SPARK FINANCE LIMITED Interim financial statements
For the six months ended 31 December 2025
Directors' report 2
Financial statements 3-5
Notes to the financial statements 6-7
Contact details 8
These interim financial statements do not include all the notes and information normally included in the annual financial statements. Accordingly, they should be read in conjunction with the annual financial statements for the year ended 30 June 2025.
Directors' reportSpark Finance Limited ('Spark Finance' or 'the Company') is a wholly-owned subsidiary of Spark New Zealand Limited ('Spark New Zealand' and together with its subsidiaries, the 'Spark New Zealand Group').
Principal activities
The principal activity of Spark Finance is that of a finance company for the Spark New Zealand Group and was incorporated in 1991. Spark Finance raises debt funding in New Zealand and internationally. The majority of these funds are then advanced to other members of the Spark New Zealand Group in order to assist in funding their operations.
Principal risks
The key risks to Spark Finance are currency, interest rate, credit and liquidity risks. A summary of these risks and Spark Finance's risk management objectives and policies are set out in note 10 in the Company's financial statements for the year ended 30 June 2025. The Directors of Spark Finance do not believe there is any significant financial risk to Spark Finance as financial assets are matched by financial liabilities with similar characteristics. Spark Finance enters into derivative financial instruments in order to manage the currency and interest rate risks associated with its borrowings, as well as to manage the currency risk associated with the operations of the Spark New Zealand Group. As the proceeds of debt are advanced to other members of the Spark New Zealand Group, the ability of Spark Finance to meet its obligations under the debt issues depends upon the payment of principal and interest due from other Spark New Zealand Group companies.
Business review
Spark Finance recorded net earnings after tax for the six months ended 31 December 2025 of $98 million (31 December 2024: $95 million).
The net assets of Spark Finance as at 31 December 2025 were $977 million compared to $1,068 million as at 30 June 2025. The share capital of Spark Finance as at 31 December 2025 is $883 million (30 June 2025: $883 million) consisting of 882,872,600 issued and fully paid shares, of which 342,872,600 are ordinary shares. Spark Finance did not acquire any of its own shares during the six months ended 31 December 2025 (31 December 2024: nil).
On 29 August 2025, Spark Finance paid a dividend of 21.52 cents per share or $190 million to Spark New Zealand Limited, which was paid through the intercompany current account (31 December 2024: 18.69 cents per share or $165 million).
On 27 November 2025, Spark Finance announced it has extended the term of its existing $125 million committed revolving sustainability linked loan facility with MUFG Bank, Ltd. by one year, to mature on 30 November 2026.
On 7 July 2025, a $24 million loan receivable from SNZL matured and was settled through the intercompany current account.
On 31 December 2025, a $488 million loan receivable from Spark NZ Trading Limited (SNT) matured and was similarly settled through the intercompany current account.
The Directors of Spark Finance consider the results of the Company to be satisfactory and the Company to be in a sound financial position.
Spark Finance solely lends to other companies within the Spark New Zealand Group and, accordingly, its financial performance should be considered in conjunction with the financial performance of the Spark New Zealand Group. A copy of the Spark New Zealand Group's results for the six months period ended 31 December 2025 can be found at investors.sparknz.co.nz.
Based on current expectations, Spark Finance will continue to operate as the principal finance company for the Spark New Zealand Group. Spark Finance does not engage in research and development activities.
On behalf of the Board
Stewart Taylor Matthew Sheppard
DIRECTOR DIRECTOR
Date: 25 February 2026
Statement of profit or loss and other comprehensive incomeSIX MONTHS ENDED 31 DECEMBER NOTE | 2025 UNAUDITED $M | 2024 UNAUDITED $M |
Finance income 2 | 211 | 215 |
Finance expense 2 | (75) | (83) |
Net finance income | 136 | 132 |
Net earnings before income tax | 136 | 132 |
Income tax expense | (38) | (37) |
Net earnings for the period | 98 | 95 |
Other comprehensive income | ||
Items that may be reclassified to profit or loss: | ||
Change in hedge reserves net of tax | 1 | (34) |
Other comprehensive income for the period | 1 | (34) |
Total comprehensive income for the period | 99 | 61 |
See accompanying notes to the financial statements.
