Spark New Zealand
Group result - reported
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Operating revenues and other gains | 2,534 | 1,957 | 1,976 | 1,885 | 1,939 | 1,976 | 1,939 | (37) | (1.9%) |
Operating expenses | (1,492) | (1,277) | (1,446) | (1,252) | (1,520) | (1,446) | (1,520) | (74) | (5.1%) |
EBITDAI | 1,042 | 680 | 530 | 633 | 419 | 530 | 419 | (111) | (20.9%) |
Finance income | 16 | 16 | 14 | 16 | 15 | 14 | 15 | 1 | 7.1% |
Finance expense | (43) | (56) | (63) | (81) | (75) | (63) | (75) | (12) | (19.0%) |
Depreciation and amortisation | (248) | (256) | (251) | (276) | (300) | (251) | (300) | (49) | (19.5%) |
Net investment income | (1) | 2 | (3) | (5) | - | (3) | - | 3 | 100.0% |
Net earnings before income tax | 766 | 386 | 227 | 287 | 59 | 227 | 59 | (168) | (74.0%) |
Tax income / (expense) | 99 | (116) | (70) | (128) | (24) | (70) | (24) | 46 | 65.7% |
Net earnings for the period | 865 | 270 | 157 | 159 | 35 | 157 | 35 | (122) | (77.7%) |
Capital expenditure excluding spectrum | (250) | (265) | (286) | (232) | (252) | (286) | (252) | 34 | 11.9% |
Free cash flows excluding spectrum | 115 | 374 | 46 | 284 | 77 | 46 | 77 | 31 | 67.4% |
Reported EBITDAI margin | 41.1% | 34.7% | 26.8% | 33.6% | 21.6% | 26.8% | 21.6% | (5.2pp) | |
Reported effective tax rate | (12.9%) | 30.1% | 30.8% | 44.6% | 40.7% | 30.8% | 40.7% | 9.9pp | |
Capital expenditure to operating revenues and other gains | (9.9%) | (13.5%) | (14.5%) | (12.3%) | (13.0%) | (14.5%) | (13.0%) | 1.5pp | |
Reported basic earnings per share (cents) | 46.2 | 14.5 | 8.6 | 8.8 | 1.9 | 8.6 | 1.9 | (6.7) | (77.9%) |
Reported diluted earnings per share (cents) | 46.1 | 14.5 | 8.5 | 8.9 | 1.9 | 8.5 | 1.9 | (6.6) | (77.6%) |
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 6 months ended 31 December 2024, transformation costs of $29m relating to the SPK-26 Operate Programme were deemed significant items to adjust.
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Adjusted operating revenues and other gains | 1,950 | 1,958 | 1,976 | 1,885 | 1,939 | 1,976 | 1,939 | (37) | (1.9%) |
Adjusted operating expenses | (1,440) | (1,275) | (1,446) | (1,252) | (1,491) | (1,446) | (1,491) | (45) | (3.1%) |
Adjusted EBITDAI | 510 | 683 | 530 | 633 | 448 | 530 | 448 | (82) | (15.5%) |
Finance income | 16 | 16 | 14 | 16 | 15 | 14 | 15 | 1 | 7.1% |
Finance expense | (43) | (56) | (63) | (81) | (75) | (63) | (75) | (12) | (19.0%) |
Depreciation and amortisation | (248) | (256) | (251) | (276) | (300) | (251) | (300) | (49) | (19.5%) |
Adjusted net investment income | (1) | (3) | (3) | (5) | - | (3) | - | 3 | 100.0% |
Adjusted net earnings before income tax | 234 | 384 | 227 | 287 | 88 | 227 | 88 | (139) | (61.2%) |
Adjusted income tax expense | (69) | (116) | (70) | (102) | (32) | (70) | (32) | 38 | 54.3% |
Adjusted net earnings for the period | 165 | 268 | 157 | 185 | 56 | 157 | 56 | (101) | (64.3%) |
Capital expenditure excluding spectrum | (250) | (265) | (286) | (232) | (252) | (286) | (252) | 34 | 11.9% |
Free cash flows excluding spectrum | 115 | 374 | 46 | 284 | 77 | 46 | 77 | 31 | 67.4% |
Adjusted EBITDAI margin | 26.2% | 34.9% | 26.8% | 33.6% | 23.1% | 26.8% | 23.1% | (3.7pp) | |
Adjusted effective tax rate | 29.5% | 30.2% | 30.8% | 35.5% | 36.4% | 30.8% | 36.4% | 5.6pp | |
Capital expenditure to adjusted operating revenues and other gains | (12.8%) | (13.5%) | (14.5%) | (12.3%) | (13.0%) | (14.5%) | (13.0%) | 1.5pp | |
Adjusted basic earnings per share (cents) | 8.8 | 14.4 | 8.6 | 10.1 | 3.1 | 8.6 | 3.1 | (5.5) | (64.0%) |
Adjusted diluted earnings per share (cents) | 8.8 | 14.3 | 8.5 | 10.2 | 3.1 | 8.5 | 3.1 | (5.4) | (63.5%) |
Gross margin by product | |||||||||
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Mobile | 477 | 507 | 496 | 494 | 488 | 496 | 488 | (8) | (1.6%) |
Voice | 71 | 62 | 51 | 48 | 42 | 51 | 42 | (9) | (17.6%) |
Broadband | 149 | 149 | 148 | 140 | 140 | 148 | 140 | (8) | (5.4%) |
IT products | 136 | 143 | 139 | 136 | 125 | 139 | 125 | (14) | (10.1%) |
IT services1 | 73 | 80 | 66 | 48 | 49 | 66 | 49 | (17) | (25.8%) |
Procurement and partners | 27 | 40 | 24 | 41 | 25 | 24 | 25 | 1 | 4.2% |
Data Centres1 | 16 | 14 | 21 | 22 | 23 | 21 | 23 | 2 | 9.5% |
High-Tech | 23 | 23 | 22 | 23 | 22 | 22 | 22 | - | -% |
Other products | 25 | 58 | 46 | 45 | 37 | 46 | 37 | (9) | (19.6%) |
Total product gross margin | 997 | 1,076 | 1,013 | 997 | 951 | 1,013 | 951 | (62) | (6.1%) |
Other gains | 588 | 28 | 19 | 83 | 23 | 19 | 23 | 4 | 21.1% |
Total gross margin | 1,585 | 1,104 | 1,032 | 1,080 | 974 | 1,032 | 974 | (58) | (5.6%) |
1Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for FY23-24.
