Spark Reports Steady Fiscal 2021 First-Half Result

Spark New Zealand generates reliable cash flow, has a solid position in the New Zealand telecom market, and has the infrastructure to offer a diverse range of products. Although competition has been intense in the New Zealand telecommunications market, we believe Spark's scale provides a competitive advantage. Furthermore, recent private equity ownership of Vodafone New Zealand could herald a new age of rational competitive behaviour in mobile. Construction of an ultrafast broadband, or UFB, network will lower barriers to entry in fixed-line and broadband and represents a risk to Spark's broadband business. Successful execution of product bundling that leverages the mobile network could help defend broadband market share, as will continuing growth in fixed wireless broadband.