P A G E 1
Changes to external reporting
Changes to external reporting from FY24
From FY24 we will update our revenue and product cost reporting
This updated reporting is designed to:
- Support external communication of our strategy
- Better inform modelling, in particular with regards to data centre operations
- Enable simpler comparisons to peers and market data
Principle
Structure disclosures to align with Spark's latest three-year strategy:
- Telco: Mobile, Broadband and Voice
- Data Centres
- IT: IT Products, IT Services, Procurement and Partners
- IT Products: Cloud, Collaboration, Managed Data and Network
- IT Services: Service Management and Security
- Procurement and Partners
- High-tech:Qrious, IoT, MATTR
- Other
Key Changes
- Split Data Centres out from Cloud, and split co-location out from Other to create a combined Data Centre category
- Move Qrious, IoT, and MATTR out of Other and combine into a new category called
'High-tech' - Digital Health Platform to remain under 'Other' with Health revenue to be reported separately as a footnote
S P A R K P A G E 2
Refine Security to focus on cyber security services, by moving network related security | • Split existing Security revenues into Network Security (reported within Managed Data | |
revenues to Managed Data and Networks | and Networks) and Security | |
Update KPIs for IT Products and Services where either a) additional information is beneficial | • | To align with peers, update Data Centre KPIs to provide further information on |
for modelling or b) modelling is best informed by revenue run-rate rather than volumetric | capacity, utilisation and power efficiency | |
KPIs | • | Remove existing Cloud, Security and Service Management KPIs |
Operating revenue disclosure changes
S P A R K P A G E 3
Current
FY22 | FY23 | FY22 vs FY23 | ||
$m | $m | $m | % | |
Operating revenues | ||||
Mobile | ||||
Service revenue | 899 | 980 | 81 | 9.0% |
Non-service revenue | 452 | 490 | 38 | 8.4% |
1,351 | 1,470 | 119 | 8.8% | |
Voice | ||||
Access | 109 | 82 | (27) | (24.8%) |
Calling | 138 | 113 | (25) | (18.1%) |
Other voice revenue | 38 | 36 | (2) | (5.3%) |
285 | 231 | (54) | (18.9%) | |
Broadband 1 | 639 | 626 | (13) | (2.0%) |
Cloud | 233 | 228 | (5) | (2.1%) |
Managed data and network | 205 | 208 | 3 | 1.5% |
Collaboration | 78 | 79 | 1 | 1.3% |
Service management | 176 | 163 | (13) | (7.4%) |
Security | 37 | 45 | 8 | 21.6% |
Procurement and partners | 538 | 584 | 46 | 8.6% |
Other product revenues 2 | 152 | 241 | 89 | 58.6% |
Total operating revenues | 3,694 | 3,875 | 181 | 4.9% |
Other gains | 26 | 33 | 7 | 26.9% |
Adjusted operating revenues and other gains | 3,720 | 3,908 | 188 | 5.1% |
New
FY22 | FY23 | FY22 vs FY23 | ||
$m | $m | $m | % | |
Operating revenues | ||||
Telco | ||||
Mobile | ||||
Service revenue | 899 | 980 | 81 | 9.0% |
Non-service revenue | 452 | 490 | 38 | 8.4% |
Mobile | 1,351 | 1,470 | 119 | 8.8% |
Voice | 285 | 231 | (54) | (18.9%) |
Broadband 1 | 639 | 626 | (13) | (2.0%) |
Total Telco | 2,275 | 2,327 | 52 | 2.3% |
IT products | ||||
Cloud | 214 | 208 | (6) | (2.8%) |
Managed data and network | 220 | 222 | 2 | 0.9% |
Collaboration | 78 | 79 | 1 | 1.3% |
Total IT products revenue | 512 | 509 | (3) | (0.6%) |
IT services | ||||
Service management and security | 198 | 194 | (4) | (2.0%) |
Procurement and partners | 538 | 584 | 46 | 8.6% |
Total IT Revenue | 1,248 | 1,287 | 39 | 3.1% |
Data centres | 23 | 24 | 1 | 4.3% |
High-Tech excl. Health | 57 | 65 | 8 | 14.6% |
Other product revenues 2 | 91 | 172 | 81 | 88.6% |
Total operating revenues | 3,694 | 3,875 | 181 | 4.9% |
Other gains | 26 | 33 | 7 | 26.9% |
Adjusted operating revenues and other gains | 3,720 | 3,908 | 188 | 5.1% |
Variance
FY22 | FY23 | FY22 vs FY23 |
$m | $m | $m Note |
- | - | - |
- | - | - | |
- | - | - | |
(19) | (20) | (1) Removal of Data centres | |
15 | 14 | (1) Addition of Network Security | |
- | - | - | |
22 | 31 | 9 Addition of Security (excl. Network security) | |
Security split into Network security (under Managed data and network) and | |||
(37) | (45) | (8)Other Security (under Service management and security) | |
- | - | - | |
23 | 24 | 1 Data centres (moved from Cloud) and Co-Location (moved from 'Other') | |
57 | 65 | 8 Qrious, IOT, MATTR moved from 'Other' | |
Qrious, IOT, MATTR moved to 'High-Tech excl. Health' and Co-location moved to | |||
