Spark New Zealand Earnings: Mobile Shines While IT Declines

The 4% rise in Spark's fiscal 2024 first-half underlying EBITDAI to NZD 530 million was broadly in line with our expectations. The mobile unit delivered again, with mobile service revenue up 6% to NZD 500 million and mobile gross margins expanding 100 basis points to 66.2%. Unfortunately, some of the shine was lost by the continuing decline in voice (gross profit down 28%), an underwhelming showing in broadband (gross profit down 1%), and uninspiring performances from supposedly "growth" units such as IT and procurement (combined gross profit down 3%).