Spark currently holds around 40% of the mobile market and a similar share in the broadband market. 2degrees, is a major player in the New Zealand telecommunications market with approximately 23% of the mobile market and a smaller share in broadband. This contract loss will undoubtedly affect Spark’s market position and competitive edge in the education sector. How much revenue loss is unknown, but Spark may need to adjust its operational strategies, possibly reallocating resources to other sectors or enhancing their offerings.
Looking at last years results the trend may already be in place:
This news will not engender investor confidence and damages reputation. You have to question managements strategies. Have they been asleep at the wheel? Numerous changes to the board and leadership team in past 12 months would not have helped.
Perhaps the shorters have been on the money .
SPK Price at posting:
$2.85 Sentiment: None Disclosure: Held
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