Spark saw annual profit rise 12 percent in the year to June 30. Much of the gain came from the Quantum, the company’s sometimes brutal cost-cutting and transformation programme which is also linked to Spark’s embrace of the Agile style of working.
The profit rise came at a time operating revenue stayed flat at $3.5 billion. Net profit was $437 million compared with $337 million a year earlier.
Operating costs were down 4.3 percent at $2.44 billion. This fed through into an 11 percent increase in earnings before interest, tax, depreciation, amortisation and investment income at $1.09 billion. Although the numbers agreed with the earlier guidance, Spark’s result beat market expectations.
The company says it expects to make further savings in the current financial year.
Spark chair Justine Smyth says: “We’ve grown our business in the highly competitive mobile and cloud services categories, held our broadband position, entered new markets like sports streaming, led on cost management and transformed our company culture”.
The cost cutting programme aimed to flatten management structures, simplify services, use more automation and digital tools. Meanwhile the company focused on moving customers to higher margin products and services.