Telecom to change name to Spark

The change was announced as part of Telecom’s half-year results, where the company reported a flat net profit after tax of NZ$ 167 million and a decline of 3 per cent in total operating revenues to NZ$ 1,847 million.

Telecom intends to change its name year to Spark and enter the internet TV market later this year.

Telecom Chief Executive Simon Moutter said Spark better reflects the company’s new direction and the aspirations it has for its place in the life of New Zealanders.

“As a company we’ve moved far beyond the home telephone. Spark better represents what we are today – it is all about digital services, fibre, mobile, data, cloud, entertainment, apps, or whatever new technology is around the corner. It will carry with it our widely recognised logo, which is generally referred to as the ‘spark.’”

The change was announced as part of Telecom’s half-year results, where the company reported a flat net profit after tax of NZ$ 167 million and a decline of 3 per cent in total operating revenues to NZ$ 1,847 million.

The company stated that the ongoing market decline in legacy fixed data and voice, together with the strategic choices made during FY13, has continued to impact earnings in New Zealand.

As the last year’s price-downs in broadband and wholesale are overtaken, the company expects the rate of decline in legacy fixed revenues to be moderated in the second half of the financial year.

“We’ve continued to make huge investments in New Zealand’s digital networks, launching 4G mobile underpinned by a brand-new core data transport network, building more data centre capability and committing to a leadership position in 700MHz spectrum. We have sold the AAPT business in Australia to focus all our efforts on getting it right for New Zealand customers,” said Moutter.

“There has also been investment in the digital services so essential to future growth. Notably, we have decided to enter the internet TV market, with a standalone and high-quality internet TV brand, ShowmeTV, to be launched later in the year.

“The migration of entertainment to the internet is creating significant disruption to current broadcast TV business models and real opportunities for new online businesses. The rapid growth of better broadband via fibre and VDSL means watching TV via streaming over the internet is now a much more viable option for New Zealanders. We believe the time is right to enter this market and provide New Zealanders with exciting new choices when it comes to watching video entertainment,” he said.

Telecom declared a half-year dividend of 8 cents per share, and an intention to pay a minimum of 16 cents per share for the full year.

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