Spark New Zealand Limited H1 FY24 Results

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




MARKET RELEASE – Wednesday 28 February 2024

Spark announces first half results with new strategy delivering
adjusted revenue and EBITDAI growth


• Growth in adjusted
1
revenue and EBITDAI
2
underpinned by strong performance in mobile and
momentum in data centres and high-tech. On a reported basis revenue and EBITDAI declined as
Spark cycled the significant net profit declared in FY23 following the TowerCo and Spark Sport
transactions
• NPAT
3
decreased on an adjusted basis by 4.8% to $157 million
• H1 FY24 dividend of 13.5 cents per share declared, 100% imputed
• Reaffirmed FY24 EBITDAI, capital expenditure, and total dividend guidance

Spark New Zealand (Spark) today announced its H1 FY24 result, with adjusted revenue and EBITDAI
growth against the backdrop of a challenging economic environment.

Spark Chair Justine Smyth said, “The first half of FY24 was characterised by high inflation and cost of
living pressures, which flowed through to lower levels of consumer and business confidence. While
Spark’s products are largely resilient to economic downturns, they are not immune, and we saw weaker
demand in some areas of the business.
“Despite these challenges Spark continued to deliver top-line growth
1
and has made solid progress
implementing its new three-year strategy, with cornerstone digital infrastructure investments in data
centres and 5G Standalone progressing to plan. With the ongoing exponential growth in data,
businesses digitisation and cloud adoption, and the rapid uptake of generative AI, demand for data
centre capacity is accelerating, and Spark is well positioned to capture its share of this growing market.
“The Board is pleased to continue delivering returns to shareholders, with $305 million in TowerCo
proceeds returned to date through our on-market share buy-back and a first half dividend of 13.5 cents
per share declared, 100% imputed.”

H1 FY24 operating performance

Reported revenue declined 22% to $1,976 million, reported EBITDAI declined 49.1% to $530 million, and
reported NPAT declined 81.8% to $157 million, as Spark cycled the significant revenue and net profit
declared in FY23, following the TowerCo and Spark Sport transactions.

When adjusting for the one-off benefit in FY23, revenue increased 1.3% to $1,976 million, driven by
ongoing strength in mobile, momentum in data centres and high-tech, continued stabilisation in
broadband, and a return to growth in cloud.

When combined with strong cost control holding operating expenses broadly flat, adjusted EBITDAI grew
3.9% to $530 million. Adjusted NPAT

decreased 4.8% to $157 million, due to a higher interest cost on
debt and leases, with second half improvement expected in line with a stronger H2 EBITDAI
4
.


1
H1 FY23 EBITDAI is adjusted for the impact of the TowerCo gain on sale of $584 million included in revenue and the Spark Sport provision of $52 million
included in operating expenses, which resulted in a net EBITDAI impact of $532 million. NPAT is further adjusted for tax effect of the net gain on sale of the
TowerCo transaction and the Spark Sport provision totalling $168 million.
2
Earnings before finance income and expense, income tax, depreciation, amortisation, and net investment income (EBITDAI) and capital expenditure
(Capex) are non-Generally Accepted Accounting Principles (non-GAAP) performance measures that are defined in note 2.5 of Spark’s Annual Report
3
Net Profit After Tax
4
In line with FY24 guidance

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


Spark maintained its market leading position in mobile
5
, with mobile service revenue increasing 6.3% to
$510 million as the benefit of price increases flowed through and connection growth continued.

Broadband revenue remained broadly stable at $309 million, despite high levels of price competition in
an inflationary environment.

In digital services, Spark stabilised its IT market performance, while driving new growth in data centres
and high-tech solutions
6
.

Interventions to improve IT product performance delivered 3.8% growth in cloud revenue, with increased
private and public cloud workloads and the launch of a new hybrid cloud service, CloudIQ. Cloud gross
margin grew 7.6% as the cost base was reset, with benefits to continue flowing through in the second
half. Overall IT revenues held flat at $345 million, impacted by a slowdown in service management,
primarily driven by lower public sector demand.

Spark’s 10MW expansion of its Takanini data centre completed in August 2023, with revenue coming
online during the half and driving a revenue increase of 38.5% to $18 million. Spark has a strategic
ambition to establish three large-scale data centre campuses in Auckland, supported by a network of
regional data centres across the country. In line with this objective, Spark has reached conditional
agreement to purchase land within a new development on Auckland’s North Shore, where it intends to
develop an initial 10MW hyperscale data centre campus, with the option for further expansion.

High-tech revenues
7
grew 12.9% to $35 million, driven by significant growth in IoT connections. Digital
health revenues reduced 8.7% to $42 million, as public sector activity remains subdued.

Commenting on the half-year results, Spark CEO Jolie Hodson said, “Mobile remains central to our
growth, with service revenues up over 6% and Spark capturing 47% of total mobile connection growth in
the half
8
. We have maintained broadband revenues and margin despite high levels of price competition
in an inflationary environment, and now have 31% of our customer base on wireless. We have also
returned cloud to growth through the successful launch of our new hybrid cloud proposition CloudIQ, with
margin benefits flowing through from our cost base reset.

“In an inflationary environment we must remain focussed on disciplined cost control, and as we
implement our new strategy we are creating a more efficient, low-cost operating model to ensure we can
continue to invest in our growth ambitions.

“Our digital infrastructure investments into data centres and 5G Standalone are progressing at pace.
These investments underpin ongoing strength in our core business and new high-tech commercialisation
opportunities that will build our growth engines of the future.

“We completed a 10MW expansion at our Takanini data centre site and we are now planning to invest in
a new hyperscale data centre campus on Auckland’s North Shore, as demand for capacity continues to
grow. High-tech revenues increased off the back of strong IoT connection growth, with our IoT networks
now supporting over 1.8 million connections.

“I am particularly pleased that our business fundamentals remain healthy and growing – with customer
satisfaction up five points, people engagement up three percentage points, and Spark maintaining its
position in the Dow Jones Sustainability Australia Index. As always, I would like to recognise our Spark
whānau for all their hard work and continued commitment to supporting our customers and our business
ambitions.”

FY24 guidance

Spark remains committed to delivering its FY24 guidance, subject to no material adverse change in
operating outlook:

5
Market share estimates sourced from IDC as at 31 December 2023
6
H1 FY23 reported NPAT is restated for the final tax calculation on the sale of Connexa Limited as described in Note 2 of the Interim Financial Statements
7
Excluding health
8
Market share estimates sourced from IDC as at 31 December 2023

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


• EBITDAI: $1,215 million -$1,260 million
• Capital expenditure: ~$510-$530 million
• Total dividend per share: 27.5 cents per share, 100% imputed

Authorised by:

Chante Mueller
Head of Investor Relations & Insurance


For more information contact:

For media queries please contact:
Althea Lovell
Corporate Relations Lead Partner
(64) 21 222 2992
althea.lovell@spark.co.nz

For investor queries please contact:
Chante Mueller
Head of Investor Relations & Insurance
(64) 27 469 3062
chante.mueller@spark.co.nz

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)





Results for announcement to the market
Name of issuer Spark New Zealand Limited
Reporting Period 6 months to 31 December 2023
Previous Reporting Period 6 months to 31 December 2022
Currency NZD - New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
NZD$1,976,000 (22.0%)
Total Revenue NZD$1,976,000 (22.0%)
Net profit/(loss) from
continuing operations
NZD$157,000 (81.8%)
Total net profit/(loss) NZD$157,000 (81.8%)
Interim/Final Dividend
Amount per Quoted Equity
Security
NZD$0.13500000 (comprised only of an ordinary dividend)
Imputed amount per Quoted
Equity Security
NZD$0.05250000
Record Date 22 March 2024
Dividend Payment Date 5 April 2024
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
As at 31 December 2023:
NZD$0.44
As at 31 December 2022:
NZD$0.67
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Movements from the prior period are compared to restated
amounts for H1 FY23 which have been adjusted for the final tax
impact of the net gain on sale of Connexa Limited.
Changes in Spark’s earnings before finance income and
expense, income tax, depreciation, amortisation and net
investment income (EBITDAI) are provided in the addendum.
Authority for this announcement
Name of person authorised
to make this announcement
Stefan Knight, Finance Director (CFO)
Contact person for this
announcement
Chante Mueller, Head of Investor Relations & Insurance
Contact phone number +64 (0) 27 469 3062
Contact email address investor-info@spark.co.nz
Date of release through MAP 28 February 2024

Unaudited financial statements accompany this announcement.

Addendum:

Amount (000s)
Percentage
change
Reported earnings before finance income and expense,
income tax, depreciation, amortisation and net investment
income (Reported EBITDAI)
NZD$530,000 (49.1%)
Adjusted
1
earnings before finance income and expense,
income tax, depreciation, amortisation and net investment
income (Adjusted EBITDAI)
NZD$530,000 3.9%

1
Adjusted earnings before finance income and expense, income tax, depreciation, amortisation
and net investment income (EBITDAI) excludes the impact of the net gain on sale of Connexa
Limited of $584 million and the one-off provision of $52 million for Spark Sport. EBITDAI and
Adjusted EBITDAI are non-GAAP measures which are defined and reconciled in note 4 of
Spark’s interim financial statements.

---

Distribution Notice







Section 1: Issuer information
Name of issuer Spark New Zealand Limited
Financial product name/description Ordinary shares
NZX ticker code SPK
ISIN (If unknown, check on NZX
website)
NZ TELE0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies No
Record date 22 March 2024

Ex-Date (one business day before the
Record Date)
21 March 2024

Payment date (and allotment date for
DRP)
5 April 2024 AUST & NZ;
15 April 2024 USA
Total monies associated with the
distribution
NZD$244,910,990
(1,814,155,480 shares @ $0.135 per share)
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD – New Zealand Dollar
Section 2: Distribution amounts per financial product
Gross distribution NZD$0.18750000
Gross taxable amount NZD$0.18750000
Total cash distribution NZD$0.13500000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount NZD$0.02382353
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed

Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
NZD$0.05250000

Resident Withholding Tax per
financial product
NZD$0.00937500
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A

N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person authorised to make
this announcement
Stefan Knight, Finance Director (CFO)
Contact person for this
announcement
Chante Mueller, Head of Investor Relations & Insurance
Contact phone number +64 (0) 27 469 3062
Contact email address investor-info@spark.co.nz
Date of release through MAP 28 February 2024

---

FY2024
INTERIM
FINANCIAL
S TATEMENTS

Interim financial
statements
For the six months ended 31 December 2023
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 2023.
Interim financial statements3
Notes to the interim financial statements7
Independent auditor’s review report18
Page 02
Spark New ZealandInterim financial statements

