Spark lowers FY24 earnings guidance amid tough trading

Spark has lowered its earnings guidance for the 2024 financial year (FY24), citing intensified trading conditions.

The telecommunications company now expects its earnings before interest, tax, depreciation, amortisation, and investment income (EBITDAI) to be in the range of $1.17 billion to $1.21b, down from the previous guidance of $1.22b to $1.26b.

Spark noted the impact of weaker demand in the enterprise and government market, particularly on its IT revenues.

It also highlighted significantly reduced demand in IT service management and professional services, as well as delays to digital transformation projects.

However, there were no changes to the company's capital expenditure and dividend guidance for FY24.

Spark said it would accelerate its SPK-26 Operate Programme to bring efficiency benefits online faster in response to the challenges.