Spark New Zealand (SPK) H2 2026 earnings summary

Executive summary

• FY26 marked the first year of the SPK-30 strategy, focusing on core connectivity, mobile growth, and business simplification amid a subdued economic environment.

• Results were delivered within guidance, with reported revenue up 6.0% to $3,949 million and adjusted revenue flat at $3,700 million.

• Mobile service revenue returned to growth, with a 4.4% increase in overall mobile revenue and 1.1% growth in service revenue.

• $462 million in proceeds were received from the sale of 75% of the data centre business, with a 25% stake retained and a strategic review of Digital Services underway.

• Free cash flow grew 18.5% to $308 million, supporting a total FY26 dividend of 16 cents per share, representing a 100% payout ratio.

Financial highlights

• Adjusted revenue was $3,700 million (flat year-over-year); reported revenue was $3,949 million (up 6.0%).

• Adjusted EBITDAI declined 2.4% to $1,035 million; reported EBITDAI rose 23.0% to $1,295 million, reflecting the data centre sale gain.

• Adjusted NPAT was $225 million (down 0.9%); reported NPAT was $499 million (up 91.9%).

• Free cash flow increased 18.5% to $308 million.

• FY26 total dividend was 16cps, 50% imputed, representing 100% of free cash flow.

Outlook and guidance

• FY27 adjusted EBITDAI guidance: $1,010–$1,080 million, reflecting mobile growth and productivity benefits.

• FY27 BAU capital expenditure guidance: $350–$380 million, down from FY26.

• FY27 free cash flow guidance: $300–$350 million; dividend payout expected at 90–100% of free cash flow (16–18cps per share).

• Guidance is subject to no material adverse change in operating outlook.