Highlights

• Spark New Zealand’s reported FY26 revenue advanced 6.0% to NZ$3.95 billion.
• Free cash flow strengthened to NZ$308 million, marking an 18.5% improvement over the previous financial year.
• Mobile service revenue improved 1.1% to NZ$998 million as connectivity remained a strategic priority.

FY26 Performance Reflects Portfolio Reshaping

Spark New Zealand Limited (NZX: SPK) published its FY26 results on 20 August 2026 for the 12 months ended 30 June 2026. The telecommunications provider recorded stronger reported earnings and cash generation while continuing to implement its five-year SPK-30 strategy, which places greater emphasis on core connectivity, network capability and customer experience.

Reported revenue reached NZ$3,949 million, increasing 6.0% from the previous year. On an adjusted basis, revenue remained unchanged at NZ$3,700 million. Reported EBITDAI climbed 23.0% to NZ$1,295 million, while adjusted EBITDAI decreased 2.4% to NZ$1,035 million.

Reported NPAT increased sharply to NZ$499 million, representing growth of 91.9%. Adjusted NPAT, however, slipped 0.9% to NZ$225 million. Free cash flow strengthened by 18.5% to NZ$308 million.

Mobile Growth Offsets Pressure Elsewhere

Mobile remained a key contributor to Spark’s operating strategy. Total mobile revenue rose 4.4% to NZ$1,517 million, while mobile service revenue increased 1.1% to NZ$998 million. Productivity initiatives generated NZ$40 million of benefits during FY26.

Performance across other areas was softer. Broadband revenue declined 2.0% to NZ$596 million, while IT services revenue fell 10.3% to NZ$104 million as reduced project activity and the transition away from legacy offerings weighed on results.

Data Centre Transaction Supports Balance Sheet

Spark completed the sale of a 75% interest in its data centre operations during FY26, receiving NZ$462 million in net proceeds. The proceeds helped return debt to targeted levels, while the company retained a 25% holding in the business.

The Board approved a final dividend of 8.0 cents per share, lifting total FY26 distributions to 16.0 cents per share.

FY27 Guidance Sets Financial Targets

For FY27, Spark expects adjusted EBITDAI of NZ$1,010 million to NZ$1,080 million and free cash flow of NZ$300 million to NZ$350 million. BAU capital expenditure is projected between NZ$350 million and NZ$380 million, while the targeted dividend range is 16–18 cents per share, subject to Board approval.

Note- All data presented is based on information available at the time of writing.

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