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 Half year Results, released 18 February 2026

Mobile momentum and cost out return Spark to profit growth in H1 FY26

• H1 FY26 vs. H1 FY25 results:

o Reported revenue1,2 of $1,893m declined 1.2%; adjusted revenue3 of $1,917m declined 1.1%

o Reported EBITDAI1,4 of $448m increased 10.3%; adjusted EBITDAI3 of $471m increased 5.1%

o Reported NPAT5 of $64m increased 82.9%; adjusted NPAT3 of $73m increased 30.4%

• Disciplined execution of SPK-30 strategy delivered 1.6% mobile service revenue growth and $51 million in net cost-out

• H1 FY26 dividend of 8 cents per share declared

• FY26 guidance reaffirmed

Spark New Zealand (Spark) today announced its H1 FY26 results, demonstrating continued performance stabilisation and growing momentum in core connectivity.

Spark Chair Justine Smyth said, “The first half of FY26 has delivered a clear step up in Spark’s performance, as we build momentum towards our SPK-30 strategy ambitions.

“We continued to improve mobile performance while delivering significant net cost reductions, which underpinned a return to profit growth. Our data centre transaction completed on 30 January 2026, and the proceeds will reduce net debt in the second half.

“The Board has declared a first half dividend of 8 cents per share and reaffirmed full year guidance.”

The Board reaffirmed Spark’s FY26 EBITDAI guidance range of $1,010 million to $1,070 million9, free cash flow of $290 million to $330 million9, and declared a total H1 FY26 dividend of 8 cents per share, 50% imputed.