Spark New Zealand Struggles Amid High Yields and Competition
Sky-high yields and currency fluctuations have put pressure on Spark New Zealand's (ASX:SPK) share price, which is still trading below its level a year ago.
The company's latest dividend update provided some relief to investors, with the Australian dollar payment rate and plan price for the half-year to June finalized this month. Shares rose on the announcement, but the question remains whether Spark's income support and new growth services are enough to establish a floor under its struggling stock price.
A significant challenge for Spark lies in its mobile and broadband business, which has been hit by intensified competition and soft enterprise IT spending. The company is also restructuring to cut costs while dealing with slower growth in legacy services.