Spark announces exit of Spark Sport in second half of 2023

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








MARKET RELEASE - FRIDAY, 16 DECEMBER 2022


Spark announces exit of Spark Sport in the second
half of 2023 through content partnering agreement
with TVNZ

Spark today announced that it has concluded content partnering discussions and TVNZ will
become the home of the majority of Spark Sport content, subject to rights holder agreement,
from 1 July 2023. Agreement has already been reached with New Zealand Cricket, meaning
TVNZ will show and produce all BLACKCAPS, WHITE FERNS, and Super Smash matches,
which are run by New Zealand Cricket, for three years from the start of the 2023/24 cricket
season until the end of the 2025/26 season.

In making the decision to exit the sports streaming market, Spark noted escalating content
rights costs and a broader range of investment opportunities across its business as the key
drivers of the decision. The Spark Sport platform licenced from iStreamPlanet will also no
longer be made available for third party use in the second half of 2023, requiring Spark to
invest in a new platform and transition customers in order to continue operating the service.

Spark CEO Jolie Hodson said: “Since entering the sports streaming market in 2019, we have
delivered a wide range of high-quality sporting content to our customers across Aotearoa,
alongside our valued partners. With New Zealand Cricket we have successfully produced
three seasons of world class cricket matches in New Zealand, which has grown cricket
viewership, particularly among younger audiences, and increased the quality and quantity of
women’s cricket coverage – and we are proud of those shared achievements.

“At the same time it has been challenging to reach the scale we aspired to across the Spark
Sport platform, with Covid causing major disruption to sporting codes globally just a year
after launch. That slower than expected start, coupled with the escalating costs of content
rights globally, makes it difficult to justify the type of investment Spark Sport requires when
we have a wider range of investment opportunities across our broader business.

“We have been working with TVNZ as our free-to-air partner on cricket since we won the
rights, and this new partnership will deliver New Zealanders the largest volume of top tier
free-to-air sports content in the last 20 years, while allowing us to share costs as we exit the
sports streaming market.

“No new venture is without risk, and we recognise that this news will be disappointing for our
valued customers and partners, and dedicated Spark Sport team.

“We are communicating to our Spark Sport customers today to thank them for their support,
to explain the change, and to reassure them that they can continue to access Spark Sport as
they normally do until 1 July 2023.

“As the Spark Sport platform winds down we will also be working with our people to look for
redeployment opportunities across our broader business wherever possible. I would like to
recognise the team for the role they have played in introducing sports streaming to Aotearoa,
which is now globally recognised as the future of sports viewing, while making several codes
more accessible to view in New Zealand than ever before.”

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



Spark and TVNZ are now in the process of discussing the agreement with individual rights
holders and will confirm final details of the content that will transfer to TVNZ on 1 July 2023
in the new year.

Spark FY23 EBITDAI guidance remains unchanged

In August 2022 Spark confirmed FY23 EBITDAI guidance of $1,185 million to $1,225
million.

Since that time, Spark’s sale of 70% of its TowerCo business to the Ontario Teachers’
Pension Plan Board has completed, delivering net proceeds of $911 million and a gain on
sale of $586 million.

As a result of the Spark Sport changes outlined today, Spark will recognise a one-off
provision of $52 million in FY23, which includes ongoing obligations under content rights
agreements that extend to FY28. The resulting net gain of $534 million sits outside of FY23
EBITDAI guidance, which remains unchanged.


Authorised by:
Alastair White
GM Capital Markets


For more information contact

For media queries please contact:
Cassie Arauzo
Corporate Relations Lead Partner
(64) 21 0249 1562
cassie.arauzo@spark.co.nz

For investor queries please contact:
Alexa Preston
Finance Lead Partner – Group Performance &
Investor Relations
(64) 21 997 902
alexa.preston@spark.co.nz



About Spark

As New Zealand's largest telecommunications and digital services company, Spark’s purpose is
to help all of New Zealand win big in a digital world. Spark provides mobile, broadband, and
digital services to millions of New Zealanders and thousands of New Zealand businesses.
www.sparknz.co.nz