Spark New Zealand Limited Analysis

Overview

Spark is New Zealand’s largest telecommunications company with a purpose 'to help all of New Zealand win big in a digital world'.

Spark has a proud history in New Zealand – it was formed in 1987 (as Telecom) out of the telecommunications division of the New Zealand Post Office, a government department. In 1990 Spark became one of the first telcos in the world to be fully privatised. On 30 November 2011, Spark New Zealand demerged into two entirely separate, publicly listed companies; a retail services provider (Spark) and a network services operator (Chorus). Today, Spark has a significant level of operational scale within the New Zealand telecommunications market, with customers ranging from individual New Zealanders and households to small businesses, government, and large enterprise clients. Across all its services – mobile, broadband, digital services, and digital infrastructure – Spark has relevance for almost every New Zealander.

In an increasingly digital world, Spark's products and solutions are only becoming more important and more relevant for New Zealanders and businesses. Data use continues to grow every year, data centre capacity demand is growing off the back of strong AI and cloud uptake, and digital transformation for productivity and efficiency gains remains an investment priority across the public and private sectors.

Spark New Zealand has a five-year strategy, SPK-30, which recognises the scale and pace of technological change that is reshaping customer expectations, ways of working, and the products and services it offers. SPK-30 provides Spark's shareholders with clarity around the business' strategic priorities, and where it will invest to differentiate Spark from its competitors.

At the heart of Spark's strategy is its biggest strength – connecting New Zealanders when and where it matters. From network performance, customer experiences, or the workplace culture of its people – Spark’s FY30 ambition is, it’s better with Spark.

Performance

The following information was extracted from Spark NZ Limited's FY25 Full Year results, released on 20 August 2025:

Spark announces FY25 results within updated guidance

Delivering EBITDAIi, capex, and FY25 dividend within updated guidance

o Reported revenueii of $3,725m declined 2.5%; adjusted revenue of $3,700m declined 4.2%

o Reported EBITDAI of $1,053m declined 7.7%; adjusted EBITDAI of $1,060m declined 8.9%

o Reported NPAT of $260m declined 17.7%; adjusted NPAT of $227m declined 33.6%

o Final dividend of 12.5 cents per share declared, bringing total FY25 dividend to 25 cents per shareiii

Significant transformation on track with portfolio management delivering $356miv in proceeds from non-core asset divestments and cost reduction programme delivering $85m in H2 25 vs H2 24 Sale of 75% stake in data centre business expected to deliver initial cash proceeds of ~$486mv at completion, while retained 25% stake supports long-term shareholder value creation

New five-year strategy and capital management reset refocus Spark and its capital investment on its core connectivity business