Spark reduces FY24 EBITDAI guidance

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





MARKET RELEASE – MONDAY 6 MAY 2024
EMBARGOED UNTIL [DATE] [delete this row if not required]

Spark reduces FY24 EBITDAI guidance as tough trading conditions intensify
Spark New Zealand (Spark) today announced it is reducing FY24 EBITDAI guidance from
$1,215-$1,260 million to $1,170-$1,210 million, as challenging trading conditions intensified in some
parts of the business. There is no change to FY24 capital expenditure and dividend guidance.
At Spark’s first half results the Company noted weaker demand in the enterprise and government
market, which impacts Spark’s IT revenues. Since the half, public and private sector spending cuts
have deepened, and Spark has seen significantly reduced demand in IT service management and
professional services and delays to planned digital transformation projects.
At the same time, while mobile service revenue and broadband performance remains in line with
expectations, sales of mobile devices and accessories have been softer than expected as high
interest rates and cost-of-living pressures dampened consumer spending.
While Spark has maintained strong cost discipline in an inflationary environment, the material
deterioration in outlook for IT revenues, combined with subdued market conditions more broadly, has
resulted in reduced FY24 EBITDAI outlook.
In line with these changes, Spark is accelerating its SPK-26 Operate Programme to bring efficiency
benefits online faster. Strong progress has been made on the Company’s operating model redesign,
which is driving greater efficiency and rebalancing labour investment to changing growth profiles
across the business. This work will continue alongside broader efficiency initiatives to mitigate the
impact of softer trading conditions.

Spark Updated FY24 Guidance
1



FY23 Actual FY24 Guidance
Updated
FY24 Guidance
Prior
EBITDAI $1,193m
2
$1,170m-$1,210m $1,215m-$1,260m
Capital
expenditure
3

$515m
~$510m-$530m ~$510m-$530m
Dividend
per share
Total 27.0 cps
(100% imputed)
Total 27.5 cps
(100% imputed)
Total 27.5 cps
(100% imputed)





1
Subject to no material adverse change in operating outlook.
2
FY23 EBITDAI is adjusted for the impact of the TowerCo gain and Spark Sport provision.
3
Total capital expenditure including growth capex and excluding expenditure on mobile spectrum.

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


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:
Stefan Knight
Chief Financial Officer
(64) 27 252 9438
stefan.knight@spark.co.nz