Spark New Zealand (ASX:SPK) Operating Income: A$371 Mil (TTM As of Dec. 2025)


ASX:SPK Spark New Zealand Ltd ASX:SPK
72 GF Score
Price A$1.52
GF Value A$2.65
Valuation Significantly Undervalued
! 8 Warning Signs
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What is Spark New Zealand Operating Income?

Spark New Zealand ASX:SPK -0.33% 72 Operating Income is A$371 Mil as of Dec. 2025. GuruFocus rates ASX:SPK with a GF Score™ of 72/100 and a GF Value™ of A$2.65 (Significantly Undervalued). The stock has 8 warning signs investors should review.

Spark New Zealand's Operating Income for the six months ended in Dec. 2025 was A$125 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$371 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Spark New Zealand's Operating Income for the six months ended in Dec. 2025 was A$125 Mil. Spark New Zealand's Revenue for the six months ended in Dec. 2025 was A$1,649 Mil. Therefore, Spark New Zealand's Operating Margin % for the quarter that ended in Dec. 2025 was 7.61%.

Warning Sign:

Spark New Zealand Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.4%.

Spark New Zealand's 5-Year average Growth Rate for Operating Margin % was -8.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Spark New Zealand's annualized ROC % for the quarter that ended in Dec. 2025 was 4.47%. Spark New Zealand's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 10.58%.


Spark New Zealand  (ASX:SPK) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Spark New Zealand's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=250.834 * ( 1 - 38.64% )/( (3666.192 + 3220.769)/ 2 )
=153.9117424/3443.4805
=4.47 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4194.568 - 496.859 - ( 31.517 - max(0, 988.157 - 1332.992+31.517))
=3666.192

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3815.628 - 520.828 - ( 74.031 - max(0, 1045.139 - 1237.619+74.031))
=3220.769

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Spark New Zealand's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=224.704/( ( (1666.704 + max(415.286, 0)) + (1525.032 + max(640.147, 0)) )/ 2 )
=224.704/( ( 2081.99 + 2165.179 )/ 2 )
=224.704/2123.5845
=10.58 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(391.184 + 76.939 + 454.219) - (496.859 + 0 + 10.197)
=415.286

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(685.437 + 108.869 + 369.282) - (520.828 + 0 + 2.6130000000001)
=640.147

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Spark New Zealand's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=125.417/1648.707
=7.61 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Spark New Zealand Operating Income Related Terms


Spark New Zealand Operating Income Historical Data

* Premium members only.

The historical data trend for Spark New Zealand's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Spark New Zealand Operating Income Chart

Spark New Zealand Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 534.54 547.86 572.23 516.79 334.64

Spark New Zealand Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 259.38 258.86 87.12 245.65 125.42
ASX:SPK
72GF Score
Spark New Zealand Ltd ASX:SPK
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Spark New Zealand Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$371 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of A$371 Mil mean?
Spark New Zealand (ASX:SPK) has a Operating Income of A$371 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Spark New Zealand and its competitors.
Is Spark New Zealand's Operating Income too high?
Spark New Zealand's current Operating Income is A$371 Mil. Overall, Spark New Zealand has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Spark New Zealand's Operating Income compare to TMUS and VZ?
Spark New Zealand's Operating Income of A$371 Mil can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Telecommunication Services company?
A good Operating Income depends on the Telecommunication Services industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Spark New Zealand and its competitors. Spark New Zealand's current Operating Income is A$371 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spark New Zealand stock overvalued right now?
Based on GuruFocus' analysis, Spark New Zealand (ASX:SPK) is currently considered Significantly Undervalued. The stock's GF Value™ is A$2.65, compared to a current price of A$1.52 — trading 42.6% below its estimated fair value. The current Operating Income is A$371 Mil. Spark New Zealand's overall GF Score™ is 72/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Spark New Zealand (ASX:SPK), the current Operating Income is A$371 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Spark New Zealand (ASX:SPK) Overvalued in 2026?

Based on GuruFocus' analysis, Spark New Zealand stock appears to be undervalued. The current stock price of A$1.52 is trading 42.6% below its estimated GF Value™ of A$2.65. GuruFocus considers Spark New Zealand to be Significantly Undervalued.

Key valuation signals for ASX:SPK:

  • Operating Income: A$371 Mil
  • GF Value™: A$2.65 vs. price of A$1.52 (42.6% below fair value)
  • GF Score™: 72/100 with 8 warning signs

No single metric tells the full story. See the ASX:SPK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Spark New Zealand Business Description

Address 50 Albert Street, Spark City, Level 1, Private Bag 92028, Auckland, NTL, NZL, 1010
Spark is one of only three integrated telecommunications companies in New Zealand. It is the leading mobile network operator with low- to mid-40% subscriber and revenue share, and the dominant provider of fixed-line broadband services with a mid-30% subscriber share. It has a big position in the New Zealand corporate and wholesale telecommunications services provision space. Spark supplements its core telecommunications operations and related infrastructure with IT products and services across cloud, managed data and networks, procurement, data centers, and Internet of Things. Its operations are all based in New Zealand, except for its 41% interest in Southern Cross Submarine Cables, which has zero book value and to which Spark has no funding obligations.
72GF Score

Get the complete analysis for ASX:SPK

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$1.52
Price
A$2.65
GF Value