Spark New Zealand
Connections
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's | % | |
Mobile connections1 | 2,616 | 2,707 | 2,760 | 2,715 | 2,650 | 2,760 | 2,650 | (110) | (4.0%) |
Voice connections by type2 | |||||||||
POTS and ISDN2 | 112 | 91 | 69 | 59 | 49 | 69 | 49 | (20) | (29.0%) |
VoIP | 60 | 59 | 53 | 51 | 48 | 53 | 48 | (5) | (9.4%) |
Voice over wireless | 14 | 8 | 8 | 6 | 6 | 8 | 6 | (2) | (25.0%) |
186 | 158 | 130 | 116 | 103 | 130 | 103 | (27) | (20.8%) | |
Broadband connections by technology | |||||||||
Copper | 79 | 64 | 54 | 43 | 36 | 54 | 36 | (18) | (33.3%) |
Fibre | 423 | 426 | 427 | 428 | 424 | 427 | 424 | (3) | (0.7%) |
Wireless | 202 | 209 | 214 | 216 | 218 | 214 | 218 | 4 | 1.9% |
704 | 699 | 695 | 687 | 678 | 695 | 678 | (17) | (2.4%) | |
IoT connections | 1,160 | 1,461 | 1,799 | 2,048 | 2,250 | 1,799 | 2,250 | 451 | 25.1% |
1Mobile connections excluding MVNO connections but including legacy machine to machine and SIM based SmartWatch connections.
2Voice connections include all voice technology types, including POTS, ISDN, VoIP and wireless voice. Voice connections exclude connections where Spark also provide a bundled broadband service, but include all wholesale voice connections (including those where the underlying customer has a bundled broadband service).
Group FTEs
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 H1 FY25 vs H1 FY24 | |||
FTE permanent | 4,976 | 5,189 | 5,356 | 5,072 | 4,456 | 5,356 | 4,456 | (900) | (16.8%) |
FTE contractors | 182 | 143 | 97 | 70 | 94 | 97 | 94 | (3) | (3.1%) |
Total FTE | 5,158 | 5,332 | 5,453 | 5,142 | 4,550 | 5,453 | 4,550 | (903) | (16.6%) |
Declared Dividends
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
Ordinary dividends (cents per share) | 13.50 | 13.50 | 13.50 | 14.00 | 12.50 | 13.50 | 12.50 | (1.00) | (7.4%) |
Total dividend (cents per share) | 13.50 | 13.50 | 13.50 | 14.00 | 12.50 | 13.50 | 12.50 | (1.00) | (7.4%) |
Spark New Zealand
Group operating revenues and other gains
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Telco | |||||||||
Mobile | |||||||||
Service revenue | 480 | 500 | 510 | 500 | 491 | 510 | 491 | (19) | (3.7%) |
Non-service revenue | 252 | 238 | 239 | 225 | 248 | 239 | 248 | 9 | 3.8% |
Mobile | 732 | 738 | 749 | 725 | 739 | 749 | 739 | (10) | (1.3%) |
Voice | 122 | 109 | 94 | 86 | 78 | 94 | 78 | (16) | (17.0%) |
Broadband1 | 313 | 313 | 309 | 304 | 302 | 309 | 302 | (7) | (2.3%) |
Total Telco | 1,167 | 1,160 | 1,152 | 1,115 | 1,119 | 1,152 | 1,119 | (33) | (2.9%) |
IT Revenue | |||||||||
IT Products | |||||||||
Cloud2 | 105 | 103 | 109 | 116 | 118 | 109 | 118 | 9 | 8.3% |
Managed data and networks | 110 | 112 | 112 | 111 | 102 | 112 | 102 | (10) | (8.9%) |
Collaboration | 39 | 40 | 40 | 40 | 44 | 40 | 44 | 4 | 10.0% |
IT Products | 254 | 255 | 261 | 267 | 264 | 261 | 264 | 3 | 1.1% |
IT Services2 | 87 | 99 | 80 | 76 | 72 | 80 | 72 | (8) | (10.0%) |
Total IT revenue | 341 | 354 | 341 | 343 | 336 | 341 | 336 | (5) | (1.5%) |
Procurement and partners | 319 | 265 | 339 | 209 | 332 | 339 | 332 | (7) | (2.1%) |
Data centres2 | 17 | 15 | 22 | 23 | 25 | 22 | 25 | 3 | 13.6% |
High-Tech | 31 | 34 | 35 | 44 | 41 | 35 | 41 | 6 | 17.1% |
Other products | 71 | 101 | 68 | 68 | 63 | 68 | 63 | (5) | (7.4%) |
Total operating revenues | 1,946 | 1,929 | 1,957 | 1,802 | 1,916 | 1,957 | 1,916 | (41) | (2.1%) |
Other gains | 4 | 29 | 19 | 83 | 23 | 19 | 23 | 4 | 21.1% |
Adjusted operating revenues and other gains | 1,950 | 1,958 | 1,976 | 1,885 | 1,939 | 1,976 | 1,939 | (37) | (1.9%) |
Net gain on sale of Connexa | 584 | (1) | - | - | - | - | - | - | NM |
Total operating revenues and other gains | 2,534 | 1,957 | 1,976 | 1,885 | 1,939 | 1,976 | 1,939 | (37) | (1.9%) |
1Wireless broadband revenues and connections are included in broadband revenues and connections.
2Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for FY23-24.
