Profit up as Spark cost-cutting delivers results
Spark saw annual profit rise 12 percent in the year to June 30. Much of the gain came from the Quantum, the company’s sometimes brutal cost-cutting and transformation programme which is also linked to Spark’s embrace of the Agile style of working.
The profit rise came at time operating revenue stayed flat at $3.5 billion. Net profit was $437 million compared with $337 million a year earlier.
Operating costs were down 4.3 percent at $2.44 billion. This fed through into an 11 percent increase in earnings before interest, tax, depreciation, amortisation and investment income at $1.09 billion. Although the numbers agreed with the earlier guidance, Spark’s result beat market expectations.
Further savings coming next year
The company says it expects to make further savings in the current financial year.
Spark chair Justine Smyth says: “We’ve grown our business in the highly competitive mobile and cloud services categories, held our broadband position, entered new markets like sports streaming, led on cost management and transformed our company culture”.
The cost cutting programme aimed to flatten management structures, simplify services, use more automation and digital tools. Meanwhile the company focused on moving customers to higher margin products and services.
Write-offs as Sky TV reports $607 million loss
Sky TV took $670 million in write-offs mainly against assets and a dropped technology project to report a net loss of $607 million. This compares with a $240 million loss last year.
While the numbers are gloomy, Sky’s massive write-off signals an overdue change in direction as the pay-TV company finally moves to counter falling satellite subscriber numbers.
Martin Stewart, the company’s new chief executive says the business is being rebuilt.
Away from the write-offs, underlying earnings fell 16 percent to $241 million. Revenue fell seven percent to $795 million. Costs were up 31 percent at $76.3 million.
Sky saw the number of satellite pay TV subscribers fall, but the business won new subscribers for its other, largely digital services.
Vodafone 5G gets TICSA nod
The Government Communications Security Bureau or GCSB has given Vodafone’s 5G network security approval. After completing notification Vodafone was told by the government agency that its plans do not raise and network security risks.
Approval is a obligation under TICSA, the Telecommunications (Interception Capability and Security) Act 2013. Thanks to its relationship with Huawei as an equipment supplier, Spark has so far failed to get approval.
Rural Connectivity Group adds services in twenty locations
The Rural Connectivity group, made up of Spark, Vodafone and 2degrees says new broadband and mobile services are now live in twenty rural locations. These are the first of over 500 planned sites. They provide wireless broadband and mobile coverage to around 1,600 rural homes and businesses, across 70 kms of state highway and to 13 tourist sites.
Vital reports $4 million profit, resumes dividends
Vital Limited, formerly TeamTalk announced an after tax profit for the year of $4.05 million. Chief executive Andrew Millar says the company spent the last year implementing plans so it could deliver new products and service after a $8.2 million capital raise. He says the company completed the first phase of a digital radio network with 106 sites. It is also on budget as it moves 32km of a 250km fibre network underground.
Vodafone joins Umbrellar to sell digital transformation services
Vodafone and Umbrellar aim to work together selling cloud services to businesses. The pair will also work with Microsoft to sell the Azure cloud services.
Domain Name Commission passes independent review
The Domain Name Commission has published the results of its first independent regulatory review, which is largely glowing. The independent review David Pickens, says the organisation’s staff are well regarded for their achievements, and there is much optimism with respect to where the DNCL is heading. The report highlights information disclosure and tackling domain name abuse as areas that need attention .