If managements strategy is to please investors/market it hasn't worked. The reality is the market sees the dividend payout ratio as unsustainable. Share price performance is very telling. Spark is not a growth stock. Those invested are in for the income/dividend. It is in a downgrade cycle and recent results and outlook cast a shadow over what future dividends will be.
Management have provided guidance for FY25 dividend to be the same as FY24. This is on the basis of cuts to OPEX and expenditure, with little growth in revenue. They are operating in a difficult economic environment and face may challenges.
Skoonzy, in a great post, provided possible scenarios based on guidance given. I share his views.
SPK Price at posting:
$2.82 Sentiment: None Disclosure: Held
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