Spark New Zealand Limited H1 FY25 Results

Spark New Zealand Limited
ARBN 050 611 277 Spark City, Level 1, 50 Albert Street, Private Bag 92028, Auckland, New Zealand




MARKET RELEASE – FRIDAY, 21 FEBRUARY 2025

Spark announces FY25 first half results

• Revenue
1
, EBITDAI
2
, and NPAT
3
declined in a recessionary environment, while Spark maintained its
number one position in mobile and broadband
4

• FY25 EBITDAI guidance reduced to $1,040-$1,100 million, while capex guidance of ~$415-$435
million and FY25 dividend guidance of 25 cents per share (75% imputed) were maintained
• Decisive action being taken to improve performance – momentum building in consumer mobile;
Connexa sale expected to deliver proceeds of ~$310 million in Q3
5
; expected net labour and opex
reduction of $80-$100 million in FY25 and $110-$140 million of annualised benefits by FY27; and
process underway to secure a capital partner to co-invest in data centre growth strategy

Spark New Zealand (Spark) today announced its H1 FY25 results and provided updated FY25 EBITDAI
guidance.

With tough operating conditions continuing to impact overall performance, FY25 EBITDAI guidance has
been reduced to $1,040-$1,100 million. The primary driver of the change is further deterioration in the
performance of Spark’s Enterprise and Government division, which has been impacted by spending cuts
and mobile fleet reductions across Government and businesses, changes in product mix, and aggressive
price competition in mobile.

Spark Chair Justine Smyth said, “When we updated the market in October, we outlined that we were
experiencing one of the longest and deepest recessionary periods in recent history. Since that time, we
have seen no improvement in these conditions, and while there has been movement on monetary policy,
this is yet to flow through to any meaningful change in consumer or business spending.

“We know our shareholders will be rightly concerned by the ongoing headwinds we are facing, and
Board and Management are taking decisive action to improve performance in the short-term and deliver
sustainable competitive advantage in future years.

“This includes a significant transformation of our operating model and technology and network
operations, which is expected to deliver a net labour and opex reduction of $80-100 million
in FY25, and
$110-$140 million of annualised benefits by FY27.

“We are simplifying our portfolio to focus on our telco core, and in December announced the sale of our
remaining stake in Connexa, which is expected to deliver proceeds of ~$310 million and a gain on sale
of ~$66 million in reported EBITDAI and complete in the third quarter
5
. We have also commenced a
process to invite expressions of interest from prospective capital partners to co-invest and accelerate our
data centre growth strategy.

“The scale and pace of deterioration in trading conditions we have experienced over the last year has
been substantial, but this only hardens our resolve to respond rapidly, to transform what is in our control,
and to set the foundations for Spark to once again deliver strong shareholder returns.”


1
Operating revenues and other gains
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
3
Net Profit After Tax
4
Market share estimates sourced from IDC at 31 December 2024
5
The final sale price is subject to an adjustment based on movements in working capital and capital expenditure. All regulatory approvals
required have now been received.

Spark New Zealand Limited
ARBN 050 611 277 Spark City, Level 1, 50 Albert Street, Private Bag 92028, Auckland, New Zealand


The Board declared a first half dividend of 12.5 cents per share, 75% imputed, which will be paid on
4 April 2025. This is in line with FY25 dividend guidance of 25 cents per share, 75% imputed, which has
been maintained in recognition of the receipt of ~$310 million in Connexa proceeds expected in Q3. The
Dividend Reinvestment Plan will be available for shareholders to receive shares at a 2% discount in lieu
of a dividend.

H1 FY25 operating performance

Reported revenue declined 1.9% to $1,939 million, driven by the performance of mobile, IT services, and
the continued decline of legacy voice, and partially offset by growth in mobile devices, cloud, data
centres, and IoT.

Reported EBITDAI declined 20.9% to $419 million, driven by lower IT services project activity, the mix-
shift from private to public cloud, and supplier cost inflation. Reported NPAT declined 77.7% to

$35 million, due to lower EBITDAI and higher depreciation and amortisation costs. When adjusting for
the non-recurring costs of operating model transformation of $29 million in H1, adjusted EBITDAI
declined 15.5% to $448 million, and adjusted NPAT

declined 64.3% to $56 million.

Spark’s mobile service revenue declined 3.7% to $491 million, driven predominantly by shrinking mobile
fleets following customers’ headcount reductions and price competition in the Enterprise and
Government division, and the cessation of Spark’s mobile insurance product in consumer.

Broadband revenue declined 2.3% to $302 million as cost-of-living pressures saw customers trade down
to lower priced plans, and connections reduced off the back of intensified price competition.

Total IT revenues
6
declined 1.5% to $336 million. While IT products grew 1.1% to $264 million due to
strong growth in public cloud, this change in mix contributed to a 10% margin reduction. Reduced IT
services project activity across the government and business sectors saw revenues reduce 10% to $72
million, while high-tech revenues grew 17.1% to $41 million as IoT connections increased 25% to over
2.2 million.

Data centres’ revenue increased 13.6% to $25 million, as billing of Spark’s 22MW capacity increased.

Commenting on the half-year results, Spark CEO Jolie Hodson said, “Conditions in the New Zealand
economy have been incredibly tough, but we are taking action on the things we can control to transform
our business.

“We have four key priorities – driving momentum in our telco core, with a particular focus on mobile,
simplifying our portfolio, transforming our cost base, and creating long-term shareholder value through
our data centre strategy.

“Mobile is central to our business, and we remain the market leader by some distance
4
. This is not
something we take for granted, and we have a strong pipeline of new products and campaigns that are
proving popular with our customers. We launched new high data pay monthly mobile plans, and
acquisition was up 7% compared to the same period last year
7
. We also launched a new prepaid plan
line-up in December and early data shows the same promising trends.

“In our Enterprise and Government division, around 80% of the connection decline we have seen comes
from mobile fleets shrinking as customers reduce headcounts and deliver cost efficiencies, as opposed
to losing business to competitors. Positively, we have seen this trend start to slow, with the rate of fleet
shrinkage halving in the first half when compared to the second half of FY24.

“Broadband is a mature and commoditised market and saw consistent lower levels of overall growth.
Despite this, wireless broadband is growing and now makes up ~32% of our base, and we continue to
see opportunities to accelerate this in the future as 5G delivers higher capacity and speeds.


6
IT Products and Services revenue and costs have been restated in prior periods due to a product mapping change with the Data
Centres business

7
Pay monthly acquisitions over November and December up 7% vs the same period in H1 24

Spark New Zealand Limited
ARBN 050 611 277 Spark City, Level 1, 50 Albert Street, Private Bag 92028, Auckland, New Zealand


“In IT, conditions remain particularly tough, with little to no rebound in business spending. We are
undertaking a significant transformation of our technology and network operations that will not only
support improved margins in this market in the future but also enable us to leverage global capability and
innovation to deliver even better outcomes for our customers.”

Spark is establishing several strategic partnerships across IT, cloud, and network that will enable it to
deliver better customer and business outcomes at a materially reduced cost, with a targeted ~20%
overall average cost efficiency.

An IT infrastructure and services partnership is close to finalisation, and will accelerate automation and
efficiencies and deliver a significant reduction in annualised IT costs, while a new strategic cloud
partnership with Microsoft will improve Spark’s overall cloud economics.

The new technology delivery model forms part of Spark’s expanded SPK-26 Operate Programme. This
programme is expected to deliver a net labour and opex reduction of $80-100 million
in FY25, which
increases to $90-$110 million on an annualised basis by the end of the financial year. This will be funded
by a non-recurring transformation charge of $45-50 million in FY25, with $29 million recognised in H1.
Additional annualised benefits of $20-$30 million commence from FY26-27, meaning the overall
expanded programme is forecast to deliver $110-$140 million of annualised benefits by FY27.

Jolie continued “We are responding to the challenges we are experiencing in the short-term, in a way
that also builds a stronger, more competitive business over the longer term. It is never easy to make
changes that impact our people, and we do not do so lightly. I want to acknowledge our teams at Spark
who have continued to support our customers during a time of change for our business.”

Updated FY25 guidance

Spark updated FY25 guidance as outlined below:
• EBITDAI: $1,040 million - $1,100 million (from $1,120 million - $1,180 million)
• Capital expenditure: ~$415-$435 million (no change)
• Total dividend per share: 25.0 cents per share, 75% imputed (no change)

Authorised by:

Rodney Deacon
Finance Lead Partner – Investor Relations and Commercial


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:
Rodney Deacon
Finance Lead Partner – Investor Relations and Commercial
(64) 21 631 074
rodney.deacon@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 2024
Previous Reporting Period 6 months to 31 December 2023
Currency NZD - New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
NZD$1,939,000 (1.9%)
Total Revenue NZD$1,939,000 (1.9%)
Net profit/(loss) from
continuing operations
NZD$35,000 (77.7%)
Total net profit/(loss) NZD$35,000 (77.7%)
Interim/Final Dividend
Amount per Quoted Equity
Security
NZD$0.12500000 (comprised only of an ordinary dividend)
Imputed amount per Quoted
Equity Security
NZD$0.03645833
Record Date 21 March 2025
Dividend Payment Date 4 April 2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
As at 31 December 2024:
NZD$0.32
As at 31 December 2023:
NZD$0.44
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
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
Stewart Taylor, Chief Financial Officer
Contact person for this
announcement
Rodney Deacon, Finance Lead Partner – Investor Relations and
Commercial
Contact phone number +64 21 631 074
Contact email address investor-info@spark.co.nz
Date of release through MAP

21 February 2025

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$419,000 (20.9%)
Adjusted
1
earnings before finance income and expense,
income tax, depreciation, amortisation and net investment
income (Adjusted EBITDAI)
NZD$448,000 (15.5%)

1
Adjusted earnings before finance income and expense, income tax, depreciation, amortisation
and net investment income (EBITDAI) excludes the impact of the transformation costs
associated with Spark's SPK-26 Operate Programme amounting to $29 million. EBITDAI and
Adjusted EBITDAI are non-GAAP measures which are defined and reconciled in note 4 of
Spark’s interim financial statements.