Statement of profit or loss and other comprehensive income
SIX MONTHS ENDED 31 DECEMBER
2023
RESTATED
1
2022
UNAUDITEDUNAUDITED
NOTES$M$M
Operating revenues and other gains
2
1,976 2,534
Operating expenses
2
(1,446) (1,492)
Earnings before finance income and expense, income tax,
depreciation, amortisation and net investment income (EBITDAI)4 530 1,042
Finance income 14 16
Finance expense (63) (43)
Depreciation and amortisation (251) (248)
Net investment income (3) (1)
Net earnings before income tax3 227 766
Tax (expense)/income
2
(70) 99
Net earnings for the period4 157 865
Other comprehensive income
Items that will not be reclassified to profit or loss:
Revaluation of long-term investments designated at fair value
through other comprehensive income5 (12) (26)
Items that may be reclassified to profit or loss:
Translation of foreign operations (1) (1)
Change in hedge reserves net of tax (13) 5
Other comprehensive income for the period (26) (22)
Total comprehensive income for the period 131 843
Earnings per share
Basic earnings per share (cents) 8.6 46.2
Diluted earnings per share (cents) 8.5 46.1
Weighted average ordinary shares (millions) 1,835 1,872
Weighted average ordinary shares and options (millions) 1,838 1,875
See accompanying notes to the interim financial statements.
1 Restated for the final tax impact of the net gain on sale of Connexa, see note 2 for further details.
2 These comparative items were materially impacted by the Connexa transaction and the Spark Sport provision, see note 4
for further details.
Page 03
Spark New ZealandInterim financial statements

Statement of financial position
AS AT
31 DECEMBER
AS AT
30 JUNE
20232023
UNAUDITEDAUDITED
NOTES$M$M
Current assets
Cash 99 100
Short-term receivables and prepayments 884 899
Short-term derivative assets – 1
Inventories 107 79
Taxation recoverable 8 –
Total current assets 1,098 1,079
Non-current assets
Long-term receivables and prepayments 521 432
Long-term derivative assets 12 27
Long-term investments5 232 254
Deferred tax assets 58 55
Right-of-use assets 511 488
Leased customer equipment assets 72 77
Property, plant and equipment 1,319 1,264
Intangible assets 876 806
Total non-current assets 3,601 3,403
Total assets 4,699 4,482
Current liabilities
Short-term payables, accruals and provisions 487 507
Taxation payable – 25
Short-term derivative liabilities 4 4
Short-term lease liabilities 87 78
Debt due within one year6 518 236
Total current liabilities 1,096 850
Non-current liabilities
Long-term payables, accruals and provisions 76 82
Long-term derivative liabilities 75 94
Long-term lease liabilities 715 700
Long-term debt6 1,069 816
Total non-current liabilities 1,935 1,692
Total liabilities 3,031 2,542
Equity
Share capital 810 965
Reserves (422) (396)
Retained earnings 1,280 1,371
Total equity 1,668 1,940
Total liabilities and equity 4,699 4,482
See accompanying notes to the interim financial statements.
On behalf of the Board
Justine Smyth, CNZM Jolie Hodson,
Chair Chief Executive
Authorised for issue on 28 February 2024
Page 04
Spark New ZealandInterim financial statements

Statement of changes in equity
SIX MONTHS ENDED
31 DECEMBER 2023
SHARE
CAPITAL
RETAINED
EARNINGS
HEDGE
RESERVES
SHARE-

BASED
COMPEN-
SATION

RESERVE
RE-

VALUATION
RESERVE
FOREIGN
CURRENCY
TRANS-

LATION
RESERVETOTAL
UNAUDITED$M$M$M$M$M$M$M
Balance at 1 July 2023 965 1,371 11 2 (387) (22) 1,940
Net earnings for the period – 157 – – – – 157
Other comprehensive income for the
period – – (13) – (12) (1) (26)
Total comprehensive income for the
period – 157 (13) – (12) (1) 131
Contributions by, and distributions to,
owners:
Dividends – (249) – – – – (249)
Supplementary dividends – (25) – – – – (25)
Tax credit on supplementary
dividends – 25 – – – – 25
Share buy-back (159) – – – – – (159)
Issuance of shares under share
schemes 4 – – 1 – – 5
Other transfers – 1 – (1) – – –
Total transactions with owners for
the period (155) (248) – – – – (403)
Balance at 31 December 2023 810 1,280 (2) 2 (399) (23) 1,668
SIX MONTHS ENDED
31 DECEMBER 2022 RESTATED
1
SHARE
CAPITAL
RETAINED
EARNINGS
HEDGE
RESERVES
SHARE-
BASED
COMPEN-
SATION
RESERVE
RE-
VALUATION
RESERVE
FOREIGN
CURRENCY
TRANS-
LATION
RESERVETOTAL
UNAUDITED$M$M$M$M$M$M$M
Balance at 1 July 2022 1,105 722 8 5 (343) (22) 1,475
Net earnings for the period – 865 – – – – 865
Other comprehensive income for the
period – – 5 – (26) (1) (22)
Total comprehensive income for the
period – 865 5 – (26) (1) 843
Contributions by, and distributions to,
owners:
Dividends – (234) – – – – (234)
Supplementary dividends – (24) – – – – (24)
Tax credit on supplementary
dividends – 24 – – – – 24
Issuance of shares under share
schemes 3 – – (1) – – 2
Other transfers 3 – – – – – 3
Total transactions with owners for
the period 6 (234) – (1) – – (229)
Balance at 31 December 2022 1,111 1,353 13 4 (369) (23) 2,089
1 Restated for the final tax impact of the net gain on sale of Connexa, see note 2 for further details.
Page 05
Spark New ZealandInterim financial statements