Operating revenues and other gains by customer segment
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
Operating revenues and other gains | $m | $m | $m | $m | $m | $m | $m | $m | % |
Consumer | 797 | 782 | 780 | 757 | 765 | 780 | 765 | (15) | (1.9%) |
Business | 1,019 | 976 | 1,037 | 922 | 987 | 1,037 | 987 | (50) | (4.8%) |
Wholesale and other | 718 | 199 | 159 | 206 | 187 | 159 | 187 | 28 | 17.6% |
2,534 | 1,957 | 1,976 | 1,885 | 1,939 | 1,976 | 1,939 | (37) | (1.9%) |
Finance income
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
Finance income | $m | $m | $m | $m | $m | $m | $m | $m | % |
Finance lease interest income | 4 | 4 | 4 | 4 | 4 | 4 | 4 | - | -% |
Other interest income | 12 | 12 | 10 | 12 | 11 | 10 | 11 | 1 | 10.0% |
16 | 16 | 14 | 16 | 15 | 14 | 15 | 1 | 7.1% |
Net investment income
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 H1 FY25 vs H1 FY24 | |||
Net investment income | $m | $m | $m | $m | $m | $m | $m | $m | % |
Share of associates' and joint ventures' net losses | (3) | (9) | (8) | (9) | (6) | (8) | (6) | 2 | 25.0% |
Interest income on loans receivable from associates and joint ventures | 2 | 6 | 6 | 6 | 6 | 6 | 6 | - | -% |
Impairment of investments | - | - | - | (2) | - | - | - | - | NM |
Net disposal and remeasurement of equity accounted investments | - | - | (1) | - | - | (1) | - | 1 | 100.0% |
Adjusted net investment income | (1) | (3) | (3) | (5) | - | (3) | - | 3 | 100.0% |
Net gain on dilution of the investment in the Connexa group | - | 5 | - | - | - | - | - | - | NM |
Reported net investment income | (1) | 2 | (3) | (5) | - | (3) | - | 3 | 100.0% |
Spark New Zealand
Group operating expenses
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Product costs | |||||||||
Mobile | (255) | (231) | (253) | (231) | (251) | (253) | (251) | 2 | 0.8% |
Voice | (51) | (47) | (43) | (38) | (36) | (43) | (36) | 7 | 16.3% |
Broadband | (164) | (164) | (161) | (164) | (162) | (161) | (162) | (1) | (0.6%) |
IT products1 | (118) | (112) | (122) | (131) | (139) | (122) | (139) | (17) | (13.9%) |
IT services1 | (14) | (19) | (14) | (28) | (23) | (14) | (23) | (9) | (64.3%) |
Procurement and partners | (292) | (225) | (315) | (168) | (307) | (315) | (307) | 8 | 2.5% |
Data centres | (1) | (1) | (1) | (1) | (2) | (1) | (2) | (1) | (100.0%) |
High-Tech | (8) | (11) | (13) | (21) | (19) | (13) | (19) | (6) | (46.2%) |
Other product costs | (46) | (43) | (22) | (23) | (26) | (22) | (26) | (4) | (18.2%) |
(949) | (853) | (944) | (805) | (965) | (944) | (965) | (21) | (2.2%) | |
Labour | (269) | (242) | (279) | (233) | (271) | (279) | (271) | 8 | 2.9% |
Other operating expenses | |||||||||
Network support costs | (45) | (20) | (40) | (33) | (52) | (40) | (52) | (12) | (30.0%) |
Computer costs | (57) | (52) | (52) | (63) | (74) | (52) | (74) | (22) | (42.3%) |
Accommodation costs | (23) | (26) | (29) | (29) | (29) | (29) | (29) | - | -% |
Electricity - data centres2 | (2) | (2) | (2) | (2) | (3) | (2) | (3) | (1) | (50.0%) |
Electricity - non data centres | (15) | (15) | (17) | (17) | (16) | (17) | (16) | 1 | 5.9% |
Advertising, promotions and communication | (33) | (23) | (33) | (21) | (31) | (33) | (31) | 2 | 6.1% |
Bad debts | (4) | (5) | (7) | (8) | (10) | (7) | (10) | (3) | (42.9%) |
Other | (43) | (37) | (43) | (41) | (40) | (43) | (40) | 3 | 7.0% |
(222) | (180) | (223) | (214) | (255) | (223) | (255) | (32) | (14.3%) | |
Adjusted operating expenses | (1,440) | (1,275) | (1,446) | (1,252) | (1,491) | (1,446) | (1,491) | (45) | (3.1%) |
Spark Sport provision | (52) | (2) | - | - | - | - | - | - | NM |
Transformation costs | - | - | - | - | (29) | - | (29) | (29) | NM |
Total operating expenses | (1,492) | (1,277) | (1,446) | (1,252) | (1,520) | (1,446) | (1,520) | (74) | (5.1%) |
1Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for FY23-24.
