Results overview
FY23 financial snapshot
Closing the last year of 3-year strategy with revenue, EBITDAI, free cash flow, and NPAT all in growth
P A G E 3
$4,491m | $1,722m | $1,135m | ||
20.7% increase vs. reported FY22 | 49.7% increase vs. reported FY22 | NM vs. reported FY22 | ||
REPORTED REVENUE(1) | REPORTED EBITDAI(3) | REPORTED NPAT |
$3,908m | $1,193m | $433m | ||
5.1% increase vs. reported FY22 | 3.7% increase vs. reported FY22 | 5.6% increase vs. reported FY22 | ||
ADJUSTED REVENUE(1)(2) | ADJUSTED EBITDAI(2)(3) | ADJUSTED NPAT(2) |
$515m | $489m | 27.0c | ||
25.6% increase vs. FY22 | 12.9% increase vs. FY22 | 8% increase vs. FY22 | ||
CAPEX(3)(4) | FREE CASH FLOW | TOTAL FY23 DIVIDEND |
- Operating revenues and other gains
- EBITDAI is adjusted for the impact of the TowerCo gain on sale of $583m included in revenue and the Spark Sport provision of $54m included in operating expenses. Net EBITDAI impact of $529m. NPAT is further adjusted for the $5 million net gain on dilution of the investment in the Connexa group, the tax effect of the Spark Sport provision of $14m and a credit to tax expense of $154m arising from the TowerCo transaction
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Earnings before finance income and expense, income tax, depreciation, amortisation and net investment income (EBITDAI) and capital expenditure (Capex) are non-Generally Accepted Accounting Principles (non-GAAP) performance measures that are defined in note 2.5 of Spark's financial statements
(4)Capex up 25.6% as TowerCo proceeds are invested
FY23 results summary
Focussed execution delivered revenue, EBITDAI, and NPAT growth
REVENUE GROWTH AND
COST CONTROL UNDERPINNED
EARNINGS AND DIVIDEND GROWTH
P A G E 4
- TowerCo transaction and Spark Sport exit resulted in a net EBITDAI gain of $529 million, contributing to reported revenues of $4,491 million, EBITDAI of $1,722 million, and NPAT of $1,135m
- Adjusted revenues increased 5.1% to $3,908 million, underpinned by mobile service revenue growth of 9%
- Future markets of Health and IoT collectively contributed $122 million of revenue
- Delivered adjusted EBITDAI growth of 3.7% to $1,193 million, in line with guidance, with adjusted NPAT up 5.6% to $433 million
- Generated free cash flow of $489 million, towards the top end of aspiration and largely funding the dividend
- Completed 42% of on-market share buy-back, returning $146 million of TowerCo proceeds to shareholders
- Declared H2 FY23 dividend of 13.5 cps and a total FY23 dividend of 27 cps - an increase of 8.0% or 2 cents YoY, in line with guidance
- FY24 free cash flow aspiration of ~$490m-$530m,guiding to a higher total FY24 dividend of 27.5cps
FY21-23 strategy summary
Completed FY21-23 strategy period delivering to guidance and with a strong platform for future growth
STRATEGY DELIVERY
BUILDS PLATFORM FOR
FUTURE GROWTH
S P A R K P A G E 5
- FY21-23strategy delivered stronger fundamentals - higher customer and people engagement, consistently growing brand strength, and top-quartile sustainability performance
- Maintained #1 position in mobile and broadband markets and achieved ~30% of broadband base on wireless broadband
- 5G investments maturing and will underpin future growth in consumer and B2B markets
- Effective portfolio management released capital to invest in the high-growth data centre market, with further investment at existing Takanini campus
- Market leading data and AI capability, combined with simplified portfolio, delivered 17% annual improvement in conversion and 9% efficiency gains
- Strong employee engagement at 70%
- Simpler, digital, and data-driven customer experiences improving customer iNPS score to +31 in FY23, a growth of 9 points since FY20
- 3-year TSR CAGR of 9.3%, ranking Spark at #4 against global peers(1)
(1)See slide 31 in appendix