How are these 3 NZX communication stocks gearing up for 2022?

Highlights

• New Zealand has a developed and competitive telecom sector.
• Spark informed about establishing 3 Sustainability-Linked Loans totalling $425 million.
• Rakon upgraded its EBITDA guidance range and expects an EBITDA between $44 million and $49 million for the year to 31 March 2022. 

The telecom sector links people, families and markets and plays a part in education services, healthcare, transport and energy.

Telecom infrastructure majorly covers the networks and related property and equipment that take voice and data between users across NZ and the rest of the world. New Zealand has a strong telecom sector and has undergone a transformational journey with the fibre rollout.

Image source: © 2021 Kalkine Media, Data source- EODHD/Others

Let’s have a look at how these 3 NZX-listed telecom stocks are performing.

Spark New Zealand Limited (NZX:SPK; ASX:SPK)

Spark Finance announced on 30 November that it had established 3 sustainability-linked loans (SLL) of $425 million in refinancing 3 existing loans. The committed SLL facilities are with 3 lenders and will be used for general corporate use.

Do Read: Chorus & Spark: How are 2 NZX telcos faring?

Spark will get a lower interest rate if it attains its sustainability objectives and a greater interest rate on the loan if it fails to meet the same.

Westpac NZ, Commonwealth Bank of Australia and MUFG Bank will provide a loan of $200 million, $100 million and $125 million, respectively, with different maturity dates.

SPK ended the day 0.9% in green to close at $4.46.

Chorus Limited (NZX:CNU; ASX:CNU)

Chorus released its investor presentation for the UBS Australasia conference on 12 November. The Group informed about its network infrastructure, performance and customer base in the presentation.

Related Read: Why are NZX telcos turning heads in 2021?

Spark notified that its fibre PPP rollout is now 96% complete with less than 50K premises to pass by December next year. The Group is on track for its target of 1 million fibre connections in 2022.

SPK also has plans to develop new revenues, improve non-fibre assets and improve the long-term future of the business. It expects an EBITDA between $640 million to $660 million for FY22.

CNU ended the day 0.15% in red to close at $6.76.

Rakon Limited (NZX:RAK)

Rakon announced substantial increases in revenue and earnings for the half-year ended 30 September 2021, benefitting from robust growth in demand globally for its frequency control and timing solutions.

RELATED READ: Which 3 NZX telco stocks to look at in 2022?

The Group informed that orders are in place to provide further revenue growth for the rest of FY22.

Rakon expects to achieve an underlying EBITDA between $44 million to $49 million in FY22, up from the previous guidance of $39 million-$44 million.

RAK ended the day 0.56% in green to close at $1.79.

Bottom Line

NZ will become one of the leading countries in the OECD for fibre availability as 87% of Kiwis will have access to fibre by the end of 2022.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)