Spark New Zealand Limited · NZX:SPK
Spark New Zealand — FY2026 Earnings Presentation
34 slides from Spark New Zealand's earnings presentation, Aug 20, 2026
Slide 1: Spark New Zealand FY26 Results Summary
Spark New Zealand FY26 Results Summary Jolie Hodson, Chief Executive Officer Stewart Taylor, Chief Financial Officer 20 August 2026
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: FY26 results summary
FY26 results summary Mobile growth and cost discipline underpin FY26 result in line with guidance FY26 Change vs FY26 result Outcome FY25 Revenue stable in subdued economic environment, with mobile service revenue Adjusted Revenue $3,700 million No change growth offsetting legacy revenue decline. EB
Slide 4: FY26 financial snapshot
FY26 financial snapshot Adjusted EBITDAI impacted by digital services, legacy voice, and part-year data centre contribution – mobile momentum, cost reduction and portfolio management to drive improvement in FY27 Adjusted revenue (1) (2) Adjusted EBITDAI (2) (3) Adjusted NPAT (2) $3,700 million $1,03
Slide 5: SPK-30
SPK-30
Slide 6: SPK-30 Strategy
SPK-30 Strategy Our Ambition Our Enablers mm Our Purpose Our Strategic Choices To help all of It’s better ew Zealand with Spark Peopleand Technology Better network s @ Better customer experiences Financial Sustainable discipline Spark * *
Slide 7: Turning SPK-30 into results for shareholders
Turning SPK-30 into results for shareholders Differentiating Spark to deliver annuity-like returns and growing dividends for shareholders over time 01 Focused where returns are highest 02 Investing to differentiate and grow 03 Built on strong fundamentals SPK-30 FOCUS SPK-30 FOCUS SPK-30 FOCUS Focus
Slide 8: Network competitiveness enhanced by satellite-to-mobile
Network competitiveness enhanced by satellite-to-mobile Satellite extends Spark’s coverage to the edge, building on the competitive advantages of its terrestrial mobile network Satellite adds Our terrestrial network provides New Zealand’s widest coverage(1) Widest coverage Reliable indoors High cust
Slide 9: Sustainability performance
Sustainability performance Supporting a lower-carbon, more connected Aotearoa through our operations, network, and technology Reducing emissions and waste • Science-based target on track – scope 1 and 2 emissions tracking 59% below FY20 baseline and ahead of our FY30 target of a 56% reduction • Rene
Slide 10: Our SPK-30 strategy ambitions
Our SPK-30 strategy ambitions Good progress in first year of new strategy creating strong foundation for future EBITDAI growth Financial Ambition(1) Non-Financial Ambition (1) FY30 FY26 Update FY30 FY26 Update Annualised savings of >45+ iNPS 42+, up 2pts Productivity $150m-$180m $101m at Customer (i
Slide 11: Connectivity Performance
Connectivity Performance
Slide 12: Mobile performance overview
Mobile performance overview Overall mobile revenue up 4.4%, mobile service revenue returns to growth at 1.1% • Overall mobile revenue up 4.4% to $1.5b, driven by strong FY25 FY26 % change device growth Total Mobile Revenue $1,453m $1,517m 4.4% • Overall mobile service revenue grew 1.1% to $998m: Mob
Slide 13: Mobile performance detail
Mobile performance detail Further stabilisation in overall connections despite 3G shutdown, with positive ARPU trends across the portfolio Consumer and SME Pay Monthly Consumer Prepaid Enterprise and Government Increasing ARPU on broadly flat connections Resilient ARPU in competitive market Connecti
Slide 14: Market growth and share
Market growth and share SPK-30 materially improving market share trajectory in a growing market Total mobile market performance(1) YoY mobile service revenue market share movements(1) MVNO • FY26 mobile market estimated growth of 1.9%, compared to 2.4% +1.3% in FY25 (+0.5%) Spark mobile and share pe
Slide 15: From FY26 delivery to a strong FY27 pipeline
From FY26 delivery to a strong FY27 pipeline Building on FY26 momentum with a strong programme of connectivity activity into FY27 FY26 BETTER… FY27 • New plans delivering more choice for customers • New pay-monthly and device upgrade propositions • Launched satellite, roaming, long-term and kids pla
Slide 16: Broadband and Business Connectivity
Broadband and Business Connectivity Holding margin in broadband, while business connectivity impacted by divestment, legacy transition, and hardware sales timing Broadband: FY25 FY26 % change • Total connections down 4.8% in highly competitive, price driven market • Decline driven by fixed-line tech
Slide 17: Digital Services Performance
Digital Services Performance
