Spark says first quarter results 'on plan'
Chairman Mark Verbiest says the 2016 financial year was off to a "good start,"
Spark NZ [NZX: SPK] has confirmed earnings guidance and dividend expectations at its annual meeting in Auckland.
Shareholders asked virtually no questions on any matters at the meeting, which was attended both in person and, in what is thought to be a first for Australasia, by shareholders participating online.
Chairman Mark Verbiest says the 2016 financial year was off to a "good start," with first quarter results "on plan" and no change to previous profit guidance.
"Particularly pleasing is the significant underlying improvement in free cash flow," Mr Verbiest says. "The board's intention is to pay annual dividends of 22c a share and special dividends of 3c a share (subject to there being no material changes in operating outlook) in the current financial year.
"Combined with the share buyback programme we commenced in June this year, these special dividends will also assist to return gearing to more appropriate levels."
He acknowledged that the demand for fibre-enabled broadband was leading to a "disappointing service experience for too many of our customers" and this was an area of focus.
Managing director Simon Moutter told the meeting that Spark expected to overtake Vodafone NZ as the leading provider of mobile services in the current financial year as the company revives its fortunes following the rebranding of Telecom to Spark. The new brand had shown a strong up-tick among both retail and business customers' willingness to recommend Spark to others.
"This bears out the potential sustainability of a return to growth," Mr Moutter said.
Mr Verbiest told shareholders Spark was highly focused on the potential for cyber-attacks and the board audit and risk committee is updated on the issue every six months.
The company sought the approval for the issue of up to 1.25 million shares and an interest-free loan for Moutter between now and December 2018.
Spark shares fell 0.6% to $3.42, and have gained 10% this year.
(BusinessDesk)
Pattrick Smellie
Fri, 06 Nov 2015
Fri, 06 Nov 2015
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Spark says first quarter results 'on plan'
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