiencing in health and IoT.
“As New Zealand’s healthcare sector digitises, Spark Health goes from strength to strength, and with our digital
health platform ‘Kete Waiora’ targeting customer onboarding by the end of FY22, we expect this to continue.
Spark IoT is also poised to continue its strong revenue and connection growth as customers look to utilise the
power of technology to drive efficiency and grow their business.
“None of these results would be possible without the mahi of our people, and we remain focussed on investing
in their learning and development, their wellbeing, and creating a place where all our people feel they belong.”
Spark TowerCo subsidiary announced
During FY21 Spark conducted a review of its infrastructure portfolio, to focus effort and investment on its
strategically important assets. Since that time Spark has announced an accelerated 5G rollout, delivering 90%
population coverage by the end of 20236, a material upgrade of its Mayoral Drive Exchange to support multiaccess edge compute capability, and a significant increase in capacity at its Takanini Datacentre – with up to
8MW now contracted and construction of a new data hall underway.
Today Spark announced plans to establish Spark TowerCo as a subsidiary company, to improve the
performance, utilisation, and capital efficiency of its passive mobile assets – spanning ~1,500 mobile sites7.
Hodson continued: “We can see globally that shared ownership models are an effective way of improving
returns from infrastructure assets that are not critical to competitive advantage. In mobile, our active assets are
what drives our competitiveness – including our core network and radio equipment. These assets leverage our
spectrum holdings, provide differentiated customer experiences, and support our wireless aspirations.
“Our passive mobile assets, on the other hand, are the physical towers that support this active equipment. By
separating these assets into a subsidiary model, we can improve utilisation through coverage expansion, future
service innovation, and increased tenancy, while delivering efficiencies in build, maintenance, technology, and
lease costs as we expand mobile coverage across Aotearoa.”
5 Subject to no adverse change in operating outlook
6 Assuming spectrum is made available by the New Zealand Government
7 Approximately 250 sites relate to outbound co-location on third party owned infrastructure (e.g., Rural Broadband Initiative (RBI) 1 sites)
Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand
Spark intends to commence a process in the second half of FY22 to explore the introduction of third-party
capital into Spark TowerCo, however there is no certainty that a transaction will proceed.
“Should we choose to introduce third-party capital we will retain a shareholding and remain a key anchor
tenant, with appropriate agreements in place on arms-length terms for operations and services. There will be
no change for our customers, and we will continue to invest in modernising our mobile network and improving
coverage for Aotearoa.”
Spark will provide more information on Spark TowerCo in the second half of FY22.


==============================================================

( DYOR )

i hold SPK


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## divs4ever (12 July 2022)

Spark announces sale of 70% of TowerCo business for
$900 million
Spark New Zealand today announced the Ontario Teachers’ Pension Plan Board (“Ontario
Teachers’”) will acquire a 70% interest in its TowerCo business.
Spark’s TowerCo business (“TowerCo”) is a leading New Zealand towers business with
approximately 1,263 sites. The transaction values the business at $1.175 billion, representing a
FY23 pro-forma EBITDA multiple of 33.8x1.
Spark expects net cash proceeds2 of $900 million at completion, which is subject to Overseas
Investment Office approval, and is anticipated to occur in the first half of FY23.
Under the terms of the deal, Spark has entered into a 15-year agreement with TowerCo (plus
rights of renewal) to secure access to existing and new towers, with a build commitment of 670
sites over the next 10 years.
Spark New Zealand Chair, Justine Smyth said: “The establishment of TowerCo will accelerate
Spark’s strategic objective of delivering a smart, automated network, while maximising value for
shareholders. The transaction will deliver proceeds of $900 million, enabling direct shareholder
returns and investment in future growth opportunities that will accelerate Spark’s transition from
traditional telecommunications to higher growth digital services.
“Spark intends to release an updated capital management policy at its full year results on August
24. When assessing the most appropriate use of proceeds Spark will consider three key pillars –
maximizing returns to shareholders, investment in future growth, and maintaining financial
flexibility through an appropriate investment grade debt rating. The capital management policy
will provide clarity on the proportion of proceeds allocated to each of these areas and the most
effective means of returning proceeds to shareholders.”
Spark CEO Jolie Hodson said the Company saw a high level of market interest in its passive
mobile assets: “We are pleased to have formed this strategic partnership with Ontario Teachers’
– a high-calibre investor with a long-term partnering focus and significant experience managing a
portfolio of infrastructure investments globally, including within Australia and New Zealand.
“Our intention in establishing TowerCo is twofold – it allows us to deliver better outcomes and
service experience for our customers and Aotearoa through faster, more efficient deployment of
digital infrastructure, and it better realises the value of our passive mobile assets, maximising
value for shareholders and enabling us to invest in future growth opportunities.
“A standalone TowerCo business with sole responsibility for passive mobile infrastructure will
have a single-minded focus, delivering efficiency, service innovation, and improved speed to
market. This is going to be particularly important when you consider the 5G build programs of
tomorrow will be very different to the 4G ones of the past, requiring many more, smaller sites,
closer to the customer, and greater overall densification.”
Bruce Crane, Senior Managing Director and Head of Asia Pacific Infrastructure & Natural
Resources at Ontario Teachers’ said: “The acquisition of a 70% stake in TowerCo is an ideal fit
1 Assumes FY23 EBITDA of NZ$34.8 million as at 30 June 2023.
2 After transaction costs

for our growing global portfolio of high-quality infrastructure assets. This investment builds on our
long track record of investing in superior businesses in New Zealand and will draw on our deep
experience investing in digital infrastructure businesses globally. We look forward to working with
the Spark New Zealand team to build and grow a leading business that will enable New
Zealanders’ continued access to critical telecommunications services to meet their growing
mobile demand needs over the long-term.”
Spark will continue to determine how its mobile network is developed, including where and when
capacity investments occur, with TowerCo then designing and deploying these build
programmes.
Jolie continued: “As part of the deal, we have committed a substantial build programme to
TowerCo, with 670 sites to be built over the next decade. This is a significant investment in the
digital infrastructure that will underpin the growth of our digital economy and enable businesses
in Aotearoa to innovate and grow.
“Spark is the anchor tenant and retains a 30% stake in TowerCo, ensuring we are a key strategic
partner as the business grows. We will also continue to own all the ‘smarts’ of our network – such
as radio equipment and spectrum – which is what drives our competitive advantage and
differentiation in the market.”
Authorised by:
Alastair White
GM Capital Markets


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i hold SPK


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