Half Year 2026 Spark New Zealand Ltd Earnings Call Transcript
Key Points
- Spark New Zealand Ltd (NZTCF) reported a 5.1% increase in adjusted EBITDAI to $471 million, showcasing improved profitability.
- Free cash flow strengthened significantly to $107 million, up 84%, reflecting better operating leverage and reduced cash tax payments.
- The company declared an interim dividend of $0.08 per share, 50% imputed, indicating a commitment to returning value to shareholders.
- Mobile service revenue grew by 1.6%, driven by product innovation and plan refreshes, with a 15% uplift in pay monthly mobile acquisitions.
- Spark New Zealand Ltd (NZTCF) completed a data center transaction, retaining a 25% stake in TenPeaks Data Centres, providing exposure to long-term growth opportunities.
- Adjusted revenue decreased by 1.1% or $22 million, partly due to the divestment of Digital Island and muted business project spending.
- Broadband connections declined in a competitive market, although revenues remained stable.
- Voice revenue fell by 16.7%, consistent with the long-term decline of this legacy product.
- Service management revenue declined by 19.7% as businesses continued to defer or scale back larger projects.
- The mobile service revenue growth rate was slower than the market, resulting in a small contraction of 0.5 percentage points in market share.
Thank you for standing by, and welcome to the Spark New Zealand H1 '26 results. (Operator Instructions)
I would now like to hand the conference over to Ms. Jolie Hodson, CEO. Please go ahead.
Thank you. (spoken in foreign language) Good morning, and thank you for joining us today for Spark's half year results for the period ending December 31, 2025. This morning, I'll provide an overview of our performance and progress we've made under our new SPK-30 strategy. I'll then hand over to our CFO, Stewart Taylor, who will take you through the financials in more detail before we open for questions. Before turning to the results, a brief word on the broader operating environment. Through the first half, the New Zealand economy showed signs of finding its footings, while conditions are still -- were still mixed. Consumer activity improved, and there was a growing sense of stability as the period progressed. That backdrop supports the progress we're seeing in our business,
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