- The telecom sector provides network connectivity and makes communication possible worldwide.
- Sky Network announces share consolidation.
- Chorus’ fibre uptake grew from 60% to 65% in FY21.
Amid increased digitalisation, telecom stocks are much in demand as they offer connectivity and allow people to stay connected. New Zealand has a mature and competitive telecom market. The country has a full-fibre wholesale broadband network and 3 network operators.
Let’s skim through how these 3 telecom stocks are performing in the market.
Image source: © 2021 Kalkine Media New Zealand Ltd, Data source- Refinitiv
Image Description: 5 NZX telecom stocks and their market cap, 3-month returns.
Sky Network Television Limited (NZX:SKT, ASX:SKT)
Sky Network recently declared the completion of the merger of each 10 Sky shares held on 16 September into 1 share. The total issued share capital after the alliance of shares stood at 174,688,323 shares. This was marginally greater than 174,687,956 expected before the start of the procedure.
3 NZX telco stocks with solid 3-month returns
The Group had announced the share consolidation process on 25 August and had estimated a lower number of Sky shares on issue.
On 23 September, at the time of writing, SKT was trading at $5.78, down 0.34%.
Fixed line telecom network operator, Chorus, stated that fibre uptake grew to 65% in FY21 from 60% in pcp, with 120K new fibre connections due to increasing demand for high-capacity internet.
In FY21, the company reported a $12 million decrease in sales compared to FY20. However, it saw a little increase in EBIT owing to cost lowering and the absence of one-time COVID-19 expenditures in FY20.
CNU also stated that the value of fibre consumers remains dependent on Commerce Commission’s final decision on new fibre regulation, due to be finalised before 1 January 2022.
On 23 July, FBU ended the trading session at $5.78, down 0.34% from its previous close.
Spark NZ delivered growth of 1% in EBITDA at $1.12 billion in the second half of FY21, reporting robust growth in its core markets. However, Spark recorded a lower NPAT because of high amortisation costs and depreciation in addition to an increase in tax-related expenditure.
The Group persists to invest in infrastructure with 5 services in 9 locations and rural connectivity growth. SPK declared a dividend of 12.5cps for H2 of FY21.
On 23 July, SPK ended the trading session at $5.78, down 0.34% from its previous close.
The telecom sector is in huge demand due to a major shift to mobile and cloud-based technology. The sector has to keep pace with the constantly increasing demand for faster data connectivity.