Statement of cash flows
SIX MONTHS ENDED 31 DECEMBER
20232022
UNAUDITEDUNAUDITED
NOTE$M$M
Cash flows from operating activities
Receipts from customers 1,972 1,975
Receipts from interest 13 16
Payments to suppliers and employees (1,519) (1,460)
Payments for income tax (101) (120)
Payments for interest on debt (31) (23)
Payments for interest on leases (23) (15)
Payments for interest on leased customer equipment assets (4) (4)
Net cash flows from operating activities7 307 369
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 14 1
Proceeds from sale of business – 894
Receipts from finance leases 1 1
Payments for purchase of business, net of cash acquired (2) –
Receipts from loans receivable 10 –
Payments for, and advances to, long-term investments (1) (2)
Payments for purchase of property, plant and equipment,
intangibles (excluding spectrum), and capacity (347) (246)
Payments for capitalised interest (6) (5)
Net cash flows from investing activities (331) 643
Cash flows from financing activities
Net proceeds from/(repayments of) debt 489 (517)
Payments for dividends (249) (234)
Payments for share buy-back (159) –
Payments for leases (38) (31)
Payments for leased customer equipment assets (20) (15)
Net cash flows from financing activities 23 (797)
Net cash flow (1) 215
Opening cash position 100 71
Closing cash position 99 286
See accompanying notes to the interim financial statements.
Page 06
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Note 1 About this report
Reporting entity
These unaudited interim financial statements are
for Spark New Zealand Limited (the Company)
and its subsidiaries (together Spark or ‘the
Group’) for the six months ended 31 December
2023.
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 Stock
Exchange (NZX) and the Australian Securities
Exchange (ASX).
Basis of preparation
The interim financial statements have been
prepared in accordance with Generally
Accepted Accounting Practice in New Zealand
(NZ GAAP). They comply with the New Zealand
equivalent to International Accounting Standard
34: Interim Financial Reporting and International
Accounting Standard 34: Interim Financial
Reporting, as appropriate for profit-oriented
entities.
The accounting policies adopted are consistent
with those followed in the preparation of Spark’s
annual financial statements for the year ended
30 June 2023. The preparation of the interim
financial statements requires management to
make estimates and assumptions. Spark has
been consistent in applying the estimates and
assumptions adopted in the annual financial
statements for the year ended 30 June 2023.
Certain comparative information has been
updated to conform with the current year’s
presentation.
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 relate to
long-term debt. There were no changes in
valuation techniques during the period. Spark’s
derivatives are held at fair value, calculated
using discounted cash flow models and
observable market rates of interest and foreign
exchange. This represents a Level 2
measurement under the fair value measurement
hierarchy, being inputs other than quoted prices
included within Level 1 that are observable for
the asset or liability. The fair value of receivables
and prepayments are approximately equal to
their carrying value.
As at 31 December 2023, capital expenditure
amounting to $461 million (31 December 2022:
$466 million) had been committed under
contractual arrangements.
Page 07
Spark New ZealandInterim 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 Spark for the six month period to 31
December 2023 or subsequent to balance date:
Share buy-back
• On 6 April 2023, Spark commenced an
on-market share buy-back. The shares are
being acquired on the NZX and ASX, at prices
that are in line with the prevailing market
price from time to time during the period of
the buy-back. Spark reserves the right to vary,
suspend without notice, or terminate the
buy-back programme at any time. As at
31 December 2023, 60 million shares with a
value of $305 million had been repurchased
and cancelled under the scheme, which is
87% of the way through the previously
committed programme. In the six months
ended 31 December 2023, 32 million shares
with a value of $159 million were
repurchased.
Debt programme (see note 6)
• On 27 October 2023, Spark extended the
term of its $200 million committed revolving
sustainability-linked loan facility with Westpac
New Zealand Limited by three years, to
mature on 30 November 2026.
Capital expenditure
• Spark’s additions to property, plant and
equipment, intangible assets (excluding
spectrum) and capacity right–of–use assets
were $286 million, details of which are
available in a separate detailed financials file
on the investor section of Spark’s website at:
investors.sparknz.co.nz/investor-centre.
Dividends
• Dividends paid during the six month period
ended 31 December 2023 in relation to the
H2 FY23 second-half ordinary dividend of
13.5 cents per share totalled $249 million.
Comparative tax income restatement
– Final tax impact of the net gain on sale
of Connexa
• During H1 FY23 Spark sold its subsidiary
Connexa Limited (Connexa) and recognised a
net gain of $584 million at 31 December
2022. For H1 FY23, a $126 million reduction
to tax expense was recognised due to the
difference between the right–of–use assets
and lease liabilities recognised at the date of
the transaction. At 30 June 2023, when the
final tax calculation was performed, it was also
identified that a tax adjustment was required
for the impact of the disposal of assets of
$94 million and unearned revenue of
$5 million. At a tax rate of 28% this resulted in
a total increase to tax income of $28 million.
The comparative results at 31 December 2022
have been restated for this, which has
increased tax income from $71 million to
$99 million. The corresponding entry was
primarily to taxation payable as at
31 December 2022. There is no impact on the
30 June 2023 reported result.
Page 08
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Note 3 Segment information
The segment results disclosed are based on those reported to the Chief Executive and are how
Spark reviews its performance. Spark’s segments are measured based on product margin, which
includes product operating revenues and direct product costs. The segment results exclude other
gains, labour, other operating expenses, finance income and expense, depreciation and
amortisation, net investment income and income tax expense, as these are assessed at an overall
Group level by the Chief Executive.
Comparative segment results
Spark has reclassified the comparative segment results to:
• Redistribute certain revenues between two new categories IT products (previously cloud,
collaboration, managed data and networks) and IT services (previously service management and
security
• Move Qrious, Internet of Things, and MATTR from other products into a new high-tech category
• Split data centres out from cloud, and split co-location out from other products to create a
combined data centres category.
There is no change to the overall Spark reported result because of these changes.
SIX MONTHS ENDED 31 DECEMBER
20232022
OPERATING
REVENUES
PRODUCT
COSTS
PRODUCT
MARGIN
OPERATING
REVENUES
PRODUCT
COSTS
PRODUCT
MARGIN
UNAUDITED$M$M$M$M$M$M
Mobile 749 (253) 496 732 (255) 477
Procurement and partners 339 (315) 24 319 (292) 27
Broadband 309 (161) 148 313 (164) 149
IT products 261 (122) 139 254 (118) 136
Voice 94 (43) 51 122 (51) 71
IT services 84 (14) 70 91 (14) 77
High-tech (excl. health
1
) 35 (13) 22 31 (8) 23
Data centres 18 (1) 17 13 (1) 12
Other products
2
68 (22) 46 71 (46) 25
Segment results 1,957 (944) 1,013 1,946 (949) 997
1 Health results are included across a range of product categories above.
2 Other products includes mobile infrastructure, exchange building sharing arrangements and Spark Sport (in H1 FY23).
Page 09
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Note 3 Segment information (continued)
Reconciliation from segment product margin to consolidated net earnings before
income tax
SIX MONTHS ENDED 31 DECEMBER20232022
UNAUDITED$M$M
Segment product margin 1,013 997
Other gains
Net gain on sale of Connexa – 584
Gain on sale and acquisition of property, plant and equipment and
intangibles 17 –
Gain on lease modifications and terminations 2 4
Labour (279) (269)
Other operating expenses
Network support costs (40) (45)
Computer costs (52) (57)
Accommodation costs (48) (40)
Advertising, promotions and communication (33) (33)
Bad debts (7) (4)
Spark Sport provision – (52)
Other (43) (43)
Earnings before finance income and expense, income tax, depreciation,
amortisation and net investment income (EBITDAI) 530 1,042
Finance income
Finance lease interest income 4 4
Other interest income 10 12
Finance expense
Finance expense on long-term debt (33) (22)
Other interest and finance expenses (8) (7)
Lease interest expense (24) (15)
Leased customer equipment interest expense (4) (4)
Capitalised interest 6 5
Depreciation and amortisation expense
Depreciation – property, plant and equipment (112) (114)
Depreciation – right-of-use assets (42) (36)
Depreciation – leased customer equipment assets (17) (19)
Amortisation – intangible assets (80) (79)
Net investment income
Share of associates' and joint ventures' net losses (8) (3)
Interest income on loans receivable from associates and joint ventures 6 2
Net loss on remeasurement of equity accounted investments (1) –
Net earnings before income tax 227 766
Page 10
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Note 4 Non-GAAP measures
Spark uses non-GAAP financial measures that are not prepared in accordance with NZ IFRS. 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 products, 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, as they are not uniformly defined or utilised by all companies in New Zealand or the
telecommunications industry.
Earnings before finance income and expense, income tax, depreciation, amortisation
and net investment income (EBITDAI)
Spark calculates EBITDAI by adding back finance expense, depreciation and amortisation and
income tax expense and subtracting finance income and net investment income (which includes
Spark’s share of net profits or losses from associates and joint ventures, interest income on loans
receivable from associates and joint ventures, net gain on remeasurement of equity accounted
investments and dividend income) to net earnings. A reconciliation of Spark’s EBITDAI and adjusted
EBITDAI is provided below and based on amounts taken from, and consistent with, those presented
in these interim financial statements.
SIX MONTHS ENDED 31 DECEMBER2023
RESTATED
2022
UNAUDITED$M$M
Net earnings for the period reported under NZ IFRS 157 865
Less: finance income (14) (16)
Add back: finance expense 63 43
Add back: depreciation and amortisation 251 248
Less: net investment income 3 1
Add back: tax expense/(income) 70 (99)
EBITDAI 530 1,042
Page 11
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Adjusted EBITDAI and adjusted net earnings
Spark’s policy is to present ‘adjusted EBITDAI’ and ‘adjusted net earnings’ when a financial year
includes significant items (such as gains, expenses and impairments) individually greater than
$25 million. In the six months ended 31 December 2023 there were no adjusting items. In the six
months ended 31 December 2022, the net gain on sale of Connexa of $584 million and the one off
provision of $52 million for Spark Sport were deemed significant items to adjust.
SIX MONTHS ENDED 31 DECEMBER20232022
UNAUDITED$M$M
EBITDAI 530 1,042
Less: net gain on sale of Connexa – (584)
Add: Spark Sport provision– 52
Adjusted EBITDAI 530 510
SIX MONTHS ENDED 31 DECEMBER2023
RESTATED
2022
UNAUDITED$M$M
Net earnings for the period reported under NZ IFRS 157 865
Less: net gain on sale of Connexa – (584)
Add: Spark Sport provision – 52
Less: tax effect of net gain on sale of Connexa and Spark Sport provision – (168)
Adjusted net earnings 157 165
Note 4 Non-GAAP measures (continued)
Page 12
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Note 5 Long-term investments
AS AT
31 DECEMBER
AS AT
30 JUNE
20232023
UNAUDITEDAUDITED
Measurement basis$M$M
Shares in HutchisonFair value through other
comprehensive income 49 61
Investment in associates and
joint ventures
Equity method
177 187
Other long-term investmentsCost 6 6
232 254
Spark holds a 10% interest in Hutchison Telecommunications Australia Limited (Hutchison) which is
quoted on the ASX and its fair value is measured using the observable bid share price as quoted on
the ASX, classified as being within Level 1 of the fair value hierarchy. As at 31 December 2023 the
quoted price of Hutchison’s shares on the ASX was AU$0.034 (30 June 2023: AU$0.042). The
decrease in fair value of $12 million is recognised in other comprehensive income (31 December
2022: $26 million decrease).
Included within investment in associates and joint ventures is $78 million for Spark’s investment in
the Connexa group.
Investment in associates and joint ventures
Spark’s investment in associates and joint ventures at 31 December 2023 consists of the following:
NAMETYPECOUNTRYOWNERSHIPPRINCIPAL ACTIVITY
Flok LimitedAssociate New Zealand38%Hardware and software
development
FrodoCo Holdings LimitedAssociate New Zealand17%A holding company for
Connexa
Hourua LimitedJoint VentureNew Zealand50%Delivering the Public
Safety Network
Pacific Carriage Holdings
Limited, Inc.
AssociateUnited States41%A holding company
Rural Connectivity Group LimitedJoint VentureNew Zealand33%Rural broadband
Southern Cross Cables
Holdings Limited
AssociateBermuda41%A holding company
TNAS LimitedJoint VentureNew Zealand50%Telecommunications
development
On 19 October 2023, Spark increased its holding in its investment in associate, Adroit Holdings
Limited, an environmental IoT solutions company, from 47% to 100% making it a wholly owned
subsidiary.
Page 13
Spark New ZealandInterim financial statementsInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Note 6 Debt
AS AT
31 DECEMBER
AS AT
30 JUNE
20232023
COUPON
RATE
UNAUDITEDAUDITED
FACE VALUEFACILITYMATURITY$M$M
Short-term debt
Short-term borrowingsVariable< 1 month 30 –
Commercial paperVariable< 4 months 247 90
277 90
Supplier financing arrangements
1
Amounts due within one yearVariable< 31/10/2027 17 9
Amounts due in more than a
yearVariable< 31/10/2027 9 –
26 9
Bank funding
Commonwealth Bank of
Australia
2
100 million NZDVariable30/11/2024 100 100
MUFG Bank, Ltd.
2
125 million NZDVariable30/11/2025 125 –
Westpac New Zealand Limited
2
200 million NZDVariable30/11/2026 200 15
425 115
Domestic notes
125 million NZD3.37%07/03/2024 124 122
125 million NZD3.94%07/09/2026 119 116
100 million NZD
3
4.37%29/09/2028 100 100
343 338
Foreign currency Medium Term Notes
Australian Medium Term Notes - 100 million AUD1.90%05/06/2026 99 97
Australian Medium Term Notes - 150 million AUD4.00%20/10/2027 156 154
Australian Medium Term Notes – 125 million AUD2.60%18/03/2030 115 112
Norwegian Medium Term Notes - 1 billion NOK
4
3.07%19/03/2029 146 137
516 500
1,587 1,052
Debt due within one year 518 236
Long-term debt 1,069 816
1 With respect to arrangements with outstanding liabilities at 31 December 2023, including those entered into in prior years,
financing providers have paid suppliers a total of $59 million and Spark has made payments against these arrangements
of $33 million, resulting in a closing liability of $26 million as at 31 December 2023 (30 June 2023: financers have paid
suppliers $30 million, payments of $21 million have been made by Spark, resulting in a closing liability of $9 million).
Amounts paid under these arrangements are presented in the statement of cash flows within financing activities.
2 These facilities are Sustainability-Linked Loans. Spark will receive lower interest rates if it achieves sustainability targets or
pay higher rates on the loans if it falls short of these targets.
3 This bond is a Sustainability-Linked Bond. The bond includes an interest rate step up if Spark fails to meet its sustainability
target as at 30 June 2026.
4 Norwegian krone.
Page 14
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Note 6 Debt (continued)
There have been no changes in Spark’s short-term financing programmes or stand-by facilities since
30 June 2023. Changes in long-term financing are disclosed in note 2 of these interim financial
statements.
The fair value of long-term debt, including long-term debt due within one year, based on market
observable prices, was $1,327 million compared to a carrying value of $1,310 million as at
31 December 2023 (30 June 2023: fair value of $973 million compared to a carrying value of
$962 million).
AS AT
31 DECEMBER
AS AT
30 JUNE
20232023
UNAUDITEDAUDITED
$M$M
Total debt 1,587 1,052
Less: short-term debt (277) (90)
Total long-term debt (including long-term debt due within one year) 1,310 962
Net debt
Net debt at hedged rates, the primary net debt measure Spark monitors, includes long-term debt at
the value of hedged cash flows due to arise on maturity, plus short-term debt, less any cash. Net
debt at carrying value includes the non-cash impact of fair value hedge adjustments and any
unamortised discount.
Net debt at hedged rates is a non-GAAP measure and is not defined in accordance with NZ IFRS but
is a measure used by management. A reconciliation of net debt at hedged rates and net debt at
carrying value is provided below:
AS AT
31 DECEMBER
AS AT
30 JUNE
20232023
UNAUDITEDAUDITED
$M$M
Cash (99) (100)
Short-term debt at face value 280 90
Long-term debt at face value 1,361 1,035
Net debt at face value 1,542 1,025
To retranslate debt balances at swap rates where hedged by currency swaps 15 14
Net debt at hedged rates
1
1,557 1,039
Non-cash adjustments
Impact of fair value hedge adjustments
2
10 11
Unamortised discount (3) (1)
Net debt at carrying value 1,564 1,049
1 Net debt at hedged rates is the value of hedged cash flows due to arise on maturity and includes an adjustment to state
the principal of foreign currency medium term notes at the hedged currency rate.
2 Fair value hedge adjustments arise on domestic notes in fair value hedges and foreign currency medium term notes in
dual fair value and cash flow hedges. These have no impact on the cash flows to arise on maturity.
Page 15
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Note 7 Reconciliation of net earnings to net cash flows from operating
activities
SIX MONTHS ENDED 31 DECEMBER2023
RESTATED
2022
UNAUDITED$M$M
Net earnings for the period 157 865
Adjustments to reconcile net earnings to net cash flows from operating
activities
Depreciation and amortisation 251 248
Bad and doubtful accounts 8 5
Deferred income tax
1
2 (173)
Share of associates' and joint ventures' net losses 8 3
Interest income on loans receivable from associates and joint ventures (6) (2)
Net loss on remeasurement of equity accounted investments 1 –
Gain on sale and acquisition of property, plant and equipment and
intangibles (17) –
Gain on lease modifications and terminations (2) (4)
Net gain on sale of Connexa – (584)
Other 4 (2)
Spark Sport provision – 52
Changes in assets and liabilities net of effects of non-cash and investing
and financing activities
Movement in receivables and related items (50) (4)
Movement in inventories (26) (1)
Movement in current taxation (33) (46)
Movement in payables and related items 10 12
Net cash flows from operating activities 307 369
1 The comparative primarily relates to the net gain on sale of Connexa.
Page 16
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Note 8 Dividends
On 27 February 2024, the Board approved the payment of a first-half ordinary dividend of 13.5 cents
per share or approximately $245 million. The dividend will be 100% imputed. In addition,
supplementary dividends totalling approximately $25 million will be payable to shareholders who
are not resident in New Zealand. In accordance with the Income Tax Act 2007, Spark will receive a tax
credit from Inland Revenue equivalent to the amount of supplementary dividends paid.
H1 FY24
ORDINARY DIVIDENDS
Dividends declared
Ordinary shares13.5 cents
American Depositary Shares
1
42.59 US cents
Imputation
Percentage imputed100%
Imputation credits per share5.2500 cents
Supplementary dividend per share
2
2.3824 cents
‘Ex’ dividend dates
New Zealand Stock Exchange21/03/24
Australian Securities Exchange21/03/24
American Depositary Shares 21/03/24
Record dates
New Zealand Stock Exchange22/03/24
Australian Securities Exchange22/03/24
American Depositary Shares 22/03/24
Payment dates
New Zealand and Australia 5/04/24
American Depositary Shares 15/04/24
1 Spark’s American Depositary Shares, each representing five ordinary Spark shares and evidenced by American Depositary
Receipts (ADRs), are traded over-the-counter in the United States. This is a Level 1 ADR programme that is sponsored by
Bank of New York Mellon. For H1 FY24, these are based on the exchange rate at 23 February 2024 of NZ$1 to US$0.6195
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 17
Spark New ZealandInterim financial statements

