Spark New Zealand Limited · NZX:SPK
Spark New Zealand — Spark New Zealand Ltd Ord — H1 FY26 Earnings Presentation
23 slides from Spark New Zealand's earnings presentation, Feb 18, 2026
Slide 1: H1 FY26 Results Summary
Spark New Zealand H1 FY26 Results Summary Jolie Hodson, Chief Executive Officer Stewart Taylor, Chief Financial Officer
Slide 2: Disclaimer
Disclaimer The information in this announcement has been prepared by Spark New Zealand Factors that could cause actual results or performance to differ materially from those expressed Limited. or implied in the forward-looking statements include the outcome of Spark New Zealand’s anticipated revenue
Slide 3: H1 FY26 results summary
H1 FY26 results summary Continued momentum – mobile service revenue growth and cost-out discipline delivering strong EBITDAI and free cash flow growth H1 FY26 Change vs H1 FY26 result Outcome H1 FY25 Adjusted Revenue $1,917 million 1.1% decrease Strong EBITDAI and free cash flow (FCF) growth relativ
Slide 4: H1 FY26 financial snapshot
H1 FY26 financial snapshot Adjusted revenue 1,3 Adjusted EBITDAI 3, 4 Adjusted NPAT 3 $1,917 million $471 million $73 million 1.1% decrease vs. H1 FY25 5.1% increase vs. H1 FY25 30.4% increase vs. H1 FY25 Reported revenue 2 Reported EBITDAI 2 Reported NPAT $1,893 million $448 million $64 million 1.2
Slide 5: Mobile performance overview
Mobile performance overview Mobile service revenue growth driven by new product development, focused campaign activity, and plan mix Spark mobile performance H1 FY251 H1 FY26 % change • Mobile service revenues grew 1.6%, supported by: Mobile Service Revenue Total $491m $499m +1.6% o Continued ARPU g
Slide 6: Mobile performance detail
Mobile performance detail SPK-30 focus on core connectivity driving mobile performance improvements since end FY25 Consumer and SME Pay Monthly Consumer Prepaid Enterprise and Government Strong ARPU growth in highest value segment Highest value connections (NZ packs) stabilising Connections and ARPU
Slide 7: Overall market growth
Overall market growth Mobile market growth continues to improve over the last six months Overall mobile market performance(1) MVNO 2.2% (+0.3%) • Total mobile market by revenue grew ~1.3% since 30 June 25 • Spark’s mobile service revenue continues to grow, but at a slower rate than the market, resul
Slide 8: Strong pipeline of market activity
Strong pipeline of market activity Continued investment in new technology, product, customer and network experiences 5G Standalone capabilities launching Satellite-to-mobile on its way Growing pipeline of Business Satellite text and data testing customers accessing private network underway, with cus
Slide 9: Connectivity and IT performance summary
Connectivity and IT performance summary Broadband revenue stable, cloud growth continues, while other connectivity and service management decline Core connectivity • Broadband: revenue stable, with refreshed wireless broadband plans H1 FY25 H1 FY26 % change and mobile bundling propositions launching
Slide 10: Cost reduction programme on track
Cost reduction programme on track Disciplined execution delivers significant net cost reduction in H1 FY26 net cost reduction target of $30m-$50m heavily weighted to H1 H1 FY25 to H1 FY26 YoY Cost Reduction • $51m in productivity savings delivered by: $526m $55m $51m o $55m of net labour reductions,
Slide 11: Our ambition: It's better with Spark
Our ambition: It’s better with Spark New strategic focus delivering better network and customer experiences Better Network Better CX • Expanded Spark’s 4G coverage leadership to also include 5G, as • iNPS up 5 points2 YoY – driven by simplified customer journeys, faster independently rated by OpenSi
Slide 12: Sustainability
Sustainability Consistent progress, maintaining top quartile position in the S&P Corporate Sustainability Assessment Continued progress towards emissions reduction targets • Science-based emissions target (SBTi) on track – scope 1 and 2 emissions 32% lower than the trajectory required in H1 FY26 to
Slide 13: Data centre transaction completed
Data centre transaction completed Sale of a 75% stake to Pacific Equity Partners (PEP) completed, with Spark retaining a 25% stake in the growing data centre market Transaction details • Realises value for data centre assets now, while creating further value for shareholders over the long term throu
Slide 14: Our SPK-30 strategy ambitions
Our SPK-30 strategy ambitions Strong progress in first six months of new five-year strategy Financial Ambition1 Non-Financial Ambition FY30 H1 FY26 Update FY30 H1 FY26 Update Annualised savings of On track >45+ iNPS 41+ Productivity $150m-$180m (from Customer (industry best practice) up 5pts from H1
Slide 15: Financial summary
Financial summary
Slide 16: H1 FY26 financial summary
H1 FY26 financial summary REPORTED REPORTED CHANGE ADJUSTED ADJUSTED CHANGE H1 FY25 H1 FY26 H1 FY25 H1 FY26 Operating revenues and other gains 1,916 1,893 (1%) 1,939 1,917 (1%) Operating expenses (1,510) (1,445) (4%) (1,491) (1,446) (3%) EBITDAI 406 448 10% 448 471 5% Net financing cost (60) (55) (8
Slide 17: H1 FY26 financial summary
H1 FY26 financial summary Reported result vs. H1 FY25 Adjusted result vs. H1 FY25 • Reported operating revenue and other gains down 1% to $1,893m • Adjusted revenue and EBITDAI include the data centre business for both H1 FY26 and H1 FY25 • Reported EBITDAI up 10%, or $42m, to $448m • Adjusted H1 FY
Slide 18: Capital expenditure
Capital expenditure Investment focused on core connectivity in line with SPK-30 strategy, BAU capex down 9% YoY • H1 FY26 capex of $271m is $19m higher driven mainly by H1 25 vs H1 26 capex by category increase in strategic data centre capex: $271m (ex. spectrum) Spectrum $7m o Lower BAU capex of $2
Slide 19: Free cash flow
Free cash flow FCF growth primarily driven by EBITDAI growth and lower cash tax payments • H1 FY26 FCF of $107m up 84% driven by improvement Free cash flow calculation H1 FY25 H1 FY26 Change Change in EBITDAI and lower cash tax paid ($m) ($m) ($m) (%) Reported EBITDAI 406 448 42 10% • Targeted H1 to
Slide 20: Debt and dividends
Debt and dividends Ongoing focus on disciplined capital management • H1 FY26 net debt (ex leases) of $1.39bn is 5% or $81m lower than net debt at FY25, driven by sale of the IFP Spark Debt Profile book and offset by the impact of capex (both BAU and Net debt ex leases Leases Net Debt/EBITDAI** strat
Slide 21: FY26 debt key metrics
FY26 debt key metrics H1 FY25 FY25 H1 FY26 Net debt ($m) ($m) ($m) Net debt at hedged rates $1,796 $1,475 $1,393 Net debt at hedged rates including lease liabilities1 $2,735 $2,392 $2,273 Debt ratios Borrowing costs (annualised) 5.6% 5.6% 5.6% Weighted average debt maturity (years) 3.1 years 3.1 yea
Slide 22: FY26 Guidance reaffirmed
FY26 Guidance reaffirmed1 FY26 Guidance2 Adjusted EBITDAI $1,010m - $1,070m BAU capex $380m - $410m Strategic capex (data centres) ~$55m3 Free cash flow4 $290m - $330m Dividend 100% of FCF (1) Subject to no material adverse change in operating outlook (3) There was $1m of capex spent on data centres
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Spark New Zealand Ltd Ord — H1 FY26 Earnings Presentation on 6ix