New Zealand Telcos Shift Focus from Revenue to EBITDA Growth Amidst Competitive Market Dynamics


Idem Est Research & Advisory

6 June 2024, 16:00 AEST

New Zealand Telecom Industry Market Report forecasts 8.5m mobile and fixed broadband subscribers by 2031


The latest comprehensive market report by Idem Est Research for the New Zealand telecommunications industry (2024-2031) reveals a significant strategic shift among leading telcos, notably Spark and One NZ. As the market matures, these companies are increasingly prioritising EBITDA over traditional revenue growth metrics. This shift highlights an evolving competitive landscape where operational efficiency and profitability become paramount.

EBITDA Taking Centre Stage

Despite a relatively stagnant revenue growth trajectory, New Zealand’s major telecommunications players have demonstrated a robust increase in EBITDA margins of 4% over the last six years. This shift reflects a strategic realignment towards optimizing profitability and managing operational efficiencies amidst intense market competition and price pressures. For instance, One NZ and 2Degrees, both controlled by infrastructure funds, have shown a noteworthy improvement in their respective EBITDA margin, as well, driven by a strong focus on mobile service revenue growth and stringent cost control measures.

Revenue Growth versus Profitability

The market dynamics have seen a slowing in total telecommunications revenue growth, which has been compounded by challenges such as the migration from traditional voice services to integrated mobile and internet offerings. However, the emphasis on EBITDA highlights a critical strategic pivot—telcos divested their tower assets, are now looking to sell down their fibre infrastructure and are reducing their capital intensity and focusing on bottom-line health, reflecting a mature, highly competitive market where operational excellence is key to maintaining a competitive edge.


The New Zealand telecommunications market is at a pivotal juncture where operational efficiency and strategic capital deployment are becoming as crucial as expanding market share. This focus on EBITDA over pure revenue growth signals a maturation of market strategies aligned with global industry trends, aiming to bolster financial health and shareholder value in a progressively challenging market environment.

“Idem Est Research forecasts that mobile subscribers will reach 6.8 million by 2031, while the fixed broadband market will continue to increase fibre penetration into more households, with over 83% of households on plans over 300Mbps. The telecommunications industry is expected to maintain revenue growth momentum, with an average growth rate of 1.6% from 2024 to 2031,” says Landry Fevre, Director of Idem Est Research & Advisory.

Idem Est Research and Advisory’s report on the New Zealand telecom market serves as a valuable resource for industry stakeholders, investors, and policymakers looking to gain a comprehensive understanding of the sector. The analysis highlights the immense potential and opportunities for both local and international players to contribute to the development and innovation of the telecom industry in New Zealand.


2degrees, Brookfield, Crown Infrastructure Partner, Connexa, Crown Fibre Holding, Chorus, Enable Networks, Infratil, Mercury, Northpower, One NZ, Telecom NZ, Snap, Spark, TelstraClear, Trustpower, Tuatahi First Fibre, Ultra-Fast Fibre, Vocus, Vodafone, WEL Networks

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For media inquiries, please contact:
Landry Fevre

About Idem Est Research Advisory
Idem Est Research and Advisory is a boutique telecommunications and digital infrastructure market research and advisory. Idem Est Research provides leading telecoms research helping our clients stay updated on the latest telecoms sector and digital infrastructure developments. The reports provide analyses of mobile and broadband markets, capital expenditure, forecasts, key telecom trends and thematic such as 5G and telecoms digital infrastructure, as well as other statistics of the telco industry.
Our independent approach allows us to place the trends and drivers fully into context and analyse the industry as a whole from different, unbiased perspectives. Alongside the facts and figures, Idem Est Research draws on three decades of experience to provide incisive commentary and analysis. This brings visibility to the business drivers, challenges, decision-making and future direction of the telecoms sector.
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SOURCE: Idem Est Research & Advisory

This release was published on openPR.

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