Independent Auditor’s Review Report
to The Shareholders of Spark New Zealand Limited
Conclusion
We have reviewed the condensed consolidated interim financial statements (‘interim financial
statements’) of Spark New Zealand Limited (‘the Company’) and its subsidiaries (‘the Group’) on
pages 3 to 17 which comprise the statement of financial position as at 31 December 2023, and, the
statement of profit or loss and other comprehensive income, statement of changes in equity and
statement of cash flows for the six months ended on that date, and notes to the interim financial
statements, including material accounting policy information.
Based on our review, nothing has come to our attention that causes us to believe that the interim
financial statements of the Group do not present fairly, in all material respects, the financial position
of the Group as at 31 December 2023 and its financial performance and cash flows for the six
months ended on that date in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34
Interim Financial Reporting.
Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements
Performed by the Independent Auditor of the Entity (‘NZ SRE 2410 (Revised)’). Our responsibilities
are further described in the Auditor’s Responsibilities for the Review of the Interim Financial
Statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in
New Zealand relating to the audit of the annual financial statements, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
Our firm carries out other assignments for Spark New Zealand Limited in relation to the regulatory
audit, other assurance related services (such as trustee reporting), compliance services and non-
assurance services provided to the Corporate Taxpayer Group. These services have not impaired our
independence as auditor of the Group. In addition to this, the Chief Executive has both a sister and
brother-in-law that are partners at Deloitte. These Deloitte partners are not involved in the provision
of any services to the Company and its subsidiaries and this matter has not impacted our
independence. Also, partners and employees of our firm deal with Group on normal terms within the
ordinary course of trading activities of the business of the Group. The firm has no other relationship
with, or interest in the Group.
Directors’ responsibilities for the interim financial statements
The directors are responsible on behalf of the Company for the preparation and fair presentation of
the interim financial statements in accordance with NZ IAS 34 Interim Financial Reporting and
IAS 34 Interim Financial Reporting and for such internal control as the directors determine is
necessary to enable the preparation and fair presentation of the interim financial statements that are
free from material misstatement, whether due to fraud or error.
Page 18
Spark New ZealandInterim financial statements

Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements, taken as a whole, are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim
Financial Reporting.
A review of the interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform 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) and consequently do not enable us to obtain assurance that we might identify in an
audit. Accordingly, we do not express an audit opinion on the interim financial statements.
Restriction on use
This report is made solely to the Company’s shareholders, as a body. Our review has been
undertaken so that we might state to the Company’s shareholders those matters we are required to
state to them in a 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 engagement, for this report, or for the conclusions we have formed.
Jason Stachurski, Partner
for Deloitte Limited
Auckland, New Zealand
28 February 2024
Page 19
Spark New ZealandInterim financial statements

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
Company secretary
Paige Howard-Smith
New Zealand registry
Link Market Services Limited
Level 30, PWC Tower
15 Customs Street West
Auckland 1142
PO Box 91976
Auckland 1142
Ph +64 9 375 5998 (investor enquiries)
enquiries@linkmarketservices.com
www.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 1300 554 484 (investor enquiries)
Fax +61 2 9287 0303
registrars@linkmarketservices.com.au
www.linkmarketservices.com.au
Spark New Zealand Limited
ARBN 050 611 277
United States registry
Computershare Investor Services
P.O. Box 505000
Louisville, KY 40233-5000
United States of America
Ph +1 888 BNY ADRS (+1 888 269 2377)
or +1 201 680 6825 (from outside the
United States)
shrrelations@cpushareownerservices.com
www.mybnymdr.com
For more information
For inquiries about Spark’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
insight
creative.co.nz
SPARK077 02/24
Page 20
Spark New ZealandInterim financial statements

investors.sparknz.co.nz
ARBN 050 611 277

---

PAGE
2
Spark New Zealand | Copyright ©
2024
$530m
3.9% increase vs. adjusted H1 FY23
ADJUSTED EBITDAI
(2)(3)
$46m
60% decrease vs. H1 FY23
FREE CASH FLOW
$157m
4.8% decrease vs. adjusted H1 FY23
ADJUSTED NPAT
(2)(4)
13.5c
H1 FY24 dividend
TOTAL FY24 DIVIDEND OF 27.5cps
H1 FY24 Financial Snapshot
$1,976m
1.3% increase vs. adjusted H1 FY23
ADJUSTED REVENUE
(1)(2)
$286m
14.4% increase vs. H1 FY23
CAPEX
(3)
$530m
49.1% decrease vs. reported H1 FY23
REPORTED EBITDAI
(3)
$157m
81.8% decrease vs. reported H1 FY23
REPORTED NPAT
(4)
SPK-26 strategy delivering adjusted revenue and EBITDAI growth
(1)
Operating revenues and other gains
(2)
H1 FY23 EBITDAI is adjusted for the impact of the TowerCo gain on sale of $584m included in revenue and the Spark Sport provision of $52m included in operating expenses. Net EBITDAI impact of $532m. NPAT is further adjusted for the tax effect of the net gain on sale
of the TowerCo transaction and the Spark Sport provision totalling $168m
(3)
Earnings before finance income and expense, income tax, depreciation, amortisation and net investment income (EBITDAI) and capital expenditure (CAPEX) are non-Generally Accepted Accounting Principles (non-GAAP) performance measures that are defined in note
2.5 of Spark’s Annual Report
(4)
H1 FY23 reported NPAT is restated for the final tax calculation on the sale of Connexa Limited as described in note 2 of the Interim Financial Statements
$1,976m
22.0% decrease vs. reported H1 FY23
REPORTED REVENUE
(1)
0.5c increase vs. FY23

PAGE
3
Spark New Zealand | Copyright ©
2024
Market momentum and cost control underpinning adjusted revenue and EBITDAI growth in challenging environment
H1 FY24 Results Summary
To p-line growth
(1)
in challenging economic environment
•Delivered adjusted revenue growth of 1.3% to $1,976 million, reflecting strength of market positions
•In telco, mobile remains central to growth, with service revenue up 6.3%, while broadband revenue and share remained broadly stable
•In digital services, cloud is back in growth, while total IT revenues were flat and digital health revenues down, primarily due to lower public sector demand
•Data centres revenue up as Takanini expansion came online, and high-tech growth driven by strong IoT performance
•Cost discipline held operating expenses broadly flat, supporting adjusted EBITDAI growth of 3.9% to $530 million
•Adjusted NPAT decreased 4.8% to $157 million due to higher average interest rates on debt and higher interest payments on Connexa leases, with second half
improvement expected in line with stronger H2 EBITDAI
(2)
•Larger share of capital investment in H1 to gain a fast start on strategy and implement upgrade programmes resulting in lower fr ee cash flow. Remain
committed to FY24 capex guidance and FCF aspiration of ~$490-$530 million
SPK-26 strategy on track, with growth investments progressing to plan
•Data centre growth strategy accelerating with conditional agreement to purchase land within new development on Auckland’s North Shore, and intent to
develop an initial 10MW hyperscale data centre campus on the site, with the option for further expansion
•Broader digital infrastructure investments progressing to plan, with 5G now in 95 locations and 5G core build on track
•Business fundamentals healthy and growing – customer satisfaction up 5 points, people engagement up 3 percentage points, and maintained position in Dow
Jones Sustainability Australia Index
Continue to deliver shareholder returns
•Continue to deliver shareholder returns with $305 million returned to shareholders via on-market share buy-back to date, a H1 FY24 dividend of 13.5 cps 100%
imputed declared, and total FY24 dividend of 27.5 cps 100% imputed reaffirmed in line with guidance
(1)
H1 FY23 EBITDAI is adjusted for the impact of the TowerCo gain on sale of $584m included in revenue and the Spark Sport provision of $52m included in operating expenses. Net EBITDAI impact of $532m. NPAT is further adjusted for the tax effect of the net gain on
sale of the TowerCo transaction and the Spark Sport provision totalling $168m
(2)
In line with FY24 guidance

