Telco Spark has reduced its full-year earnings guidance by up to $50 million because challenging trading conditions have intensified.
In a statement to the NZX, Spark said there was less IT revenue due to weaker demand in the enterprise and business markets.
"Public and private sector spending cuts have deepened, and Spark has seen significantly reduced demand in IT service management and professional services and delays to planned digital transformation projects," the statement said.
The company also said while mobile and broadband revenue remains in line with expectations, mobile phone sales have been softer than expected due to high interest rates and cost-of-living pressures.
The full year earnings outlook has been reduced from $1,215-$1,260 million to $1,170 to $1,210 million, a drop of between $45 and $50 million.
As a result, the company said it would accelerate its "SPK-26 Operate Programme to bring efficiency benefits online faster".
"Strong progress has been made on the company's operating model redesign, which is driving greater efficiency and rebalancing labour investment to changing growth profiles across the business."
In February, Spark reported a 4.8 percent drop in net profit down to $157m in its half year results.