---

Distribution Notice

1
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.






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 Yes
Record date 21 March 2025 AUST, NZ & USA;

Ex-Date (one business day before the
Record Date)
20 March 2025 AUST & NZ;
21 March 2025 USA
Payment date (and allotment date for
DRP)
4 April 2025 AUST & NZ;
14 April 2025 USA
Total monies associated with the
distribution
NZD$230,511,640
(1,844,093,120 shares @ $0.125 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$0.16145833
Gross taxable amount NZD$0.16145833
Total cash distribution NZD$0.12500000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount NZD$ 0.01654412
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
1
23%
Imputation tax credits per financial
product
NZD$0.03645833

Resident Withholding Tax per
financial product
NZD$0.01682292
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
2%
Start date and end date for
determining market price for DRP
Start date: 20 March 2025

End date: 26 March 2025
Date strike price to be announced (if
not available at this time)
26 March 2025
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New Issue
DRP strike price per financial product

Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
24 March 2025
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Stewart Taylor, Chief Financial Officer
Contact person for this
announcement
Rodney Deacon, Finance Lead Partner - Investor
Relations and Commercial
Contact phone number +64 21 631 074
Contact email address investor-info@spark.co.nz
Date of release through MAP

21 February 2025

---

FY2025
INTERIM
FINANCIAL
S TATEMENTS

Spark New ZealandInterim financial statements
Page
02
Interim financial
statements
For the six months ended 31 December 2024
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 2024.
Interim financial statements3-6
Notes to the interim financial statements7-16
Independent auditor’s review report17

Statement of profit or loss and other comprehensive income
SIX MONTHS ENDED 31 DECEMBER
20242023
UNAUDITEDUNAUDITED
NOTES$M$M
Operating revenues and other gains 1,939 1,976
Operating expenses
1
(1,520) (1,446)
Earnings before finance income and expense, income tax, depreciation, amortisation and net
investment income (EBITDAI)4 419 530
Finance income 15 14
Finance expense (75) (63)
Depreciation and amortisation (300) (251)
Net investment income – (3)
Net earnings before income tax3 59 227
Income tax expense
1
(24) (70)
Net earnings for the period4 35 157
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 (3) (12)
Items that may be reclassified to profit or loss:
Translation of foreign operations – (1)
Change in hedge reserves net of tax (30) (13)
Other comprehensive income for the period (33) (26)
Total comprehensive income for the period 2 131
Earnings per share
Basic earnings per share (cents) 1.9 8.6
Diluted earnings per share (cents) 1.9 8.5
Weighted average ordinary shares (millions) - used for basic earnings per share 1,829 1,835
Dilutive potential ordinary share (options) 1 3
Weighted average ordinary shares and options (millions) - used for diluted earnings per share 1,830 1,838
See accompanying notes to the interim financial statements.
1 These balances have been impacted by the transformation costs associated with Spark’s SPK-26 Operate Programme, see note 2 for further details.
Page 03
Spark New ZealandInterim financial statements

AS AT
31 DECEMBER
AS AT
30 JUNE
20242024
UNAUDITEDAUDITED
NOTES$M$M
Current assets
Cash 100 59
Short-term receivables and prepayments 894 915
Short-term derivative assets 6 1
Inventories 113 89
Taxation recoverable 57 6
Assets classified as held for sale2.1 256 –
Total current assets 1,426 1,070
Non-current assets
Long-term receivables and prepayments 378 515
Long-term derivative assets 13 25
Long-term investments5 132 206
Deferred tax assets 31 17
Right-of-use assets 575 487
Leased customer equipment assets 63 70
Property, plant and equipment 1,433 1,394
Intangible assets 847 851
Total non-current assets 3,472 3,565
Total assets 4,898 4,635
Current liabilities
Short-term payables, accruals and provisions 581 550
Short-term derivative liabilities 1 –
Short-term lease liabilities 107 96
Debt due within one year6 552 414
Liabilities classified as held for sale2.1 6 –
Total current liabilities 1,247 1,060
Non-current liabilities
Long-term payables, accruals and provisions 55 56
Long-term derivative liabilities 76 78
Long-term lease liabilities 777 646
Long-term debt6 1,308 1,205
Total non-current liabilities 2,216 1,985
Total liabilities 3,463 3,045
Equity
Share capital 906 810
Reserves (447) (414)
Retained earnings 976 1,194
Total equity 1,435 1,590
Total liabilities and equity 4,898 4,635
See accompanying notes to the interim financial statements.
On behalf of the Board
Justine Smyth, CNZM Jolie Hodson, MNZM
Chair Chief Executive
Authorised for issue on 21 February 2025
Statement of financial position
Page 04
Spark New ZealandInterim financial statements

Statement of changes in equity
SIX MONTHS ENDED 31 DECEMBER 2024SHARE CAPITAL
RETAINED
EARNINGS
HEDGE
RESERVES
SHARE-BASED
COMPENSATION
RESERVE
REVALUATION
RESERVE
FOREIGN
CURRENCY
TRANSLATION
RESERVETOTAL
UNAUDITED$M$M$M$M$M$M$M
Balance at 1 July 2024 810 1,194 12 4 (407) (23) 1,590
Net earnings for the period – 35 – – – – 35
Other comprehensive income for the period – – (30) – (3) – (33)
Total comprehensive income for the period – 35 (30) – (3) – 2
Contributions by, and distributions to, owners:
Dividends – (254) – – – – (254)
Supplementary dividends – (23) – – – – (23)
Tax credit on supplementary dividends – 23 – – – – 23
Dividend reinvestment plan 94 – – – – – 94
Issuance of shares under share schemes 3 – – 1 – – 4
Other transfers (1) 1 – (1) – – (1)
Total transactions with owners for the period 96 (253) – – – – (157)
Balance at 31 December 2024 906 976 (18) 4 (410) (23) 1,435
SIX MONTHS ENDED 31 DECEMBER 2023SHARE CAPITAL
RETAINED
EARNINGS
HEDGE
RESERVES
SHARE-BASED
COMPENSATION
RESERVE
REVALUATION
RESERVE
FOREIGN
CURRENCY
TRANSLATION
RESERVETOTAL
UNAUDITED$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
Page 05
Spark New ZealandInterim financial statements