PAGE
4
Spark New Zealand | Copyright ©
2024
$510m
6.3% increase vs. H1 FY23
MOBILE SERVICE REVENUE
Service revenue and pay-monthly
ARPU growth driven by price
increases, connection growth, and
roaming revenues tracking above
pre-Covid levels
#1 in mobile market share by service
revenue and total connections
(1)
Brand strength and data driven
marketing continues to drive
differentiation with Spark capturing
47% of total mobile connection
growth in the half
(1)
$309m
1.3% decrease vs. H1 FY23
BROADBAND REVENUE
Revenue held broadly flat despite high
levels of price competition in an
inflationary environment
Margins maintained as input cost
increases passed through alongside
growth in wireless broadband and
successful BYOD modem campaign
~31% of base now on wireless
broadband with ongoing mobile
network investment increasing
addressable market
Telco Market Performance
Strong mobile growth and stability in broadband continues
BROADBAND CONNECTION
MARKET SHARE
(2)
(1)
Market share estimates sourced from IDC as at 31 December 2023
(2)
Market share estimates sourced from IDC as at 30 September 2023
44%
35%
21%
0%
SparkOne2DegreesMVNO
35%
20%
20%
8%
4%
13%
SparkOne2DegreesTrustpowerContact EnergyRest of market
MOBILE SERVICE REVENUE
MARKET SHARE
(1)

PAGE
5
Spark New Zealand | Copyright ©
2024
Stabilisation in IT and growth in data centres and high-tech
Digital Services Market Performance
$345m
flat vs. H1 FY23
TOTAL IT
Cloud revenue up 3.8%, driven by
increased private and public cloud
workloads and launch of new
hybrid cloud service CloudIQ
Cloud gross margin improved 7.6%
with cost base reset. Further
benefits to flow through in H2
IT service management revenue
down 10.0%, primarily due to
lower public sector demand.
Focus on ServiceFlex
(1)
proposition continues in H2
$35m
12.9% increase vs. H1 FY23
TOTAL HIGH-TECH
IoT continues to see strong
revenue growth underpinned by
significant connectivity growth
M AT T Rcustomersmovinginto
production environments, laying
the foundation for future growth
Converged technology proof-of-
concepts underway with multiple
customers, to identify future
commercialisation opportunities
⎼
$18m
Up 38.5% vs. H1 FY23
DATA CENTRES
Data centre investment and
expansion on track with plans
for new Auckland North Shore
development announced
Takanini 10MW expansion
completed in August 2023 with
revenue stream now billing.
1MW Aotea campus expansion
due to complete by end of
calendar year
Further expansion at Takanini
campus with additional 5MW
currently under design
(2)
(1)
ServiceFlex is a newmodular Service Management offering that provides flexibility for clients to consume new functionality as needed and delivers a more automated lower-touch service experience
(2)
Planned Takanini investment to be funded within previously communicated TowerCo proceeds allocation of $250m-$300m
$42m
Down 8.7% H1 FY23
DIGITAL HEALTH
Revenues impacted by public
health sector slowdown
Focus on growing new revenue
streams through further
expansion into the private sector
New app bundle proposition for
both public and private sectors
in development with partners

PAGE
6
Spark New Zealand | Copyright ©
2024
FY24 Indicators Of Success
MeasureTarget 30 June 2024Status
Mobile service revenue growth~5%On Track
Additional sites that are 5G capable+180-200 sitesOn Track
Wireless broadband connections+10k-15kSolid Progress
IT and procurement revenue growth~2%On Track
Data centre revenue~$35mOn Track
High-tech revenue growth~$25-$35mImprovement Needed
IoT connections~2mOn Track
Gross cost reduction~$40-$60mOn Track
Customer iNPS+3 pointsOn Track
Lift in employee engagement+5 pointsOn Track
Reduce Scope 1 and Scope 2 GHG emissions
against FY20 Baseline
Maintain at or under 22.4%
below FY20 baseline
On Track

PAGE
7
Spark New Zealand | Copyright ©
2024
Strategy Update
SPK-26

PAGE
8
Spark New Zealand | Copyright ©
2024
SPK-26: Operate Programme
Accelerated Growth Investment
Realigning operating model and capital investment to strategic growth areas
Gross Cost Reduction
•Larger share of capital investment in H1 to gain a
fast start on strategy and implement upgrade
programmes
•Digital infrastructure investments progressing to
plan:
•5G Standalone and core build on track
•10MW Takanini data centre expansion
completed and now billing
•Continued investment in cloud platforms to
support hybrid cloud environment
•H1 focus on operating model redesign to align to FY26
strategic ambitions – labour investment in growth
areas, and reductions in areas where EBITDAI profiles
are changing, such as cloud
•Operating model redesign, AI and automation, ongoing
simplification, digitising customer journeys, and
growing wireless broadband will underpin efficiency
•On track to exceed gross cost out target in FY24 of
~$40-$60m

PAGE
9
Spark New Zealand | Copyright ©
2024
Building on the strength of Spark’s core connectivity assets, data centre and 5G Standalone investments will underpin ongoing
competitive advantage
Digital Infrastructure Growth Investments
Digital infrastructure and new technology investments
underpin products and services
Product and service density creates customer and channel
scale, which supports lowest cost structure and provides
rich data sets
This supports improved, personalised customer
experiences, and attracts global partners who need local
channels to market
This supports growth, and reinvestment back
into digital infrastructure and new technologies, which are
then commercialised into new products and service

High-tech Roadmap
Growing returns in mature markets while building growth markets of the future
IoT
•~1.8m connections
•Established and growing –
26.9% revenue CAGR FY21-FY23
DIGITAL HEALTH
•Scale IT provider
•Established and growing –
12.3% revenue CAGR FY21-FY23
CONVERGED TECH
•Solution in market with MPI, AI and computer
vision proof-of-concepts in customer trials
5G STANDALONE
•$40-$60m investment FY24-26, enabling
MAEC
(1)
, network slicing, private networks
M AT T R
•Digital identity market forming
•Reached commercialisation in FY22
•Global customer base
Rapid scale, expansion into new sectors, and
moving up the value chain into high-tech
or converged solutions
Successful implementation of proof-of-
concepts to identify commercialisation
opportunities for future scale
MATURE
EMERGING
NEW
EXISTING
NEW
TECH
MARKETS
Creating a new market for high growth
SaaS-based annuity revenues
AMBITION
(1)
Multi-Access Edge Computing
SATELLITE
•Te x t-to-mobile trials underway with Lynk
Global, with first satellite text message sent
on Spark’s network in November
•Starlink business-grade satellite broadband
solution in market for business customers

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11
Spark New Zealand | Copyright ©
2024
Data Centre Growth Ambition
Growth
Ambition
Three large-scale Auckland locations: Takanini, Aotea, and North Shore, supported by
regional data centres across the country
Competitive
advantages
Existing
Portfolio and
Capabilities
New Zealand’s most extensivenetwork of data centres, combined with
technical, engineering, security, and infrastructure capabilities
Available
Capacity
Potential long-term capacity incrementally increasing to ~90MW
North Shore site acquisition to add up to~40MW capacity once completed
Hyperscaler
Relationships
Established relationships with hyperscalers as both resale partners and
customers with committed long-term tenancies at key sites
Complementary
Core Business
Spark is uniquely positioned to add value at the connectivity layer
(international subsea, national, and metro fibre services), across the
product layer (IT and cloud), and as a sales channel to market
Diversity
of Assets
Diversity of data centre assets a key differentiator, enabling Spark to
meet a very broad range of customer requirements
* All investment decisions subject to capital management framework, investment principles, and customer demand
Exponential growth in data, continued migration to the cloud, and the advent of
generative AI boosting demand for data centre capacity
Supportive
tailwinds
•Growing revenue at pace through long-term annuity revenues and scaled contracts
•Ability to cross-sell other services as customers migrate to the cloud
•Targeting returns of ~9-10% over time as utilisation scales
•Optionality exists around partnerships and funding models
Value
creation
Data centre investments accelerating in line with strategic ambition

PAGE
12
Spark New Zealand | Copyright ©
2024
Data Centre Portfolio Overview
FACILITYS TAT U SSITE CAPACITY (MW)
Auckland – Takanini CampusBuilt12.3
Auckland – Aotea CampusBuilt2.9
Other sitesBuilt7.1
TOTAL CAPACITY BUILT22.3
Auckland - Aotea CampusUnder construction1.0
TOTAL CAPACITY UNDER CONSTRUCTION1.0
Auckland - North Shore CampusDevelopment pipeline40.0
Auckland - Takanini CampusDevelopment pipeline15.0
Auckland - Aotea CampusDevelopment pipeline15.0
TOTAL DEVELOPMENT PIPELINE (UP TO)70.0
TOTAL POTENTIAL CAPACITY93.3
0
20
40
60
80
100
H1 FY22H1 FY23H1 FY24
Capacity builtUnder ConstructionDevelopment pipeline
DATA CENTRE SITE CAPACITY (MW)
Total built capacity at 88% contracted utilisationand significant pipeline of potential development opportunities available

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13
Spark New Zealand | Copyright ©
2024
DIGITAL
EQUITY
Over 29,000 households now utilising
not-for-profit wireless broadband
service Skinny Jump
Extended online protections for Spark
customers through an MoU with the DIA
to block internet domains that contain
child sexual abuse material
$1 million investment by Spark Foundation
in newly formed national organisation for
Māori in technology, Te Ao Matihiko
Continued ESG progress secured ongoing inclusion in the Dow Jones Sustainability Australia Index (DJSI)
Toitū Sustainability Performance
SUSTAINABLE
S PA R K
People engagement up 3pp YoY and
progressing towards FY26 ambition
FY24 H1 Scope 1 and 2 greenhouse gas
emissions down 8% compared to H1 FY23
Completed 2023 commitment to
undertake five JAC
(1)
supplier audits
ECONOMIC
TRANSFORMATION
5G live in 95 locations across the country,
with nationwide 5G standalone roll-out
progressing to plan
Research collaboration with NZIER
launched, demonstrating how advanced
technologies can accelerate productivity
Trials underway with customers on high-
tech solutions that improve productivity,
health and safety, and sustainability
(1)
Joint Audit Cooperation

Financials

PAGE
15
Spark New Zealand | Copyright ©
2024
REPORTED
H1 FY23
$m
REPORTED
H1 FY24
$m
CHANGEADJUSTED
H1 FY23
$m
ADJUSTED
H1 FY24
$m
CHANGE
Operating revenues and other gains2,5341,976(22.0%)1,9501,9761.3%
Operating expenses(1,492)(1,446)3.1%(1,440)(1,446)(0.4%)
EBITDAI1,042530(49.1%)5105303.9%
Finance income1614(12.5%)1614(12.5%)
Finance expense(43)(63)(46.5%)(43)(63)(46.5%)
Depreciation and amortisation(248)(251)(1.2%)(248)(251)(1.2%)
Net investment income(1)(3)NM(1)(3)NM
Net earnings before tax expense766227(70.4%)234227(3.0%)
Tax expense99
(1)
(70)NM(69)(70)(1.4%)
Net earnings after tax expense865157(81.8%)165157(4.8%)
Capital expenditure
(2)
25028614.4%25028614.4%
Free cash flow11546(60.0%)11546(60.0%)
EBTIDAI margin41.1%26.8%(14.3pp)26.2%26.8%0.6pp
Effective tax rate(12.9%)30.8%43.7pp29.5%30.8%1.3pp
Capital expenditure to operating revenues and other gains9.9%14.5%4.6pp12.8%14.5%1.7pp
Basic Earnings per Share46.2c8.6c(37.6c)8.88.6(0.2c)
Total Dividend per Share13.5c13.5c-13.5c13.5c-
Financials
(1)
H1 FY23 tax expense has been restated for the final tax calculation on the sale of Connexa Limited as described in note 2 of the Interim Financial Statements
(2)
Excluding expenditure on mobile spectrum

