What does Spark New Zealand Ltd do?
Spark New Zealand Ltd [ASX:SPK] used to be known as the Telecom Corporation of New Zealand before rebranding as Spark back in 2014.
The rebranding was part of a significant restructure, as the company divested itself of noncore and overseas assets. Its focus is now purely on the New Zealand digital market.
What’s happening to drive the share price?
The share price has been in a solid uptrend since August 2015. Revenues are improving and investors are perhaps excited about its investment in mobile technology.
The company released their half-year report on 18 February; the results were solid.
Net earnings were up 7.5 %; mobile revenues and broadband revenues were up strongly; and the company made a significant increase to its dividend payout as well.
The company has a strong focus on mobile technology and is investing heavily in being the market leader in this area.
The company has been busy buying large portions of spectrum band. This has allowed Spark to begin to bring a revolutionary new 4.5G service, which uses spectrum in different bands at the same time, enabling the company to deliver ultra-fast mobile at gigabit speeds.
There are no phones in New Zealand that currently support the full range of 4.5G features, which means the Spark network is ahead of the devices to come.
However, a number of devices including the Huawei P9, Samsung Galaxy S7 and iPhone 6s support some of the features that make up 4.5G, so customers with these devices will be able to enjoy ultra-fast download speeds.
What now for Spark New Zealand Ltd?
The company is building a leading mobile network, and is posting strong revenues. The share price has continued to find higher levels of support; it’s suggesting the outlook for future revenues is positive.
The weekly chart of the company share price continues in its uptrend. Until the chart tells us otherwise, the fundamentals look solid for Spark New Zealand.
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