The following is a summary of the Spark New Zealand Limited (SPKKY) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Spark New Zealand reported adjusted revenue growth of 1.3% to $1.98 billion, largely due to performances in mobile and momentum in data centers and high-tech.

• Adjusted EBITDAI increased by 3.9% to $530 million, indicating strong cost control as operating expenses remained stable.

• Adjusted NPAT however decreased by 4.8% to $157 million, due to increased interest rates and higher payments on Connexa leases.

• Capital spending was higher in H1 due to accelerated investments to initiate new strategies, impacting free cash flow.

• Interim FY '24 dividend was declared at $0.135 per share, 100% imputed.

• Revenue through mobile services saw a rise of 6.3%, while broadband revenue remained unchanged at $309 million.

Business Progress:

• Spark NZ made considerable progress implementing its new 3-year strategy, including accelerating digital infrastructure investments and redesigning its operating model to meet FY '26 targets.

• Investments in emerging technologies like 5G stand-alone and converged technology open new commercialization opportunities.

• Advancements in data center investments led to a revenue increase of 38.5% to $18 million after a 10-megawatt expansion in August '23.

• Commitment to sustainability was evidenced by an 8% reduction in greenhouse gas emissions compared to H1 of FY '23.

• Ongoing transition from copper to fiber and wireless networks continues with the base sitting at 31% at the end of the half.

• With a focus on cost management and infrastructure scaling, the company is preparing for requirements for 2025.

• Key growth opportunities lie in areas like hybrid cloud and data centers, IoT as connections continue to scale, and 5G infrastructure investment.

More details: SPARK NEW ZEALAND LTD SPON ADR EA REPR 5 ORD NZD0.00 IR

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