PAGE
16
Spark New Zealand | Copyright ©
2024
H1 FY24 Operational Performance Summary
$1,976m
1.3% increase vs. adjusted H1 FY23
ADJUSTED REVENUE
•To p-line growth driven by standout mobile performance, stabilisation in broadband, and return to growth in
IT products
•New data centre revenue stream online with 10MW Takanini expansion completed and now billing
•High-tech revenue growth driven by solid performance in IoT as connections scale
•IT services revenue remains weaker primarily due to lower public sector demand
•Decrease in other product revenue driven by closure of Spark Sport, offset by growth in Entelar as it expanded
delivery of 5G projects and increased its distribution business
$1,446m
0.4% increase vs. adjusted H1 FY23
ADJUSTED OPEX
•Higher labour costs primarily driven by wage inflation and growth in Entelar in support of revenue growth
•Decrease in product costs due to voice connection decline, exit of Spark Sport, and partially offset by an
increase in Entelar costs
•Focus on cost discipline remains with operating model redesign progressing to unlock further productivity
and efficiency benefits
Top line growth maintained with operating costs held broadly flat despite inflationary pressures

PAGE
17
Spark New Zealand | Copyright ©
2024
H1 FY24 Capital Investment and Free Cash Flow
$286m
14.4% increase vs. H1 FY23
CAPITAL INVESTMENT
(1)
$46m
60.0% decrease vs. H1 FY23
FREE CASH FLOW
Capital investment accelerated in H1 in support of SPK-26, on track to deliver in line with guidance and free cash flow
aspiration of ~$490m-$530m
•Maintenance capital investment heavily weighted towards H1 to accelerate simplification and upgrade programmes
•H1 investment includes ongoing ERP implementation across the group, simplification of B2B tooling, and a higher
proportion of cloud infrastructure purchased rather than leased
•Increase in overall mobile spend with weighting towards 5G Standalone readiness
•Ongoing investment in data centre portfolio, with work now commenced on the next data centre facility at the
Takanini Campus, and additional land purchase on Auckland’s North Shore in progress
•Remain committed to delivering overall capital investment envelope in line with full year guidance of ~$510-$530m
(1)
Excluding expenditure on mobile spectrum. Capital expenditure is a non-GAAP measure and is defined in note 2.5 of Spark’s Annual Report
•H1 FY24 FCF impacted by:
oTiming of maintenance cash capex, with $261m spent in H1, versus $200m in H1 FY23
oIncreased interest costs as debt levels rise and rates increase, combined with Connexa lease costs
•H2 FY24 FCF improvement delivered by:
oEBITDAI growth driven by mobile, data centres, and high-tech and benefits of SPK-26 Operate Programme
flowing through
oManaging capital expenditure in line with guidance
•Remain committed to free cash flow aspiration of ~$490m-$530m

PAGE
18
Spark New Zealand | Copyright ©
2024
MOBILE SERVICE
REVENUE
•Ongoing strong growth as demand for data increases, price increases flow through, connections grow, and roaming sits above
pre-Covid levels
BROADBAND•Continued margin optimisation as input cost increases are passed through and wireless broadband continues to grow
IT
•Growthin private and public cloud with improved margins from cost reset already executed, partially offset by slower service
revenues reflecting economic environment
DATA CENTRES•On track to deliver FY24 revenue of ~$35m
HIGH-TECH
•Additional growth as IoT connections continue to scale and MATTR moves into production with key customers
•Focus ongrowing new digital health revenue streams through further expansion into the private sector
LABOUR & OPEX•Refreshed operating model aligned to new 3-year strategy and on track to exceed FY24 gross cost out target of ~$40-$60m
H2 Performance Outlook
Remain committed to delivering FY24 EBITDAI guidance of $1,215m-$1,260m
(1)
(1)
Subject to no material change in operating outlook
Ongoing mobile tailwinds, strong growth trajectories in other key markets, and on track to exceed
gross cost out target – supporting delivery of EBITDAI guidance

PAGE
19
Spark New Zealand | Copyright ©
2024
Increase in net debt as TowerCo proceeds are returned to shareholders and growth capex is invested
Net Debt
Increase in debt levels and interest rates reflecting:
•On-market share buy-back returning $305m of TowerCo proceeds to shareholders to
date;
•Higher weighting of cash capex invested in H1; and
•Increase in working capital
Net debt expected to reduce below 1.7x in H2 consistent with long-term Capital
Management Framework:
•Completion of on-market buy-back
(1)
;
•H2 cash capex to reduce with full year spend in line with guidance; and
•Improvement in working capital
•In 2023 a NZ$100m bond matured. Spark’s next long-term maturity isa NZ$125m
bond maturing in March 2024
•Spark is considering making an offer of up to NZ$250m
(2)
of unsubordinated,
unsecured fixed rate bonds via its wholly owned subsidiary Spark Finance
•If Spark Finance offers these bonds, it is expected that full details of the offer will be
released in the week beginning 4 March 2024
(1)(3)(4)
Net Debt
H1 FY23
($m)
H1 FY24
($m)
Net debt at hedged rates$798$1,557
Net debt at hedged rates including lease
liabilities
$1,645$2,359
Debt Ratios
Borrowing costs (annualised)4.3%5.9%
Weighted average debt maturity (years)4.33.2
Debt servicing
(5)
1.29x1.79x
Gearing44%59%
Interest cover1610
(1)
Subject to market conditions
(2)
With the ability to accept oversubscriptions of up to NZ$50m at Spark’s discretion
(3)
No money is currently being sought and applications for the bonds cannot currently be made however if Spark Finance offers the bonds, the offer will be made in accordance with the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as
existing quoted debt securities
(4)
The Bonds are expected to be quoted on the NZX Debt Market
(5)
Debt servicing is calculated as (Net debt at hedge rates+ Lease liabilities - captive finance adjustments)/(Adjusted EBITDAI - captive finance adjustments) which Spark estimates aligns to S&P’s credit rating calculation

PAGE
20
Spark New Zealand | Copyright ©
2024
Spark is well positioned to build further momentum as economic conditions improve
Key takeouts for H2
Emerging signs of economic conditions improving, with ongoing demand for data supporting core growth engine of mobile
SPK-26 on track, with key digital infrastructure investments accelerating and building a platform for future growth
Strong business fundamentals in brand and data, customer experience, people, and sustainability continue to support competitive advantage
1
2
3
4
1
2
3
4
5
SPK-26 Operate Programme to deliver more efficient operating model, with benefits starting to flow through in H2
Reaffirmed FY24 EBITDAI, capital expenditure, and total dividend guidance

PAGE
21
Spark New Zealand | Copyright ©
2024
Guidance
(1)
FY23 ActualFY24 Guidance
EBITDAI$1,193m
(2)
$1,215m-$1,260m
Capital expenditure
(3)
$515m~$510m-$530m
Dividend per share
Total 27.0cps
(100% imputed)
Total 27.5cps
(100% imputed)
(1)
Subject to no material adverse change in operating outlook
(2)
FY23 EBITDAI is adjustedfor the impact of TowerCo gain and Spark Sport provision
(3)
Total capital expenditure including growth capex and excluding expenditure on mobile spectrum

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 and assumptions made by management along with 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’, ‘aspiration’ 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, any impacts or risks to Spark’s anticipated growth strategies, future financial condition and operations,
economic conditions or the regulatory environment in New Zealand arising from or otherwise with Covid, 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 - reported
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m$m$m$m$m$m$m$m%
Operating revenues and other gains1,8901,8302,5341,9571,9762,5341,976(558)(22.0%)
Operating expenses(1,352)(1,218)(1,492)(1,277)(1,446)(1,492)(1,446)463.1%
EBITDAI5386121,0426805301,042530(512)(49.1%)
Finance income14121616141614(2)(12.5%)
Finance expense(37)(37)(43)(56)(63)(43)(63)(20)(46.5%)
Depreciation and amortisation(257)(263)(248)(256)(251)(248)(251)(3)(1.2%)
Net investment income(1)-(1)2(3)(1)(3)(2)NM
Net earnings before income tax257324766386227766227(539)(70.4%)
Tax income / (expense)
1
(78)(93)99(116)(70)99(70)(169)NM
Net earnings for the period179231865270157865157(708)(81.8%)
Capital expenditure excluding spectrum 2181922502652862502863614.4%
Free cash flows excluding spectrum1642691153744611546(69)(60.0%)
Reported EBITDAI margin28.5%33.4%41.1%34.7%26.8%41.1%26.8%(14.3pp)
Reported effective tax rate30.4%28.7%(12.9%)30.1%30.8%(12.9%)30.8%43.7pp
Capital expenditure to operating revenues and other
gains
11.5% 10.5% 9.9% 13.5% 14.5%9.9% 14.5% 4.6pp
Reported basic earnings per share (cents)9.612.446.214.58.646.28.6-37.6(81.4%)
Reported diluted earnings per share (cents)9.612.446.114.58.546.18.5-37.6(81.6%)
Group result - adjusted
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m $m $m $m $m$m $m $m
%
Adjusted operating revenues and other gains1,8901,8301,9501,9581,9761,9501,976261.3%
Adjusted operating expenses(1,352)(1,218)(1,440)(1,275)(1,446)(1,440)(1,446)(6)(0.4%)
Adjusted EBITDAI538612510683530510530203.9%
Finance income14121616141614(2)(12.5%)
Finance expense(37)(37)(43)(56)(63)(43)(63)(20)(46.5%)
Depreciation and amortisation(257)(263)(248)(256)(251)(248)(251)(3)(1.2%)
Adjusted net investment income(1)-(1)(3)(3)(1)(3)(2)NM
Adjusted net earnings before income tax257324234384227234227(7)(3.0%)
Adjusted income tax expense(78)(93)(69)(116)(70)(69)(70)(1)(1.4%)
Adjusted net earnings for the period179231165268157165157(8)(4.8%)
Capital expenditure excluding spectrum 2181922502652862502863614.4%
Free cash flows excluding spectrum1642691153744611546(69)(60.0%)
Adjusted EBITDAI margin28.5%33.4%26.2%34.9%26.8%26.2%26.8%0.6pp
Adjusted effective tax rate30.4%28.7%29.5%30.2%30.8%29.5%30.8%1.3pp
Capital expenditure to adjusted operating revenues and
other gains
11.5% 10.5% 12.8% 13.5% 14.5% 12.8% 14.5% 1.7pp
Adjusted basic earnings per share (cents)9.612.48.814.48.68.88.6(0.2)(2.3%)
Adjusted diluted earnings per share (cents)9.612.48.814.38.58.88.5(0.3)(3.4%)
Gross margin by product
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m$m$m$m$m$m$m$m%
Mobile437467477507496
477496194.0%
Voice8679716251
7151(20)(28.2%)
Broadband166152149149148
149148(1)(0.7%)
IT products146144136143139
13613932.2%
IT services8685778470
7770(7)(9.1%)
Procurement and partners2627274024
2724(3)(11.1%)
Data Centres1111121017
1217541.7%
High-Tech2320232322
2322(1)(4.3%)
Other products826255846
25462184.0%
Total product gross margin
9891,0119971,0761,0139971,013161.6%
Other gains16105882819
58819(569)(96.8%)
Total gross margin
1,0051,0211,5851,1041,0321,5851,032(553)(34.9%)
H1 FY23 vs H1 FY24
Spark’s policy is to present ‘adjusted EBITDAI’ and ‘adjusted net earnings’ when a financial year includes significant items (such as gains, expenses and impairments)
individually greater than $25 million. There were no significant items to adjust for period ended 31 December 2023.
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24
1
The comparative for H1 FY23 and H2 FY23 has been restated, the net impact on the FY23 result is nil, see note 2 of the interim financial statements for further details.

