NZ Engine

Source: Radio New Zealand

Shareholders in telecommunications company Spark have grilled the board on its poor performance over the past couple of years.

Spark chairperson Justine Smyth told shareholders at the annual meeting the company was on track to deliver a flat underlying profit of just over a billion dollars in the year ending June 2026, which was little changed from the year earlier, assuming the 75 percent sale of its data centres went ahead.

Smyth also said she would step down as chairperson and board member within the next 12 months.

The company also laid out a strategy that renewed its focus on connectivity rather than an ambition to deliver broader digital services.

Chief executive Jolie Hodson said the telco had put in place a programme to drive mobile growth with new high data plans, brand campaigns and pricing.

“This is moving the dial and Spark remains the #1 mobile provider by some distance, with 41.4 percent total market revenue share,” Hodson said.

However, she said broadband remained competitive, with connections down 3.8 percent.

Hodson said the fresh strategy would see Spark partner with others to deliver key services, though it would retain control over all components of critical assets that deliver competitive advantage.

“Our new technology delivery model includes four key partnerships which allow us to leverage our partners’ global expertise and investments in AI and automation to deliver better customer experiences in a more efficient way,” Hodson said.

The transformation had resulted in $85m of savings in the second half of the June 2025 year.

“This ensures we are in a stronger position as we move into FY26 and embark on our new five-year strategy.

“After the first quarter of FY26, trading is tracking in line with our expectations, with the new brand campaign, iPhone launch, and price increases supporting mobile service revenue growth.”

She said a productivity programme was also on track, with significant savings delivered across labour and cost savings.

“Our focus over the next five years is on returning Spark to its history of stable performance, with predictable free cash flow and growing dividends over time.

“We have a proven track record of cost discipline and adapting our business when we need to, and portfolio management to support shareholder returns.

“The past couple of years have been incredibly challenging, and I acknowledge the impact this has had on our shareholders. We have taken decisive action to transform our business within this changing environment, and I am committed to seeing this through and returning Spark to growth,” Hodson said, as she offered herself for re-election to Spark’s board as executive director.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

A New Zealand company has created what’s believed to be the world’s most expensive honey.

The Eternal Gold collection by Taranaki-based Naki Honey was inspired by archaeologists’ discovery of 3000-year-old honey sealed in Egyptian tombs that was still pefectly edible.

Just 73 jars have been produced, using honey from remote Taranaki bush. The honey is designed to last for centuries.

It uses Unique Mānuka Factor (UMF) 25+ honey, a grade so rare it’s only harvested when the weather and flowering conditions in Taranaki are just right which is about once every two years.

It’s also among the highest-grade mānuka in the world.

Naki Honey’s Derek Burchell-Burger said the handcrafted vessels doubled as art pieces and featured gold plated details.

Prices range depending on size with the smallest going for $1000 and a two litre jar going for roughly $500,000.

“Every two years, we get to develop a particularly potent strand of mānuka honey. So this is the first one ever, the inaugural range, and we’ve got three tiers available.

“It’s not just a jar of honey. We’re also doing our foray into art.

“It can be passed down the generations because it’s got amounts of that immunopotentiating chemical known as methylglyoxal in it.

“It does have a more stronger taste. It is a bit more herbal. We call it the Taranaki tang.”

Burchell-Burger said it was not designed to be used like regular honey a person would have on their morning toast, but similar to a whiskey collection that might be brought out for a special occasion.

The unveiling of the honey collection is taking place at the New Zealand Liberation Museum – Te Arawhata in northern France which is the only Kiwi museum outside Aotearoa.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Over the past decade, Augustine has become one of New Zealand Facebook’s favourite fashion brands.

At regular intervals through the year, founder Kelly Coe would hype up and release one of the seasonal releases from its labels and thousands of women across the country would clamour to get their hands on the (usually) bright, (frequently) floral and (often) sparkly pieces.

Prices would range generally from about $100 to $200.

While the VIP Facebook group still has more than 20,000 members, the clamour has died down – and many were surprised to spot Augustine and its associated brands being stocked by discount retailer The Outlet in recent weeks, with prices starting at about $20.

So what’s going on, and why would the brand do this?

Retail consultant Chris Wilkinson said it was “very telling” of where the market was and had generated a lot of interest.

He said while Augustine had been a “darling” brand that was at times “euphoric”, particularly among its social media following, the move was reflective of the fact that there had been a slowdown in demand for its type of product. It closed its Takapuna shop.