(61) | (69) | (8)'Data centres' | |
- | - | - |
Group capital expenditure disclosure changes
S P A R K P A G E 4
Current
FY22 FY23 FY22 vs FY23 | ||||
Maintenance Capex | $m | $m | $m | % |
Cloud | 15 | 19 | 4 | 26.7% |
Converged communications network (CCN)1 | 22 | 17 | (5) | (22.7%) |
International cable construction and capacity | 7 | 25 | 18 | NM |
purchases | ||||
IT systems | 150 | 116 | (34) | (22.7%) |
Mobile network1 | 100 | 98 | (2) | (2.0%) |
Core sustain and resiliency | 53 | 69 | 16 | 30.2% |
Other | 7 | 15 | 8 | NM |
Total maintenance capital expenditure excluding | 354 | 359 | 5 | 1.4% |
spectrum | ||||
Growth Capex | ||||
5G acceleration | 25 | 42 | 17 | 68.0% |
Data centres | 31 | 114 | 83 | NM |
Total growth capital expenditure excluding | 56 | 156 | 100 | NM |
spectrum | ||||
Total capital expenditure excluding spectrum | 410 | 515 | 105 | 25.6% |
New
FY22 | FY23 | FY22 vs FY23 | ||
Maintenance Capex | $m | $m | $m | % |
Cloud | 15 | 19 | 4 | 26.7% |
Fixed network & International cable capacity | 68 | 93 | 25 | 36.8% |
IT systems | 150 | 116 | (34) | (22.7%) |
Mobile network | 100 | 98 | (2) | (2.0%) |
Property | 16 | 23 | 7 | 43.8% |
Other | 5 | 10 | 5 100.0% | |
Total maintenance capital expenditure excluding | 354 | 359 | 5 | 1.4% |
spectrum | ||||
Growth Capex | ||||
SA readiness | 25 | 42 | 17 | 68.0% |
Data centres | 31 | 114 | 83 | NM |
Total growth capital expenditure excluding | 56 | 156 | 100 | NM |
spectrum | ||||
Total capital expenditure excluding spectrum | 410 | 515 | 105 | 25.6% |
Variance
FY22 | FY23 | FY22 vs FY23 | |
$m | $m | $mNote | |
- | - | - | |
68 | 93 | 25 | Includes CCN, International cable construction & capacity and Core |
sustain and resiliency (less Property-related core sustain) | |||
(22) | (17) | 5 | Moved to Fixed network & International cable capacity |
(7) | (25) | (18) | Moved to Fixed network & International cable capacity |
- | - | - | |
- | - | - | |
(53) | (69) | (16) | Split into Fixed network & International cable capacity and Property |
16 | 23 | 7 | Retail stores (moved from 'Other') and part of Core sustain resiliency |
(2) | (5) | (3) | Removal of retail stores |
- | - | - | |
- | - | - | |
- | - | - | |
- | - | - | |
- | - | - |
Spark New Zealand
Group result - reported
H1 FY21 | H2 FY21 | H1 FY22 | H2 FY22 | H1 FY23 | H2 FY23 | FY22 | FY23 | FY22 vs FY23 | ||
$m | $m | $m | $m | $m | $m | $m | $m | $m | % | |
Operating revenues and other gains | 1,796 | 1,797 | 1,890 | 1,830 | 2,534 | 1,957 | 3,720 | 4,491 | 771 | 20.7% |
Operating expenses | (1,296) | (1,178) | (1,352) | (1,218) | (1,492) | (1,277) | (2,570) | (2,769) | (199) | (7.7%) |
EBITDAI | 500 | 619 | 538 | 612 | 1,042 | 680 | 1,150 | 1,722 | 572 | 49.7% |
Finance income | 17 | 17 | 14 | 12 | 16 | 16 | 26 | 32 | 6 | 23.1% |
Finance expense | (43) | (38) | (37) | (37) | (43) | (56) | (74) | (99) | (25) | (33.8%) |
Depreciation and amortisation | (262) | (259) | (257) | (263) | (248) | (256) | (520) | (504) | 16 | 3.1% |
Net investment income | - | (1) | (1) | - | (1) | 2 | (1) | 1 | 2 | NM |
Net earnings before income tax | 212 | 338 | 257 | 324 | 766 | 386 | 581 | 1,152 | 571 | 98.3% |
Tax income /(expense) | (65) | (104) | (78) | (93) | 71 | (88) | (171) | (17) | 154 | 90.1% |
Net earnings for the period | 147 | 234 | 179 | 231 | 837 | 298 | 410 | 1,135 | 725 | NM |
Capital expenditure excluding spectrum | 190 | 159 | 218 | 192 | 250 | 265 | 410 | 515 | 105 | 25.6% |
Free cash flows excluding spectrum1 | 132 | 352 | 164 | 269 | 115 | 374 | 433 | 489 | 56 | 12.9% |
Reported EBITDAI margin | 27.8% | 34.4% | 28.5% | 33.4% | 41.1% | 34.7% | 30.9% | 38.3% | 7.4pp | |
Reported effective tax rate | 30.7% | 30.8% | 30.4% | 28.7% | (9.3%) | 22.8% | 29.4% | 1.5% | (27.9pp) | |
Capital expenditure to operating revenues and | 10.6% | 8.8% | 11.5% | 10.5% | 9.9% | 13.5% | 11.0% | 11.5% | 0.5pp | |
other gains | ||||||||||
Reported basic earnings per share (cents) | 8.0 | 12.5 | 9.6 | 12.4 | 44.7 | 16.0 | 21.9 | 60.7 | 38.8 | NM |
Reported diluted earnings per share (cents) | 8.0 | 12.5 | 9.6 | 12.4 | 44.6 | 16.0 | 21.9 | 60.6 | 38.7 | NM |
1As reported in H2 FY22 the free cash flow has been redefined from FY23 to minimise the impact of short-term working capital volatility and to support incremental growth capital expenditure. Comparative periods have been updated to reflect the new definition.