Connections
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
000's000's000's000's000's000's000's000's%
Mobile connections
1,2
2,4452,5032,6162,7072,7602,6162,7601445.5%
Voice connections by type
3,4
POTS and ISDN163136112916911269(43)(38.4%)
VoIP69666059536053(7)(11.7%)
Voice over wireless20171488148(6)(42.9%)
252219186158130186130(56)(30.1%)
Broadband connections by technology
Copper113957964547954(25)(31.6%)
Fibre40241542342642742342740.9%
Wireless187194202209214202214125.9%
702704704699695704695(9)(1.3%)
IoT connections6238321,1601,4611,7991,1601,79963955.1%
1
Mobile connections excluding MVNO connections but including legacy machine to machine and SIM based SmartWatch connections.
2
The FY23 Spark Prepaid 6 month base has been restated to reduce connections by 13k in H1FY23 and 21k in H2FY23 to remove some duplications which had been
incorrectly included.
4
Connection numbers have been restated to reflect updated POTS connection numbers.
Group FTEs
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
FTE permanent4,9214,9244,9765,1895,3564,9765,3563807.6%
FTE contractors 1902081821439718297(85)(46.7%)
Total FTE
1
5,1115,1325,1585,3325,4535,1585,4532955.7%
1
The increase in H1 FY24 vs H1 FY23 includes the insourcing of the Entelar Group.
Dividends
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
Ordinary dividends (cents per share)12.5012.5013.5013.5013.5013.5013.50--%
Special dividends (cents per share)--------NM
12.5012.5013.5013.5013.5013.5013.50--%
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24
3
Voice connections include all voice technology types, including POTS, ISDN, VoIP and wireless voice. Voice connections exclude connections where Spark also
provide a bundled broadband service, but include all wholesale voice connections (including those where the underlying customer has a bundled broadband
service).

Spark New Zealand
Group operating revenues and other gains
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m$m$m$m$m$m$m$m%
Telco
Mobile
Service revenue441458480500510480510306.3%
Non-service revenue237215252238239252239(13)(5.2%)
Mobile678673732738749732749172.3%
Voice 1461391221099412294(28)(23.0%)
Broadband
1
324315313313309313309(4)(1.3%)
Total Telco1,148 1,127 1,167 1,160 1,152 1,167 1,152 (15) (1.3%)
IT Revenue
IT Products
Cloud11010410510310910510943.8%
Managed data and networks11011011011211211011221.8%
Collaboration3840394040394012.6%
IT Products25825425425526125426172.8%
IT Services97 10191 103849184(7) (7.7%)
Total IT revenue355355345358345345345--%
Procurement and partners301237319265339319339206.3%
Data centres11121311181318538.5%
High-Tech29283134353135412.9%
Other products
2
306171101687168(3)(4.2%)
Total operating revenues1,8741,8201,9461,9291,9571,9461,957110.6%
Other gains16104291941915NM
Adjusted operating revenues and other gains1,8901,8301,9501,9581,9761,9501,976261.3%
Net gain on sale of Connexa--584(1)-584-(584)(100.0%)
Total operating revenues and other gains1,8901,8302,5341,9571,9762,5341,976(558)(22.0%)
1
Wireless broadband revenues and connections are included in broadband revenues and connections.
2
Included in other products is revenue from mobile infrastructure, exchange building sharing arrangements and Spark Sport (for comparative periods).
Operating revenues and other gains by customer segment
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
Operating revenues and other gains$m$m$m$m$m$m$m$m%
Consumer777757797782780797780(17)(2.1%)
Business1,0189521,0199761,0371,0191,037181.8%
Wholesale and other95121718199159718159(559)(77.9%)
1,890 1,830 2,534 1,957 1,976 2,534 1,976 (558) (22.0%)
Finance income
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
Finance income$m$m$m$m$m$m$m$m%
Finance lease interest income6344444--%
Other interest income891212101210(2)(16.7%)
14121616141614(2) (12.5%)
Net investment income
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
Net investment income$m $m $m $m $m$m $m $m
%
Share of associates' and joint ventures' net losses(1)-(3)(9)(8)(3)(8)(5)NM
Interest income on loans receivable from associates and joint ventures--266264NM
Net gain on remeasurement of equity accounted investments----(1)-(1)(1)NM
Adjusted net investment income(1)-(1)(3)(3)(1)(3)(2)NM
Net gain on dilution of the investment in the Connexa group---5----NM
Reported net investment income(1)-(1)2(3)(1)(3)(2)NM
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24

Spark New Zealand
Group operating expenses
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m $m $m $m $m$m $m $m%
Product costs
Mobile241206255231253255253(2)(0.8%)
Voice60605147435143(8)(15.7%)
Broadband158163164164161164161(3)(1.8%)
IT products11211011811212211812243.4%
IT services11161419141414--%
Procurement and partners275210292225315292315237.9%
Data centres-111111--%
High-Tech6881113813562.5%
Other product costs22354643224622(24)(52.2%)
885809949853944949944(5)(0.5%)
Labour263232269242279269279103.7%
Other operating expenses
Network support costs44214520404540(5)(11.1%)
Computer costs55565752525752(5)(8.8%)
Accommodation costs30354043484048820.0%
Advertising, promotions and communication34263323333333--%
Bad debts3145747375.0%
Impairment expense2-------NM
Other36384337434343--%
20417722218022322222310.5%
Adjusted operating expenses1,352 1,218 1,440 1,275 1,446 1,440 1,4466 0.4%
Spark Sport provision--522-52- (52) (100.0%)
Total operating expenses1,3521,2181,4921,2771,4461,4921,446(46)(3.1%)
Finance expense
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m $m $m $m $m$m $m $m%
Finance expense
Finance expense on long-term debt232222283322331150.0%
Other interest and finance expense4775878114.3%
Lease interest expense1091524241524960.0%
Leased customer equipment interest expense3443444--%
404248606948692143.8%
Capitalised interest(3)(5)(5)(4)(6)(5)(6)(1)(20.0%)
3737435663436320 46.5%
Depreciation and amortisation expense
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m $m $m $m $m$m $m $m%
Depreciation and amortisation expense
Depreciation - property, plant and equipment116118114113112114112(2)(1.8%)
Depreciation - right-of-use assets40403639423642616.7%
Depreciation - leased customer equipment assets18191917171917(2)(10.5%)
Amortisation - intangible assets8386798780798011.3%
25726324825625124825131.2%
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24

Spark New Zealand
Analysis & KPIs - Mobile
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
Mobile revenue by type (Consumer and Business)$m$m$m$m$m$m$m$m%
Mobile service revenue435 451 472 489 500472 50028 5.9%
Mobile non-service revenue
1
229 205 231 218 219231 219 (12) (5.2%)
664656703707719703719162.3%
1417293130293013.4%
Total mobile revenue678673732738749732749172.3%
Mobile product costs
3
(241) (206) (255) (231) (253) (255) (253)2 0.8%
Mobile gross margin437467477507496477496194.0%
Mobile gross margin %64.5%69.4%65.2%68.7%66.2%65.2%66.2%1.0pp
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
Total mobile revenue by customer segment$m$m$m$m$m$m$m$m%
Consumer454 444 486 486 499486 49913 2.7%
Business210 212 217 221 220217 2203 1.4%
Wholesale and other1417293130293013.4%
678 673 732 738 749732 74917 2.3%
Average revenue per user (ARPU) - 6 month activeH1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
(Consumer and Business)
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month%
Total ARPU
4
30.1930.8431.3030.7830.6631.3030.66(0.64)(2.0%)
Pay-monthly ARPU40.1741.0141.5941.4842.1441.5942.140.55 1.3%
Prepaid ARPU
4
16.2616.4717.2616.9116.0917.2616.09(1.17)(6.8%)
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
000's 000's 000's 000's 000's 000's 000's 000's%
Pay-monthly connections1,4161,4371,4711,5091,5251,4711,525543.7%
Prepaid connections
4
1,0011,0381,1181,1731,2101,1181,210928.2%
Internal connections4444444--%
Total mobile connections
4
2,4212,4792,5932,6862,7392,5932,7391465.6%
1
Mobile non-service revenue includes handset sales and mobile interconnect.
2
Includes MVNO revenue.
3
Includes handset, interconnect and cellphone tower access costs.
4
The FY23 Spark Prepaid 6 month base has been restated to reduce connections by 13k in H1FY23 and 21k in H2FY23 to remove some duplications which
had been incorrectly included.
5
Excludes MVNO connections but includes SIM based SmartWatch connections.
H1 FY23 vs H1 FY24
Wholesale and other customer segment mobile revenue
2
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24
Number of mobile connections at period end - 6 month
active (Consumer and Business)
5
H1 FY23 vs H1 FY24