“She’s got a very unique brand and culture that sits behind it… the way things are has been very challenging.”

He said The Outlet’s main focus was on selling distressed or overstocked items.

Stock such as the Augustine clothing could bring in different audiences who would not typically shop there, he said.

Something similar would sometimes happen at Reduced to Clear, he said, when it stocked mixers such as specialty tonic water much more cheaply than they would normally be available for.

There could be an effect on the brand, he said, but brands sometimes had a limited lifespan anyway. Huffer had been picked up by The Warehouse.

The Outlet is stocking a “Siri” dress for $19 while it is on the Augustine site for $49.99, albeit with a different colour skirt.

Bodo Lang, marketing expert at Massey University, said that could be an issue. “Selling identical products at very different prices can create serious problems for brands, as it risks alienating both consumers and retailers. Both are crucial for a brand’s survival. After all, no one likes discovering they have paid more than someone else for the same item.”

He said there was a risk to the brand.

“First, the discounts are substantial, often around 50 percent or slightly higher. Second, they apply to a wide range of garments, more than 150 in total, rather than a small, carefully selected few. Third, these discounted items are very easy to find online. Fourth, while Augustine’s own website states that its garments are available at two outlet stores, The Outlet website appears to list heavily discounted Augustine garments across far more than two stores – in fact, across most of New Zealand. This inconsistency poses a problem, as the availability of discounted products on The Outlet website does not align with the brand story presented on Augustine’s site.

“Collectively, these factors risk cheapening the brand. Deep and widespread discounts can make it harder to sell new-season items at full price, as customers learn that prices are likely to drop significantly within a few months. In addition, lower prices can attract a different clientele, and in fashion, social signalling is a powerful part of what consumers are really buying.”

Public relations consultant Chamanthie Sinhalage-Fonseka said there were other strong names selling via The Outlet who did it without cheapening their brand, such as Adidas and Birkenstock.

“But they are a different category from Augustine and their brand equity is created offshore. Brands also surf waves of consumer preferences and changing economic conditions in order to stay alive.

“Marc Jacobs has fallen in terms of designer prestige but as a result is more accessible to mid-range customers and can position themselves as top of mid-range rather than bottom of luxury.”

Augustine has been approached for comment.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

It would be good for markets to go through a small correction to avoid a bigger explosion, one fund manager says.

Despite warnings of a potential crash due to inflated AI share prices, markets around the world continue to hit records.

Murray Harris, head of KiwiSaver at Milford Asset Management, said it was a worry.

“The market is being buoyed by continuing prospects for lower interest rates… and companies that are doing well.

“There’s not a lot of reason for people to be thinking ‘oh this is going to end’ other than the professional investors like ourselves going ‘well this can’t last forever’.”

He said as prices pushed up, it would be useful to have occasional 10 to 15 percent falls.

“It would be healthy to have a bit of a pullback on markets and think of it like a pressure cooker. If it keeps building and building and building it’ll blow but if it lets off a little bit of steam, then we get a 10 percent or 15 percent pull back then the market can move higher again.”

But Rupert Carlyon, founder of Koura Wealth, said when adjusted for inflation the increases recorded did not look so dramatic.

“Over the last five or six years inflation has been about 35 percent so even a market that is up 35 percent today is basically where it was five years ago.”

He said even the big companies that seemed highly valued were strong on growth and return-on-equity measures. “I personally do not believe there has ever been a set of companies as strong in delivering the growth numbers that currently we have.”

He said there had been many warnings over the past five years that a market rally was unsustainable.

“We saw it when interest rates started going up, we saw it with the tech bubble kind of starting to burst a bit… every time it’s been proven wrong.”

What can investors do?

Harris said although the market felt “frothy” it was not a reason not to be invested.

“As an active manager, we can take protection through derivatives and we can move cash around and we’re doing that, and can look for opportunities outside the really highly inflated industries and assets. It kind of feels like it can’t keep going on forever, and it won’t.”

Some investors have moved money into assets such as gold. Harris said when he was in Sydney last week there was a line around the corner for a bullion dealer.

“That to me is a sign of a bubble, but it doesn’t mean the price can’t continue to go up… it does well when there is high inflation and a bit of geopolitical uncertainty because people go ‘well I have this physical thing and I can put it under my bed’, but at the end of the day it doesn’t generate any dividends or revenue or profits or income. You’re totally reliant on the person you sell it to being willing to pay more for it than you paid.”