Statement of cash flows
SIX MONTHS ENDED 31 DECEMBER
20242023
UNAUDITEDUNAUDITED
NOTES$M$M
Cash flows from operating activities
Receipts from customers 1,977 1,972
Receipts from interest 15 13
Payments to suppliers and employees (1,566) (1,519)
Payments for income tax (78) (101)
Payments for interest on debt (46) (31)
Payments for interest on leases (24) (23)
Payments for interest on leased customer equipment assets (3) (4)
Net cash flows from operating activities7 275 307
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 2 14
Receipts from finance leases – 1
Payments for purchase of business, net of cash acquired (2) (2)
Receipts from loans receivable 3 10
Payments for, and advances to, long-term investments – (1)
Payments for purchase of property, plant and equipment, intangibles (excluding spectrum), and
capacity (228) (347)
Payments for capitalised interest (4) (6)
Net cash flows from investing activities (229) (331)
Cash flows from financing activities
Proceeds from debt 5,427 7,310
Repayments of debt (5,237) (6,821)
Payments for dividends (160) (249)
Payments for share buy-back – (159)
Receipts from lease incentive 22 –
Payments for leases (44) (38)
Payments for leased customer equipment assets (11) (20)
Net cash flows from financing activities (3) 23
Net cash flows 43 (1)
Opening cash position 59 100
Closing cash position 102 99
Cash included in assets classified as held for sale2.1 2 –
Cash 100 99
Closing cash position 102 99
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 2024.
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 New Zealand equivalents 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 2024. 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 2024. 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 prices.
This represents a level two measurement under the fair value
measurement hierarchy, being inputs other than quoted prices
included within level one 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 2024, capital expenditure amounting to
$718 million (30 June 2024: $684 million) had been committed
under contractual arrangements.
New and amended standards
NZ IFRS 18 Presentation and Disclosure in Financial Statements (NZ
IFRS 18) will replace NZ IAS 1 Presentation of Financial Statements
and may have a material impact on Spark’s disclosures. NZ IFRS 18
has been issued but is not yet effective until periods commencing
on or after 1 January 2027.  
NZ IFRS 18 sets out the requirements for the presentation and
disclosure of information in financial statements, and will not
change net profit reported, but how results are presented on the
statement of profit or loss and other comprehensive income and
what information is disclosed in the notes. Spark is yet to determine
the disclosure impacts of this standard and whether it will adopt it
prior to the year ending 30 June 2028. The key changes of NZ IFRS
18 are expected to be:
• A more structured statement of profit or loss and other
comprehensive income, including new subtotals, and income
and expenses classified into three categories (operating,
investing and financing).
• Non-GAAP, management performance measures are required to
be disclosed in the financial statements and subject to audit.
• New disclosures are required for items currently labelled as
‘other’, with enhanced guidance on how to group information
within the financial statements.
Page 07
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
The following significant transactions and events affected the
financial performance and financial position of Spark for the
six month period to 31 December 2024 or subsequent to
balance date:
Debt programme (see note 6)
• On 28 November 2024, Spark extended the term of its $100
million committed revolving sustainability linked loan (SLL) facility
with Commonwealth Bank of Australia by three years, to mature
on 30 November 2027. Spark’s SLL has a dual focus on the
Group’s environmental and gender diversity performance. For
the SLL extension, the gender representation target has been
replaced with a median gender pay gap target. The
environmental targets remain unchanged.
• On 28 November 2024, Spark established a NZ$100 million
committed revolving facility with Commonwealth Bank of
Australia, to mature on 28 May 2025.
Capital expenditure
• Spark’s additions to property, plant and equipment, intangible
assets (excluding spectrum) and capacity right–of–use assets
were $252 million (31 December 2023: $286 million).
Dividends
• Dividends paid during the six month period ended 31 December
2024 in relation to the H2 FY24 second-half ordinary dividend of
14.0 cents per share totalled $254 million. Of this, $94 million
was reinvested through the dividend reinvestment plan with the
shares issued at a 3% discount to the prevailing market price
around the time of issue. The dividends paid during the
comparative six month period to 31 December 2023 in relation
to the H2 FY23 second-half ordinary dividend of 13.5 cents per
share totalled $249 million, with no shares offered under the
dividend reinvestment plan.
Connexa (see note 2.1)
• On 12 December 2024, Spark announced the sale of its
remaining stake (~17%) in mobile towers business Connexa to
global investment group CDPQ, with final proceeds expected to
be around $310 million and completion anticipated to occur in
the third quarter of FY25. More details on the anticipated
transaction are contained within note 2.1.
Transformation costs (see note 4)
• Transformation costs of $29 million were incurred in the
implementation of Spark’s SPK-26 Operate Programme. The
objectives of this programme are to redesign the organisational
operating model, drive labour and operating cost reductions.
The costs incurred related to largely labour restructuring and
advisory costs.
Note 2.1 Assets and liabilities classified as held for sale
Connexa
On 12 December 2024, Spark announced the sale of the
remaining ~17% interest in Connexa to global investment group
CDPQ, with final proceeds expected to be around $310 million.
As at 31 December 2024, the assets associated with Connexa
have been classified as held for sale.
All necessary regulatory conditions have been satisfied and the sale
is expected to complete in the third quarter of FY25.
Other Transactions
On 20 December 2024, Spark signed a sale and purchase
agreement for the sale of its subsidiary Digital Island which is
expected to be completed in the third quarter of FY25. The sale
excludes Digital Island’s mobile services business which will be
transferred to Spark after completion. As at 31 December 2024,
the assets, excluding its mobile customer base, and liabilities
associated with Digital Island have been classified as held for sale.
In July 2024, Spark bought back a Business Hub from the previous
licensee. Spark intends to re-sell the hub and anticipates the
Business Hub will be sold in the third quarter of FY25.
Note 2 Significant transactions and events for the current period
Page 08
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
The major classes of assets and liabilities classified as held for sale are as follows:
AS AT 31
DECEMBER
2024
UNAUDITED$M
Cash 2
Short-term receivables and prepayments 4
Long-term receivables and prepayments 1
Long-term receivable
1
171
Long-term investments
1
65
Property, plant and equipment 1
Intangible assets 12
Total assets classified as held for sale 256
Short-term payables, accruals and provisions 6
Total liabilities classified as held for sale 6
1 These balances relate to the investment in Connexa and associated shareholder loans.
No gain or loss was recognised in the statement of profit or loss on classification of the above assets and liabilities to held for sale.
At the time these interim financial statements were authorised for issue the Connexa, Digital Island and Business Hub transactions had not
yet completed.
Note 2.1 Assets and liabilities classified as held for sale (continued)
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 made minor reclassifications of segment revenues and costs from IT products and IT services to data centres. There is no change
to the overall Spark reported result because of these changes.
SIX MONTHS ENDED 31 DECEMBER20242023
OPERATING
REVENUES
PRODUCT

COSTS
PRODUCT
MARGIN
OPERATING
REVENUES
PRODUCT
COSTS
PRODUCT
MARGIN
UNAUDITED$M$M$M$M$M$M
Mobile 739 (251) 488 749 (253) 496
Procurement and partners 332 (307) 25 339 (315) 24
Broadband 302 (162) 140 309 (161) 148
IT products 264 (139) 125 261 (122) 139
Voice 78 (36) 42 94 (43) 51
IT services 72 (23) 49 80 (14) 66
High-tech 41 (19) 22 35 (13) 22
Data centres 25 (2) 23 22 (1) 21
Other products
1
63 (26) 37 68 (22) 46
Segment results 1,916 (965) 951 1,957 (944) 1,013
1 Other products includes mobile infrastructure and exchange building sharing arrangements.
Note 3 Segment information
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 DECEMBER20242023
UNAUDITED$M$M
Segment product margin 951 1,013
Other gains
Gain on sale and acquisition of property, plant and equipment and intangibles 1 17
Gain on lease modifications and terminations 22 2
Labour
1
(273) (279)
Other operating expenses
Network support costs (52) (40)
Computer costs (74) (52)
Accommodation costs (48) (48)
Advertising, promotions and communication (31) (33)
Bad debts (10) (7)
Other
1
(67) (43)
Earnings before finance income and expense, income tax, depreciation, amortisation and net investment
income (EBITDAI) 419 530
Finance income
Finance lease interest income 4 4
Other interest income 11 10
Finance expense
Finance expense on debt (41) (33)
Lease interest expense (25) (24)
Leased customer equipment interest expense (3) (4)
Other interest and finance expenses (10) (8)
Capitalised interest 4 6
Depreciation and amortisation expense
Depreciation – property, plant and equipment (147) (112)
Depreciation – right-of-use assets (50) (42)
Depreciation – leased customer equipment assets (13) (17)
Amortisation – intangible assets (90) (80)
Net investment income
Share of associates' and joint ventures' net losses (6) (8)
Interest income on loans receivable from associates and joint ventures 6 6
Net loss on remeasurement of equity accounted investments – (1)
Net earnings before income tax 59 227
1 These balances have been impacted by the transformation costs associated with Spark’s SPK-26 Operate Programme, see note 2 for further details.
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, subtracting finance
income and adjusting for 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 loss on remeasurement of equity accounted investments and
dividend income) to net earnings. A reconciliation of Spark’s EBITDAI is provided below and based on amounts taken from, and consistent
with, those presented in these interim financial statements.
SIX MONTHS ENDED 31 DECEMBER20242023
UNAUDITED$M$M
Net earnings for the period reported under NZ IFRS 35 157
Less: finance income (15) (14)
Add back: finance expense 75 63
Add back: depreciation and amortisation 300 251
Add back: net investment income – 3
Add back: income tax expense 24 70
EBITDAI 419 530
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 2024, the transformation costs
associated with Spark’s SPK-26 Operate Programme amounted to $29 million and were deemed significant to adjust.
SIX MONTHS ENDED 31 DECEMBER20242023
UNAUDITEDNOTE$M$M
EBITDAI 419 530
Add: transformation costs2 29 –
Adjusted EBITDAI 448 530
SIX MONTHS ENDED 31 DECEMBER20242023
UNAUDITED$M$M
Net earnings for the period reported under NZ IFRS 35 157
Add: transformation costs 29 –
Less: tax effect on transformation costs (8)–
Adjusted net earnings 56 157
Page 11
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
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 debt due within one year, 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
20242024
UNAUDITEDAUDITED
NOTE$M$M
Cash (100) (59)
Cash included in assets classified as held for sale2.1(2)–
Debt due within one year at face value 560 418
Long-term debt at face value 1,335 1,267
Net debt at face value 1,793 1,626
To retranslate debt balances at swap rates where hedged by currency swaps 3 10
Net debt at hedged rates
1
1,796 1,636
Non-cash adjustments
Impact of fair value hedge adjustments
2
9 9
Unamortised discount (6) (7)
Net debt at carrying value 1,799 1,638
1 Net debt at hedged rates is the value of hedged cash flows due to arise on maturity.
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.
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
20242024
UNAUDITEDAUDITED
MEASUREMENT BASIS$M$M
Shares in HutchisonFair value through other comprehensive income 38 41
Investment in associates and joint venturesEquity method 90 161
Other long-term investmentsCost 4 4
132 206
Spark holds a 10% interest in Hutchison Telecommunications Australia Limited (Hutchison), an ASX listed company. The fair value of this
investment is determined using the observable bid price quoted on the ASX, categorized as level one in the fair value hierarchy. As at
31 December 2024, Hutchison’s share price was AU$0.026 (30 June 2024: AU$0.028). The decrease in fair value of $3 million is recognised
in other comprehensive income (31 December 2023: $12 million decrease).
Investment in associates and joint ventures
Spark’s investment in associates and joint ventures at 31 December 2024 consists of the following:
NAMETYPECOUNTRYOWNERSHIPPRINCIPAL ACTIVITY
Flok LimitedAssociate New Zealand38%Hardware and software development
Hourua LimitedJoint VentureNew Zealand50%Delivering the Public Safety Network
Pacific Carriage Holdings Limited, Inc.AssociateUnited States41%A holding company for the Southern Cross
Cables network
Rural Connectivity Group LimitedJoint VentureNew Zealand33%Rural broadband
Southern Cross Cables Holdings LimitedAssociateBermuda41%A holding company for the Southern Cross
Cables network
TNAS LimitedJoint VentureNew Zealand50%Telecommunications development
On 12 December 2024, Spark announced the sale of the remaining ~17% interest in FrodoCo Holdings Limited, the holding company for
Connexa, to global investment group CDPQ. This investment in associate is classified as assets held for sale, see note 2.1 for further details.
Page 13
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Note 6 Debt
AS AT
31 DECEMBER
AS AT
30 JUNE
20242024
COUPON RATE
UNAUDITEDAUDITED
FACILITYMATURITY$M$M
Debt due within one year
Commercial paperVariable< 3 months 199 208
199 208
Supplier financing arrangements
1
Variable< 30/06/2029 28 21
28 21
Bank funding
MUFG Bank, Ltd.
2
125 million NZDVariable30/11/2025 125 –
Commonwealth Bank of Australia100 million NZDVariable28/05/2025 100 –
Commonwealth Bank of Australia
2
100 million NZDVariable30/11/2024 – 100
Bank of New Zealand100 million NZDVariable30/05/2025 100 85
325 185
Total debt due within one year 552 414
Long-term debt
Supplier financing arrangements
1
Variable< 30/06/2029 46 49
46 49
Bank funding
Westpac New Zealand Limited
2
200 million NZDVariable30/11/2026 94 –
Commonwealth Bank of Australia
2
100 million NZDVariable28/11/2027 100 –
MUFG Bank, Ltd.
2
125 million NZDVariable30/11/2025 – 125
194125
Domestic notes
125 million NZD3.94%07/09/2026 123 117
100 million NZD
3
4.37%29/09/2028 100 100
125 million NZD5.21%18/09/2029 130 124
175 million NZD5.45%18/09/2031 182 174
535 515
Foreign currency Medium Term Notes
Australian Medium Term Notes – 100 million AUD1.90%05/06/2026 106 102
Australian Medium Term Notes – 150 million AUD4.00%20/10/2027 161 156
Australian Medium Term Notes – 125 million AUD2.60%18/03/2030 121 116
Norwegian Medium Term Notes – 1 billion NOK
4
3.07%19/03/2029 145 142
533 516
Total long-term debt 1,308 1,205
Total debt 1,860 1,619
1 With respect to arrangements with outstanding liabilities at 31 December 2024, including those entered into in prior years, financing providers have paid suppliers a
total of $106 million, Spark has accrued interest of $4m and made payments against these arrangements of $36 million, resulting in a closing liability of $74 million as
at 31 December 2024 (30 June 2024: financers have paid suppliers $120 million, Spark has accrued interest of $4m and made payments against these arrangements of
$54 million, resulting in a closing liability of $70 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 for the next annual period if it achieves annual sustainability targets or pay higher
rates on the loans for the next annual period if it falls short of these annual targets.
3 This bond is a Sustainability-Linked Bond. The bond includes an interest rate step up depending on the achievement of a sustainability target as at 30 June 2026.
4 Norwegian krone.
Changes in Spark’s short-term and long-term financing are disclosed in note 2 of these interim financial statements.
The fair value of total debt based on market observable prices, was $1,878 million compared to a carrying value of $1,860 million as at
31 December 2024 (30 June 2024: fair value of $1,635 million compared to a carrying value of $1,619 million).
Page 14
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 DECEMBER20242023
UNAUDITED$M$M
Net earnings for the period 35 157
Adjustments to reconcile net earnings to net cash flows from operating activities
Depreciation and amortisation 300 251
Bad and doubtful accounts 11 8
Deferred income tax (2) 2
Share of associates' and joint ventures' net losses 6 8
Interest income on loans receivable from associates and joint ventures (6) (6)
Net loss on remeasurement of equity accounted investments– 1
Gain on sale and acquisition of property, plant and equipment and intangibles (1) (17)
Gain on lease modifications and terminations (22) (2)
Other 2 4
Changes in assets and liabilities net of effects of non-cash and investing and financing activities
Movement in receivables and related items (13) (50)
Movement in inventories (24) (26)
Movement in current taxation (51) (33)
Movement in payables and related items 40 10
Net cash flows from operating activities 275 307
Page 15
Spark New ZealandInterim financial statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
Note 8 Dividends
On 20 February 2025, the Board approved the payment of a first-half ordinary dividend of 12.5 cents per share or approximately $231
million. The dividend will be 75% imputed. In addition, supplementary dividends totalling approximately $15 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 FY25
ORDINARY DIVIDENDS
Dividends declared
Ordinary shares12.5 cents
American Depositary Shares
1
35.64 US cents
Imputation
Percentage imputed75%
Imputation credits per share3.6458 cents
Supplementary dividend per share
2
1.6544 cents
‘Ex’ dividend dates
New Zealand Stock Exchange20/03/2025
Australian Securities Exchange20/03/2025
American Depositary Shares 21/03/2025
Record dates
New Zealand Stock Exchange21/03/2025
Australian Securities Exchange21/03/2025
American Depositary Shares 21/03/2025
Payment dates
New Zealand and Australia 04/04/2025
American Depositary Shares 14/04/2025
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 FY25, these are based on the exchange rate at 18 February
2025 of NZ$1 to US$0.5702 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 Mellon performs the physical currency conversion.
2 Supplementary dividends are paid to non-resident shareholders.
Dividend Reinvestment Plan
The dividend reinvestment plan has been retained for the H1 FY25 dividend. Shares issued under the dividend reinvestment plan will be
issued at a 2% discount to the prevailing market price as determined around the time of issue.  The last date for shareholders to elect to
participate in the dividend reinvestment plan for the H1 FY25 dividend is 24 March 2025. Spark’s Dividend Reinvestment Plan Offer
Document and Participation Notice can be found on Spark’s Investor Centre Website: investors.sparknz.co.nz
Page 16
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 16 which comprise the statement of financial position as at 31 December
2024, 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 2024 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 of which Spark
New Zealand Limited is a member, along with a number of other organisations. 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 the 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.
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 would become aware of all significant matters that might be identified 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
21 February 2025
Page 17
Spark New ZealandInterim financial statements