2Estimated electricity costs to run Spark Group's dedicated data centres.
Finance expense
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Finance expense | |||||||||
Finance expense on debt | (22) | (28) | (33) | (42) | (41) | (33) | (41) | (8) | (24.2%) |
Other interest and finance expenses | (7) | (5) | (8) | (15) | (10) | (8) | (10) | (2) | (25.0%) |
Lease interest expense | (15) | (24) | (24) | (24) | (25) | (24) | (25) | (1) | (4.2%) |
Leased customer equipment interest expense | (4) | (3) | (4) | (4) | (3) | (4) | (3) | 1 | 25.0% |
(48) | (60) | (69) | (85) | (79) | (69) | (79) | (10) | (14.5%) | |
Capitalised interest | 5 | 4 | 6 | 4 | 4 | 6 | 4 | (2) | (33.3%) |
(43) | (56) | (63) | (81) | (75) | (63) | (75) | (12) | (19.0%) |
Depreciation and amortisation expense
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Depreciation and amortisation expense | |||||||||
Depreciation - property, plant and equipment | (114) | (113) | (112) | (123) | (147) | (112) | (147) | (35) | (31.3%) |
Depreciation - right-of-use assets | (36) | (39) | (42) | (47) | (50) | (42) | (50) | (8) | (19.0%) |
Depreciation - leased customer equipment assets | (19) | (17) | (17) | (16) | (13) | (17) | (13) | 4 | 23.5% |
Amortisation - intangible assets | (79) | (87) | (80) | (90) | (90) | (80) | (90) | (10) | (12.5%) |
(248) | (256) | (251) | (276) | (300) | (251) | (300) | (49) | (19.5%) |
Spark New Zealand
Analysis & KPIs - Mobile
Mobile revenue by type (Consumer and Business) Mobile service revenue
Mobile non-service revenue1
Wholesale and other customer segment mobile revenue2 Total mobile revenue
Mobile product costs3
Mobile gross margin
Mobile gross margin %
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | |
$m | $m | $m | $m | $m | $m | $m | $m | % |
472 | 489 | 500 | 489 | 479 | 500 | 479 | (21) | (4.2%) |
231 | 218 | 219 | 199 | 217 | 219 | 217 | (2) | (0.9%) |
703 | 707 | 719 | 688 | 696 | 719 | 696 | (23) | (3.2%) |
29 | 31 | 30 | 37 | 43 | 30 | 43 | 13 | 43.3% |
732 | 738 | 749 | 725 | 739 | 749 | 739 | (10) | (1.3%) |
(255) | (231) | (253) | (231) | (251) | (253) | (251) | 2 | 0.8% |
477 | 507 | 496 | 494 | 488 | 496 | 488 | (8) | (1.6%) |
65.2% | 68.7% | 66.2% | 68.1% | 66.0% | 66.2% | 66.0% | (0.2pp) |
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 H1 FY25 vs H1 FY24 | |||
Total mobile revenue by customer segment | $m | $m | $m | $m | $m | $m | $m | $m | % |
Consumer | 486 | 486 | 499 | 480 | 489 | 499 | 489 | (10) | (2.0%) |
Business | 217 | 221 | 220 | 208 | 207 | 220 | 207 | (13) | (5.9%) |
Wholesale and other | 29 | 31 | 30 | 37 | 43 | 30 | 43 | 13 | 43.3% |
732 | 738 | 749 | 725 | 739 | 749 | 739 | (10) | (1.3%) | |
Average revenue per user (ARPU) - 6 month active | H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 H1 FY25 vs H1 FY24 | ||
(Consumer and Business) | $ per | $ per | $ per | $ per | $ per | $ per | $ per | $ per | % |
month | month | month | month | month | month | month | month | ||
Total ARPU | 31.30 | 30.78 | 30.66 | 30.03 | 30.17 | 30.66 | 30.17 | (0.49) | (1.6%) |
Pay-monthly ARPU | 41.59 | 41.48 | 42.14 | 41.12 | 40.52 | 42.14 | 40.52 | (1.62) | (3.8%) |
Prepaid ARPU | 17.26 | 16.91 | 16.09 | 15.88 | 16.21 | 16.09 | 16.21 | 0.12 | 0.7% |
Number of mobile connections at period end - 6 month | H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 H1 FY25 vs H1 FY24 | ||
active (Consumer and Business)4 | 000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's | % |
Pay-monthly connections | 1,471 | 1,509 | 1,525 | 1,517 | 1,519 | 1,525 | 1,519 | (6) | (0.4%) |
Prepaid connections | 1,118 | 1,173 | 1,210 | 1,173 | 1,106 | 1,210 | 1,106 | (104) | (8.6%) |
Internal connections | 4 | 4 | 4 | 4 | 4 | 4 | 4 | - | -% |
Total mobile connections | 2,593 | 2,686 | 2,739 | 2,694 | 2,629 | 2,739 | 2,629 | (110) | (4.0%) |
1Mobile non-service revenue includes handset sales and mobile interconnect.
