Spark New Zealand (SPK) investor relations material

Executive summary

• Achieved strong profitability in H1 FY26, with adjusted EBITDA/EBITDAI up 5.1% and adjusted NPAT up 30.4% year-on-year, despite a 1.1% revenue decline due to divestments and legacy declines.

• Free cash flow rose 84% to NZD 107 million, reflecting higher EBITDA and lower cash tax payments.

• Completed sale of a 75% stake in the data centre business, generating NZD 453 million in initial proceeds and up to NZD 98 million deferred, supporting debt reduction and financial flexibility.

• Strategic focus on core connectivity, cost discipline, and mobile service revenue growth supported key financial metrics.

• Declared an interim dividend of 8 cents per share, 50% imputed.

Financial highlights

• Adjusted revenue: NZD 1.917 billion, down 1.1% year-on-year.

• Adjusted EBITDA/EBITDAI: NZD 471 million, up 5.1% year-on-year.

• Adjusted NPAT: NZD 73 million, up 30.4% year-on-year; reported NPAT up 82.9% to NZD 64 million.

• Free cash flow: NZD 107 million, up 84% year-on-year.

• Interim dividend declared at NZD 0.08 per share, 50% imputed.

• Net debt (ex-leases): NZD 1.39 billion, 5% lower than June 2025; pro forma net debt post-DC transaction at NZD 940 million.

• Net debt to EBITDA/EBITDAI ratio reduced to 1.7 post-DC transaction.

Outlook and guidance

• FY26 EBITDA/EBITDAI guidance reaffirmed at NZD 1,010–1,070 million, with a 45%/55% H1/H2 split expected.

• Free cash flow guidance for FY26 at NZD 290–330 million, with H2 weighted.

• BAU CapEx for FY26 guided at NZD 380–410 million; strategic CapEx ~$55 million.

• Multi-year productivity benefits and cost-out target of NZD 40–50 million for FY26 remain on track.

• Dividend payout set at 100% of free cash flow, subject to no material adverse change.