Contact details
Registered office
Level 1
50 Albert Street
Auckland 1010
New Zealand
Ph +64 4 471 1638 or 0800 108 010
Company secretary
Paige Howard-Smith
New Zealand registry
MUFG Corporate Markets
A division of MUFG Pension &
Market Services
Level 30, PWC Tower
15 Customs Street West
Auckland 1142
PO Box 91976
Auckland 1142
Ph +64 9 375 5998 (investor enquiries)
spark@cm.mpms.mufg.com
nz.investorcentre.mpms.mufg.com
Australian registry
MUFG Corporate Markets
A division of MUFG Pension &
Market Services
Level 12
680 George Street
Sydney NSW 2000
Australia
Locked Bag A14
Sydney South NSW 1235
Australia
Ph +61 1300 554 484 (investor enquiries)
spark@cm.mpms.mufg.com
au.investorcentre.mpms.mufg.com
Spark New Zealand Limited
ARBN 050 611 277
United States registry
Computershare Investor Services
P.O. Box 43078
Providence, RI02940-3078
United States of America
Overnight/certified/registered delivery:
Computershare
150 Royall Street, Suite 101
Canton, MA 02021
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.computershare.com/investor
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
SPARK085 02/25
Page 18
Spark New ZealandInterim financial statements

investors.sparknz.co.nz
ARBN 050 611 277

---

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2
Spark New Zealand |
Copyright ©️
2025
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.

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Spark New Zealand |
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2025
H1 25 financial snapshot
$448m
15.5% decrease vs. H1 24
ADJUSTED EBITDAI
(2)(3)
$77m
67.4% increase vs. H1 24
FREE CASH FLOW
$56m
64.3% decrease vs. H1 24
ADJUSTED NPAT
(2)(4)
12.5 cps
1.0 cps decrease vs. H1 24
INTERIM DIVIDEND
$1,939m
1.9% decrease vs. H1 24
REVENUE
(1)
$252m
11.9% decrease vs. H1 24
CAPEX
(3)
$419m
20.9% decrease vs. H1 24
REPORTED EBITDAI
(3)
$35m
77.7% decrease vs. H1 24
REPORTED NPAT
(1)
Operating revenues and other gains
(2)
H1 25 EBITDAI is adjusted for the impact of $29 million of transformation costs incurred in the implementation of Spark’s SPK-26 Operate Programme. There were no adjusting items in H1 24.
(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 25 NPAT adjusted for the SPK-26 transformation costs net of tax as described in note 2 of the interim financial statements
$1,939m
1.9% decrease vs. H1 24
REPORTED REVENUE
(1)

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Spark New Zealand |
Copyright ©️

2025
Challenging conditions persist; decisive action being taken to improve performance, which is building momentum into H2
H1 25 results summary
Tough operating
environment
impacted financial
performance in H1
Performance
improvement plan
focussed on sustained
competitive advantage
Capital
management
•Revenue of $1,939 million, down 1.9% YoY, driven by mobile services, IT services, and continued decline of legacy voice, and partially
offset by growth in mobile devices, cloud, data centres, and IoT
•Adjusted EBITDAI
1
of $448 million, down 15.5% YoY, driven by lower IT services project activity, the mix shift from private to public cloud,
and supplier cost inflation, and offset by lower labour costs
•Adjusted NPAT
2
of $56 million, down 64% YoY, driven by lower EBITDAI and higher depreciation and amortisation costs
•Focus on growing market leading position in telco core through new product development, campaign activity, and annual price reviews
•Portfolio simplification and review of non-core assets on track, with sale of remaining stake in Connexa
3
expected to realise ~$310 million in
proceeds and a gain on sale of ~$66 million in reported EBITDAI on completion in Q3
•Significantly expanded SPK-26 Operate Programme on track to deliver $80m-$100m reduction in net labour and opex costs in-year (funded by
non-recurring transformation charge of $45m-$50m, with $29m reported in H1 25 result) and $110m-$140m of annualised benefits by FY27
•Data centre build programme on track, progress made towards establishment of capital partnership to accelerate growth
•Free cash flow increased 67% to $77 million YoY (and when including working capital and growth capex improved by $163 million),
through disciplined capital expenditure (down 11.9% to $252 million in H1 25)
•Net debt to EBITDAI 2.3x at 31 December 2024, will improve in the near term by ~0.3x with the completion of the Connexa and Digital Island
transactions
•H1 25 dividend of 12.5 cents per share, consistent with FY25 total dividend guidance of 25 cents per share, 75% imputed
4
1
H1 25 EBITDAI is adjusted for the impact of $29 million of transformation costs incurred in the implementation of Spark’s SPK-26 Operate Programme. There were no adjusting items in H1 24.
2
H1 25 NPAT adjusted for the SPK-26 transformation costs net of tax as described in note 2 of the interim financial statements
3
All regulatory approvals required for the sale of Connexa stake have now been received
4
Subject to no material adverse change in operating outlook