2Includes MVNO revenue.
3Includes handset, interconnect and cellphone tower access costs.
4Excludes MVNO connections and legacy machine to machine, but includes SIM based SmartWatch connections.
Spark New Zealand
Analysis & KPIs - Voice
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 H1 FY25 vs H1 FY24 | |||
Revenue by type | $m | $m | $m | $m | $m | $m | $m | $m | % |
Access | 45 | 37 | 33 | 29 | 25 | 33 | 25 | (8) | (24.2%) |
Calling | 59 | 54 | 48 | 44 | 41 | 48 | 41 | (7) | (14.6%) |
Other voice revenue | 18 | 18 | 13 | 13 | 12 | 13 | 12 | (1) | (7.7%) |
Total voice revenue | 122 | 109 | 94 | 86 | 78 | 94 | 78 | (16) | (17.0%) |
Voice product costs1 | (51) | (47) | (43) | (38) | (36) | (43) | (36) | 7 | 16.3% |
Voice gross margin | 71 | 62 | 51 | 48 | 42 | 51 | 42 | (9) | (17.6%) |
Voice gross margin % | 58.2% | 56.9% | 54.3% | 55.8% | 53.8% | 54.3% | 53.8% | (0.5pp) | |
Voice connections by type | H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 H1 FY25 vs H1 FY24 | ||
000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's | % | |
POTS and ISDN | 112 | 91 | 69 | 59 | 49 | 69 | 49 | (20) | (29.0%) |
VoIP | 60 | 59 | 53 | 51 | 48 | 53 | 48 | (5) | (9.4%) |
Voice over wireless | 14 | 8 | 8 | 6 | 6 | 8 | 6 | (2) | (25.0%) |
Total voice connections | 186 | 158 | 130 | 116 | 103 | 130 | 103 | (27) | (20.8%) |
Voice connections by customer segment | H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 H1 FY25 vs H1 FY24 | ||
000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's | % | |
Consumer | 46 | 32 | 28 | 24 | 20 | 28 | 20 | (8) | (28.6%) |
Business | 111 | 104 | 90 | 82 | 74 | 90 | 74 | (16) | (17.8%) |
Wholesale and other | 29 | 22 | 12 | 10 | 9 | 12 | 9 | (3) | (25.0%) |
Total voice connections | 186 | 158 | 130 | 116 | 103 | 130 | 103 | (27) | (20.8%) |
1Includes voice access (baseband), interconnect, and international calling costs.
Analysis & KPIs - Broadband
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Total broadband revenue | 313 | 313 | 309 | 304 | 302 | 309 | 302 | (7) | (2.3%) |
Broadband product costs2 | (164) | (164) | (161) | (164) | (162) | (161) | (162) | (1) | (0.6%) |
Broadband gross margin | 149 | 149 | 148 | 140 | 140 | 148 | 140 | (8) | (5.4%) |
Broadband gross margin % | 47.6% | 47.6% | 47.9% | 46.1% | 46.4% | 47.9% | 46.4% | (1.5pp) | |
Broadband connections by technology | H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | |
000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's | % | |
Copper | 79 | 64 | 54 | 43 | 36 | 54 | 36 | (18) | (33.3%) |
Fibre | 423 | 426 | 427 | 428 | 424 | 427 | 424 | (3) | (0.7%) |
Wireless | 202 | 209 | 214 | 216 | 218 | 214 | 218 | 4 | 1.9% |
Total broadband connections | 704 | 699 | 695 | 687 | 678 | 695 | 678 | (17) | (2.4%) |
Broadband connections by customer segment | H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | |
000's | 000's | 000's | 000's | 000's | 000's | 000's | 000's | % | |
Consumer | 594 | 589 | 584 | 580 | 570 | 584 | 570 | (14) | (2.4%) |
Business | 104 | 102 | 102 | 100 | 98 | 102 | 98 | (4) | (3.9%) |
Wholesale and other | 6 | 8 | 9 | 7 | 10 | 9 | 10 | 1 | 11.1% |
Total broadband connections | 704 | 699 | 695 | 687 | 678 | 695 | 678 | (17) | (2.4%) |
2Includes broadband access (UBA/UCLL/Fibre) and modem costs.
