Spark Finance Limited Analysis

Overview

On 8 August 2014, TCNZ Finance Limited changed its name to Spark Finance Limited (Spark Finance).

Spark Finance Limited is a wholly owned subsidiary of Spark New Zealand Limited (formerly Telecom Corporation of New Zealand Ltd) and is the principle finance company for the Spark New Zealand Group.

Spark Finance raises debt funding in New Zealand and internationally. The majority of these funds are then advanced to other members of the Spark New Zealand group in order to assist in funding their operations. Spark Finance enters into derivative financial instruments in order to manage the foreign exchange and interest rate risk associated with its borrowings, as well as to manage the foreign exchange risk associated with the operations of the Spark New Zealand Group.

Spark Finance solely lends to other companies within the Spark New Zealand Group and accordingly, its financial performance should be considered in conjunction with the financial performance of the Spark New Zealand Group.

Performance

The following information was extracted from Spark Finance Limited's Interim results, released on 25 February 2026:

Spark Finance recorded net earnings after tax for the six months ended 31 December 2025 of $98 million (31 December 2024: $95 million).

The net assets of Spark Finance as at 31 December 2025 were $977 million compared to $1,068million as at 30 June 2025. The share capital of Spark Finance as at 31 December 2025 is $883 million (30 June 2025: $883 million) consisting of 882,872,600 issued and fully paid shares, of which 342,872,600 are ordinary shares. Spark Finance did not acquire any of its own shares during the six months ended 31 December 2025 (31 December 2024: nil).

On 29 August 2025, Spark Finance paid a dividend of 21.52 cents per share or $190 million to Spark New Zealand Limited, which was paid through the intercompany current account (31 December 2024: 18.69 cents per share or $165 million).

On 27 November 2025, Spark Finance announced it has extended the term of its existing $125 million committed revolving sustainability linked loan facility with MUFG Bank, Ltd. by one year, to mature on 30 November 2026.

On 7 July 2025, a $24 million loan receivable from SNZL matured and was settled through the intercompany current account.

On 31 December 2025, a $488 million loan receivable from Spark NZ Trading Limited (SNT) matured and was similarly settled through the intercompany current account.

The Directors of Spark Finance consider the results of the Company to be satisfactory and the Company to be in a sound financial position.

Spark Finance solely lends to other companies within the Spark New Zealand Group and, accordingly, its financial performance should be considered in conjunction with the financial performance of the Spark New Zealand Group. A copy of the Spark New Zealand Group’s results for the six months period ended 31 December 2025 can be found at investors.sparknz.co.nz.