Spark New Zealand : H1 FY25 Results transcript

About this update from Spark New Zealand Limited

H1 FY25 INVESTOR CALL TRANSCRIPTION Date: 21 February 2025 Duration: 1h 17m 2s [START OF TRANSCRIPT] Operator: Thank you for standing by, and welcome to the Spark New Zealand HY '25 Results Call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Jolie Hodson, CEO of Spark. Please go ahead. Jolie Hodson: Good morning, everyone. Thank you for joining us today for Spark's half year results for the period ended 31 December 2024. This morning, I'll provide an overview of our results and I'll then hand over to our CFO, Stewart Taylor, who's recently joined the business to speak to our financial performance in more detail before we move to Q&A. So before we turn to the first half results, as you would have seen from our market disclosures this morning, we have updated FY '25 EBITDAI guidance. So I'll start by providing some context regarding this change. So when we updated the market in October, we outlined that we're experiencing one of the longest and deepest recessionary periods in recent history. Since that time, we've seen no improvement in these conditions. And while there has been movement on monetary policy, this is yet to flow through to any meaningful change in consumer or business spending. As a result, we've seen further deterioration in the performance of our Enterprise and Government division, which has been impacted by spending cuts, mobile fleet reductions across government and businesses, changes in product mix and aggressive price competition in mobile. This has resulted in us reducing FY '25 adjusted EBITDAI guidance to $1.04 billion to $1.1 billion. This excludes the anticipated benefit from the gain on the sale of Connexa of $66 million and the FY '25 non-recurring transformation costs of approximately $45 million to $50 million. We know our shareholders will be rightly concerned about the ongoing headwinds we are facing. We're taking decisive action to improve that performance, and I'll spend time this morning outlining these plans and our progress to date in some more detail. Before I do that, I will first focus on Slides 3 and 4 [of the H1 25 results presentation] to summarise our H1 performance. Reported...

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