Statement of changes in equitySIX MONTHS ENDED 31 DECEMBER 2025 | NOTE | SHARE CAPITAL $M | RETAINED EARNINGS $M | HEDGE RESERVES $M | TOTAL EQUITY $M |
Balance at 1 July 2025 | 883 | 206 | (21) | 1,068 | |
Net earnings for the period | - | 98 | - | 98 | |
Other comprehensive income for the period | - | - | 1 | 1 | |
Total comprehensive income for the period | - | 98 | 1 | 99 | |
Dividends | 4 | - | (190) | - | (190) |
Balance at 31 December 2025 | 883 | 114 | (20) | 977 | |
SHARE CAPITAL | RETAINED EARNINGS | HEDGE RESERVES | TOTAL EQUITY | ||
SIX MONTHS ENDED 31 DECEMBER 2024 | NOTE | $M | $M | $M | $M |
Balance at 1 July 2024 | 883 | 178 | 11 | 1,072 | |
Net earnings for the period | - | 95 | - | 95 | |
Other comprehensive loss for the period | - | - | (34) | (34) | |
Total comprehensive income for the period | - | 95 | (34) | 61 | |
Dividends | 4 | - | (165) | - | (165) |
Balance at 31 December 2024 | 883 | 108 | (23) | 968 | |
See accompanying notes to the financial statements. | |||||
NOTE | AS AT 31 DECEMBER 2025 UNAUDITED $M | AS AT 30 JUNE 2025 AUDITED $M |
Current assets | ||
Cash | 1 | 1 |
Short-term derivative assets | 9 | 4 |
Due from other Spark New Zealand Group companies | 4,645 | 4,785 |
Total current assets | 4,655 | 4,790 |
Non-current assets | ||
Long-term prepayments | 1 | 1 |
Due from other Spark New Zealand Group companies | 555 | 1,330 |
Long-term derivative assets | 15 | 11 |
Deferred tax assets | 8 | 8 |
Total non-current assets | 579 | 1,350 |
Total assets | 5,234 | 6,140 |
Current liabilities | ||
Bank overdraft | 3 | 6 |
Taxation payable | 113 | 75 |
Due to other Spark New Zealand Group companies | 2,667 | 3,499 |
Short-term derivative liabilities | 3 | 7 |
Current debt 3 | 459 | 380 |
Accrued interest | 4 | 3 |
Total current liabilities | 3,249 | 3,970 |
Non-current liabilities | ||
Long-term derivative liabilities | 37 | 60 |
Non-current debt 3 | 971 | 1,042 |
Total non-current liabilities | 1,008 | 1,102 |
Total liabilities | 4,257 | 5,072 |
Equity | ||
Share capital | 883 | 883 |
Reserves | (20) | (21) |
Retained earnings | 114 | 206 |
Total equity | 977 | 1,068 |
Total liabilities and equity | 5,234 | 6,140 |
See accompanying notes to the financial statements.
On behalf of the Board of Spark Finance Limited
Stewart Taylor
Matthew Sheppard
DIRECTOR DIRECTOR
Authorised for issue on: 25 February 2026
Statement of cash flowsSIX MONTHS ENDED 31 DECEMBER | 2025 UNAUDITED $M | 2024 UNAUDITED $M |
Cash flows from operating activities | ||
Receipts from interest | - | 1 |
Payments for interest | (39) | (50) |
Net deposits from / (advances to) other Spark New Zealand Group companies | 61 | (112) |
Net cash flows from operating activities | 22 | (161) |
Cash flows from financing activities | ||
Proceeds from current debt | 1,473 | 1,297 |
Repayments of current debt | (1,528) | (1,166) |
Proceeds from non-current debt | 4,495 | 4,129 |
Repayments of non-current debt | (4,465) | (4,060) |
Net cash flows from financing activities | (25) | 200 |
Net cash flows | (3) | 39 |
Opening cash position | 1 | 1 |
Closing cash position | (2) | 40 |
Cash | 1 | 40 |
Bank overdraft | (3) | - |
Closing cash position | (2) | 40 |
Reconciliation of net earnings to net cash flows from operating activities
SIX MONTHS ENDED 31 DECEMBER NOTE | 2025 UNAUDITED $M | 2024 UNAUDITED $M |
Net earnings for the period | 98 | 95 |
Adjustments to reconcile net earnings to net cash flows from operating activities | ||
Non-cash intercompany income 2 | (211) | (214) |
Non-cash intercompany expenses 2 | 36 | 34 |
Non-cash tax expense | 38 | 37 |
Revaluation of debt in a fair value hedge | 26 | 37 |
Revaluation of derivatives in a fair value hedge | (34) | (36) |
Movement in amounts with Spark New Zealand Group companies | 69 | (113) |
Accrued interest and other expenses | - | (1) |
Net cash flows from operating activities | 22 | (161) |
See accompanying notes to the financial statements.