New Zealand-based FirstCape Group has built up more than a 5 per cent stake in the country’s largest telecoms operator Spark, which recently cut its profit guidance for fiscal 2025 and suffered a 44 per cent drop in its share price since the beginning of the year.

The operator disclosed the holding of nearly 93 million ordinary shares in a stock market filing today (17 December).

FirstCape’s stake is managed by its subsidiary Harbour Asset Management.

In late October, Spark lowered it EBITDA guidance for the current fiscal year (ending 30 June 2025) by about 4 per cent as well as its capex target, which was cut from NZD460 million ($265 million) to NZD480 million to NZD415 million to NZD435 million. Mobile service revenue is now expected to be largely flat.

Spark CEO Jolie Hodson said at the time: “We recognise we have a lot of work ahead of us to win back
the confidence of our shareholders.” She noted it is navigating a “subdued economic environment” and increased competitive pricing pressure in the business market.

Last week, it completed a sale of its remaining 17 per cent stake in independent tower unit Connexa to Canada-based CDPQ for NZD314 million, with majority shareholder Ontario Teachers’ Pension Plan to sell a 33 per cent of its stake to the investment group.

The operator brought in a new CFO to replace Stefan Knight, who resigned in September. Stewart Taylor joins from insurance company Partners Life where is was CFO.