Spark New Zealand (SPK) Investor presentation summary

SPK-30 strategy

• Launched in September 2025; focuses on leading in core connectivity and simplifying and optimising beyond the core, supported by people, technology and AI, financial discipline, and sustainability.

• FY26 progress included 4.4% mobile revenue growth, structural cost savings, a completed data centre transaction with a 25% retained stake, and a strategic review of Digital Services underway.

• FY30 ambitions include $150m–$180m annualised savings from a FY24 baseline, low-single-digit adjusted EBITDAI CAGR, and mid-single-digit FCF CAGR from FY25 to FY30.

• FY26 savings reached $101m; FCF was $308m, up 18.5%; adjusted ROIC was 8.4%, flat YoY, while reported ROIC was 13.8% versus 8.7% in FY25.

• FY26 iNPS was +42, up 2 points YoY; employee engagement rose 11pp, and Scope 1 and 2 emissions were 59% below the FY20 baseline.

Connectivity

• FY26 mobile revenue grew 4.4% and mobile service revenue 1.1%; momentum returned despite the 3G shutdown, with positive ARPU trends across the portfolio.

• Pay Monthly ARPU grew 3.6%; Prepaid ARPU was broadly flat despite price competition, while total connections fell 3.6%, with ~25% of the decline attributed to the 3G closure.

• Enterprise and Government connections were broadly flat; ARPU declined $1.92, or 7.2%, in FY26 versus $3.26, or 10.9%, in FY25. Wins included ANZ Bank, Oranga Tamariki, and Contact Energy.

• FY27 initiatives included broadband-mobile bundles, new roaming and eSIM packs, and Skinny’s Everyday Rewards partnership; ~30k Skinny customers had signed up for rewards.

• Opensignal awards included outright wins in six categories and joint wins in three; satellite service launched in April 2026, with 237,000+ customers connected.

Digital services

• Digital Services is a scaled B2B business with majority-recurring revenue, New Zealand data-sovereign storage, and brands including CloudIQ, ServiceFlex, and Qrious; partnerships include Microsoft, Infosys, and HPE.

• A strategic review is underway to assess options to maximise shareholder value; an external adviser was appointed and completion was expected in H1 FY27.

• Review context includes legacy product exits, migration to ServiceFlex, slower-than-expected economic recovery, and the shift from private to public cloud, with managed services identified as an opportunity.