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Spark New Zealand |
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2025
Clear focus on four strategic priorities to drive improved underlying performance and sustained competitive
advantage over the longer-term
Strategic priorities
Market momentum
in telco core
Simplified
portfolio
Transformed
cost base
Long-term
value creation
1.
2.
3.
4.
•Consumer mobile market
leadership
•Enterprise and Government
transformation
•Review of non-core assets
•Enterprise and
Government product
portfolio simplification
•Leaner operating model
•Transformation of
technology delivery model
•Data centre growth
strategy
•Capital partnerships

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2025
Mobile performance predominantly impacted by cessation of insurance product in consumer, and reducing mobile
fleets and price competition in business
1.Market momentum in telco core
TOTAL MOBILE MARKET PERFORMANCE
1
Spark
42.0%
One NZ
35.4%
2degrees
21.1%
MVNO
1.5%
(+0.3%)
(+0.3%)
(+0.0%)
(-0.7%)
1
All comparisons are market share estimates sourced from IDC
as at 31 December 2024, comparing H1 FY25 to H2 FY24. Note
IDC restated historical market share data at 30 September 2024.
•Total market service revenues broadly flat
•Lower insurance revenue contributed 0.2 percentage
points of share reduction for Spark
•Maintained #1 position in mobile market share by
service revenue and total connections
35.5%
$491m
3.7% decrease vs. H1 24
MOBILE SERVICE REVENUE
Consumer and SME
2.3% decrease vs. H1 24
Enterprise and Government
17.7% decrease vs. H1 24
Pay monthly connection growth continues, revenue
impacted by insurance product change
•Connection acquisitions up 1.1% YoY
•ARPU mainly impacted by removal of mobile
insurancefrom Spark-owned solution to thirdparty
Spark gained revenue share in a contracting prepaid
market
•Prepaid service revenue across the total market
declined,

while Spark’s revenue share increased
1
•Spark connections declined while ARPU increased,
with ~70% ofconnection lossattributable to casual
users with low/no spend
•Of these casual users, over 80% of connection loss
was due to inactivity vs. port-outs to competitors
Spark overweight in segments with shrinking mobile
fleets
•Connections impacted in a market dominated by
shrinking mobile fleets: ~80% of the 18k connection
decline from H1 24 to H1 25 driven by Government
and businesses reducing mobile fleets post
headcount reductions or to deliver cost efficiencies
Aggressive competitor pricing
•ARPU and revenue share declined due to aggressive
competitor pricing activity driving down value of
contract re-signings and new business wins

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2025
Rolling calendar of new product development, campaign activity, and pricing driving consumer mobile momentum in H2
1.Market momentum in telco core
CONSUMER AND SME
•Pay monthly plan refresh (end Oct) introduced big data caps for customers, with positive impact on acquisition ARPU
•Strong customer response driving momentum into H2 – pay monthly acquisitions over November and December up 7% vs the same
period in H1 24
•Prepaid plan refresh (Dec) improved competitive positioning, and early data shows uptick in acquisition
•Price increases across pay monthly and prepaid base in December offering more data for dollars, to deliver further benefits in H2
NETWORK LEADERSHIP
•Continue to allocate capital to areas of highest value return, with 45% of capex invested into mobile network, supporting network
performance and product innovation
•Spark awarded #1 mobile network for coverage and reliability by Open Signal in September 2024
•Spark has entered a new partnership with another US-based satellite provider to offer customers satellite-to-mobile services from
early 2026
ENTERPRISE AND GOVERNMENT
•Mobile fleet shrinkage slowed during H1 to half the rate of H2 FY24
•New B2B brand campaign launched in January, targeting enterprise and government decision makers
•Focussed on retaining connection share through proactive re-signing and competitive bids, to enable future organic growth
•Mitigating ARPU impacts from aggressive competitor pricing through targeted bundling and enhanced service offerings

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2025
Macro-economic conditions continue to impact broadband and IT, while IoT growth remains strong
1.Market momentum in telco core
$302m
2.3% decrease vs. H1 24
BROADBAND REVENUE
Broadband market is mature and
commoditised, with consistent lower levels of
overall market growth
Spark strategy remains focussed on margin
improvement as fibre company costs are
passed through and WBB addressable base
expands through 5G. WBB now ~32% of base
Cost of living pressures saw customers trade
down to lower priced plans and drove
intensified price-driven competition, resulting
in connection share reduction of 0.7% points
$336m
1.5% decrease vs. H1 24
TOTAL IT REVENUE
(1)
IT products revenue grew 1.1% to $264m,
driven by cloud (up 8.3%). Mix shift from
private to public drove a 10% margin
reduction – private cloud price increase to
support H2 improvement
Reduced project activity within government
and business sectors continued to impact
IT services demand, with revenues
down 10% to $72m
New strategic partnerships to support
cloud economics as mix shifts from
private to public
(2)
$41m
17.1% increase vs. H1 24
HIGH-TECH REVENUE
IoT continues to see strong growth with
revenues up 25%
IoT connections increased 25%
to over 2.2 million
2
See page 11 for more details
1
IT Products and Services revenue and costs have been restated in prior periods due to a product mapping change with the Data Centres business

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2025
2. Simplified portfolio
Review of non-core assets and portfolio simplification supporting focus on telco core, while further strengthening
balance sheet
Non-core
asset review
Product portfolio
simplification
•On 12 December 2024 Spark announced the sale of its remaining 17% stake of mobile towers business
Connexa to CDPQ, with all regulatory approvals required now received
•Spark now expects proceedsof ~$310 million
1
and an expected gain on sale of ~$66 million in reported
EBITDAI on completion in Q3
•Continuing to progress broader asset portfolio review to identify further opportunities to realise value in
the medium term
•Enterprise and Government (E&G) operating model transformation completed, with subsidiaries
integrated into Spark
•Product portfolio rationalisation underway to simplify and improve customer experiences
•Focus on legacy migration in managed networks and data, voice, and collaboration, with ~30% of products
in security service lines to be exited by end FY25
•Reviewing focus for service management based on evolving demand and margin profiles
•Sale of Digital Island (excluding mobile) will further support focus on telco core in E&G
1
The final sale price is subject to an adjustment based on movements in working capital and capital expenditure

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2025
3. Transformed cost base
Significantly expanded SPK-26 Operate Programme to deliver a materially leaner, more competitive business
•Investment in AI and automation supporting better customer outcomes and reduced cost to serve
•Spark developed ‘Bravety’, an AI capability for contact centres, which summarises customer calls within 5
seconds – enabling frontline teams to focus on customer interactions and reducing call handling times and costs
•Significant progress made to improve operating model effectiveness and efficiency across the business
•Enterprise and Government transformation complete, with subsidiary businesses integrated into Spark
•~900 FTE reduction at 31 December 2024, including changes made during FY24
•Broader operating model changes underway in H2 25 to focus resources on refreshed strategic priorities and
momentum in core
•Significant transformation of technology and network operations underway, leveraging several strategic
partnerships for global scale, capability, and accelerated AI and automation – delivering better customer
outcomes and material cost savings (see slide 11)
Operating
Model
Tech
Delivery
Model
Scale
AI

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2025
Significant transformation of technology and network operations, leveraging several strategic partnerships
3. Transformed cost base
New technology
delivery model
•Moving to best-practice
global model for
technology delivery
•Common structure utilised
by telcos in offshore
markets
•Establishing several
strategic partnerships
across IT and networks
Benefits
Progress
•Leveraging global investment
oAccess to partners’ global scale, capability,
and innovation
oAccelerated AI and automation benefits,
delivering better customer outcomes at
lower cost
•Improved cost efficiency
o~20% overall average cost efficiency
•Long-term sustainable benefits
oLong-term contracts and competitive
partner market supports longer-term cost
control
oSpark to retain overall strategic decision
making and components of competitive
advantage – i.e. critical operations,
intellectual property, systems
•IT infrastructure and services partnership
oFinalising new partnership that will deliver
accelerated automation and efficiencies
and a significant reduction in annualised IT
costs
•Cloud partnership
oStrategic partnership with Microsoft to
further modernise Spark’s hybrid cloud
environment and accelerate AI strategy,
improving Spark’s overall cloud economics
•Network partnership
oHeads of Agreement signed to explore
network operations partnership that
accelerates AI and automation, delivers
greater efficiency, and enables access to
global capability and innovation. Further
detail to be shared in coming months

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2025
3. Transformed cost base
Significantly expanded SPK-26 Operate Programme will deliver materially higher benefits over the next three years
1
Subject to no material adverse change in operating outlook
1. In-year benefits
•Net labour and opex reduction expected to deliver $80m-$100m
o$50m labour target exceeded
oCost benefits of the technology delivery model are heavily weighted to H2 and are
expected to bring opex in line with FY24
2. Annualised net benefits
•Additional annualised net labour and opex reduction benefits as a result of initiatives
put in place in FY25
•Total annualised benefits exiting FY25 is $90m-$110m
3. Transformation costs
•Non-recurring transformation charge of $45m-$50m to achieve these ongoing savings
($29m reported in H1 25 result)
FY25
benefits
FY26-27
benefits
4. Annualised benefits
•Additional $20m-$30m annualised net labour and opex cost reduction anticipated
from FY26-FY27
$110m-$140m of
annualised benefits
1
by FY27
Total benefits of
expanded SPK-26
Operate Programme:

