- Spark has a new focus on digitalisation
- It has chalked out a three-year strategy with a focus on digitisation.
- To simplify Spark by use of AI, data and machine learning.
Spark NZ Limited (NZX:SPK) is a leading telecommunication company in New Zealand. It has a three-year strategy in place since 2020 with a focus on fast-tracking digitalisation to meet the evolving needs of the customers.
Jolie Hodson, the CEO of Spark, while spelling out the three-year strategy said that SPK customers’ needs were fast-changing and they were looking for a very good digital experience and in the upcoming years, the company aims to move to the brands and companies that made the customers’ lives easier. She said the goal was to simplify Spark by use of data, AI, and machine learning.
In line with this strategy, Spark has continued to focus on digitising its networks and build infrastructure accordingly.
Image Source: © 2021 Kalkine Media
In the first year of the three-year strategy, Spark grew its Internet of Things (IoT) connections by 83% to over 450,000. In FY22, it plans to grow further through digital improvisations.
The Company’s new initiative, Spark Health, which is a support system for NZ healthcare through cloud and telecommunications grew, garnering a revenue growth of 10.6%.
In FY21, SPK also joined the Digital Boost Alliance, which seeks to improve the use of digital business tools and new technologies by small businesses. It is a collaborative effort between the Ministry of Business, Innovation and Employment (MBIE) and private sector companies.
Further, it will also continue to support the growth of the digital economy in NZ. The Company plans to invest in important infrastructure and digital skills, which will serve as an enabler of productivity and progress. It also plans to help small businesses to improve digital equity and support the digital trust framework.
Recently, it launched a new innovation studio in Auckland to showcase emerging technologies like 5G, IoT and cloud.
FY21 Financial Performance
The FY21 financial performance has shown that the Company had incurred a loss of NZ$38 million in roaming revenues, reflecting overall revenues loss by almost 8%, but strong underlying performance in mobile, cloud, security, and service management. Its mobile service revenue grew by 0.5%, and the market share for the same grew by 1.1 percentage points.
However, cloud, security, and service management revenue grew 5.5% due to demand from businesses keen to switch to digitisation.
SPK has a distinct three-year strategy to digitise its networks and infrastructure. It will also work as an enabler to help the New Zealand government in modernising the country’s economy.
On 17 September, the stock was trading up by 0.68%, at NZ$ 4.800, at the time of writing.