Group result - adjusted
Spark's policy is to present 'adjusted EBITDAI' and 'adjusted net earnings' when a financial year includes significant items (such as gains, expenses and impairments) individually greater than $25 million. In the year ended 30 June 2023, the net gain on sale of TowerCo of $583 million together with the subsequent $5 million net gain arising from the dilution of the investment in the Connexa group and the one off provision of $54 million for Spark Sport were deemed significant items to adjust. There were no significant items to adjust for the year ended 30 June 2022.
H1 FY21 | H2 FY21 | H1 FY22 | H2 FY22 | H1 FY23 | H2 FY23 | FY22 | FY23 | FY22 vs FY23 | ||
$m | $m | $m | $m | $m | $m | $m | $m | $m | % | |
Adjusted operating revenues and other gains | 1,796 | 1,797 | 1,890 | 1,830 | 1,950 | 1,958 | 3,720 | 3,908 | 188 | 5.1% |
Adjusted operating expenses | (1,296) | (1,178) | (1,352) | (1,218) | (1,440) | (1,275) | (2,570) | (2,715) | (145) | (5.6%) |
Adjusted EBITDAI | 500 | 619 | 538 | 612 | 510 | 683 | 1,150 | 1,193 | 43 | 3.7% |
Finance income | 17 | 17 | 14 | 12 | 16 | 16 | 26 | 32 | 6 | 23.1% |
Finance expense | (43) | (38) | (37) | (37) | (43) | (56) | (74) | (99) | (25) | (33.8%) |
Depreciation and amortisation | (262) | (259) | (257) | (263) | (248) | (256) | (520) | (504) | 16 | 3.1% |
Adjusted net investment income | - | (1) | (1) | - | (1) | (3) | (1) | (4) | (3) | NM |
Adjusted net earnings before income tax | 212 | 338 | 257 | 324 | 234 | 384 | 581 | 618 | 37 | 6.4% |
Adjusted income tax expense | (65) | (104) | (78) | (93) | (69) | (116) | (171) | (185) | (14) | (8.2%) |
Adjusted net earnings for the period | 147 | 234 | 179 | 231 | 165 | 268 | 410 | 433 | 23 | 5.6% |
Capital expenditure excluding spectrum | 190 | 159 | 218 | 192 | 250 | 265 | 410 | 515 | 105 | 25.6% |
Free cash flows excluding spectrum1 | 132 | 352 | 164 | 269 | 115 | 374 | 433 | 489 | 56 | 12.9% |
Adjusted EBITDAI margin | 27.8% | 34.4% | 28.5% | 33.4% | 26.2% | 34.9% | 30.9% | 30.5% | (0.4pp) | |
Adjusted effective tax rate | 30.7% | 30.8% | 30.4% | 28.7% | 29.5% | 30.2% | 29.4% | 29.9% | 0.5pp | |
Capital expenditure to adjusted operating | 10.6% | 8.8% | 11.5% | 10.5% | 12.8% | 13.5% | 11.0% | 13.2% | 2.2pp | |
revenues and other gains | ||||||||||
Adjusted basic earnings per share (cents) | 8.0 | 12.5 | 9.6 | 12.4 | 8.8 | 14.4 | 21.9 | 23.2 | 1.3 | 5.9% |
Adjusted diluted earnings per share (cents) | 8.0 | 12.5 | 9.6 | 12.4 | 8.8 | 14.3 | 21.9 | 23.1 | 1.2 | 5.5% |