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2025
4. Long term value creation
H1 25 performance on track
•Revenue and EBITDAI growth reflect increased billing of current capacity (22MW) and increased pass
through of electricity costs
•Expansion of additional 1MW at Aotea site on target, settlement of land for North Shore data centre
targeted for FY26
Longer-term growth strategy progressing
•Increased demand for data centre capacity continues to be driven by ongoing cloud adoption and
acceleration of AI
•Spark a significant player in the market, with existing international cloud / content provider contracts
and local capability a compelling proposition to customers and complementary to core business
•Remain committed to building out the 118+MW development pipeline, and continuing to target an
IRR of c10-15%
2
•Spark has commenced a process to explore interest from prospective partners in a preferred
investment vehicle, to support future investment of $1bn+ and accelerate growth opportunity
•Advanced progress establishing a dedicated data centre business in preparation for external
investment
•Intention remains to retain an ownership stake to create long-term shareholder value
Data centre business continues to build momentum as capacity delivered in previous periods increases billing
$25m
1
13.6% increase vs. H1 24
DATA CENTRES REVENUE
Gross margin of $23m up 9.5% vs. H1 24
continued the growth trend
Capital expenditure of $14m in H1 25 –
capex in FY26 expected to increase
significantly as land purchases are settled
and next stage capacity construction
commences
Despite subdued economic environment,
contracted utilisation of dedicated data
centres was 87%
3
1
Data Centres revenue and costs have been restated in prior periods due to a product mapping change with IT Products and Services categories
2
Unlevered, post-tax IRR
3
Includes contracted and reserved racks at dedicated data centres and exchanges

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2025
4. Long term value creation
1
Refers to total power load;
2
4.0 ha of development land under unconditional agreement with settlement expected in July 2025
3
2.4 ha of existing land owned and ~2.6 ha of development land under agreement with settlement expected in July 2025
Existing operational capacity (MW)
1
Future potential capacity (MW)
1
Existing sites
All development land owned or under agreement
Advanced plans with utility providers for initial power supply at Takanini and North Shore and strategy for long term scaled capacity
North Shore Campus (~4 ha)
2
40 MW development capacity
‒New greenfield site. Part of a world first sustainable development
‒Resource Consent granted 2024 under NZ Fast Track process
Takanini Campus (~5 ha)
3
63 MW development capacity
‒New builds designed for sustainability
‒Provisioned for high density AI
Aotea Campus
1 MW under construction
15 MW development capacity
‒Strategically sought after site due to customer ecosystem and location
Potential for future development in other regional / metro locations (e.g. Wellington and Christchurch)
Regional / metro sites
Takanini Campus
Aotea Campus
Regional / metro
Total planned capacity of ~140 MW with 118+ MW
1
development pipeline in Auckland
7 MW7 MW
3 MW
19 MW
12 MW
75 MW
40 MW
22 MW
~140 MW
Existing operational
capacity
Future potential
capacity

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2025
DIGITAL
EQUITY
Not-for-profit broadband product, Skinny
Jump, now supporting over 33,000
households in need
Tūrama Pathways internship programme
launched –to grow participation and
progression of under-represented
communities in technology
Continued focus on maturing ESG practices and maintained inclusion in Dow Jones Best-In-Class Index (Australasia)

Toitū sustainability performance
SUSTAINABLE
SPARK
Spark awarded the 2024 Deloitte Top 200
Sustainability Leadership award
Renewable Energy Partnership with
Genesis commenced on January 1, and
will support future scope 2 emissions
reductions
ECONOMIC
TRANSFORMATION
5G connectivity now live in 121 locations
across New Zealand
70% increase in 5G traffic over the last 12
months, with 45% of devices on the Spark
network now 5G capable

Financial summary

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2025
H1 25 financial summary
REPORTED
1
H1 24
$m
REPORTED
H1 25
$m
CHANGEADJUSTED
H1 25
$m
CHANGE
Operating revenues and other gains
1,9761,939(1.9%)1,939(1.9%)
Operating expenses
(1,446)(1,520)(5.1%)(1,491)(3.1%)
EBITDAI
530419(20.9%)448(15.5%)
Finance income
14157.1% 157.1%
Finance expense
(63)(75)(19.0%)(75)(19.0%)
Depreciation and amortisation
(251)(300)(19.5%)(300)(19.5%)
Net investment income
(3)-100.0% -100.0%
Net earnings before tax expense
22759(74.0%)88(61.2%)
Tax expense
(70)(24)65.7% (32)54.3%
Net earnings after tax expense
15735(77.7%)56(64.3%)
Capital expenditure
286252
(11.9%)
252(11.9%)
Free cash flow
4677
67.4%
7767.4%
EBITDAI margin26.8%21.6%(5.2pp)23.1%(3.7pp)
Effective tax rate
30.8% 40.7%
9.9pp
36.4%
5.6pp
Capital expenditure to operating revenues and other gains
14.5% 13.0%
(1.5pp)
13.0%
(1.5pp)
Basic earnings per share (cents)
8.61.9(77.9%)3.1(64.0%)
Total dividend per share (cents)
13.512.5(7.4%)12.5(7.4%)
1
Both the H1 25 reported and adjusted figures are compared to the H1 24 reported figures as there were no adjustments to the H1 24 financial results

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2025
Revenue and opex performance summary
Lower revenue driven by challenging market conditions, while higher operating costs driven by supplier cost inflation,
with labour cost benefits to fall predominantly in H2
•Mobile service revenue decreased $19m (3.7%) predominantly due to the cessation
of a Spark-owned mobile insurance product in consumer, and reducing mobile
fleets and price competition in Enterprise and Government
•Mobile non-service revenue increased $9m (3.8%) due to increased device spend in
retail following new product releases
•Broadband revenue decreased $7m (2.3%) due to connection decline as price
competition intensified in a subdued spending environment
•Legacy voice revenue declined $16m (17.0%) in line with long-term trend
•IT product revenue growth continued, increasing $3m (1.1%), driven by growing
public cloud adoption
•IT services revenue decreased $8m (10.0%) due to reduced project activity within
government and business sector
•High tech revenues increased $6m (17.1%) driven mainly by IoT connection growth
•Data centres revenues increased $3m (13.6%) driven mainly by billing increased
capacity
$1,939m
1.9% decrease vs. H1 24
REVENUE
$1,491m
3.1% increase vs. H1 24
ADJUSTED OPERATING EXPENSES
•Product costs increased $21m (2.2%), through a combination of cost
inflation of sourced products and the mix of products sold
•Higher IT product costs (+$17m) and IT services costs (+$9m) offset by
lower voice product costs (-$7m) and procurement (-$8m)
•Other operating expenses increased $32m (14.3%), driven by supplier cost
inflation within computer and network cost lines
1
•Net labour costs decreased $8m (2.9%) reflecting operating model changes,
with significant further benefits to be realised in H2 25
1
Refer to page 12 for discussion on network partnership work and related benefits

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2025
Capital expenditure
Disciplined management of capital expenditure, focussed on telco core and data centre growth strategy
•H1 25 capital investment of $252m,

or 13.0%
of revenue, reflects a reduction in spend
across both maintenance and growth capex
projects compared to H1 24 of $286m
•Focus of spend continues to be on digital
infrastructure and mobile network to support
operational performance and data centre
growth strategy
•H2 maintenance capital expenditure is
seasonally lower than H1 and underpins
capex guidance of ~$415m-$435m
1
190
158
197
157
200
159
235
124
215
1
21
35
50
106
51
108
37
51
23
0
50
100
150
200
250
300
350
H1 21H2 21H1 22H2 22H1 23H2 23H1 24H2 24H1 25
$m
Spark NZ Capex Profile
maintenance capexgrowth capexspectrum capex
1
Subject to no material adverse change in operating outlook

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2025
Significant improvement in H1 25 FCF through disciplined capital expenditure and changes in working capital
Free cash flow
Free cash flow calculation
H1 FY24
($m)
H1 FY25
($m)
Change
($m)
Change
%
Reported EBITDAI530419(111)(20.9%)
Less adjusting items and non-cash gains20(6)(26)(130.0%)
EBITDAI for free cash flow510425(85)(16.7%)
Less
Cash paid on maintenance capital expenditure261169(92)(35.2%)
Cash paid on interest45581328.9%
Cash paid on tax payments10178(23)(22.8%)
Cash paid on leases5743(14)(24.6%)
Total cash payments on items above464348(116)(25.0%)
Free cash flow46773167.4%
Total change in working capital - increase/(decrease)73(24)(97)NM
Cash paid on growth capital expenditure9257(35)(38.0%)
Free cash flow
(including working capital and growth cash capex)
(119)44163NM
•Free cash flow (FCF) increased 67% to $77 million in
H1 25 versus H1 24
•FCF including working capital and growth capex
increased by $163 million due to:
oA $97 million release in cash from working capital
– some of this is timing of payables around the half
year end which will unwind in H2 25
oDiscipline around capital expenditure on both
maintenance and growth projects that led to a
$127 million improvement in cash flows
•There is still more work that can be done to further
improve delivery of free cash flow outside of an
improvement in EBITDAI
•FY25 free cash flow aspiration now ~$300m-$340m
1
due to change in EBITDAI guidance
1
Subject to no material adverse change in operating outlook

