This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) May 7, 2024-- Spark New Zealand Ltd. 's lower fiscal 2024 earnings guidance points to reduced capacity to absorb further underperformance. A weaker outlook in the IT services business and pressure on consumer spending are likely to weigh on the telecommunication company's profitability. Spark has revised down its 2024 full-year guidance for underlying EBITDAI to a range of NZ$1,170 million-NZ$1,210 million (from NZ$1,215 million-NZ$1,260 million previously). This revision reflects a pullback in discretionary spending by customers in the public and private sectors, which weighed on the IT services segment. In response to slowing demand for IT and professional services, we expect Spark to support profitability by meeting its
