New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Thematic (Sector/Industry)

Australia Telecom services / Thematic (Sector/Industry)

<ul><li>The NZ mobile market has had a good few years, with service revenue growing mid-single-digit led by ARPU growth towards the top end globally, but growth has been slowing.</li><li>While all telcos have increased prices on some plans this year, we don’t see this adding to growth given: (1) price increases have not been across the board; some plans decreased, and a new lower-priced tier of plans introduced; (2) global mobile prices have not illustrated structural growth; and (3) 2degrees and MVNO will likely continue to gain share.</li><li>We view One NZ as better positioned and have upgraded Infratil (IFT) to OUTPERFORM in our concurrently published report Infratil: Dialing up Growth—Up to OUTPERFORM, and downgrade Spark NZ (SPK) to UNDERPERFORM in our report Spark NZ: Low Signal—Down to UNDERPERFORM.</li></ul>

The NZ mobile market has had a good few years, with service revenue growing mid-single-digit led by ARPU growth towards the top end globally, but growth has been slowing.While all telcos have increased prices on some plans this year, we don’t see this adding to growth given: (1) price increases have not been across the board; some plans decreased, and a new lower-priced tier of plans introduced; (2) global mobile prices have not illustrated structural growth; and (3) 2degrees and MVNO will likely continue to gain share.We view One NZ as better positioned and have upgraded Infratil (IFT) to OUTPERFORM in our concurrently published report Infratil: Dialing up Growth—Up to OUTPERFORM, and downgrade Spark NZ (SPK) to UNDERPERFORM in our report Spark NZ: Low Signal—Down to UNDERPERFORM.

Telecommunications Sector Roaming The Mobile Market