Spark pleads guilty to Com Com proceedings on two issues

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


MARKET RELEASE
6 November 2018

Spark New Zealand pleads guilty to Commerce Commission
proceedings on two operational and billing issues

Further to its market release dated 9 July 2018, Spark New Zealand has today
pleaded guilty to court proceedings brought by the New Zealand Commerce
Commission under the Fair Trading Act 1986 in relation to two separate historical
operational and billing issues:
• Incorrect implementation of a ‘welcome credit’ when joining Spark for some
fibre broadband customers during 2016; and
• A billing implementation issue relating to a 30-day notice period when
customers left Spark

A charge relating to a third issue (an equipment fault in 2015 that affected data
billing for a small percentage of customers) has been withdrawn by the Commerce
Commission.

These were all system-based errors caused by genuine mistakes with no malicious
intent involved on the part of Spark. In respect of all these issues, Spark has already
applied credits to the accounts of all impacted customers and has made extensive
efforts to return all amounts owed to former customers.

Penalties for the charges to which Spark has pleaded guilty will be determined in due
course. As previously notified, these proceedings are not expected to have a
significant effect on the financial position or profitability of Spark and as such there
is no change to Spark’s existing FY19 guidance.

- ENDS –
For media queries, please contact:
Andrew Pirie
Lead, Corporate Relations
+64 (0) 27 555 0275

For investor relations queries, please contact:
Dean Werder
Finance Lead Partner, Product and Performance
+64 (0) 27 259 7176