Spark New Zealand
Analysis & KPIs - Data centres
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Data centre revenue1 | 17 | 15 | 22 | 23 | 25 | 22 | 25 | 3 | 13.6% |
Data centre product cost | (1) | (1) | (1) | (1) | (2) | (1) | (2) | (1) | (100.0%) |
Data centre gross margin | 16 | 14 | 21 | 22 | 23 | 21 | 23 | 2 | 9.5% |
Data centre gross margin% | 94.1% | 93.3% | 95.5% | 95.7% | 92.0% | 95.5% | 92.0% | (3.5pp) | |
Data centre KPIs | H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | |
Data centre capacity built (in MW) | 11 | 11 | 22 | 22 | 22 | 22 | 22 | - | -% |
Data centre capacity under construction (in MW) | 11 | 11 | 1 | 1 | 1 | 1 | 1 | - | -% |
Data centre development pipeline (in MW) | 19 | 19 | 70 | 70 | 118 | 70 | 118 | 48 | 68.6% |
Total capacity (in MW) | 41 | 41 | 93 | 93 | 141 | 93 | 141 | 48 | 51.6% |
Weighted average lease term with options (WALE) | 16.6 | 16.6 | 16.5 | 16.5 | 16.7 | 16.5 | 16.7 | 0.2 | 1.2% |
Contracted utilisation dedicated data centres2 | 84% | 84% | 88% | 88% | 87% | 88% | 87% | (1.0pp) | |
Target power usage effectiveness (PUE) | N/A | N/A | 1.2 | 1.2 | 1.2 | 1.2 | 1.2 | - | -% |
PUE - Legacy data centre assets | 1.54 | 1.56 | 1.57 | 1.57 | 1.60 | 1.57 | 1.60 | (0.03) | (1.9%) |
1Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for FY23-24.
2Includes contracted and reserved racks at dedicated data centres and exchanges.
Analysis & KPIs - IT products
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Cloud revenue1 | 105 | 103 | 109 | 116 | 118 | 109 | 118 | 9 | 8.3% |
Cloud product costs1 | (39) | (33) | (38) | (47) | (61) | (38) | (61) | (23) | (60.5%) |
Cloud gross margin | 66 | 70 | 71 | 69 | 57 | 71 | 57 | (14) | (19.7%) |
Cloud gross margin% | 62.9% | 68.0% | 65.1% | 59.5% | 48.3% | 65.1% | 48.3% | (16.8pp) | |
Managed data and networks revenue | 110 | 112 | 112 | 111 | 102 | 112 | 102 | (10) | (8.9%) |
Managed data and networks product costs3 | (64) | (64) | (67) | (66) | (59) | (67) | (59) | 8 | 11.9% |
Managed data and networks gross margin | 46 | 48 | 45 | 45 | 43 | 45 | 43 | (2) | (4.4%) |
Managed data and networks gross margin % | 41.8% | 42.9% | 40.2% | 40.5% | 42.2% | 40.2% | 42.2% | 2.0pp | |
Collaboration revenue | 39 | 40 | 40 | 40 | 44 | 40 | 44 | 4 | 10.0% |
Collaboration product costs | (15) | (15) | (17) | (18) | (19) | (17) | (19) | (2) | (11.8%) |
Collaboration gross margin | 24 | 25 | 23 | 22 | 25 | 23 | 25 | 2 | 8.7% |
Collaboration gross margin % | 61.5% | 62.5% | 57.5% | 55.0% | 56.8% | 57.5% | 56.8% | (0.7pp) |
1Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for FY23-24.
3Includes wide area network access, international data, network backhaul and videoconferencing platform costs.
Analysis & KPIs - IT services
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 H1 FY25 vs H1 FY24 | |||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Service management revenue1 | 76 | 79 | 68 | 64 | 61 | 68 | 61 | (7) | (10.3%) |
Security revenue | 11 | 20 | 12 | 12 | 11 | 12 | 11 | (1) | (8.3%) |
Service management and security revenue | 87 | 99 | 80 | 76 | 72 | 80 | 72 | (8) | (10.0%) |
Service management and security product costs | (14) | (19) | (14) | (28) | (23) | (14) | (23) | (9) | (64.3%) |
Service management and security gross margin | 73 | 80 | 66 | 48 | 49 | 66 | 49 | (17) | (25.8%) |
Service management and security gross margin % | 83.9% | 80.8% | 82.5% | 63.2% | 68.1% | 82.5% | 68.1% | (14.4pp) |
1Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for FY23-24.
