- The COVID-19 pandemic has brought people closer to the digital world and adapting to it has become the need of the hour.
- In present times, digital transformation has provided companies with a new direction to meet their customer needs.
- BNPL company, Smartpay highlighted that its average revenue per terminal surged above its pre-COVID-19 levels during Q1 FY2021.
- Telstra announced a new mobile site that has been moved on as part of the Federal Government’s Mobile Black Spot Program to improve coverage to Berringama.
In present times, adopting as well as adapting to the digital world has become imperative. Digital transformation generally means implementing digital technologies across various business areas to understand and cater to the customer’s requirements and stay competitive in the market.
Digital transformation acts like a tailwind that pushed businesses forward. Some of the most common reason for companies going digital is:
- Improving customer experience.
- Gain efficiency.
- Better decision-making ability.
- Drive innovation.
In New Zealand, the digital transformation is all about putting people first. The NZ government focuses on what people require from them in the fast-changing environment and how they can support the people in meeting these requirements using the emerging technologies, data as well as a change in the government culture, practices and processes.
As per Hon Kris Faafoi, Minister of Government Digital Services, we are a part of a fast-changing world where technology touches every corner of our lives right from how we carry out our tasks to how we connect with loved ones. The advances in technology have brought new possibilities and set high expectations.
Mr Faafoi said that the government is committed to making sure that the experience of the citizens with the government is at par with their expectations.
Importance of Digitisation during the COVID-19 crisis:
Digitisation played a crucial role during the period when most of the countries were under lockdown due to rising cases of COVID-19. At an individual level, to fulfil the daily requirements like purchasing groceries and any essential goods, it was digitisation that helped them to meet their daily needs. Digitisation also supported people to connect with their loved one, in times when social distancing has been actively promoted.
For people who were working from home and companies allowing their people to work from remote locations, it was digital technology which made it possible for both the employee and employer to work from the remote site. Some of the digital technology which played a crucial role amid the pandemic was:
- Video Streaming
- Online Transaction
- Social Media
- Scan Machine
- Digital Camera
- Fintech, and many more.
In this backdrop, let us look at two such NZX-listed stocks offering digital solutions that have noted significant growth in their operational performance and share price amid the pandemic.
Smartpay Holdings Limited (NZX:SPY)
Smartpay Holdings Limited is the largest independently owned and operated EFTPOS provider in New Zealand. The Company provides EFTPOS solutions to match any business along with technical support which is available round the clock.
On 5 August 2020, Smartpay announced that Mr Bradley Gerdis, CEO and MD, will step down from his role effective 1 September 2020. Mr Marty Pomeroy, current COO and ED, will take over the role of CEO and MD.
Earlier, the Company had released its Q1 FY2021 results for the period ended 30 June 2020. Below are the highlights:
- Smartpay noted a strong recovery in acquiring revenue in Australia from previously advised COVID-19 lows with June acquiring revenue hitting record levels.
- The average revenue per terminal surged above pre-COVID-19 levels.
- The number of transactions per terminal and the average transaction value rose above the pre-COVID-19 levels.
- In the present scenario, the transacting terminals were at 95% of pre-COVID-19 levels with one merchant category to re-open. The COVID-19 impact has more than counterbalanced at a revenue level by the surges in average transaction volumes plus the values per transacting terminal.
Stock Information: By the market close on 11 August 2020, SPY shares settled at NZ$0.700, up 2.94% compared to the previous close.
Telstra Corporation Limited (NZX:TLS)
Telstra Corporation Limited is a leading telecommunications and information services player that provides a complete range of communication services, and it competes in all telecommunication markets.
TLS has been under the limelight due to its expansion program of providing 5G services across various region across Australia. In a recent announcement, the company talked about its mobile coverage in Berringama.
On 6 August 2020, the Company announced a new mobile site that has been moved on as part of the Federal Government’s Mobile Black Spot Program to improve coverage to Berringama.
As per the Regional General Manager Loretta Willaton, the new site would improve the Company’s current coverage throughout the Murray Valley & northeast. Switching on this new mobile site would help in removing a notorious black spot at Berringama. Thus, bringing committed Telstra mobile coverage to this region for the first time.
Under the Mobile Black Spot Program, the Company, along with the local, state, and federal governments have provided:
- Over 650 mobile base stations stretching from Monkey Mia in Western Australia to Weipa in the Queensland Cape York Peninsula. It delivered coverage to remote central Australian indigenous communities including the APY Lands.
- Additional 207 wholly Telstra funded small cells to provide coverage to those areas which were economically not possible.
- ~146 million new phones and device registrations to the Company’s Mobile Network in the last 24 months with new coverage provided as part of the Mobile Black Spot Program.
- Further 188,000 km2 of new coverage to Australian communities.
- Over 37,000 emergency calls made via new Telstra sites provided under the program.
To read more about Telstra, click on below links:
- Tailwinds vs. Headwinds: Top 4 NZX Telecom Stocks – CNU, SPK, RAK, TLS
- Stocks That Lately Joined the List of Investors’ Favorites: TLS, Z1P, FXL, NCM, CAT
- Popular Names Under Growth Versus Value Scanner: TLS, XRO, LLC, SPT, PBH
Stock Information: By the market close on 11 August 2020, TLS shares settled at NZ$3.720, up 1.36% from the last close.