Slide 18: Digital Services: a scaled business adjacent to our core
Digital Services: a scaled business adjacent to our core Market Recurring Intellectual Data Global Long-term leadership revenue property sovereignty partnerships tailwinds A leading provider Majority-recurring CloudIQ (hybrid Provides data- Relationships with all Long-term shift to of digital servic
Slide 19: Strategic review of Digital Services
Strategic review of Digital Services A strategic review of Digital Services marks the logical next step in the execution of SPK-30 Performance context Strategic review • Leading market position: with significant scale, customer base and • Strategic review of Digital Services underway to assess optio
Slide 20: Digital services performance summary
Digital services performance summary Public cloud growth and legacy migration continue to reshape revenue mix Cloud: • Overall cloud revenues held broadly steady at $233m FY25 FY26 % change • Public cloud revenue grew 20%, benefiting from long-term demand tailwinds Digital Services Revenue(1) • Priv
Slide 21: Financial summary
Financial summary
Slide 22: FY26 financial summary
FY26 financial summary REPORTED(1) REPORTED(1) CHANGE ADJUSTED(2) ADJUSTED(2) CHANGE FY25 FY26 FY25 FY26 Operating revenues and other gains 3,725 3,949 6.0% 3,700 3,700 - Operating expenses (2,672) (2,654) (0.7%) (2,640) (2,665) 0.9% EBITDAI 1,053 1,295 23.0% 1,060 1,035 (2.4%) Net financing cost (1
Slide 23: FY26 financial summary
FY26 financial summary Reported EBITDAI up 23.0% on data centre transaction; mobile revenue growth and productivity benefits supporting performance Reported result vs. FY25 Adjusted(1) result vs. FY25 • Reported revenue and other gains up 6.0%, or $224m, to $3,949m • Adjusted revenue and other gains
Slide 24: Cost reduction programme
Cost reduction programme FY26 productivity programme delivered $40m of benefits across product costs and labour/opex Delivery since H1 Product costs Labour and other opex • $35m in product cost savings from improved • $23m net benefit of the technology delivery model: • Long-term cost reduction prog
Slide 25: Cost reduction programme continued
Cost reduction programme continued On track to meet FY27 ambition of $110m-$140m of annualised savings(1) Pathway to FY27 target Cost reduction progress since FY25 • Run-rate benefits from FY26 labour reductions and additional • Cumulative ongoing cost reductions have built from $61m in FY25 to $101
Slide 26: Delivering against our Capital Management Framework
Delivering against our Capital Management Framework FY26 capital management in line with new framework established in August 2025 Objective FY26 outcome Maintaining financial strength 01 • Strong balance sheet • Net Debt/EBITDA ratio of ~1.7x(1) at 30 June 2026, down from 2.2x at 30 • Targeted metri
Slide 27: Capital expenditure
Capital expenditure FY26 BAU investment aligned to SPK-30 priorities – network leadership and resilience, better CX, and efficiency through tech and AI FY26 BAU capex FY26 strategic capex Total FY26 capex (excl. spectrum)(1) $467m ▲ 9% YoY $401m Flat on FY25 $66m ▲ 135% YoY In line with $380m–$410m
Slide 28: Free cash flow
Free cash flow Free cash flow growth supporting a total FY26 dividend of 16cps • FCF increased 18.5% to $308m and supported a total FY26 FY25 FY26 Change Change Free cash flow calculation dividend 16cps ($m) ($m) ($m) (%) Reported EBITDAI 1,053 1,295 242 23.0% • EBITDAI for FCF down 2.6% to $1,003m
Slide 29: Debt
Debt Balance sheet strengthened, with core net debt down 35% to $898m • Free Cash Flow growth and proceeds from the sale 75% of the data centre business reduced core net debt $494m (or 35%) to $898m • With lease liabilities consistent at ~$883m, total net debt including leases decreased to $1,781m,
Slide 30: Guidance
Guidance
Slide 31: FY27 Guidance
FY27 Guidance(1) FY26 Actual FY27 Guidance Adjusted EBITDAI $1,035m(2) $1,010m-$1,080m BAU capex $401m $350m-$380m Free cash flow $308m $300m-$350m 90%-100% of FCF (3) Dividend 16 cps supported by a target FY27 dividend range of 16-18 cps (1) Subject to no material adverse change in operating outloo
Slide 32: Appendix
Appendix
Slide 33: FY26 reported and adjusted earnings reconciliation
FY26 reported and adjusted earnings reconciliation • FY25 and FY26 Reported revenue and EBITDAI exclude the results of the data centre business which is classified as a discontinued operation in the Financial Statements • To assist in comparability, and reporting in a manner consistent with market g
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