Analysis & KPIs - Procurement and partners
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Procurement and partners revenue | 319 | 265 | 339 | 209 | 332 | 339 | 332 | (7) | (2.1%) |
Procurement and partners product costs | (292) | (225) | (315) | (168) | (307) | (315) | (307) | 8 | 2.5% |
Procurement and partners gross margin | 27 | 40 | 24 | 41 | 25 | 24 | 25 | 1 | 4.2% |
Procurement and partners gross margin % | 8.5% | 15.1% | 7.1% | 19.6% | 7.5% | 7.1% | 7.5% | 0.4pp |
Spark New Zealand
Statement of cash flows
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Cash flows from operating activities | |||||||||
Receipts from customers | 1,975 | 1,815 | 1,972 | 1,739 | 1,977 | 1,972 | 1,977 | 5 | 0.3% |
Receipts from interest | 16 | 13 | 13 | 15 | 15 | 13 | 15 | 2 | 15.4% |
Payments to suppliers and employees | (1,460) | (1,270) | (1,519) | (1,134) | (1,566) | (1,519) | (1,566) | (47) | (3.1%) |
Payments for income tax | (120) | (70) | (101) | (88) | (78) | (101) | (78) | 23 | 22.8% |
Payments for interest on debt | (23) | (32) | (31) | (49) | (46) | (31) | (46) | (15) | (48.4%) |
Payments for interest on leases | (15) | (22) | (23) | (23) | (24) | (23) | (24) | (1) | (4.3%) |
Payments for interest on leased customer equipment assets | (4) | (3) | (4) | (3) | (3) | (4) | (3) | 1 | 25.0% |
Net cash flows from operating activities | 369 | 431 | 307 | 457 | 275 | 307 | 275 | (32) | (10.4%) |
Cash flows from investing activities | |||||||||
Proceeds from sale of property, plant and equipment | 1 | 10 | 14 | 20 | 2 | 14 | 2 | (12) | (85.7%) |
Proceeds from sale of business | 894 | (1) | - | 4 | - | - | - | - | NM |
Proceeds from long-term investments | - | - | - | 7 | - | - | - | - | NM |
Receipts from finance leases | 1 | 2 | 1 | - | - | 1 | - | (1) | (100.0%) |
Receipts from loans receivable | - | 11 | 10 | - | 3 | 10 | 3 | (7) | (70.0%) |
Payments for purchase of business, net of cash acquired | - | - | (2) | (3) | (2) | (2) | (2) | - | -% |
Payments for, and advances to, long-term investments | (2) | (1) | (1) | - | - | (1) | - | 1 | 100.0% |
Payments for purchase of property, plant and equipment, intangibles | (246) | (229) | (347) | (235) | (228) | (347) | (228) | 119 | 34.3% |
(excluding spectrum) and capacity | |||||||||
Payments for spectrum intangible assets | - | (6) | - | (8) | - | - | - | - | NM |
Payments for capitalised interest | (5) | (4) | (6) | (4) | (4) | (6) | (4) | 2 | 33.3% |
Net cash flows from investing activities | 643 | (218) | (331) | (219) | (229) | (331) | (229) | 102 | 30.8% |
Cash flows from financing activities | |||||||||
Net proceeds from/(repayments of) debt | (517) | 54 | 489 | 21 | 190 | 489 | 190 | (299) | (61.1%) |
Payments for dividends | (234) | (252) | (249) | (245) | (160) | (249) | (160) | 89 | 35.7% |
Payments for share buy-back | - | (146) | (159) | - | - | (159) | - | 159 | 100.0% |
Payments for leases | (31) | (33) | (38) | (40) | (44) | (38) | (44) | (6) | (15.8%) |
Receipts from lease incentive | - | - | - | - | 22 | - | 22 | 22 | NM |
Payments for leased customer equipment assets | (15) | (22) | (20) | (14) | (11) | (20) | (11) | 9 | 45.0% |
Net cash flows from financing activities | (797) | (399) | 23 | (278) | (3) | 23 | (3) | (26) | NM |
Net cash flows | 215 | (186) | (1) | (40) | 43 | (1) | 43 | 44 | NM |
Opening cash position | 71 | 286 | 100 | 99 | 59 | 100 | 59 | (41) | (41.0%) |
Closing cash position1 | 286 | 100 | 99 | 59 | 102 | 99 | 102 | 3 | 3.0% |
1H1 FY25 closing cash position includes cash of $100m and cash classified as assets held for sale of $2m.
