Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi James and Team Spark share price has been falling for some time facing competition, changes in management and strategically changing the business by selling off a large share of their Data Centre to reduce debt, although paying a high yield. I would appreciate your views please and outlook. Thank you for your excellent market summaries
Hi Richard,
Recent data shows SPK have continued to lose market share in the important mobile market. 4Q data from Telcowatch showed SPK lost an estimated 20 basis points across its Spark and Skinny brands, reducing its estimated connection share to 38.1%. A very disappointing outcome considering they increased their marketing through 2025. The stocks forecast to yield more than 11% over the coming 12-months but its little compensation if the share price continues to fall away.
The other aspect here is that Spark’s dividend payout historically exceeds its accounting earnings, meaning distributions were effectively funded out of retained earnings or other cash resources, not just current earnings’ – not a long-term sustainable model.
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