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Net debt will reduce with progress on sale of non-core assets and improvement in EBITDAI
Debt and capital management
1
Net debt at hedged rates and including lease liabilities. Prior historical periods restated for the additional leaseback liability on customer leases
2
Leverage Ratio is calculated to be consistent with S&P Global Ratings analysis
3
A Dividend Reinvestment Plan will operate for the H1 25 dividend with shares issued at a 2% discount
Net Debt
1
at 31 December increased by $297m to $2,735m
•Net Debt/EBITDAI will improve in the near term by ~0.3x with the
completion of the Connexa and Digital Island transactions
•Further improvement in debt metrics expected with continued
discipline around capital expenditure and progress on cost
reduction programme
•Key driver of increased net debt is the increase in lease liabilities
H1 25 dividend of 12.5 cps
3
1,953
1,723
1,892
2,408
2,438
2,735
1.6
1.3
1.4
1.8
2.1
2.3
0.0
0.5
1.0
1.5
2.0
2.5
0
500
1,000
1,500
2,000
2,500
3,000
H2 22H1 23H2 23H1 24H2 24H1 25
Net Debt/EBITDA ratio
$m
Spark NZ Net Debt
1
and Leverage Ratio
2
Net debt at end of period ($m)Net debt/EBITDAI (x) - RHS

Outlook

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An update to FY25 KPIs (to June 2025) presented earlier in FY25
FY25 indicators of success
MeasureAugust 2024October 2024 Trading UpdateH1 25 Update
1
Mobile service revenue growth~3%~0%
•Total market mobile service revenues were flat in H1 25 vs IDC forecast
of 3% growth in FY25
2
•In Enterprise and Government division, aggressive price competition
continues, with business sector spending remaining subdued in H2
•In this context, now expect total mobile service revenue to decline ~1%
YoY in FY25 (including a largely flat performance in Consumer and SME,
and further declines in Enterprise and Government)
Data centre revenue growth~15%~15%•Remains on track
High-tech revenue growth~20%-25%~20%-25%•Remains on track
SPK-26 Operate Programme:
•On track to deliver net labour cost
reduction target in year
•Work continues towards net opex target
•Intend to expand Operate Programme
to deliver materially higher cost
reductions over multiple years
•Net labour and opex reduction expected to deliver $80m-$100m in-
year
•Total benefits of expanded SPK-26 Operate Programme forecast to
deliver $110m-$140m of annualised benefits by FY27
Net labour reduction~$50m
Net opex reductions~$30m
Customer iNPS+3 points+3 points•Remains on track
Lift in employee engagement+3 points+3 points•Expected impact from changes to operating model
Reduce Scope 1 and Scope 2 GHG
emissions in line with SBTi
reduction target pathway
At or under 28%
below FY20
baseline
At or under 28% below FY20 baseline
•Winter energy crisis has driven grid emissions factor higher, meaning
we are tracking above our emissions reduction pathway for FY25.
Performance is expected to improve in FY26 as Spark benefits from the
first full year of its renewable energy partnership
2
Revenue market share data is sourced from IDC as at 31 December 2024
1
Subject to no material adverse change in operating outlook

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2025
FY25 guidance
1

FY24 ActualFY25 Guidance
October update
New FY25 Guidance
EBITDAI
2
$1,163m$1,120m-$1,180m$1,040m-$1,100m
Capital expenditure
3
$518m~$415m-$435m~$415m-$435m
Dividend per share
Total 27.5 cps
(100% imputed)
Total 25.0 cps
(75% imputed)
Total 25.0 cps
(75% imputed)
1
Subject to no material adverse change in operating outlook
2
EBITDAI is adjusted for the impact of transformation costs incurred in the implementation of Spark’s SPK-26 Operate Programme
3
Total capital expenditure including growth capex and excluding expenditure on mobile spectrum
The primary driver of the change in EBITDAI guidance is the Enterprise and Government division, which has been impacted by:
•IT spending cutsacross corporates and Government entities;
•Changes in product mix; and
•Aggressive price competition in mobile.

Appendix

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2025
FY25 net debt metrics
Net debt
H1 FY24
($m)
FY24
($m)
H1 FY25
($m)
Net debt at hedged rates$1,557$1,636$1,796
Net debt at hedged rates including lease liabilities
1
$2,408$2,438$2,735
Debt ratios
Borrowing costs (annualised)5.9%6.1%5.7%
Weighted average debt maturity (years)3.2 years3.7 years3.1 years
Debt servicing
2
1.8x2.1x2.3x
Gearing59%60%66%
Interest cover10x9x7x
1
Prior historical periods restated for the additional leaseback liability on customer leases
2
Debt servicing is calculated as (Net debt at hedge rates including lease liabilities - captive finance adjustments)/(Adjusted EBITDAI - captive finance adjustments) which Spark estimates aligns to S&P’s credit rating calculation.

---

Spark New Zealand
Group result - reported
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Operating revenues and other gains2,534 1,957 1,976 1,885 1,939 1,976 1,939 (37) (1.9%)
Operating expenses(1,492) (1,277) (1,446) (1,252) (1,520) (1,446) (1,520) (74) (5.1%)
EBITDAI1,042 680 530 633 419530 419 (111) (20.9%)
Finance income
161614161514151 7.1%
Finance expense
(43) (56) (63) (81) (75)(63) (75) (12) (19.0%)
Depreciation and amortisation
(248) (256) (251) (276) (300) (251) (300) (49) (19.5%)
Net investment income
(1)2(3)(5)-(3)-3 100.0%
Net earnings before income tax
766 386 227 2875922759 (168) (74.0%)
Tax income / (expense)
99 (116) (70) (128) (24)(70) (24)46 65.7%
Net earnings for the period
865 270 157 1593515735 (122) (77.7%)
Capital expenditure excluding spectrum
(250) (265) (286) (232) (252) (286) (252)34 11.9%
Free cash flows excluding spectrum
115 37446 28477467731 67.4%
Reported EBITDAI margin
41.1% 34.7% 26.8% 33.6% 21.6% 26.8% 21.6% (5.2pp)
Reported effective tax rate
(12.9%) 30.1% 30.8% 44.6% 40.7% 30.8% 40.7% 9.9pp
Capital expenditure to operating revenues and other gains
(9.9%) (13.5%) (14.5%) (12.3%) (13.0%) (14.5%) (13.0%) 1.5pp
Reported basic earnings per share (cents)
46.2 14.5 8.6 8.8 1.98.6 1.9 (6.7) (77.9%)
Reported diluted earnings per share (cents)
46.1 14.5 8.5 8.9 1.98.5 1.9 (6.6) (77.6%)
Group result - adjusted
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Adjusted operating revenues and other gains1,950 1,958 1,976 1,885 1,939 1,976 1,939 (37) (1.9%)
Adjusted operating expenses(1,440) (1,275) (1,446) (1,252) (1,491) (1,446) (1,491) (45) (3.1%)
Adjusted EBITDAI510 683 530 633 448530 448 (82) (15.5%)
Finance income161614161514151 7.1%
Finance expense(43) (56) (63) (81) (75)(63) (75) (12) (19.0%)
Depreciation and amortisation(248) (256) (251) (276) (300) (251) (300) (49) (19.5%)
Adjusted net investment income(1)(3)(3)(5)-(3)-3 100.0%
Adjusted net earnings before income tax234 384 227 2878822788 (139) (61.2%)
Adjusted income tax expense(69) (116) (70) (102) (32)(70) (32)38 54.3%
Adjusted net earnings for the period165 268 157 1855615756 (101) (64.3%)
Capital expenditure excluding spectrum (250) (265) (286) (232) (252) (286) (252)34 11.9%
Free cash flows excluding spectrum
115 37446 28477467731 67.4%
Adjusted EBITDAI margin26.2% 34.9% 26.8% 33.6% 23.1% 26.8% 23.1% (3.7pp)
Adjusted effective tax rate29.5% 30.2% 30.8% 35.5% 36.4% 30.8% 36.4% 5.6pp
Capital expenditure to adjusted operating revenues and other gains
(12.8%) (13.5%) (14.5%) (12.3%) (13.0%) (14.5%) (13.0%) 1.5pp
Adjusted basic earnings per share (cents)8.8 14.4 8.6 10.1 3.18.6 3.1 (5.5) (64.0%)
Adjusted diluted earnings per share (cents)
8.8 14.3 8.5 10.2 3.18.5 3.1 (5.4) (63.5%)
Gross margin by product
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Mobile477507496494488
496 488(8) (1.6%)
Voice7162514842
5142(9) (17.6%)
Broadband149149148140140
148 140(8) (5.4%)
IT products136143139136125
139 125 (14) (10.1%)
IT services
1
7380664849
6649 (17) (25.8%)
Procurement and partners2740244125
24251 4.2%
Data Centres
1
1614212223
21232 9.5%
High-Tech2323222322
2222- -%
Other products2558464537
4637(9) (19.6%)
Total product gross margin
997 1,076 1,013 997 951 1,013 951 (62) (6.1%)
Other gains58828198323
19234 21.1%
Total gross margin
1,585 1,104 1,032 1,080 974 1,032 974 (58) (5.6%)
H1 FY25 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. In the 6 months ended 31 December 2024, transformation costs of $29m relating to the SPK-26 Operate Programme were deemed significant items to adjust.
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
1
Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for
FY23-24.