Analysis & KPIs - Free cash flows and movement in working capital
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Reported EBITDAI | 1,042 | 680 | 530 | 633 | 419 | 530 | 419 | (111) | (20.9%) |
Less | |||||||||
Adjusting items and non cash other gains | 536 | 11 | 20 | 58 | (6) | 20 | (6) | (26) | NM |
EBITDAI for free cash flow | 506 | 669 | 510 | 575 | 425 | 510 | 425 | (85) | (16.7%) |
Less | |||||||||
Cash paid on maintenance capital expenditure | (200) | (128) | (261) | (89) | (169) | (261) | (169) | 92 | 35.2% |
Cash paid on interest | (26) | (44) | (45) | (60) | (58) | (45) | (58) | (13) | (28.9%) |
Cash paid on tax payments | (120) | (70) | (101) | (88) | (78) | (101) | (78) | 23 | 22.8% |
Cash paid on leases | (45) | (53) | (57) | (54) | (43) | (57) | (43) | 14 | 24.6% |
Total cash payments on items above | (391) | (295) | (464) | (291) | (348) | (464) | (348) | 116 | 25.0% |
Change in working capital | |||||||||
Change in receivables | 59 | (126) | 27 | (78) | 80 | 27 | 80 | 53 | NM |
Change in payables | (3) | 53 | (20) | 65 | 41 | (20) | 41 | 61 | NM |
Change in inventory | (1) | 28 | (27) | 18 | (25) | (27) | (25) | 2 | 7.4% |
Change in contract assets | (3) | (30) | (8) | 12 | (6) | (8) | (6) | 2 | 25.0% |
Change in prepayments (excluding CAPEX) | (22) | 31 | (45) | 36 | (66) | (45) | (66) | (21) | (46.7%) |
Total change in working capital - (increase)/decrease | 30 | (44) | (73) | 53 | 24 | (73) | 24 | 97 | NM |
Cash paid on growth capital expenditure | (51) | (105) | (92) | (140) | (57) | (92) | (57) | 35 | 38.0% |
Free cash flow including working capital and growth cash capex | 94 | 225 | (119) | 197 | 44 | (119) | 44 | 163 | NM |
Spark New Zealand
Group capital expenditure
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
Maintenance Capex | $m | $m | $m | $m | $m | $m | $m | $m | % |
Cloud | (11) | (8) | (24) | (13) | (9) | (24) | (9) | 15 | 62.5% |
Fixed network & International cable capacity | (35) | (58) | (55) | (10) | (37) | (55) | (37) | 18 | 32.7% |
IT systems | (62) | (54) | (80) | (67) | (73) | (80) | (73) | 7 | 8.8% |
Mobile network | (77) | (21) | (65) | (24) | (91) | (65) | (91) | (26) | (40.0%) |
Property | (11) | (12) | (7) | (4) | (4) | (7) | (4) | 3 | 42.9% |
Other | (4) | (6) | (4) | (6) | (1) | (4) | (1) | 3 | 75.0% |
Total maintenance capital expenditure excluding spectrum | (200) | (159) | (235) | (124) | (215) | (235) | (215) | 20 | 8.5% |
Growth Capex | |||||||||
5G Acceleration & SA Readiness | - | (42) | (32) | (74) | (23) | (32) | (23) | 9 | 28.1% |
Data centres | (50) | (64) | (19) | (22) | (14) | (19) | (14) | 5 | 26.3% |
Converged Tech | - | - | - | (12) | - | - | - | - | NM |
Total growth capital expenditure excluding spectrum | (50) | (106) | (51) | (108) | (37) | (51) | (37) | 14 | 27.5% |
Total capital expenditure excluding spectrum | (250) | (265) | (286) | (232) | (252) | (286) | (252) | 34 | 11.9% |
Total capital expenditure excluding spectrum to operating revenue and | (9.9%) | (13.5%) | (14.5%) | (12.3%) | (13.0%) | (14.5%) | (13.0%) | 1.5pp | |
other gains | |||||||||
Total capital expenditure excluding spectrum to adjusted operating | (12.8%) | (13.5%) | (14.5%) | (12.3%) | (13.0%) | (14.5%) | (13.0%) | 1.5pp | |
revenue and other gains | |||||||||
Mobile spectrum | - | - | (23) | - | - | (23) | - | 23 | 100.0% |
Total capital expenditure including spectrum | (250) | (265) | (309) | (232) | (252) | (309) | (252) | 57 | 18.4% |
Cash Capex | |||||||||
Growth | (51) | (105) | (92) | (140) | (57) | (92) | (57) | 35 | 38.0% |
Maintenance | (200) | (128) | (261) | (89) | (169) | (261) | (169) | 92 | 35.2% |
Total cash capital expenditure excluding spectrum | (251) | (233) | (353) | (229) | (226) | (353) | (226) | 127 | 36.0% |
Capital expenditure is the additions to property, plant and equipment and intangible assets (excluding goodwill, acquisitions and other non-cash additions that may be required by NZ IFRS, such as decommissioning costs) and additions to capacity right-of-use assets where such additions are paid upfront.
Analysis & KPI's - Capital expenditure depreciation and amortisation
On adoption of NZ IFRS 16 Leases, assets associated with capacity arrangements which were previously recognised within intangible assets have been reclassified to right-of-use assets. Payments for capacity purchases remain within Spark's definition of capital expenditure. Total depreciation on property, plant and equipment, depreciation on capacity right-of-use assets and amortisation of intangible assets is reconciled below:
H1 FY23 | H2 FY23 | H1 FY24 | H2 FY24 | H1 FY25 | H1 FY24 | H1 FY25 | H1 FY25 vs H1 FY24 | ||
$m | $m | $m | $m | $m | $m | $m | $m | % | |
Depreciation - property, plant and equipment | (114) | (113) | (112) | (123) | (147) | (112) | (147) | (35) | 31.3% |
Depreciation - right-of-use assets1 | (11) | (11) | (12) | (12) | (12) | (12) | (12) | - | -% |
Amortisation - intangible assets | (79) | (87) | (80) | (90) | (90) | (80) | (90) | (10) | (12.5%) |
Total capital expenditure depreciation and amortisation | (204) | (211) | (204) | (225) | (249) | (204) | (249) | (45) | (22.1%) |
1Includes depreciation on capacity right-of-use assets only as these are included within Spark's definition of capital expenditure.