He said people who were investing for the long term should look through the market movements.

“If you’ve got a 10-year view, we’ll see some sort of pullback at some point but if your goal hasn’t changed, your risk profile’s the same, then you stick with it.”

He said the market buoyancy seemed to be prompting a large number of transfers between KiwiSaver providers. “I think, with the confidence that people are getting from markets going up and their values going up and their balances getting bigger, they’re thinking ‘maybe I should do some more research’.”

Falling interest rates had also prompted people to move from term deposits to managed funds, he said.

Harris said he had seen a lot of money flow out of bank deposit into retail unit trust funds.

“We’ve seen record levels of flows into those from people that have taken money out of term deposits. That’s a sign that markets are at a toppy level.”

He said people need to understand the additional risk that came with investing in funds.

“We explain this to everyone who is investing with us, they could go down. You could be buying at a high point in the market. This is not going go be like your term deposit, that’s just going to keep your capital and give you a return.”

Carlyon said investors should try to ignore the noise. “Over the last five or six years there’s been a huge amount of negativity in the press. There is a lot of people that don’t like and don’t want to believe the current market rally… what we’ve seen is the only smart way to be invested is to stay invested.”

Do passive investments exacerbate the market movements?

Mike Taylor, founder of Pie Funds, said there was the potential for exchange-traded funds to exacerbate any potential fall.

There has been a big increase in passively invested funds in recent years, which aim to replicate a market index rather than outperforming.

“The interaction between an ETF and the underlying market can work a bit like the futures market and the cash market,” Taylor said.

“When volatility rises, usually to the downside, outflows from ETFs then lead to lower underlying stock prices, which then lead to more outflows.

“If we had a period when prices fall rapidly this could be problematic, particularly when you consider leveraged ETFs.”

Harris said an index fund had no option but to buy the expensive AI stocks.

“The weighting of those companies goes up every day in the index and they’ve got to buy more. But similarly they’ll have to sell more when the markets drop.”

He agreed leveraged ETFs could have an even bigger impact.

“When the market’s gone up it has to buy four or five times the exposure of the market… If the price is down it has to sell four or five times the value of the stock it’s holding. That could have some quite big moves.”

Dean Anderson, founder of Kernel, said the question was not whether money was actively or passively managed but whether there was new money coming into or out of equities.

“If it is net new buying demand into equities, that say previously has been in term deposits or cash, whether that goes into direct stocks, active, or passive funds – it is ultimately net buying power for equities which would support higher prices. The same is true in reverse.

“The active manager may argue they don’t have to buy or sell stocks when cash goes into or out of the fund – but in practice that isn’t the case. If they had a lot of withdrawals, they will be a seller, equally if they get a lot of applications they will have to buy as they risk having their performance lag if they sit on too much cash for too long.”

Carlyon said retail investors were also more likely to follow trends. They have become a much more dominant force in recent years.

“When I started my career a market move of 1 percent or 1.5 percent in a day was kind of unusual, whereas we’ve seen two or three days this week which have been over that number.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Larger pets have been grounded on some of Air New Zealand’s domestic flights after a spate of injuries to staff as they try to load heavy carriers into aircraft holds.

Air New Zealand has introduced new size and weight restrictions for carriers on its smaller domestic flights. From next week, pets and carriers weighing more than a combined 60 kilograms will be grounded.

The changes had to be made for the safety of staff, Air NZ’s chief safety and integrity officer Nathan McGraw told Morning Report.

“Its a bit of a tough call… [we] appreciate this will be disappointing. It’s fair to say the number of larger pets is smaller in number.”

McGraw said there had been more than 50 injuries to staff in the past couple of years from loading large and bulky items into smaller aircraft holds.

“When you’re loading these carriers into confined spaces there’s a lot of moving, positioning and tilting – particularly if there’s a large animal inside that may move and shift which creates a risk of injury to our people and to the wellbeing of the pet.”

For anyone wanting to travel with an animal and carrier that weighed more than 60kg, McGraw said it was still possible, but they would need to go through a pet transport company.

“They work closely with our team,” he said, “and you can add the pet as you did in the past to your ticket, but it takes you through to those options.

“For a jet service we can carry those larger crates but through those transport companies.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand