SPARK NEW ZEALAND LIMITED H1 FY17 RESULTS

1
Spark New Zealand Limited
Results for announcement to the market

Basis of Report: Unaudited financial statements
Reporting Period: Six months to 31 December 2016
Previous Reporting Period: Six months to 31 December 2015

Six months
ended
31 December
2016
(NZ$000)
Percentage
change
Operating revenues

1,793,000 Up 4.1%
Earnings before interest, income tax, depreciation and
amortisation

471,000 Up 3.5%
Net earnings for the period attributable to security
holders

178,000 Up 12.7%

Dividends
Amount per security
(NZ$)
Imputed amount per
security
Interim dividend
Interim first half-year ordinary dividend 11.0cps 4.2778cps
1

Interim first half-year special dividend 1.5cps 0.4375cps
2

Total dividend 12.5cps 4.7153cps

Record date 17 March 2017
Payment date 31 March 2017
1
A supplementary dividend of 1.9412 cents per security will be payable to shareholders who are not resident
in New Zealand.
2
A supplementary dividend of 0.1985 cents per security will be payable to shareholders who are not resident
in New Zealand.

Net tangible assets per security
31 December 2016 31 December 2015
Net tangible assets per security NZ$0.26 NZ$0.31

HALF YEAR REPORT 2017
Ac tive.

Contents
Performance snapshot 4
Chairman and Managing Director report 6
Group result overview 11
Spark Home, Mobile & Business 18
Spark Digital 19
Spark Connect & Platforms 20
Spark Ventures & Wholesale 21
Interim financial statements 22
Key dates
Half-year results announcement
16 February 2017
Financial year-end
30 June 2017
This report is dated 16 February 2017
and is signed on behalf of the Board
of Spark New Zealand Limited by
Mark Verbiest, Chairman, and
Simon Moutter, Managing Director.
Mark Verbiest Simon Moutter
Chairman Managing Director
Spark New Zealand Limited
ARBN 050 611 277

In today’s volatile world, one constant is the
ever growing influence of technology. And
increasingly, technology offers possibilities
to help build a better New Zealand.
We want to be active in helping
New Zealanders harness the unbelievable
power of technology to spur innovation,
solve problems, overcome barriers and
foster creativity – to help people do amazing
things and lead amazing lives.
Every little victory we help our customers
claim is another step towards realising
our ambition to unleash the potential in all
New Zealanders. That’s a privilege and an
inspiration that always keeps us going.
Always.
Page 1

Always
Active
Investing in
the future
Growing
our people
Investing more in
New Zealand’s future
by growing as a business.
Making more of a difference
to customers by growing
our people.
Determined to make a difference,
we’re taking a lead on the things
we believe truly matter to our
customers and to our country.
We’re actively investing in our
people, our communities, our
technology, our customer
services and our environment
– we’re investing in a better
future. The reason is simple –
if more New Zealanders unleash
their potential, so do we.
Page 2
Spark New Zealand Half Year Report 2017

Helping our
community
Secure
approach
Effective
leadership
Helping
to sustain
Helping communities
do amazing things
with technology.
Protecting the things that
enable success for Spark
customers and New Zealand.
Showing leadership
on the things
that matter.
Playing our part in
protecting New Zealand’s
environment.
Page 3

Operating revenues $
1,793M
▲
4 .1%
Net earnings $
178 M
▲
12 .7%
Capital expenditure $
224M
▲
3.7%
IT services revenue $
384M
▲
19. 3%
Mobile revenue $
588M
▲
4.4%
Broadband revenue $
344M
▲
1.5%
Dividends
12 . 5 cents per share
No change
EBITDA $
471M
▲
3.5%
Performance snapshot
Mobile connections
2.353M
▲
6.4%
Page 4
Spark New Zealand Half Year Report 2017Performance snapshot

Launched ‘Upgrade
New Zealand’ programme
programme to accelerate
the moving of customers off
copper connections onto
newer and less fault prone
fibre or wireless broadband
technologies
Introduced new broadband
plans: Fibre Max ‘gigabit’
technology speed inputs,
Skinny $40 broadband over
wireless, Skinny Unlimited
Strong industry collaboration
and major investment by
Spark to help communities
and businesses recover from
Kaikoura earthquakes
Discounted broadband social
initiative Spark Jump launched
to help bridge the digital divide
Made material improvements
in key customer service metrics
including call wait times
Telecommunications-as-a-
Service offering launched
to Government with strong
deal flows
Page 5

The financial results for the six months to
31 December 2016 are in line with our plan
and reflect the ongoing execution of Spark’s
long-term strategy. Customer service levels
have recovered markedly and several new
market-leading offers have been launched.
However, some of the key indicators in the
results also highlight the challenging market
and  operating environment and the need for
us to maintain a fast pace of change and keep
delivering for our customers.
Despite vigorous price competition, top-line
operating revenue growth has been pleasing,
with total operating revenues up 4.1% on the
prior half-year to $1.793 billion. Mobile revenue
was up 4.4%, broadband revenue up 1.5%,
and IT services revenue up 19.3%.
While the operating revenue performance
across mobile, broadband and IT services
was good, it is clear the intense ongoing price
competition, particularly at the lower end of
the market, is driving margin pressure and
reinforcing the need for us to increase our
focus on this market via our flanking brand
Skinny, as well as continuing to tightly manage
operating and capital expenditure.
Mark Verbiest
Chairman
Simon Moutter
Managing Director
It’s been another six month period
of dynamic change and progress
at Spark New Zealand.
SPARK – ALWAYS
FOR NEW ZEALAND
Page 6
Spark New Zealand Half Year Report 2017Chairman and Managing Director report

Operating expenses were up 4.3% to
$1.320 billion. Much of this was attributable to
an increase in the cost of supporting IT services
growth and bringing on new big business
customers, as well as the additional resources
deployed to improve the service experience
for our customers and reduce call centre wait
times. Much of the service related cost uplift is
expected to fall away as short-term customer
pain points are progressively addressed through
simplification and digitisation initiatives.
Earnings before interest, income tax, depreciation
and amortisation (EBITDA) lifted by $16 million,
or 3.5%, to $471 million in H1 FY17. This increase
was driven by the inclusion of a full six months’
earnings from the CCL Group (acquired in
December 2015) and the timing of Southern
Cross dividends, with $9 million of dividends
originally expected in H2 FY17 being recognised
in H1 FY17.
We are confident Spark is well positioned,
however the operating environment around us
is rapidly evolving. Globally, a digital revolution
is helping fuel rapid social, environmental,
economic and even political change. This is
inevitably impacting businesses and industries
as consumer behaviours and preferences
change and product lifecycles shorten.
In New Zealand, near ubiquitous data
connectivity and world-class digital
technologies have driven competition and
opportunity for businesses, and provided
consumers with significantly more choice
and value. Increasingly, customer experience
is the new source of market power.
Across many areas of the economy, these
forces are accelerating the commoditisation
of products and services, and driving
market convergence and consolidation.
As a consequence we expect to see continued
industry change and market disruption in
the years ahead.
In markets susceptible to commoditisation,
Spark is making the most of its brand assets.
For example, the hyper-competitive broadband
market has more than 90 providers driving
prices down. This reinforces the merits of having
a diverse portfolio of Spark, Bigpipe, and Skinny
broadband deals to offer choices that meet all
preferences. The half-year saw Skinny playing a
bigger role as a brand, expanding its Wireless
Broadband offer, moving into Unlimited fixed
broadband and launching Skinny Direct, a pure
online model for sales and service offering even
sharper pricing to pre-paid mobile customers.
Lightbox has also continued to prove its value
as a vehicle to enhance customer loyalty and
reduce churn, with more than a third of Spark’s
broadband customers now watching the service.
Upgrades to the Lightbox ‘engine’ are underway
to add functionality and flexibility, which will
underpin our media strategy.
Gains were made by Spark Digital with our
business, enterprise and Government
customers, with revenue growth fuelled by
a series of successful customer wins and the
CCL Group acquisition, which helped to offset
much of the decline in legacy telco revenues
and the ongoing mobile pricing pressures.
Operationally, there was a noticeably growing
demand for Telecommunications-as-a-Service
by eligible government agencies, as well as
improvements in the delivery model for
on-boarding large customers onto new
platform IT services.
Over the half-year we have invested further
to extend our existing network leadership
and develop the future network pathway to
ensure we can meet the growing demands of
customers. The investment in additional capacity
and resiliency at holiday hotspots ensured that
Spark customers had arguably their best ever
Christmas and New Year experience in terms
of service continuity and coverage.
Page 7

The earthquakes centred near Kaikoura on the
South Island’s east coast in November 2016
saw Spark contribute significant resources
to disaster response efforts. Hundreds of
Spark people worked around the clock and
collaborated with industry partners including
Chorus and Vodafone to help impacted
customers and businesses get back online
as quickly as possible and restore network
diversity to the South Island. In these sorts
of times, the industry puts aside competitive
differences to work together in New Zealand’s
best interests – and Spark was proud to be
part of that joint effort.
There has also been a big focus on a programme
we are calling ‘Upgrade New Zealand’, designed
to move as many of our customers as possible
off older copper broadband onto newer less
fault prone fibre or wireless technologies. As we
acknowledged in our annual report six months
ago, weather-related faults on copper connections
were a key driver of the service challenges we
faced in our call centres during winter 2016, as
the volume of faults caused unacceptable delays
for our customers. To that end, Spark is working
proactively with local fibre companies (LFC’s)
to accelerate take-up of fibre through trialling
initiatives such as ‘street-in-a-week’. The scheme
makes it easier and quicker for homeowners, as
all homes in a given street that want Spark fibre
broadband are connected in just one week –
with customers having the certainty of being
able to select a specific day for their fibre
installation. Trials to date have been very
successful, with fibre orders well ahead of those
achieved via more traditional marketing. As at
31 December 2016, Spark had 138,000 fibre
customers. Outside the trials, we continue to
work with the fibre network companies to
improve the fibre provisioning process and
eliminate pain points for our customers. We are
also looking at ways to improve the end-to-end
service experience for business fibre customers
in CBD areas, with a number of options being
actively explored.
There has also been a big focus
on a programme we are calling
‘Upgrade New Zealand’,
designed to move as many of
our customers as possible off
older copper broadband onto
newer less fault prone fibre or
wireless technologies.
Page 8
Spark New Zealand Half Year Report 2017Chairman and Managing Director report

While fibre is the preferred broadband
technology for customers who use large
amounts of data, as part of Upgrade
New Zealand we have also ramped up the
rollout of Wireless Broadband for customers
with low to medium data usage. Wireless
Broadband uses Spark’s high quality, super-fast
4G mobile network to provide home broadband
(with the option of a phone line), without the
need for a copper line connection. There were
over 40,000 Wireless Broadband connections
on our network as at 31 December 2016, well
ahead of plan. The intention is to maintain this
momentum by installing additional 4G network
capacity in the areas where Wireless Broadband
has the most potential to benefit customers.
On Spark’s customer service, there is much work
still to be done but the investment in call centre
resources and processes has led to reduced call
wait times and significant improvements on
customer service measures. Digitisation will be
pivotal to future service measures as customer
preference continues to shift to online and
mobile self-service channels.
The new Platforms business unit is well
established. It aims to unlock the benefits
of the completed re-engineering of Spark’s
IT systems to drive a digitisation, simplification
and improved customer experience agenda
throughout Spark. A new Spark app is
launching imminently which will provide
customers with significantly enhanced mobile
self-service capability.
Alongside this investment in customer service
there has also been significant ongoing
investment in developing Spark talent, and
in the ability to attract and retain smart,
diverse and talented people within the
business. This has been reflected in the
number of senior leadership appointments
from within over the last six months, as well as
in our greater diversity across the organisation.
There has also been a smooth transition to a
new Spark Leadership Team and refreshed
Board with two new Directors.
Mark Verbiest
Chairman
Simon Moutter
Managing Director
16 February 2017
Innovation is more important to Spark than
ever. The Spark Ventures team remains
focused on creating long-term value through
new opportunities, and has evolved its thinking
to focus on a more balanced approach to build,
buy or partner. Increasingly, more agile and
innovative ways of working are becoming
embedded across Spark.
While there will inevitably be more challenges to
come and the market remains very competitive,
Spark is confidently looking forward to the rest
of the financial year, and to delivering on our
ambitions for our customers, our shareholders
and for New Zealand.
We note that due to unplanned work following
the earthquakes centred near Kaikoura, we
are now guiding capital expenditure of
$415 million for FY17 (still within 11-12% of
operating revenues).
That said, the results for the first half reaffirm the
Board’s view on full-year EBITDA guidance of
0-2% growth and support an interim dividend
of 11 cents per share and a special dividend
of 1.5 cents per share.
Page 9

Page 10
Spark New Zealand Half Year Report 2017Spark New Zealand performance

GROUP RESULT OVERVIEW
Key performance indicators
SIX MONTHS ENDED 31 DECEMBER
20162015% CHANGE
Operating revenues
$M
1,7931,7234.1%
Operating expenses
$M
(1,320)(1,266)4.3%
Share of associates’ and joint ventures’
net (losses)
$M
(2)(2)–
Earnings before interest, income tax,
depreciation and amortisation (EBITDA)
1
$M
4714553.5%
Net earnings
$M
17815812.7%
Capital expenditure
1
$M
2242163.7%
Mobile connections
2,3
(000)s
2,3532,2126.4%
Broadband connections
2,3
(000)s
675675–
Employee numbers
4
5,9435,32411.6%
1 EBITDA and capital expenditure are non-Generally Accepted Accounting Practice (GAAP) measures and are not comparable to the New Zealand
Equivalents to International Financial Reporting Standards (NZ IFRS) measures. These measures have been defined and reconciled on page 17.
2 Measure as at 31 December.
3 Measure relates to connections in the Spark Home, Mobile & Business and Spark Digital business units.
4 FTEs are full-time equivalents, including contractors, and are measured as at 31 December.
Page
11

Spark’s net earnings after tax for H1 FY17
were $178 million, an increase from H1 FY16
of $20 million, or 12.7%. EBITDA increased
$16 million, or 3.5%, in H1 FY17 to
$471 million.
Mobile connections grew 6.4% from
31 December 2015 to 2.353 million.

Operating revenues
1,600
1,700
1,800
1,900
1,7231,793
$m
H1 FY16
IT SERVICES
MOBILE
BROADBAND
SX DIVIDEND
OTHER
MANAGED DATA
VOICE
H1 FY17
Total operating revenues increased by
$70 million, or 4.1%, in H1 FY17 to
$1,793 million. The key drivers of this
increase in revenue were:
yIT services revenue grew by $62 million, or
19.3%, with targeted business acquisitions
such as the CCL Group and continued
transition to Cloud services driving growth
across platform IT services (25.8% increase),
traditional IT services (13.0% increase) and
procurement revenues (19.0% increase).
The CCL Group acquisition contributed an
additional $29 million in IT services revenue
compared to H1 FY16;
yMobile revenues grew by $25 million,
or 4.4%, with a net increase of 141,000
connections since December 2015 driven
by value inclusions, taking the total mobile
base to 2.353 million connections at
31 December 2016. The revenue growth
was largely driven by sales of more high-end
mobile devices, with service revenues
increasing by $4 million, or 1.0%;
yBroadband revenues grew by $5 million,
or 1.5%, while connections remained flat,
as customers shift to higher value plans; and
yOther operating revenue increased by
$15 million, or 22.7%, primarily due to the
timing of Southern Cross dividends which
were $9 million higher in H1 FY17 (but
full-year dividends are expected to be lower
across FY17 compared with FY16) and
progress of the Ventures’ businesses.
These increases were partly offset by:
xx
Voice revenues declined $26 million, or 7.7%,
in line with previous trends as customers
move away from landline based calling; and
xx
Managed data revenues declined by
$11 million, or 11.5%, as business and
wholesale customers continue to migrate
off traditional data products.
Page 12
Spark New Zealand Half Year Report 2017Spark New Zealand performance

Operating expenses
1,100
1,200
1,300
1,400
1,2661,320
$m
H1 FY16
IT SERVICES
COST OF SALES
PAYMENTS TO
TELECOMMUNICATION
OPERATORS
LABOUR COSTS
MOBILE COST
OF SALES
OTHER OPERATING
EXPENSES
H1 FY17
Total operating expenses increased by $54 million,
or 4.3%, in H1 FY17 to $1,320 million. This increase
was driven by:
xy
IT services costs increased $31 million, or
16.8%, in line with the growth in IT services
revenues, including $13 million in relation
to the CCL Group;
xy
Higher labour costs, increasing $26 million,
or 10.3%, driven by investment into more
staff in our call centres to improve service
experience and to support IT services revenue
growth, including $9 million in relation to the
CCL Group; and
xy
Payments to telecommunications operators
increased by $17 million, or 5.1%, due to higher
input costs resulting from regulated price
increases in December 2015 and penetration
of higher speed UFB inputs, partially offset
by Wireless Broadband adoption.
These increases were partly offset by:
xMobile costs decreased by $7 million,
or 3.1%, reflecting improved customer
retention; and
xOther operating expenses decreased by
$13 million, or 4.9%, because of continued
tight cost control and $7 million of benefit
from new customer acquisition costs being
recognised over customer contract periods.
EBITDA
EBITDA takes operating revenues and subtracts
operating expenses and Spark’s share of
associates’ and joint ventures’ net losses. In H1
FY17 the share of associates’ and joint ventures’
net losses was $2 million, consistent with H1 FY16.
EBITDA lifted by 3.5% in H1 FY17 to $471 million
as growth in operating revenues outpaced
operating expenses, boosted by the timing of
Southern Cross dividends, the benefit of a full
period’s earnings from the CCL Group and the
impact of new customer acquisition costs being
recognised over customer contract periods, offset
to some extent by increased call-centre costs.
Net earnings
Net earnings after tax for H1 FY17 were
$178 million, an increase of $20 million,
or 12.7%. Movements in items that are
included in net earnings but excluded from
EBITDA were as follows:
xDepreciation and amortisation expense
decreased by $9 million, or 4.0%, to
$215 million reflecting the decrease in capital
expenditure in the past two financial years;
xNet finance expense remained unchanged at
$13 million, with finance income and expense
both decreasing by $1 million. This reflects
lower interest rates despite an increase in
average debt; and
xy
The income tax expense increased by
$5 million, or 8.3%, due to the increase
in net earnings in H1 FY17.
A summary of the results of Spark’s key business
units are outlined in the following section.
Further details of the H1 FY17 and historical
performance are available in a separate financials
file on the investor section of our website at:
investors.sparknz.co.nz/investor-centre.
Page 13

Capital expenditure
Total capital expenditure for H1 FY17 was $224 million, an increase of $8 million, or 3.7%, on H1 FY16.
SIX MONTHS ENDED 31 DECEMBER
2016
$M
2015
$MCHANGE %
Major programmes   
Mobile network695819.0%
Optical transport network (OTN) and Carrier Ethernet1121(47.6%)
Re-engineering of IT systems–42NM
Total major programmes80121(33.9%)
Operating capital expenditure
Customer growth and retention1318652.3%
Southern Cross capacity13944.4%
Total operating capital expenditure1449551.6%
Total capital expenditure2242163.7%
NM = not meaningful
Operating capital expenditure
x>
Customer retention and growth capital
expenditure increased in H1 FY17 to
$131 million from $86 million in H1 FY16,
driven by a combination of investment in
Telecommunications-as-a-Service platforms
and email platform migration.
x>
While the Re-engineering programme was
formally completed in FY16, regular and
interactive developments continue across
our products and IT systems to enhance the
customer experience. This spend is now
represented within the wider customer
growth and retention category.
x>
Spark continued to invest in Southern Cross
international cable capacity, with four further
tranches purchased for a total of $13 million
in H1 FY17. Additional capacity will be
purchased as and when required to meet
upward trends in customer demand for data.
Major programmes
x>
In H1 FY17 $69 million was invested in Spark’s
mobile network. This investment continued
the deployment of single radio access
network (SRAN) and LTE sites, as well as
catering for capacity and coverage for
Wireless Broadband. Investment in Wireless
Broadband has several key benefits, including
improved customer experience, operating
cost reduction, and simplification.
x>
Investment in the OTN and Carrier Ethernet
programme decreased in H1 FY17 to
$11 million from $21 million in H1 FY16,
with investment focussed on meeting
customer demand for services and traffic
growth across the network as well as
coverage expansion. H1 FY16 included
additional investment in improved switching
technology that was largely completed
during FY16.
Page 14
Spark New Zealand Half Year Report 2017Spark New Zealand performance

Cash flows
The full statement of cash flows is provided
on page 26 in the interim financial statements.
The following describes the main cash flow
movements in H1 FY17 compared to H1 FY16.
Net cash flows from operating activities
The net cash inflow from operating activities was
$300 million in H1 FY17, a $52 million, or 14.8%,
decrease compared to H1 FY16. The major
drivers of this change were:
x>
A net decrease in cash received from
customers and payments to suppliers and
employees of $13 million despite an increase
in EBITDA due to the impact of changes
in working capital. This is driven by the
continued up-take in customers purchasing
mobile handsets on deferred payment terms
together with the strong growth in IT services
contracts, where costs incurred to fulfil such
contracts are deferred and recognised in
operating expenses over the life of the
contract. Inventories also increased during
the period due to increasingly higher value
mobile handsets and modems and the timing
of Lightbox content rights renewals;
x>
A $22 million increase in tax payments with
the comparative H1 FY16 period impacted by
the timing of provisional tax payments; and
x>
A $19 million decrease in Southern Cross
dividend receipts due to the timing of
cash receipts.
Net cash flows from investing activities
The net cash outflow from investing activities
was $217 million in H1 FY17, a $75 million, or
25.7%, decrease compared to H1 FY16. The
major drivers of this change were:
x>
A $48 million decrease in payments for the
purchase of businesses with the acquisition of
the CCL Group for $50 million in H1 FY16; and
x>
A reduction in payments for capital expenditure
by $18 million, and payments for long-term
investments by $8 million with investment in
NOW New Zealand and additional investment
in Semble, Vigil Monitoring, App La Carte and
Lightbox Sport during H1 FY16 compared
with lower investment in H1 FY17.
Net cash flows from financing activities
The net cash outflow from financing activities
was $79 million in H1 FY17, a $2 million, or 2.5%
decrease from H1 FY16. The major drivers of this
change were:
x>
A net increase in short and long-term debt
of $153 million in H1 FY7, driven by the
$125 million retail bond issue in September
2016, a $99 million increase in short-term
borrowings, partially off-set by a $70 million
decrease in bank funding;
x>
An increase in dividend payments of
$27 million in H1 FY17 to $229 million,
reflecting the increase in dividends per
share paid during the period; and
x>
No cash payments for share buybacks in H1
FY17, compared to $11 million in H1 FY16.
Liquidity and capital resources
Spark’s principal sources of liquidity are
operating cash flows and external borrowing
from established debt programmes and
bank facilities.
Spark is committed to maintaining an ‘A Band’
credit rating and our capital management
policies are designed to ensure this objective
is met. As part of this commitment, Spark
manages its debt levels to ensure that the
ratio of net interest-bearing debt (inclusive of
associated derivatives) to EBITDA does not
materially exceed 1.1 times on a long-run basis,
which for credit rating agency purposes equates
approximately to net debt to EBITDA of 1.5 times.
The difference between these two ratios is
primarily due to the capitalisation of operating
leases by credit rating agencies.
As at 31 December 2016 Spark had been
assigned a long-term credit rating of A-/Stable
by Standard & Poor’s.
Page 15

Dividends
Spark pays dividends on a semi-annual basis.
A fully imputed ordinary dividend of 11 cents
per share has been declared for H1 FY17,
together with a 75% imputed special dividend
of 1.5 cents per share, bringing the total
dividends for H1 FY17 to 12.5 cents per share.
For FY17, subject to there being no material
adverse changes in operating outlook, Spark
anticipates paying an annual ordinary dividend
of 22 cents per share and a special dividend
of 3 cents per share. It is currently anticipated
that the H2 FY17 ordinary dividend will be
fully imputed and the special dividend at least
75% imputed.
H1 FY17
ORDINARY
DIVIDENDS
H1 FY17
SPECIAL
DIVIDENDS
Dividends declared
Ordinary shares11.0 cents1.5 cents
American Depositary Shares39.58 US cents
1
5.40 US cents
1
Imputation
Percentage imputed100%75%
Imputation credits per share4.2778 cents0.4375 cents
Supplementary dividend per share
2
1.9412 cents0.1985 cents
‘Ex’ dividend dates
New Zealand Stock Exchange16 Mar 201716 Mar 2017
Australian Securities Exchange16 Mar 201716 Mar 2017
American Depositary Shares 15 Mar 201715 Mar 2017
Record dates
New Zealand Stock Exchange17 Mar 201717 Mar 2017
Australian Securities Exchange17 Mar 201717 Mar 2017
American Depositary Shares 17 Mar 201717 Mar 2017
Payment dates
New Zealand and Australia 31 Mar 201731 Mar 2017
American Depositary Shares 7 Apr 20177 Apr 2017
1 Based on the exchange rate at 13 February 2017 of NZ$1 to US$0.7197 and a ratio of five ordinary shares per one
American Depositary Share. The actual exchange rate used for conversion is determined in the week prior to payment
when the Bank of New York performs the physical currency conversion.
2 Supplementary dividends are paid to non-resident shareholders.
Page 16
Spark New Zealand Half Year Report 2017Spark New Zealand performance

Non-GAAP measures
This half-year report includes non-GAAP financial
measures that are not prepared in accordance
with New Zealand Equivalents to International
Financial Reporting Standards (‘NZ IFRS’).
These are defined and reconciled below.
Earnings before interest, income tax,
depreciation and amortisation (EBITDA)
Spark calculates EBITDA by adding back
depreciation, amortisation, finance expense
and income tax expense to net earnings less
finance income. EBITDA includes Spark’s share
of its associates’ and joint ventures’ net losses.
The calculation of Spark’s EBITDA is provided
below and based on amounts taken from,
and consistent with, those presented in the
interim financial statements.
20162015
SIX MONTHS ENDED 31 DECEMBER $M$M
Net earnings for the period
reported under NZ IFRS178158
Add back: depreciation and
amortisation215224
Add back: net finance
expense1313
Add back: income tax
expense6560
EBITDA471455
Adjusted EBITDA, where applicable, is the
segment result reported, plus the net result of
corporate revenue and expenses, in the interim
financial statements. It excludes significant
one-off gains, expenses and impairments
individually greater than $25 million that are
also excluded from the segmental result to
provide an indication of the underlying earnings
of that segment. There were no adjusting items
in H1 FY16 or H1 FY17. Segment results are
reconciled to net earnings before income tax
in note 3 of the interim financial statements.
Capital expenditure
Capital expenditure is the additions to property,
plant and equipment and intangible assets,
excluding goodwill, acquisitions and other
non-cash additions that may be required by
NZ IFRS, such as decommissioning costs.
Use of non-GAAP measures
Spark believes that these non-GAAP financial
measures provide useful information to readers
to assist in the understanding of the financial
performance, financial position or returns of
Spark. These measures are also used internally
to evaluate performance of business units, to
analyse trends in cash-based expenses, to
establish operational goals and allocate
resources. However, they should not be viewed
in isolation, nor considered as a substitute for
measures reported in accordance with NZ IFRS.
Non-GAAP financial measures reported by
Spark are not uniformly defined or utilised
by all companies in New Zealand or the
telecommunications industry. Accordingly, these
measures may not be comparable with similarly
titled measures used by other companies.
Page 17

Spark Home,
Mobile &
Business
20162015
SIX MONTHS ENDED 31 DECEMBER$M$MCHANGE %
Operating revenues9859711.4%
Operating expenses(594)(575)3.3%
EBITDA391396(1.3)%
EBITDA margin39.7%40.8%
Spark Home, Mobile & Business provides
more than two million New Zealand consumers
and SME’s with the access and technology
and digital services they need to succeed and
thrive in today’s dynamic world. It provides a
full range of services and content, data and
voice services across fibre and copper
broadband, 3G and 4G mobile, online video
entertainment and nationwide Wi-Fi zones.
H1 FY17 Operational highlights
>Continued momentum in mobile performance
resulting in an increase in customers;
>A significant improvement in service levels in
our customer call centres through investment
in staff and improved systems and processes;
>Successful full launch of Wireless Broadband
delivering clear service benefits for
our customers, with over 40,000 now
connected; and
>Successful integration of Lightbox into
Spark Home Mobile & Business with
additional marketing push helping
growth of subscribers towards 250,000.
Increase in mobile revenue
4 .1%
Financial performance
Operating revenues increased by $14 million,
or 1.4% in H1 FY17. This was primarily driven
by a $19 million, or 4.1%, increase in mobile
revenues and a $6 million, or 1.9% increase
in broadband revenue. Growth in mobile
revenue was through a combination of increased
customers and sales of more high-end mobile
devices. Broadband revenues increased despite
connections remaining flat as customers
continue to migrate to higher-value plans.
These increases were partly offset by a $14 million,
or 8.2%, decrease in voice revenues through an
increase in customers with a broadband only
service to their home or business.
Operating expenses increased by $19 million, or
3.3%, in H1 FY17 primarily driven by a $13 million
increase in labour costs as we invest into more
staff in our call centres. This is expected to drop
as customer pain points are addressed through
simplification and digitisation initiatives. Other
operating expenses increased $7 million,
primarily due to the December 2015 regulated
price increases to the cost of copper voice and
broadband connections from Chorus.
This resulted in an overall decrease in EBITDA
of $5 million, or 1.3%, in H1 FY17.
Financial result
Page 18
Spark New Zealand Half Year Report 2017Spark New Zealand performance

Spark
Digital
20162015
SIX MONTHS ENDED 31 DECEMBER$M$MCHANGE %
Operating revenues6586078.4%
Operating expenses(467)(414)12.8%
EBITDA191193(1.0)%
EBITDA margin29.0%31.8%
Spark Digital provides solutions for the rapidly
evolving needs of business, enterprise and
Government customers to meet the demands
of an increasingly globalised and mobile
customer base. Spark Digital has unique
experience and capability to deliver
customers some of the best Information and
Communications Technologies (ICT) solutions
in New Zealand and is committed to helping
customers gain the competitive advantage
that digital solutions can deliver.
H1 FY17 Operational highlights
x>
Revenue in growth, reflecting customer wins
and the CCL Group acquisition, offsetting the
declines in legacy telco revenues;
x>
Customer demand for new ways of doing
business evidenced through the substantial
adoption of Telecommunications-as-a-Service
by eligible Government Agencies;
x>
Completed the on-boarding of several large
customers onto new platform IT services; and
x>
Supported NZ businesses to maintain
connectivity and business continuity
following the November earthquakes
centred near Kaikoura.
Financial result
Financial performance
Operating revenues increased by $51 million,
or 8.4%, in H1 FY17. This was driven by strong
IT services revenue growth, with targeted
business acquisitions such as the CCL Group
and continued transition to Cloud services
increasing IT services revenue by $61 million,
or 18.9%. This includes $29 million of higher
IT services revenue following the acquisition
of the CCL Group in December 2015. Platform
IT services grew $23 million, or 24.7%,
procurement revenues grew $26 million, or 19.0%,
and traditional IT services grew $12 million, or
13.0%. Mobile revenues increased $3 million,
or 3.2%, with a move towards high-end devices
as businesses realise the benefits of mobility,
offsetting the impact of lower average usage
revenues per customer. Voice, broadband and
managed data revenues declined a total of
$11 million, broadly in line with previous trends.
Operating expenses increased by $53 million,
or  12.8%, in H1 FY17. This includes higher
operating expenses following the acquisition
of the CCL Group in December 2015. Labour
grew $16 million, or 15.1%, to support the
growth in IT services including $9 million in
relation to the CCL Group. Other operating
expenses increased $37 million, or 12.2%,
driven by increased mobile costs in line with
higher device revenue and higher IT costs to
support IT services revenue growth including
$14 million in relation to the CCL Group.
Overall Spark Digital EBITDA declined $2 million,
or 1.0%, in H1 FY17 due to underlying
telecommunications decline and competitive
mobile pricing pressure offsetting lower margin
IT services growth.
Page 19

Spark
Connect &
Platforms
Spark Connect is responsible for Spark’s
ongoing network performance and technology
roadmap, core connectivity, physical
infrastructure and shared services functions,
with the objective of lowering our cost per
gigabyte of data across our networks.
Spark Platforms was established on 1 July
2016 and is responsible for leveraging
previous investments in our IT re-engineering
programme to re-invent customer experience
through digital and service transformation.
H1 FY17 Operational highlights
>Ongoing investment in our 4G mobile
network and Wireless Broadband, including
Single Radio Access Network (SRAN),
mobile core and the deployment of
2300 MHz spectrum;
>Continued expansion of the Optical
Transport Network (OTN) to support
exponential data growth;
>Rapid coordinated response to Kaikoura
earthquakes, including increased network
resilience for the South Island;
>Commenced decommissioning of the
PSTN network, with removal of equipment
from six Chorus exchanges;
>Implemented new Platforms operating model
to deliver ongoing IT system enhancements
and capital efficiency improvements;
>Customer experience “car washes”
established to improve end-to-end customer
journeys, including for Wireless Broadband
and fibre, to drive NPS improvements; and
>Delivered improvements in operational
KPI’s, including provisioning times and
interaction NPS.
20162015
SIX MONTHS ENDED 31 DECEMBER$M$MCHANGE %
Operating revenues221915.8%
Operating expenses(188)(201)(6.5)%
Share of associates’ and
joint ventures’ net profits–1NM
EBITDA(166)(181)8.3%
Financial result
Financial performance
Operating revenues increased by $3 million,
or 15.8%, in H1 FY17 and includes revenues
from Chorus, Telegistics Repair Limited,
Connect 8 Limited (following its acquisition in
December 2016) and partnering arrangements.
Operating expenses reduced by $13 million, or
6.5%, in H1 FY17. This reflects a continued focus
on cost reduction and efficiency savings across
all cost categories, including third party supplier
costs and labour costs.
Overall Spark Connect & Platforms EBITDA
improved by $15 million, or 8.3%, in H1 FY17
principally due to reductions in other
operating expenses.
4G mobile coverage to over
93%
of the population
Page 20
Spark New Zealand Half Year Report 2017Spark New Zealand performance

Spark
Ventures &
Wholesale
Spark Ventures & Wholesale is responsible for
the stewardship of Spark’s Wholesale products
and services along with the development of a
portfolio of new businesses and services that
will create long-term value for Spark. Through
a balanced portfolio of build, buy and partner
activity, Spark Ventures & Wholesale will
identify and unleash new markets, revenue,
business models and capabilities through three
growth engines: differentiation, adjacencies
and disruptive new wholesale services.
H1 FY17 Operational highlights
>Transition to the next evolution of Ventures is
now underway which will implement a more
equal weighting between acquire, partner
and build activities;
>Continued earnings growth from new
Wholesale services with associated revenues
up 18% on prior year;
>Accelerated growth in Qrious big data
analytics revenues and earnings underpinned
by targeted business acquisition and launch
of new data powered marketing and
as-a-service products;
>Ongoing validation of market entry points
for Internet of Things (IOT) and the next
wave of Ventures; and
>Good progress is being made in our
investments in early stage businesses,
Putti and Vigil Monitoring.
20162015
SIX MONTHS ENDED 31 DECEMBER$M$MCHANGE %
Operating revenues112121(7.4)%
Operating expenses(54)(55)(1.8)%
Share of associates’ and
joint ventures’ net losses(1)(3)(66.7)%
EBITDA5763(9.5)%
EBITDA margin50.9%52.1%
Financial result
Financial performance
Operating revenues decreased by $9 million, or
7.4%, in H1 FY17. This was primarily because of
changes in regulated wholesale pricing and
ongoing rationalisation of wholesale legacy
copper based voice and data services. This has
been partially offset by revenue growth across
Qrious, Morepork and new wholesale data and
mobile services.
Operating expenses decreased by $1 million,
or $1.8%, in H1 FY17. This was due to Morepork
launch costs in H1 FY16 and recovery of
doubtful debts partially offset by increased
expenses to support Qrious revenue growth.
Overall Spark Ventures & Wholesale EBITDA
declined by $6 million, or 9.5%, in H1 FY17 due
to the rationalisation of legacy based services
by Wholesale customers, partially offset by
earnings growth across Qrious and Morepork
and reduced share of associates’ and joint
ventures’ losses following decisions taken in
H2 FY16 to cease operations in Lightbox
Sport and shut down the payment service
within Semble.
NB: Ventures and Wholesale includes Wholesale, Qrious and
Morepork operations, share of gains or losses associated
with investments in Vigil Monitoring, Putti, Lightbox Sport
and Semble and costs associated with various early stage
proof of concepts and pilots.
Page 21

INTERIM
FINANCIAL
STATEMENTS
Interim financial statements23
Notes to the interim financial statements28
Independent review report35
These interim financial statements do not
include all the notes and information normally
included in the annual financial statements.
Accordingly, they should be read in conjunction
with the annual financial statements for the year
ended 30 June 2016.
Page 22
Spark New Zealand Half Year Report 2017Interim financial statements

20162015
UNAUDITEDUNAUDITED
NOTES$M$M
Operating revenues41,7931,723
Operating expenses5(1,320)(1,266)
Share of associates' and joint ventures' net losses(2)(2)
Earnings before interest, income tax, depreciation and amortisation471455
Depreciation and amortisation(215)(224)
Net finance expense(13)(13)
Net earnings before income tax243218
Income tax expense(65)(60)
Net earnings for the period178158
Earnings per share
Basic and diluted earnings per share (cents)9.78.6
Weighted average ordinary shares (millions)1,8311,830
Weighted average ordinary shares and options (millions)1,8341,834
See accompanying notes to the interim financial statements.
20162015
UNAUDITEDUNAUDITED
$M$M
Net earnings for the period178158
Other comprehensive income
Items that may be reclassified to profit or loss:
Translation of foreign operations–2
Cash flow hedges net of tax19(9)
Other comprehensive income/(loss) for the period19(7)
Total comprehensive income for the period197151
Statement of profit or loss
FOR THE SIX MONTHS ENDED 31 DECEMBER
Statement of comprehensive income
FOR THE SIX MONTHS ENDED 31 DECEMBER
Page 23

AS AT
31 DECEMBER
AS AT
30 JUNE
20162016
UNAUDITEDAUDITED
NOTES$M$M
Current assets
Cash5652
Short-term receivables and prepayments578513
Short-term derivative assets2–
Inventories9781
Taxation recoverable13
Total current assets734649
Non-current assets
Long-term receivables and prepayments224210
Long-term derivative assets712
Long-term investments7125131
Property, plant and equipment1,0741,104
Intangible assets1,1751,131
Total non-current assets2,6052,588
Total assets3,3393,237
Current liabilities
Short-term payables, accruals and provisions465450
Short-term derivative liabilities15
Debt due within one year6199190
Taxation payable28
Total current liabilities667653
Non-current liabilities
Long-term payables, accruals and provisions1921
Long-term derivative liabilities6869
Long-term debt6807685
Deferred tax liabilities123125
Total non-current liabilities1,017900
Total liabilities1,6841,553
Equity
Share capital931923
Reserves(387)(401)
Retained earnings1,1111,162
Total equity1,6551,684
Total liabilities and equity3,3393,237
See accompanying notes to the interim financial statements.
Statement of financial position
On behalf of the Board

Mark Verbiest, Chairman Simon Moutter, Managing Director
Authorised for issue on 16 February 2017
Page 24
Spark New Zealand Half Year Report 2017Interim financial statements

Statement of changes in equity
SIX MONTHS ENDED
31 DECEMBER 2016
SHARE CAPITALRETAINED EARNINGSHEDGE RESERVESHARE-BASED COMPENSATION RESERVEREVALUATION RESERVEFOREIGN CURRENCY TRANSLATION RESERVETOTAL
UNAUDITED
$M$M$M$M$M$M$M
Balance at 1 July 20169231,162(31)9(357)(22)1,684
Net earnings for the period–178––––178
Other comprehensive income––19–––19
Total comprehensive income for
the period–17819–––197
Contributions by, and distributions to,
owners:
Dividends–(229)––––(229)
Supplementary dividends–(30)––––(30)
Tax credit on supplementary dividends–30––––30
Issuance of shares under share schemes8––(5)––3
Total transactions with owners8(229)–(5)––(226)
Balance at 31 December 20169311,111(12)4(357)(22)1,655
SIX MONTHS ENDED
31 DECEMBER 2015
UNAUDITED$M$M$M$M$M$M$M
Balance at 1 July 20159241,222(4)10(350)(24)1,778
Net earnings for the period–158––––158
Other comprehensive income/(loss)––(9)––2(7)
Total comprehensive income/(loss) for
the period–158(9)––2151
Contributions by, and distributions to,
owners:
Dividends–(201)––––(201)
Supplementary dividends–(26)––––(26)
Tax credit on supplementary dividends–26––––26
Issuance of shares under share schemes2–––––2
Shares repurchased(4)–––––(4)
Total transactions with owners(2)(201)––––(203)
Balance at 31 December 20159221,179(13)10(350)(22)1,726
Page 25

Statement of cash flows
FOR THE SIX MONTHS ENDED 31 DECEMBER
20162015
UNAUDITEDUNAUDITED
$M$M
Cash flows from operating activities
Cash received from customers 1,731 1,675
Interest receipts 7 8
Dividend receipts 22 41
Payments to suppliers and employees (1,363)(1,294)
Income tax paid (79)(57)
Interest payments (18)(21)
Net cash flows from operating activities 300 352
Cash flows from investing activities
Purchase of business (2)(50)
Payments for long–term investments (2)(10)
Purchase of property, plant and equipment and intangibles (211)(229)
Capitalised interest paid (2)(3)
Net cash flows from investing activities (217)(292)
Cash flows from financing activities
Proceeds from long–term debt 595 400
Repayment of long–term debt (540)(300)
Proceeds from short–term debt 495 184
Repayment of short–term debt (397)(152)
Dividend payments (229)(202)
Payments for share repurchases–(11)
Payments on finance leases (4)–
Receipts on finance leases 1 –
Net cash flows from financing activities (79)(81)
Net cash flow 4 (21)
Opening cash position 52 80
Foreign exchange movements–1
Closing cash position 56 60
Page 26
Spark New Zealand Half Year Report 2017Interim financial statements

Reconciliation of net earnings to net cash flows from operating activities
SIX MONTHS ENDED 31 DECEMBER20162015
UNAUDITED
$M$M
Net earnings for the period 178 158
Adjustments to reconcile net earnings to net cash flows from
operating activities
Depreciation and amortisation 215 224
Bad and doubtful accounts 11 13
Deferred income tax (7) (11)
Share of associates' and joint ventures' net losses 2 2
Impairments 2 –
Other (13) (1)
Changes in assets and liabilities net of effects of non-cash and
investing and financing activities
Movement in accounts receivable and related items (80) (28)
Movement in inventories (16) (11)
Movement in current taxation (4) 13
Movement in payables and related items 12 (7)
Net cash flows from operating activities 300 352
Page 27

NOTE 1 About this report
Reporting entity
These unaudited interim financial statements are
for Spark New Zealand Limited (the ‘Company’)
and its subsidiaries (together the ‘Group’) for
the six months ended 31 December 2016.
The Company is incorporated and domiciled in
New Zealand, registered under the Companies
Act 1993 and is an FMC reporting entity under
the Financial Markets Conduct Act 2013. The
Company is listed on the New Zealand Main
Board equity security market and the Australian
Securities Exchange.
Basis of preparation
The interim financial statements have been
prepared in accordance with the New Zealand
equivalent to International Accounting
Standard 34: Interim Financial Reporting and
International Accounting Standard 34: Interim
Financial Reporting.
The accounting policies adopted in the
preparation of the interim financial statements
are consistent with those followed in the
preparation of the Group’s annual financial
statements for the year ended 30 June 2016.
The preparation of the interim financial
statements also requires management to
make judgements, estimates and assumptions.
The Group has been consistent in applying
the judgements, estimates and assumptions
adopted in the annual financial statements
for the year ended 30 June 2016. Critical
accounting policies are the same as those set
out in the annual financial statements for the
year ended 30 June 2016.
Financial instruments are either carried at
amortised cost, less any provision for impairment,
or fair value. The only significant variances
between instruments held at amortised cost
and their fair value relates to long-term debt.
There were no changes in valuation techniques
during the period. The Group’s derivatives are
classified as being within level 2 of the fair value
hierarchy. The fair value of interest rate swaps is
calculated as the present value of the estimated
future cash flows based on observable yield
curves. The fair value of forward foreign
exchange contracts is determined using
forward exchange rates at the period end date,
with the resulting value discounted back to
present value.
At 31 December 2016, capital expenditure
amounting to $142 million (31 December 2015:
$147 million) had been committed under
contractual arrangements.
Page 28
Spark New Zealand Half Year Report 2017Interim financial statements
Notes to the interim financial statements

NOTE 2 Significant transactions and events for the current period
The following significant transactions and events
affected the financial performance and financial
position of the Group for the six month period
to 31 December 2016:
Segment changes
• From 1 July 2016, the Group’s operating
segments have changed to reflect changes
in the structure of the Group’s business units
and ensure they continue to reflect how the
Group analyses its business results. The Group
has restated the comparative segment results
as outlined in Note 3 and there was no change
to the overall Group reported result because
of these changes.
Debt programme
• On 7 September 2016, the Group issued
$125 million of unsecured, unsubordinated
fixed rate bonds with a coupon rate of 3.94%,
maturing on 7 September 2026.
• On 30 November 2016 the Group established
a $125 million committed revolving facility
with Westpac New Zealand Limited, to mature
on 30 November 2020. This replaced the
$100 million committed revolving facility
with Westpac New Zealand Limited which
matured on 30 November 2016.
Capital expenditure
• The Group’s additions to property, plant
and equipment and intangible assets were
$224 million, details of which are provided
on page 14 of this half-year report.
Dividends
• Dividends paid during the six month period
ended 31 December 2016 in relation to the
H2 FY16 second-half dividend (ordinary
dividend of 11 cents per share and special
dividend of 1.5 cents per share) totalled
$229 million or 12.5 cents per share.
Dividends paid during the prior six month
period ended 31 December 2015 totalled
$201 million or 11 cents per share.
Acquisitions and long-term investments
• The Group acquired the remaining 50%
of Connect 8 Limited, a fibre construction
business, from its joint venture partner Vocus
(New Zealand) Limited on 1 December 2016
and it was fully consolidated from this date.
The joint venture was originally formed in
February 2015, to provide additional fibre
construction and delivery capability to meet
the rapidly growing demand from businesses
and consumers in New Zealand for digital
services. Connect 8 Limited will continue
to construct fibre and telecommunications
assets for telecommunication providers
in New Zealand.
• The Group acquired 100% of Clarity
Information Management Limited on
1 August 2016 which was subsequently
amalgamated into Qrious Limited on
31 October 2016.
• The Group recognised a $2 million
impairment expense to fully write down
its investment in TSM NZ Limited as its
operations have ceased.
Page 29
Notes to the interim financial statements

NOTE 3 Segment information
From 1 July 2016, the Group’s operating
segments changed, including the formation of a
separate Spark Ventures & Wholesale business
unit. Following these changes, the Group’s
operating segments at 31 December 2016 are:
• Spark Home, Mobile & Business - provides
products, services and support to consumer
and small business customers. It provides
a full range of services and content, data
and voice services across fibre and copper
broadband, 3G and 4G mobile, online video
entertainment and nationwide Wi-Fi zones;
• Spark Digital – integrates IT and
telecommunications services to provide
converged ICT solutions for clients;
• Spark Connect & Platforms – responsible for
all the Group’s network and IT operations,
shared business operations and digital and
service transformation; and
• Spark Ventures & Wholesale – responsible
for the stewardship of the Group’s wholesale
products and services along with the
development of a portfolio of new businesses
and services.
In addition to the Group’s operating segments,
a Corporate Centre contains income and
expenses not associated with the operating
segments, such as dividends from investments
and costs of providing corporate services,
such as communications, legal, finance and
human resources.
The segment results disclosed are based on
those reported to the Managing Director and
are how the Group analyses its business results.
Segment results are an adjusted EBITDA and
measured based on net earnings before
depreciation, amortisation, finance income and
expenses and income tax expense and other
gains and expenses not allocated to segments.
None of these excluded items are assessed on
a segment basis by the Managing Director.
Comparative segment results
The Group has restated the comparative
segment results to reflect changes in business
unit structures. There was no change to the
overall Group reported result because of
these changes.
Restated segment results for each half-year
period of FY15 and FY16 are available in
a separate detailed financials file on the
investor section of our website at:
investors.sparknz.co.nz/investor-centre.
Page 30
Spark New Zealand Half Year Report 2017Interim financial statements
Notes to the interim financial statements

SIX MONTHS ENDED 31 DECEMBER 2016
SPARK HOME,
MOBILE &
BUSINESSSPARK DIGITAL
SPARK
CONNECT &
PLATFORMS
SPARK
VENTURES &
WHOLESALETOTAL
UNAUDITED$M$M$M$M$M
Voice 157 94 1 59 311
Broadband 326 18 – – 344
Managed data – 64 – 21 85
Mobile 478 98 3 9 588
IT services 1 383 – – 384
Other operating revenue 23 – 18 5 46
Internal revenue – 1 – 18 19
Total operating revenue 985 658 22 112 1,777
Segment result 391 191 (166) 57 473
SIX MONTHS ENDED 31 DECEMBER 2015
SPARK HOME,
MOBILE &
BUSINESSSPARK DIGITAL
SPARK
CONNECT &
PLATFORMS
SPARK
VENTURES &
WHOLESALETOTAL
UNAUDITED$M$M$M$M$M
Voice 171 99 1 66 337
Broadband 320 19 – – 339
Managed data – 69 – 27 96
Mobile 459 95 2 7 563
IT services – 322 – – 322
Other operating revenue 21 – 16 3 40
Internal revenue – 3 – 18 21
Total operating revenue 971 607 19 121 1,718
Segment result 396 193 (181) 63 471
Reconciliation from segment result to consolidated net earnings before income tax
SIX MONTHS ENDED 31 DECEMBER20162015
UNAUDITED$M$M
Segment result 473 471
Net result of corporate revenue and expenses(2)(16)
Depreciation and amortisation (215) (224)
Net finance expense (13) (13)
Net earnings before income tax243218
Page 31
Notes to the interim financial statements

Notes to the interim financial statements
NOTE 4 Operating revenues
SIX MONTHS ENDED 31 DECEMBER20162015
UNAUDITED$M$M
Voice 311 337
Broadband 344 339
Managed data 85 96
Mobile 588 563
IT services 384 322
Dividend income 35 26
Other operating revenue 46 40
Total operating revenues 1,793 1,723
Dividend income includes dividends received from associate companies Pacific Carriage Holdings
Limited and Southern Cross Cables Holdings Limited.
NOTE 5 Operating expenses
SIX MONTHS ENDED 31 DECEMBER20162015
UNAUDITED$M$M
Payments to telecommunications operators 351 334
Mobile acquisition, procurement and IT services 437 413
Labour 278 252
Other operating expenses
Direct network costs 31 38
Computer costs 40 38
Accommodation costs 50 47
Advertising, promotions and communication 41 45
Bad debts 9 11
Impairments 2 –
Other 81 88
254 267
Total operating expenses 1,320 1,266
Page 32
Spark New Zealand Half Year Report 2017Interim financial statements

Notes to the interim financial statements
NOTE 6 Debt
AS AT
31 DECEMBER
AS AT
30 JUNE
20162016
COUPON
RATE
UNAUDITEDAUDITED
FACE VALUEFACILITYMATURITY$M$M
Short-term debt
Commercial paperVariable< 4 months 149 100
Short-term borrowingsVariable< 1 month 50 –
199 100
Bank funding
Bank of Tokyo-Mitsubishi UFJ100 million NZDVariable13/03/2018 100 100
Westpac New Zealand
Limited100 million NZDVariable30/11/2016– 90
Bank of New Zealand100 million NZDVariable31/10/2018 70 50
170 240
Domestic notes
250 million NZD5.25%25/10/2019 250 250
100 million NZD4.50%25/03/2022 102 103
100 million NZD4.51%10/03/2023 101 106
125 million NZD3.94%07/09/2026 113 –
566 459
Euro Medium Term Notes
22 million GBP5.63%14/05/2018 40 42
18 million GBP5.75%06/04/2020 31 34
71 76
1,006 875
Debt due within one year 199 190
Long-term debt 807 685
On 30 November 2016 the Group established a $125 million committed revolving facility with
Westpac New Zealand Limited, to mature on 30 November 2020. As at 31 December 2016 this
was undrawn. There have been no other changes in the Group’s short-term financing programmes
or stand-by facilities since 30 June 2016.
NOTE 7 Long-term investments
AS AT
31 DECEMBER
AS AT
30 JUNE
20162016
UNAUDITEDAUDITED
$M$M
Shares in Hutchison 107 107
Investment in associates and joint ventures 14 23
Other long-term investments 4 1
125 131
Page 33

NOTE 7 Long-term investments (continued)
The Group holds a 10% interest in Hutchison Telecommunications Australia Limited (Hutchison)
which is quoted on the Australian Securities Exchange (ASX) and measures its fair value using its
observable market share price as quoted on the ASX, classified as being within level 1 of the fair
value hierarchy. As at 31 December 2016 the quoted price of Hutchison’s shares on the ASX was
A$0.076 (30 June 2016: A$0.075).
Investment in associates and joint ventures
The Group’s investment in associates and joint ventures at 31 December 2016 consists of the following:
TYPECOUNTRYOWNERSHIPPRINCIPAL ACTIVITY
App La Carte Limited (Putti)AssociateNew Zealand44%Mobile applications
Feenix Communications LimitedAssociateNew Zealand30%
Supplier of network
services
NOW New Zealand LimitedAssociateNew Zealand37%Internet service provider
Pacific Carriage Holdings LimitedAssociateBermuda50%A holding company
Southern Cross Cables Holdings
LimitedAssociateBermuda50%A holding company
TSM NZ Limited (Semble)AssociateNew Zealand33%Mobile wallet platform
Vigil Monitoring Limited (Jupl)AssociateNew Zealand30%Healthcare technology
Lightbox Sport General Partner
LimitedJoint VentureNew Zealand50%Sports content streaming
TNAS LimitedJoint VentureNew Zealand50%
Telecommunications
development
NOTE 8 Significant events after balance date
TeamTalk notice of intention to make a full takeover offer
On 7 February 2017, the Group filed a notice of intention to make a full takeover offer for 100% of
the fully paid ordinary shares in TeamTalk Limited (TeamTalk) at an offer price of 80 cents per share.
To assist the Group in determining whether to proceed with the proposed offer, it requested
that TeamTalk permit the Group to complete due diligence.
On 8 February 2017, TeamTalk directors recommended that shareholders do not sell their shares
pending further communication from its board, however confirmed it will allow the Group to
undertake limited due diligence.
Dividends
On 16 February 2017 the Board approved the payment of a first half ordinary dividend of 11 cents
per share or approximately $202 million and a special dividend of 1.5 cents per share or approximately
$27 million. The ordinary dividend will be fully imputed and the special dividend 75% imputed in
line with the corporate income tax rate. In addition, supplementary dividends totalling approximately
$29 million will be payable to shareholders who are not resident in New Zealand. In accordance with
the Income Tax Act 2007, the Group will receive a tax credit from Inland Revenue equivalent to the
amount of supplementary dividends paid.
Page 34
Spark New Zealand Half Year Report 2017Interim financial statements
Notes to the interim financial statements

Independent review report
To the shareholders of Spark New Zealand Limited
We have completed a review of the interim financial statements of Spark New Zealand Limited and
its subsidiaries (“the group”) on pages 23 to 34 which comprise the statement of financial position
as at 31 December 2016, and the statement of comprehensive income, statement of changes in
equity and statement of cash flows for the six month period ended on that date, and a summary
of significant accounting policies and other explanatory information.
This report is made solely to the Shareholders as a body. Our review work has been undertaken so
that we might state to the company’s shareholders those matters we are required to state to them in
the independent review report and for no other purpose. To the fullest extent permitted by law, we
do not accept or assume responsibility to anyone other than the company’s shareholders as a body,
for our review work, this report or any of the conclusions we have formed.
Directors’ responsibilities
The directors of Spark New Zealand Limited are responsible for the preparation of interim financial
statements in accordance with Generally Accepted Accounting Practice in New Zealand and for
such internal control as the directors determine is necessary to enable the preparation of the interim
financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibilities
Our responsibility is to express a conclusion on the interim financial statements based on our review.
We conducted our review in accordance with NZ SRE 2410 Review of Financial Statements Performed
by the Independent Auditor of the Entity. NZ SRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that the financial statements are not prepared,
in all material respects, in accordance with Generally Accepted Accounting Practice in New Zealand.
As the auditor of Spark New Zealand Limited, NZ SRE 2410 requires that we comply with the ethical
requirements relevant to the audit of the annual financial statements.
A review of interim financial statements in accordance with NZ SRE 2410 is a limited assurance
engagement. The auditor performs procedures, primarily consisting of making enquiries, primarily
of persons responsible for financial and accounting matters, and applying analytical and other
review procedures.
The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing (New Zealand). Accordingly
we do not express an audit opinion on those financial statements.
Our firm has also provided other services to the group in relation to other assurance services.
Subject to certain restrictions, partners and employees of our firm may also deal with the group
on normal terms within the ordinary course of trading activities of the business of the group.
These matters have not impaired our independence as auditors of the group. The firm has no
other relationship with, or interest in, the group.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that these interim
financial statements of the Group do not present fairly, in all material respects, the financial position
of the company as at 31 December 2016, and of its financial performance and its cash flows for the
6 month period ended on that date, in accordance with Generally Accepted Accounting Practice
in New Zealand.
16 February 2017
Auckland
Page 35

Contact details
Registered office
Level 2
Spark City
167 Victoria Street West
Auckland 1010
New Zealand
Ph +64 4 471 1638 or 0800 108 010
Principal administrative office in Australia
Level 8
61 Market Street
Sydney NSW 2000
Australia
Ph 1800 124 248
Company secretary
Silvana Roest
New Zealand registry
Link Market Services Limited
Level 11 Deloitte House
PO Box 91976
80 Queen Street
Auckland 1142
Ph +64 9 375 5998 (investor enquiries) or
+64 9 375 5999
Fax +64 9 375 5990
enquiries@linkmarketservices.com
linkmarketservices.co.nz
Australian registry
Link Market Services Limited
Level 12
680 George Street
Sydney NSW 2000
Australia
Locked Bag A14
Sydney South NSW 1235
Australia
Ph +61 2 8280 7111 (investor enquiries)
Fax +61 2 9287 0303
registrars@linkmarketservices.com.au
linkmarketservices.com.au
United States registry
BNY Mellon Depositary Receipts
PO Box 43006
Providence, RI 02940-3006
United States
Ph +1 888 BNY ADRS (+1 888 269 2377) or
+1 201 680 6825 (from outside the
United States)
shrrelations@bnymellon.com
www.mybnymdr.com
For more information
For inquiries about transactions, changes of
address or dividend payments contact the
above share registries. For inquiries about
Spark New Zealand’s operating and financial
performance contact:
investor-info@spark.co.nz
Investor Relations
Spark New Zealand Limited
Private Bag 92028
Auckland 1142
New Zealand
investors.sparknz.co.nz
Page 36
Spark New Zealand Half Year Report 2017Contact details

insight
creative.co.nz
SPARK020 02/17
Page 37

investors.sparknz.co.nz
ARBN 050 611 277

APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
X
whether:
Interim
X
YearSpecialDRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
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Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
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Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
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ranking
Monies Associated with Event
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Source of
Amount per securityPayment
(does not include any excluded income)
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(only applicable to listed PIEs)
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
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Withholding Tax(Give details)
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(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
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Interest Payable, Exercise Date,
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of applications this must be the
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Notice DateAllotment Date
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conversion notices mailedMust be within 5 business days
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OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:
Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:
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Cease Quoting Old Security 5pm:
EMAIL: announce@nzx.com
Notice of event affecting securities
1
SPARK NEW ZEALAND LIMITED
DAVID CHALMERSDIRECTORS' RESOLUTION
(09) 359 6413(09) 303 34301622017
ORDINARY SHARESNZ TELE0001S4
In dollars and cents
RETAINED EARNINGS
$0.110
Enter N/A if not
applicable
NZD$0.019412
$201,583,133
Date Payable
31 March, 2017
17/03/17 AUST, NZ & USA
31/03/2017 AUST & NZ; 07/04/17 USA
$$0.007639$0.042778
$

APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
X
whether:
InterimYearSpecial
X
DRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per securityPayment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FWP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:
Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:
Security Code:
Cease Quoting Old Security 5pm:
17/03/17 AUST, NZ & USA
31/03/2017 AUST & NZ; 07/04/17 USA
$$0.002019$0.004375
$
NZD$0.001985
$27,488,609
Date Payable
31 March, 2017
In dollars and cents
RETAINED EARNINGS
$0.015
Enter N/A if not
applicable
ORDINARY SHARESNZ TELE0001S4
(09) 359 6413(09) 303 34301622017
EMAIL: announce@nzx.com
Notice of event affecting securities
1
SPARK NEW ZEALAND LIMITED
DAVID CHALMERSDIRECTORS' RESOLUTION

---

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand


MARKET RELEASE
16 February 2017

SPARK NEW ZEALAND H1 FY17 RESULTS

 Financial results demonstrate another six-month
period of dynamic change and ongoing progress

 Customer service experience improving

 Competing hard in a challenging market and
operating environment

Spark New Zealand Chairman Mark Verbiest said today the financial results for the half-
year ended 31 December 2016 demonstrate it’s been another six month period of
dynamic change and ongoing progress.
“The financial results for the six months to 31 December 2016 are in line with our plan
and reflect the continuing execution of Spark’s long-term strategy.
“Customer service levels have recovered markedly and several new market-leading
offers have been launched. However, some of the key indicators in the results also
highlight the challenging market and operating environment and the need for us to
maintain a fast pace of change and keep delivering for our customers.
“Despite vigorous price competition, top-line revenue growth has been pleasing, with
total operating revenues up 4.1% on the prior half-year to $1.793 billion. Mobile revenue
was up 4.4%, broadband revenue up 1.5%, and IT services revenue up 19.3%.
“While the revenue performance across mobile, broadband and IT services was good, it
is clear the intense ongoing price competition, particularly at the lower end of the
market, is driving margin pressure and reinforcing the need to increase our focus on our
brand assets, as well as continuing to tightly manage operating and capital expenditure.

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand


“Operating expenses were up 4.3% to $1.320 billion. Much of this was attributable to an
increase in the cost of supporting IT services growth and bringing on new big business
customers, as well as the additional resources deployed to improve the service
experience for our customers and reduce call centre wait times.”
Earnings before interest, income tax, depreciation and amortisation (EBITDA) lifted by
$16 million, or 3.5% to $471 million in H1 FY17. This increase was driven by the
inclusion of a full six months earnings from the CCL Group (acquired in December 2015)
and the timing of Southern Cross dividends, with $9 million of dividends originally
expected in H2 FY17 being recognised in H1 FY17.
Spark Managing Director Simon Moutter said, “The six months saw a big focus on a
programme we are calling ‘Upgrade New Zealand’, designed to move as many of our
customers as possible off older copper broadband onto newer and less fault-prone fibre
or wireless broadband technologies.
“Spark is working proactively with local fibre companies (LFC’s) to accelerate take-up of
fibre through trialling initiatives such as ‘street-in-a-week’. Trials to date have been very
successful, with fibre orders well ahead of those achieved via more traditional
marketing. Outside the trials, we continue to work with the fibre network companies to
improve the fibre provisioning process and eliminate pain points for our customers. As at
31 December 2016 Spark had 138,000 UFB fibre broadband connections.
“While fibre is the preferred broadband technology for customers who use large
amounts of data, as part of Upgrade New Zealand we have also ramped up the rollout of
Wireless Broadband for customers with low to medium data usage, with over 40,000
Wireless Broadband connections on our network as at 31 December 2016.
“On Spark’s customer service, there is much work still to be done but the investment in
call centre resources and processes has led to reduced call wait times and significant
improvements on customer service measures. Digitisation will be pivotal to future
service measures as customer preference continues to shift to online and mobile self-
service channels. A new Spark app is launching imminently which will provide
customers with significantly enhanced self-service capability.”
“Gains were made by Spark Digital with our business, enterprise and Government
customers, with revenue growth fuelled by a series of successful customer wins and the

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand


CCL Group acquisition, which helped to offset much of the decline in legacy telco
revenues and the ongoing mobile pricing pressures.
“Over the half-year we have invested further to extend our existing network leadership
and develop the future network pathway to ensure we can meet the growing demands of
customers. The investment in additional capacity and resiliency at holiday hotspots
ensured that Spark customers had arguably their best ever Christmas and New Year
experience in terms of service continuity and coverage.
Mr Verbiest added, “While there will inevitably be more challenges to come and the
market remains very competitive, Spark is confidently looking forward to the rest of the
financial year, and to delivering on our ambitions for our customers, our shareholders
and for New Zealand.
“We note that due to unplanned work following the earthquakes centred near Kaikoura,
we are now guiding to capital expenditure of $415 million for FY17 (still within 11-12% of
revenue). That said, the results for the first half reaffirm the Board’s view on full-year
EBITDA guidance of 0 – 2% growth and support an interim dividend of 11 cents per
share and a special dividend of 1.5 cents per share.”

- ENDS –


For media queries, please contact:

Richard Llewellyn
Head of Corporate Communications
+64 (0) 27 523 2362

For investor relations queries, please contact:
Dean Werder
General Manager Finance & Performance
+64 (0) 27 259 7176

1
Spark New Zealand
H1 FY17 Results
Simon Moutter, Managing Director
David Chalmers, Chief Financial Officer

•Mobile connections growth of 141k (6.4%) driven by multi-brand offerings and
digital service inclusions Spotify and Lightbox
•Upgrade of customers to Fibreand Wireless Broadband progressing well;
securing Fibregrowth ahead of overall share and already over 40,000 Wireless
Broadband connections
•Sustained revenue growth in Platform and Cloud IT services; up 25.8%
reflecting good enterprise and government customer wins and bolt-on business
acquisitions
•Investment in digital self service and additional call-centreresource driving
material improvements in customer experience
•Expansion of Spark brand digital inclusions and entry of Skinny brand into Fixed
and Wireless Broadband will strengthen share of revenue in future
•Price pressure continuing across Mobile, Broadband and IT services requires
ongoing tight management of costs and capex to drive sustained shareholder
returns and profit growth
H1 FY17 Highlights
2
EBITDA result underpinned by ongoing momentum across IT
Services and Mobile

Mobile Share
(1)
(ServiceRevenue)
Mobile CustomersBroadband Share
(1) (2)
(Connection)
Broadband
Customers
(2)
IT Services Share
(1)
(Revenue)
38.3%
-1.0pp
vs December 2015
2,353k
+6.4%
vs December 2015
42.3%
-2.0pp
vs December 2015
675k
-
vs December 2015
#1
Results Scorecard
3
Market Share & Connections
Key Group FinancialsProduct Revenue
H1FY17H1FY17
Total Revenue Growth4.1%Mobile RevenueGrowth4.4%
EBITDA Growth 3.5%
Broadband Revenue
Growth
1.5%
Dividendper Share (ord+
special)
11.0cps +
1.5 cps
IT Services Revenue
Growth
19.3%
(1)
Market share estimate
(2)
Includes Wireless Broadband connections

H1 FY17
$M
H1 FY16
$M
CHANGE
%
Revenues1,7931,7234.1%
Operating expenses
(1)
(1,322)(1,268)(4.3%)
EBITDA4714553.5%
Depreciation & amortisation(215)(224)4.0%
Net finance expenses(13)(13)-
Net earnings before income tax24321811.5%
Income tax expense(65)(60)(8.3%)
Net earnings after income tax17815812.7%
Capital expenditure
(2)
2242163.7%
Notional free cash flow
(3)
2472393.3%
Reported Financials
4
(1)
Includes share of Joint Ventures
(2)
Includes $2.0m in relation to Kaikouraearthquakes
(3)
Notional free cash flow = EBITDA less Capital expenditure

•IT services growth driven by
bolt-on business acquisitions
and continued shift to Cloud
services
•Ongoing Mobile growth
through upsell, value
inclusions and shift away
from handset subsidies
•Other revenue reflects
progress of Spark Ventures
businesses
•Rate of decline across legacy
Voice and Data in line with
prior period continuing
operations at (8-10%)
Revenue Waterfall
5
4.1%
Revenue growth driven by continued IT Services, Mobile and
Broadband performance
(1)includes $29m increase in revenue from CCL Group (acquired in December 2015)
(2)Other revenue increase predominantly driven by Lightbox, Qrious and Morepork
(1)
(2)

•IT Services Cost of Sale (CoS)
consistent with strong revenue
growth
•Temporary labour cost increase
in support of service experience
and IT service revenue growth
•Higher access input costs due to
regulated price increases and
penetration of higher speed UFB
inputs, partially offset by
Wireless Broadband adoption
•Mobile CoSdecline reflecting
improved customer retention
•Other expenses improved on
tight cost control and recognition
of new customer acquisition
costs over customer contract
periods
Operating Expenses
(1)
Waterfall
6
4.3%
Cost growth in support of IT Services revenue and improved mass
market service experience
(1)Includes share of Joint Ventures
(2)Expenses increase in relation to CCL Group (acquired in December 2015) is $13m IT services CoS, $9m labour
and $1m other
(3)Other operating expenses includes selling and support costs such as advertising, accommodation, computer costs,
consulting and bad debt
(2)
(3)

EBITDA Waterfall
7
•Revenue uplift driven by
continued IT services and
Mobile growth, including
revenue from CCL Group
(acquired December 2015)
•Expenses increased in
support of revenue growth
and service experience
improvement; partially offset
by benefits of improved
mobile retention and
recognition of new customer
acquisition costs over
customer contract periods
•Timing uplift in Southern
Cross (SX) dividend due to
portion of expected H2
dividends being declared in
H1
Continued EBITDA growth built on revenue uplift
3.5%

Spark Home, Mobile & Business
8
•Continued growth in Mobile revenue through
increased customer base
•Broadband revenue growth fueled by migrations to
higher value plans
•Fixed Voice revenue decline of (8%) in line with
prior period; due to increasing penetration of Naked
Broadband and ongoing Mobile adoption
•Cost uplift includes impact of regulated price
increases for Copper Voice and Broadband services
and investment in call-centreresource to address
service experience
•Service related cost uplift now abating as customer
pain points are resolved through simplification and
digitisation; market NPS up 5 points during H1
•Successful full launch of Wireless Broadband
delivering service experience and margin benefit
•Skinny playing bigger role, expanding its Wireless
Broadband offer, moving into unlimited Fixed
Broadband and launching Skinny Direct
NB: Includes Skinny, Lightbox and Bigpipe
H1 FY17
$M
H1 FY16
$M
CHANGE
%
Revenues9859711.4%
Mobile
4784594.1%
Broadband
3263201.9%
Voice
157171(8.2%)
Other
242114.3%
Costs (594)(575)(3.3%)
EBITDA391396(1.3%)
Revenue growth continues with investments in systems,
processes and staff driving improvements in service experience

Spark Digital
9
•Platform IT and Cloud revenue growth reflects
CCL acquisition and new customer wins
•Telecommunications-as-a-service seeing strong
adoption by eligible government agencies and
high win rate by Spark
•Mobile revenue remains in growth on move
towards high-end devices, offsetting impact of
price pressure on average usage revenues per
customer.
•Rate of decline in legacy Voice stable at (5%)
•Cost-base higher in support of Platform IT,
Mobile and Procurement revenue growth
•EBITDA to increase in H2 on completion of
major customer transitions and improving
efficiency in IT service delivery
H1 FY17
$M
H1 FY16
$M
CHANGE
%
Revenues6586078.4%
Traditional IT Services
1049213.0%
Platform IT Services
1169324.7%
Procurement
16313719.0%
Voice
9499(5.1%)
Data
(1)
8288(6.8%)
Mobile
98953.2%
Other
13(66.7%)
Costs(467)(414)(12.8%)
EBITDA191193(1.0%)
(1)
Data includes Broadband and Managed Data
Platform IT revenue growth continues to outperform the market,
however margin pressure remains a challenge across the portfolio
IT Services

•Investment in call-centre resource has delivered
results. Resource is now reducing as underlying
pain points are addressed and resolved.
•Ongoing upgrade from Copper improving
customer experience and reducing fault volumes;
more than 25% of base now on Fibre or Wireless
Broadband
•Fibre provisioning experience improving via
initiatives such as our ‘street in a week’
programme
•Digitisation enabling pro-active assurance and
effortless self-service,with launch of new Spark
app imminent
•Migration from Yahoo to new mail platform
underway
Customer Experience
10
Sustained improvement being driven by migration off Copper inputs
and investments in digitisation and service resource
33pp
increase in calls
answered in 180 seconds
since June 2016
5pt
improvement in Market
NPS since June 2016

•Continued price competition, particularly at lower end of the
market
•Reinforces value of multi-brand strategy to meet all
preferences
-Skinny for low priced ‘basic’ broadband
-Bigpipe for the tech-savvy
-Spark for value-packed bundles
•‘Upgrade New Zealand’ programme focused on moving
customers off legacy Copper Broadband onto better, newer
and less fault prone Fibreand Wireless Broadband
•Fibreremains preferred technology for customers using larger
amounts of data; secured 43% of market growth in H1
•Wireless Broadband targeted to customers with low to medium
data usage; delivering clear service and margin benefits
•Digital inclusions with Spark broadband driving clear retention
benefits with churn down to 15%
•Lightbox progressing well towards 250k subscribers;
upgrading platform in support of media strategy
Broadband
11
43%
share of Fibregrowth
during H1 FY17
178k
Fibreand Wireless
Broadband connections
at 31 Dec 2016
Performing well in core segments but struggling to maintain
overall share in a commoditisingmarket

•Migration away from subsidisedcontracts
continues to deliver margin upside; more
than 80% of HMB pay-monthly now on
open term plans
•Lightbox and Spotify pay-monthly
inclusions driving clear churn benefit;
HMB churn at lowest level in three years
•Ongoing proactive re-signing to drive
churn reduction across business customer
base
•Skinny Direct proving that digital sales
and service model can deliver market
leading service experience andimproved
margins
•Investment in network leadership
continues with 4.5G overlay commenced
Mobile
12
Revenue and base growth continues despite increased pricing pressure
10pp
increase in HMB pay-
monthly customers on
open term since
December 2015
22%
growth in total Mobile
gross margin since H1
FY15

•Revenue growth continues to
outpace the market with a number
of substantial customer wins
•Acquisition of CCL has
successfully complemented
existing services
•Some margin pressure emerging
as expected, with installed base
maturing
•Focused on driving efficiency in IT
service deliveryvia leveraged
support model and more efficient
vendor spend
Platform IT
13
30%
Platform IT share of total
IT Services revenue
26%
Platform IT 2 year
revenue CAGR
Focus on Platform IT delivering very strong returns and differentiation

•Strategic intent to ‘own’ CBD fibreprogressing
towards improving:
•Customer experience
•Network economics
•Speed to market
•Connect 8 acquired to expand in-house fibre
skill set
•Notice of Intention filed for proposed acquisition
of TeamTalk
•Digitisation of service experiences enabled by
completion of IT stack re-engineering
programme;
•Active app users up 39%YoY
•More than 5,000fault events already
benefited from pro-active faults
management
•Several online buy and change
journeys upgraded
•Improved network economics to be unlocked by
4.5G, ongoing core network augmentation and
replacement of PSTN
Investing In Our Future
14
5x
increase in data
throughput per cell site
after migration from 4G to
4.5G
39%
increase in unique app
users per month since
December 2015

Capex Update
15
•FY17 Capex guidance increased by approximately $15m in support of Kaikoura
earthquake remediation and resiliency enhancements including:
•remedying the damaged South Island eastern fibre route and adding a third
South Island fibre route
•increasing backhaul resilience, capacity and routing in Wellington and the
South Island
•Wireless Broadband delivering strong return on investment via improved customer
outcomes and input cost savings
•Mobile capex supporting data growth requirements and expanding 4G coverage.
4.5G overlays commenced with SRAN deployments progressing to plan
•New trans-Tasman submarine cable (TGA) build ongoing and on track to deliver
improved resilience for international connectivity between NZ, Australia and USA
from April 2017
•Ratio of capex to revenue of 11-12% will continue to allow for investment in
strategic programmes which are prioritised based on returns
Capex remains within 11-12% of revenue in support of network
superiority, digitisation and ongoing operational improvements

Capital Structure and Shareholder Returns
16
Principles
•Remain committed to conservative capital structure and S&P single ‘A Band’ Credit Rating
•Preferred method of shareholder distribution is to sustainably grow ordinary dividends over time in
line with earnings growth as articulated in our long-term growth framework outlined in Appendix 1
•Special dividends used as appropriate to reset capital structure
Total Debt increasing in support of:
•capital structure reset; and
•movements in working capital reflective of
changing shape of margin recognition,
particularly in respect of deferred handset
payments and strong growth in IT services
customer contracts
H1 FY17 Dividend
•H1 FY17 dividend 11 cps, fully imputed
•Special dividend of 1.5 cps, 75% imputed
•DRP remains suspended
H2 FY17 Dividend
(1)
•Anticipate H2 FY17 ordinary dividend of 11
cps and special dividend of 1.5 cps
•Anticipate ordinary dividend to be fully
imputed. Special dividend anticipated to be
at least 75% imputed
(1) Guidance subject to no adverse change in operating outlook
$m
at 31 Dec 2016at 31Dec 2015
Debt due within one
year
199182
plus Long-termdebt807636
less Cash5660
Net Debt950758

FY17 Guidance
(1)
17
FY16 ActualsFY17 GuidanceChange to Previous
FY17 Guidance
Total
Revenues
$3,497m0-3% growth-
Reported
EBITDA
(2)
$986m0-2% growth-
Capex $390m~$415m+$15m
EPS20c21c-
DPS
Ordinary Div22 cps
+Special Div3 cps fully
imputed
Ordinary Div 22 cps fully
imputed
+Special Div 3 cps at
least 75% imputed
-
(1)Guidance subject to no adverse change in operating outlook
(2)EBITDA guidance is relative to FY16 reported EBITDA and excludes potential net gains on sale of Mayoral
Drive Carpark estimated at $17m-$19m. This transaction is expected to complete by 30 June 2017.

FY17 Indicators of Success
18
OutcomeProposed MeasuresTarget 30 June 2017Status
Restorecall centre
service levels to world
class
Answer Time90% in 180 secondsTracking up to Target
First call resolution75%Improvement Needed
Advance toward
amazing customer
experiencesthrough
digital sales and
service
Market NPS5 point liftOn Track
Reduction in call volumes7.5% reductionImprovement Needed
Launch a new, more feature rich Spark AppQ3 FY17On Track
Introduce proactive faults management for mass
market
Q3 FY17Delivered
Adoptand scale dev-ops model
Adopt H1 FY17; Scale H2
FY17
Adoption: Delivered
Scaling:On Track
Average daily log-ins to Spark App20% increaseImprovement Needed
Proportion of Skinny sales via Digital Channels 10%Ahead
Expand margins and
improve service
experience through
reduced reliance on
third party access
Uptake of Wireless Broadband50,000connections
Ahead
now aiming for 70,000
Implement ‘owned’ CBD fibre modelAKL and WLG CBDs ‘owned’In progress
Expand coverage of 4G95% populationOn Track
Maintain revenue
growth momentum to
deliver long-term
sustainable growth
Marketshare of UFB orders45%Slightly behind
Mobile total revenue growth5%SlightlyBehind
Platform IT revenue growth20%Ahead
Proportion of BB and Mobilecusts. using inclusions20%Ahead
Enter adjacent high-growth market
Significantentry into one
additional market
Considering options

Working on Refreshed Strategic Plan
19
•Solid results but market changes and learnings from last three years of
execution require a strategic response
•Customers strongly preferring wireless connectivity and digital self service
•Growing portion of the market is buying primarily on price
•If approved, merger of Vodafone and SkyTVwill change the industry structure
and competitive playing field; decision expected February 2017
•New leadership team now working on next evolution of market strategy to
respond to current trends and future risks; expanding the Skinny brand into
broadband is our first significant move
•Will share a refreshed strategic plan at an investor day before the end of this
financial year

Appendix 1: Focused on sustainable long-term growth
20

21
Disclaimer
This announcement may include forward-looking statements regarding
future events and the future financial performance of Spark New Zealand.
Such forward-looking statements are based on the beliefs of management
as well as on assumptions made by and information currently available at
the time such statements were made.
These forward-looking statements may be identified by words such as
‘guidance’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘plan’,
‘may’, ‘could’, ‘ambition’ and similar expressions. Any statements in this
announcement that are not historical facts are forward-looking
statements. These forward-looking statements are not guarantees or
predictions of future performance, and involve known and unknown risks,
uncertainties and other factors, many of which are beyond Spark New
Zealand’s control, and which may cause actual results to differ materially
from those projected in the forward-looking statements contained in this
announcement.
Factors that could cause actual results or performance to differ materially
from those expressed or implied in the forward-looking statements are
discussed herein and also include Spark New Zealand's anticipated
growth strategies, Spark New Zealand's future results of operations and
financial condition, economic conditions and the regulatory environment in
New Zealand; competition in the markets in which Spark New Zealand
operates; risks related to the sharing arrangements with Chorus, other
factors or trends affecting the telecommunications industry generally and
Spark New Zealand’s financial condition in particular and risks detailed in
Spark New Zealand's filings with NZX and ASX. Except as required by
law or the listing rules of the stock exchanges on which Spark New
Zealand is listed, Spark New Zealand undertakes no obligation to update
any forward-looking statements whether as a result of new information,
future events or otherwise.

Spark New Zealand
Group result
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
$m$m$m$m$m
Operating revenues and other gains1,7971,7341,7231,7741,793
Operating expenses1,3611,2051,2661,2401,320
Share of associates' and joint ventures' net losses-(3)(2)(3)(2)
EBITDA436526455531471
Depreciation and amortisation expense224229224222215
Net finance expense1215131513
Net earnings before income tax200282218294243
Tax expense5354608265
Net earnings for the period147228158212178
EBITDA by business unit
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
EBITDA$m$m$m$m$m
Spark Home, Mobile & Business352416396406391
Spark Digital192204193218191
Spark Connect & Platforms(189)(174)(181)(159)(166)
Spark Ventures & Wholesale9884636857
Corporate(17)(4)(16)(2)(2)
436526455531471
Connections
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
000's000's000's000's000's
Mobile connections2,1142,1782,2122,2932,353
Local service connections1,3501,3231,2811,2511,222
Broadband connections674680675675675
Dividends
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
Cents per
share
Cents per
share
Cents per
share
Cents per
share
Cents per
share
Ordinary dividends9.0011.0011.0011.0011.00
Special dividends--1.501.501.50
9.0011.0012.5012.5012.50

Spark New Zealand
Operating revenues and other gains by business unit
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
Operating revenues and other gains$m$m$m$m$m
Spark Home, Mobile & Business910932971992985
Spark Digital625599607619658
Spark Connect & Platforms2219192022
Spark Ventures & Wholesale248174121126112
Corporate4765264135
Eliminations(55)(55)(21)(24)(19)
1,7971,7341,7231,7741,793
Group operating revenues and other gains
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
$m$m$m$m$m
Operating revenues
Voice479401337344311
Broadband324326339346344
Managed data11098969285
Mobile
Service revenue367376390396394
Other mobile revenue137139173175194
504515563571588
IT services
Traditional IT services1011039297104
Platform IT services738693106117
Procurement121108137133163
295297322336384
Other operating revenue8565668581
Total operating revenues1,7971,7021,7231,7741,793
Other gains-32---
Total operating revenues and other gains1,7971,7341,7231,7741,793
Wireless Broadband revenues and connections are included in broadband revenues and connections.
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
Voice revenue by type$m$m$m$m$m
Landline only221177169166155
Calling241209153164142
Other voice revenue1715151414
479401337344311

Spark New Zealand
Financial breakdown by business unit - Spark Home, Mobile & Business
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
$m$m$m$m$m
Operating revenues
Voice199190171176157
Broadband302307320327326
Mobile389414459464478
IT services1--11
Other operating revenue1720212423
Internal revenue21---
910932971992985
Operating expenses
Labour5551565869
Other operating expenses484446504510511
Internal expenses1919151814
558516575586594
EBITDA352416396406391
EBITDA margin38.7%44.6%40.8%40.9%39.7%
Analysis & KPI's - Spark Home, Mobile & Business
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
Voice revenue by type$m$m$m$m$m
Landline only8885827574
Calling10397819274
Other voice revenue88899
199190171176157
Local serviceH1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
Broadband connections (000)'s653659654654654
Landline only connections (000)'s232215200194191
Total connections (000)'s885874854848845

Spark New Zealand
Financial breakdown by business unit - Spark Digital
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
$m$m$m$m$m
Operating revenues
Voice112103999894
Broadband2219191918
Managed data7767696864
Mobile10793959798
IT services290294322334383
Other operating revenue32---
Internal revenue1421331
625599607619658
Operating expenses
Labour121106106104122
Other operating expenses291274304292341
Internal expenses2115454
433395414401467
EBITDA192204193218191
EBITDA margin30.7%34.1%31.8%35.2%29.0%
Analysis & KPI's - Spark Digital
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
Voice revenue by type$m$m$m$m$m
Landline only4541394037
Calling6460585756
Other voice revenue32211
112103999894
IT services revenue by type
Traditional IT services971009296104
Platform IT services728693105116
Procurement121108137133163
290294322334383
Local serviceH1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
Broadband connections (000)'s2121212121
Total connections (000)'s6967656258

Spark New Zealand
Financial breakdown by business unit - Spark Connect & Platforms
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
$m$m$m$m$m
Operating revenues
Voice11111
Mobile22223
Other operating revenue1916161718
2219192022
Operating expenses
Labour6864686365
Other operating expenses141128132116123
Internal expenses221--
211194201179188
Share of associates' and joint ventures' net profits-11--
EBITDA(189)(174)(181)(159)(166)
Analysis & KPI's - Spark Connect & Platforms
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
Voice revenue by type$m$m$m$m$m
Calling11111

Spark New Zealand
Financial breakdown by business unit - Spark Ventures & Wholesale
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
$m$m$m$m$m
Operating revenues
Voice167107666959
Managed data3331272421
Mobile66789
IT services31-1-
Other operating revenue156335
Internal revenue2423182118
248174121126112
Operating expenses
Labour96668
Other operating expenses13878484946
Internal expenses3211-
15086555654
Share of associates' and joint ventures' net losses-(4)(3)(2)(1)
EBITDA9884636857
EBITDA margin39.5%48.3%52.1%54.0%50.9%
Analysis & KPI's - Spark Ventures & Wholesale
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
Voice revenue by type$m$m$m$m$m
Landline only8851485144
Calling7351131411
Other voice revenue65544
167107666959
Local serviceH1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
Total connections (000)'s396382362341319
Landline only connections (000)'s
1
898276
1
Comparative information for periods prior to H1 FY16 is not available.

Spark New Zealand
Financial breakdown by business unit - Corporate
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
$m$m$m$m$m
Operating revenues and other gains
IT services12---
Other operating revenue3121264135
Other gains-32---
Internal revenue1510---
4765264135
Operating expenses
Labour1820161414
Other operating expenses3632262821
Internal expenses1017--1
6469424236
Share of associates' and joint ventures' net losses---(1)(1)
EBITDA(17)(4)(16)(2)(2)
Analysis & KPI's - Corporate
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
$m$m$m$m$m
Southern cross dividends3122264035

Spark New Zealand
Analysis & KPI's - Mobile (Spark Home, Mobile & Business and Spark Digital)
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
Mobile revenue
Service revenue - $m 361371384390387
Other mobile revenue - $m
1
135136170171189
496507554561576
Average revenue per user (ARPU) - 6 month active
ARPU - $ per month29.7728.6129.4728.7428.17
Pay-monthly - $ per month48.5646.9448.1747.1946.00
Prepaid - $ per month11.5711.3911.7211.8711.65
Number of mobile connections at period end - 6 month active
Pay-monthly (000)'s1,0181,0451,0691,0911,118
Prepaid (000)'s1,0921,1291,1391,1981,231
Internal connections (000)'s44444
Total mobile connections (000)'s
2
2,1142,1782,2122,2932,353
1
Other mobile revenue includes handset sales and mobile interconnect
2
Mobile connections exclude MVNO connections

Spark New Zealand
Group expenses
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
$m$m$m$m$m
Payments to telecommunications operators
Baseband and access charges205169162184170
Other intercarrier costs9773434847
Broadband cost of sales140114119120127
Field services1181087
453364334360351
Mobile acquisition, procurement and IT services
Mobile cost of sales204194229219222
IT services cost of sales164160184177215
368354413396437
Labour271247252245278
Other operating expenses
Direct network costs3118383131
Computer costs3739383640
Accommodation costs4844474550
Advertising, promotions and communication4632453241
Bad debts7611119
Impairment expense---92
Other100101887581
269240267239254
Total operating expenses1,3611,2051,2661,2401,320
Depreciation and amortisation expense
Depreciation126130126122122
Amortisation98999810093
224229224222215
Net finance expense
Finance income(14)(13)(9)(9)(8)
Finance expense2628222421
1215131513
Group FTE's
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
FTE permanent5,2974,7925,0235,2415,664
FTE contractors 321300301328279
Total FTE5,6185,0925,3245,5695,943

Spark New Zealand
Group capital expenditure
H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17
$m$m$m$m$m
Major programmes
Optical transport network (OTN) and Carrier Ethernet61021211
Re-engineering of IT systems29434224-
Mobile network5735581969
Takanini data centre61----
153881214580
Operating capital expenditure
Southern Cross capacity5-9413
Customer growth and retention918186116131
968195120144
Total major programmes and operating capital expenditure249169216165224
Mobile spectrum158--9-
Total capital expenditure407169216174224
Capital expenditure is presented on an accruals basis.