Spark New Zealand (SPK) H2 2026 earnings summary

Executive summary

• FY26 results delivered within guidance, with reported revenue up 6.0% to $3,949 million and adjusted revenue flat at $3,700 million; improved free cash flow and net debt returning to targeted levels after the data center transaction.

• Strategic focus under SPK-30 on core connectivity, mobile growth, and productivity improvements, with $40 million in cost reductions and tangible progress in the first year.

• Dividend payout of 100% of free cash flow, totaling 16 cents per share for FY26.

• Ongoing portfolio management, including a strategic review of digital services and retention of a 25% stake in the data center business.

• $462 million in proceeds received from the completed data center transaction.

Financial highlights

• Adjusted revenue stable at $3,700 million; reported revenue up 6.0% to $3,949 million.

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

• Adjusted NPAT marginally down to $225 million; reported NPAT up 91.9% to $499 million.

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

• FY26 total dividend was 16cps, 50% imputed.

Outlook and guidance

• FY27 adjusted EBITDAI guidance: $1,010–$1,080 million, reflecting mobile growth and productivity benefits, partially offset by data center exit and digital services margin pressure.

• BAU CapEx expected to decrease to $350–$380 million; free cash flow guidance of $300–$350 million.

• Dividend payout ratio expected at 90–100% of free cash flow, with a target dividend range of 16–18 cents per share.

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