Spark New Zealand
Analysis & KPIs - Voice
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
Revenue by type$m$m$m$m$m$m$m$m%
Access57524537334533(12)(26.7%)
Calling70685954485948(11)(18.6%)
Other voice revenue19191818131813(5)(27.8%)
Total voice revenue1461391221099412294(28)(23.0%)
Voice product costs
1
(60)(60)(51)(47)(43)(51)(43)815.7%
Voice gross margin86797162517151(20)(28.2%)
Voice gross margin %58.9%56.8%58.2%56.9%54.3%58.2%54.3%(3.9pp)
H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H1 FY23 H1 FY24
000's000's000's000's000's000's000's000's%
POTS and ISDN163136112916911269(43)(38.4%)
VoIP69666059536053(7)(11.7%)
Voice over wireless20171488148(6)(42.9%)
Total voice connections252219186158130186130(56)(30.1%)
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
000's000's000's000's000's000's000's000's%
Consumer64544632284628(18)(39.1%)
Business1391261111049011190(21)(18.9%)
Wholesale and other49392922122912(17)(58.6%)
Total voice connections252219186158130186130(56)(30.1%)
1
Includes voice access (baseband), interconnect, and international calling costs.
Analysis & KPIs - Broadband
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m$m$m$m$m$m$m$m%
Total broadband revenue324315313313309313309(4)(1.3%)
Broadband product costs
2
(158)(163)(164)(164)(161)(164)(161)31.8%
Broadband gross margin166152149149148149148(1)(0.7%)
Broadband gross margin %51.2%48.3%47.6%47.6%47.9%47.6%47.9%0.3pp
H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H1 FY23 H1 FY24
000's000's000's000's000's000's000's000's%
Copper113957964547954(25)(31.6%)
Fibre40241542342642742342740.9%
Wireless187194202209214202214125.9%
Total broadband connections702704704699695704695(9)(1.3%)
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
000's000's000's000's000's000's000's000's%
Consumer593595594589584594584(10)(1.7%)
Business105104104102102104102(2)(1.9%)
Wholesale and other4568969350.0%
Total broadband connections702704704699695704695(9)(1.3%)
2
Includes broadband access (UBA/UCLL/Fibre) and modem costs.
H1 FY23 vs H1 FY24
Broadband connections by technology
H1 FY23 vs H1 FY24
Broadband connections by customer segment
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24
Voice connections by type
H1 FY23 vs H1 FY24
Voice connections by customer segment
H1 FY23 vs H1 FY24

Spark New Zealand
Analysis & KPIs - Data centres
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m$m$m$m$m$m$m$m%
Data centre revenue11121311181318538.5%
Data centre product cost-(1)(1)(1)(1)(1)(1)--%
Data centre gross margin11111210171217541.7%
Data centre gross margin%100.0%91.7%92.3%90.9%94.4%92.3%94.4%2.1pp
Data centre KPIsH1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
Data centre capacity built (in MW)1010111122112211 100.0%
Data centre capacity under construction (in MW)121211111111(10)(90.9%)
Data centre development pipeline (in MW)1919191970197051268.4%
Total capacity4141414193419352126.8%
Weighted average lease term with options (WALE)16.616.616.616.616.516.616.5(0.1)(0.6%)
Contracted utilisation dedicated data centres
1
87%87%84%84%88%84%88%4.0pp
Target power usage effectiveness (PUE)N/AN/AN/AN/A1.2N/A1.2N/AN/A
PUE - Legacy data centre assets1.611.541.541.561.571.541.57(0.03)(1.9%)
1
Includes contracted and reserved racks at dedicated data centres and exchanges.
Analysis & KPIs - IT products
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m$m$m$m$m$m$m$m%
Cloud revenue11010410510310910510943.8%
Cloud product costs(35)(37)(39)(33)(38)(39)(38)12.6%
Cloud gross margin7567667071667157.6%
Cloud gross margin%68.2%64.4%62.9%68.0%65.1%62.9%65.1%220%
Managed data and networks revenue11011011011211211011221.8%
Managed data and networks product costs
2
(62)(58)(64)(64)(67)(64)(67)(3)(4.7%)
Managed data and networks gross margin48524648454645(1)(2.2%)
Managed data and networks gross margin %43.6%47.3%41.8%42.9%40.2%41.8%40.2%(1.6pp)
Collaboration revenue3840394040394012.6%
Collaboration product costs(15)(15)(15)(15)(17)(15)(17)(2)(13.3%)
Collaboration gross margin23252425232423(1)(4.2%)
Collaboration gross margin %60.5%62.5%61.5%62.5%57.5%61.5%57.5%(4.0pp)
2
Includes wide area network access, international data, network backhaul and video conferencing platform costs.
Analysis & KPIs - IT services
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m$m$m$m$m$m$m$m%
Service management revenue87898083728072(8)(10.0%)
Security revenue1012112012111219.1%
Service management and security revenue9710191103849184(7)(7.7%)
Service management and security product costs(11)(16)(14)(19)(14)(14)(14)--%
Service management and security gross margin86857784707770(7)(9.1%)
Service management and security gross margin %88.7%84.2%84.6%81.6%83.3%84.6%83.3%(1.3pp)
Analysis & KPIs - Procurement and partners
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m$m$m$m$m$m$m$m%
Procurement and partners revenue301237319265339319339206.3%
Procurement and partners product costs(275)(210)(292)(225)(315)(292)(315)(23)(7.9%)
Procurement and partners gross margin26272740242724(3)(11.1%)
Procurement and partners gross margin %8.6%11.4%8.5%15.1%7.1%8.5%7.1%(1.4pp)
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24

Spark New Zealand
Statement of cash flows
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m$m$m$m$m$m$m$m%
Cash flows from operating activities
Receipts from customers 1,901 1,755 1,975 1,815 1,972
1,9751,972(3)(0.2%)
Receipts from interest 13 11 16 13 13
1613(3)(18.8%)
Payments to suppliers and employees (1,327) (1,279) (1,460) (1,270) (1,519)
(1,460)(1,519)(59)(4.0%)
Payments for income tax (93) (67) (120) (70) (101)
(120)(101)1915.8%
Payments for interest on debt (23) (25) (23) (32) (31)
(23)(31)(8)(34.8%)
Payments for interest on leases (10) (9) (15) (22) (23)
(15)(23)(8)(53.3%)
Payments for interest on leased customer equipment assets
(3) (3) (4) (3) (4)
(4)(4)--%
Net cash flows from operating activities 458 383 369 431 307
369307(62)(16.8%)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment - - 1 10 14
11413NM
Proceeds from sale of business - - 894 (1) -
894-(894)(100.0%)
Proceeds from long-term investments 3 1 - - -
---NM
Receipts from finance leases 2 1 1 2 1
11--%
Receipts from loans receivable - - - 11 10
-10
10NM
Payments for purchase of business, net of cash acquired
- (7) - - (2)
-(2)(2)NM
Payments for, and advances to, long-term investments (39) (20) (2) (1) (1)
(2)(1)150.0%
Payments for purchase of property, plant and equipment, intangibles
(excluding spectrum) and capacity
(216) (209) (246) (229) (347)
(246) (347) (101) (41.1%)
Payments for spectrum intangible assets - - - (6) -
--
-NM
Payments for capitalised interest (3) (5) (5) (4) (6)
(5)(6)
(1)(20.0%)
Net cash flows from investing activities (253) (239) 643 (218) (331)
643(331)(974)NM
Cash flows from financing activities
Net proceeds from/(repayments of) debt 99 115 (517) 54 489
(517)4891,006NM
Payments for dividends (225) (224) (234) (252) (249)
(234)(249)(15)(6.4%)
Payments for share buy-back - - - (146) (159)
-(159)(159)NM
Payments for leases (33) (36) (31) (33) (38)
(31)(38)(7)(22.6%)
Payments for leased customer equipment assets (25) (21) (15) (22) (20)
(15)(20)
(5)(33.3%)
Net cash flows from financing activities (184) (166) (797) (399) 23
(797)23820NM
Net cash flows 21 (22) 215 (186) (1)
215(1)(216)NM
Opening cash position 72 93 71 286 100
711002940.8%
Closing cash position 93 71 286 100 99
28699(187)(65.4%)
Analysis & KPIs - Free cash flows and movement in working capital
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24H1 FY23H1 FY24
$m$m$m$m$m$m$m$m%
EBITDAI 538 612 1,042 680 530
1,042530(512)(49.1%)
Excluding
Non cash other gains and impairments
14 10 536 11 20
53620(516)(96.3%)
EBITDAI ex. Non cash other gains and impairments
524 602 506 669 510
50651040.8%
Less
Cash paid on maintenance capital expenditure 188 184 200 128 261
2002616130.5%
Cash paid on interest 23 26 26 44 45
26451973.1%
Cash paid on tax payments 93 67 120 70 101
120101(19)(15.8%)
Cash paid on leases 56 56 45 53 57
45571226.7%
Total cash payments on capital expenditure, interest, tax and lease
360 333 391 295 464 3914647318.7%
Free cash flow
164 269 115 374 46 11546(69)(60.0%)
Change in working capital
Change in receivables (42) 104 (59) 126 (27)
(59)(27)3254.2%
Change in payables (63) 78 3 (53) 20
32017NM
Change in inventory 29 14 1 (28) 27
12726NM
Change in contract assets (5) 3 3 30 8
385NM
Change in prepayments (excluding CAPEX) 37 (37) 22 (31) 45
224523NM
Total change in working capital - increase/(decrease)
(44) 162 (30) 44 73 (30)73103NM
H1 FY23 vs H1 FY24
H1 FY23 vs H1 FY24

Spark New Zealand
Group capital expenditure
H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H1 FY23 H1 FY24
Maintenance Capex$m $m $m $m $m$m $m $m
%
Cloud
7811824
112413 NM
Fixed network & International cable capacity
3335355855
355520 57.1%
IT systems
8763625480
628018 29.0%
Mobile network
6238772165
7765 (12) (15.6%)
Property
61011127
117(4) (36.4%)
Other
23464
44- -%
Total maintenance capital expenditure excluding spectrum
197 157 200 159 235200 23535 17.5%
Growth Capex
SA readiness
1213-4232
-3232 NM
Data centres
922506419
5019 (31) (62.0%)
Total growth capital expenditure excluding spectrum
213550 1065150511 2.0%
Total capital expenditure excluding spectrum
218 192 250 265 286250 28636 14.4%
11.5% 10.5% 9.9% 13.5% 14.5%9.9% 14.5%
11.5% 10.5% 12.8% 13.5% 14.5% 12.8% 14.5%
Mobile spectrum----23
-2323 -%
Total capital expenditure including spectrum
218 192 250 265 309250 30959 23.6%
Cash Capex
Growth
313051 10592
519241 80.4%
Maintenance
188 184 200 128 261
200 26161 30.5%
Total cash capital expenditure excluding spectrum
219 214 251 233 353251 353 102 40.6%
Analysis & KPI's - Capital expenditure depreciation and amortisation
H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H1 FY23 H1 FY24
$m $m $m $m $m$m $m $m
%
Depreciation - property, plant and equipment116 118 114 113 112114 112(2) (1.8%)
Depreciation - right-of-use assets
2
1111111112
11121 9.1%
Amortisation - intangible assets
838679878079801 1.3%
Total capital expenditure depreciation and amortisation
210 215 204 211 204204 204- -%
2
Includes depreciation on capacity right-of-use assets only as these are included within Spark’s definition of capital expenditure.
H1 FY23 vs H1 FY24
On adoption of NZ IFRS 16 Leases, assets associated with capacity arrangements which were previously recognised within intangible assets have been reclassified to right-of-use assets.
Payments for capacity purchases remain within Spark’s definition of capital expenditure. Total depreciation on property, plant and equipment, depreciation on capacity right-of-use assets
and amortisation of intangible assets is reconciled below:
H1 FY23 vs H1 FY24
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) and additions to capacity right-of-use assets where such additions are paid upfront.
Total capital expenditure excluding spectrum to adjusted operating
revenue and other gains
Total capital expenditure excluding spectrum to operating revenue and
other gains