Spark New Zealand
Connections
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
000's 000's 000's 000's 000's 000's 000's 000's
%
Mobile connections
1
2,616 2,707 2,760 2,715 2,650 2,760 2,650 (110) (4.0%)
Voice connections by type
2
POTS and ISDN
2
112916959496949 (20) (29.0%)
VoIP60595351485348(5)(9.4%)
Voice over wireless14886686(2)(25.0%)
186158130116103130103(27)(20.8%)
Broadband connections by technology
Copper79645443365436 (18) (33.3%)
Fibre423 426 427 428 424427 424(3) (0.7%)
Wireless202 209 214 216 218214 2184 1.9%
704 699 695 687 678695 678 (17) (2.4%)
IoT connections1,160 1,461 1,799 2,048 2,250 1,799 2,250 451 25.1%
1
Mobile connections excluding MVNO connections but including legacy machine to machine and SIM based SmartWatch connections.
Group FTEs
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
FTE permanent4,976 5,189 5,356 5,072 4,456 5,356 4,456 (900) (16.8%)
FTE contractors 182 1439770949794(3) (3.1%)
Total FTE5,158 5,332 5,453 5,142 4,550 5,453 4,550 (903) (16.6%)
Declared Dividends
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H1 FY24 H1 FY25
Ordinary dividends (cents per share)13.50 13.50 13.50 14.00 12.50 13.50 12.50 (1.00) (7.4%)
Total dividend (cents per share)13.50 13.50 13.50 14.00 12.50 13.50 12.50 (1.00) (7.4%)
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
2
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 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Telco
Mobile
Service revenue480 500 510 500 491510 491 (19) (3.7%)
Non-service revenue252 238 239 225 248239 2489 3.8%
Mobile732 738 749 725 739749 739 (10) (1.3%)
Voice 122 1099486789478 (16) (17.0%)
Broadband
1
313 313 309 304 302309 302(7) (2.3%)
Total Telco1,167 1,160 1,152 1,115 1,119 1,152 1,119 (33) (2.9%)
IT Revenue
IT Products
Cloud
2
105 103 109 116 118109 1189 8.3%
Managed data and networks110 112 112 111 102112 102 (10) (8.9%)
Collaboration394040404440444 10.0%
IT Products254 255 261 267 264261 2643 1.1%
IT Services
2
87998076728072(8) (10.0%)
Total IT revenue341 354 341 343 336341 336(5) (1.5%)
Procurement and partners319 265 339 209 332339 332(7) (2.1%)
Data centres
2
171522232522253 13.6%
High-Tech313435444135416 17.1%
Other products71 1016868636863(5) (7.4%)
Total operating revenues1,946 1,929 1,957 1,802 1,916 1,957 1,916 (41) (2.1%)
Other gains42919832319234 21.1%
Adjusted operating revenues and other gains1,950 1,958 1,976 1,885 1,939 1,976 1,939 (37) (1.9%)
Net gain on sale of Connexa584(1)------ NM
Total operating revenues and other gains2,534 1,957 1,976 1,885 1,939 1,976 1,939 (37) (1.9%)
1
Wireless broadband revenues and connections are included in broadband revenues and connections.
Operating revenues and other gains by customer segment
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
Operating revenues and other gains$m $m $m $m $m$m $m $m
%
Consumer797 782 780 757 765780 765 (15) (1.9%)
Business1,019 976 1,037 922 987 1,037 987 (50) (4.8%)
Wholesale and other718 199 159 206 187159 18728 17.6%
2,5341,9571,9761,8851,9391,9761,939(37)(1.9%)
Finance income
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
Finance income$m $m $m $m $m$m $m $m
%
Finance lease interest income4444444- -%
Other interest income121210121110111 10.0%
161614161514151 7.1%
Net investment income
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
Net investment income$m $m $m $m $m$m $m $m
%
Share of associates' and joint ventures' net losses(3)(9)(8)(9)(6)(8)(6)225.0%
Interest income on loans receivable from associates and joint ventures2666666--%
Impairment of investments---(2)----NM
Net disposal and remeasurement of equity accounted investments--(1)--(1)-1100.0%
Adjusted net investment income(1)(3)(3)(5)-(3)-3100.0%
Net gain on dilution of the investment in the Connexa group-5---- --NM
Reported net investment income(1)2(3)(5)-(3)-3100.0%
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
2
Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for
FY23-24.

Spark New Zealand
Group operating expenses
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Product costs
Mobile(255) (231) (253) (231) (251) (253) (251)2 0.8%
Voice(51) (47) (43) (38) (36)(43) (36)7 16.3%
Broadband(164) (164) (161) (164) (162) (161) (162)(1) (0.6%)
IT products
1
(118) (112) (122) (131) (139) (122) (139) (17) (13.9%)
IT services
1
(14) (19) (14) (28) (23)(14) (23)(9) (64.3%)
Procurement and partners(292) (225) (315) (168) (307) (315) (307)8 2.5%
Data centres(1)(1)(1)(1)(2)(1)(2)(1) (100.0%)
High-Tech(8) (11) (13) (21) (19)(13) (19)(6) (46.2%)
Other product costs(46) (43) (22) (23) (26)(22) (26)(4) (18.2%)
(949) (853) (944) (805) (965) (944) (965) (21) (2.2%)
Labour(269) (242) (279) (233) (271) (279) (271)8 2.9%
Other operating expenses
Network support costs(45) (20) (40) (33) (52)(40) (52) (12) (30.0%)
Computer costs(57) (52) (52) (63) (74)(52) (74) (22) (42.3%)
Accommodation costs(23) (26) (29) (29) (29)(29) (29)- -%
Electricity - data centres
2
(2)(2)(2)(2)(3)(2)(3)(1) (50.0%)
Electricity - non data centres(15) (15) (17) (17) (16)(17) (16)1 5.9%
Advertising, promotions and communication(33) (23) (33) (21) (31)(33) (31)2 6.1%
Bad debts(4)(5)(7)(8) (10)(7) (10)(3) (42.9%)
Other(43) (37) (43) (41) (40)(43) (40)3 7.0%
(222) (180) (223) (214) (255) (223) (255) (32) (14.3%)
Adjusted operating expenses(1,440)(1,275)(1,446)(1,252)(1,491)(1,446)(1,491)(45)(3.1%)
Spark Sport provision(52)(2)------NM
Transformation costs----(29)-(29)(29)NM
Total operating expenses(1,492) (1,277) (1,446) (1,252) (1,520) (1,446) (1,520) (74) (5.1%)
2
Estimated electricity costs to run Spark Group's dedicated data centres.
Finance expense
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Finance expense
Finance expense on debt(22) (28) (33) (42) (41)(33) (41)(8) (24.2%)
Other interest and finance expenses(7)(5)(8) (15) (10)(8) (10)(2) (25.0%)
Lease interest expense(15) (24) (24) (24) (25)(24) (25)(1) (4.2%)
Leased customer equipment interest expense(4)(3)(4)(4)(3)(4)(3)1 25.0%
(48) (60) (69) (85) (79)(69) (79) (10) (14.5%)
Capitalised interest5464464(2) (33.3%)
(43) (56) (63) (81) (75)(63) (75) (12) (19.0%)
Depreciation and amortisation expense
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Depreciation and amortisation expense
Depreciation - property, plant and equipment(114) (113) (112) (123) (147) (112) (147) (35) (31.3%)
Depreciation - right-of-use assets(36) (39) (42) (47) (50)(42) (50)(8) (19.0%)
Depreciation - leased customer equipment assets(19) (17) (17) (16) (13)(17) (13)4 23.5%
Amortisation - intangible assets(79) (87) (80) (90) (90)(80) (90) (10) (12.5%)
(248) (256) (251) (276) (300) (251) (300) (49) (19.5%)
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
1
Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for
FY23-24.

Spark New Zealand
Analysis & KPIs - Mobile
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
Mobile revenue by type (Consumer and Business)$m $m $m $m $m$m $m $m%
Mobile service revenue472 489 500 489 479500 479 (21) (4.2%)
Mobile non-service revenue
1
231 218 219 199 217219 217(2) (0.9%)
703 707 719 688 696719 696 (23) (3.2%)
Wholesale and other customer segment mobile revenue
2
2931303743304313 43.3%
Total mobile revenue732 738 749 725 739749 739 (10) (1.3%)
Mobile product costs
3
(255) (231) (253) (231) (251) (253) (251)2 0.8%
Mobile gross margin477 507 496 494 488496 488(8) (1.6%)
Mobile gross margin %65.2% 68.7% 66.2% 68.1% 66.0% 66.2% 66.0% (0.2pp)
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
Total mobile revenue by customer segment$m $m $m $m $m$m $m $m%
Consumer486 486 499 480 489499 489 (10) (2.0%)
Business217 221 220 208 207220 207 (13) (5.9%)
Wholesale and other2931303743304313 43.3%
732 738 749 725 739749 739 (10) (1.3%)
Average revenue per user (ARPU) - 6 month activeH1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
(Consumer and Business)$ per
month
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month
%
Total ARPU31.30 30.78 30.66 30.03 30.17 30.66 30.17 (0.49) (1.6%)
Pay-monthly ARPU41.59 41.48 42.14 41.12 40.52 42.14 40.52 (1.62) (3.8%)
Prepaid ARPU17.26 16.91 16.09 15.88 16.21 16.09 16.21 0.12 0.7%
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H1 FY24 H1 FY25
000's 000's 000's 000's 000's 000's 000's 000's%
Pay-monthly connections1,471 1,509 1,525 1,517 1,519 1,525 1,519(6) (0.4%)
Prepaid connections1,118 1,173 1,210 1,173 1,106 1,210 1,106 (104) (8.6%)
Internal connections4444444- -%
Total mobile connections2,593 2,686 2,739 2,694 2,629 2,739 2,629 (110) (4.0%)
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
Excludes MVNO connections and legacy machine to machine, but includes SIM based SmartWatch connections.
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
Number of mobile connections at period end - 6 month
active (Consumer and Business)
4
H1 FY25 vs H1 FY24

Spark New Zealand
Analysis & KPIs - Voice
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
Revenue by type$m $m $m $m $m$m $m $m%
Access45373329253325(8) (24.2%)
Calling59544844414841(7) (14.6%)
Other voice revenue18181313121312(1)(7.7%)
Total voice revenue122 1099486789478 (16) (17.0%)
Voice product costs
1
(51) (47) (43) (38) (36)(43) (36)7 16.3%
Voice gross margin71625148425142(9) (17.6%)
Voice gross margin %58.2% 56.9% 54.3% 55.8% 53.8% 54.3% 53.8% (0.5pp)
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H1 FY24 H1 FY25
000's 000's 000's 000's 000's 000's 000's 000's%
POTS and ISDN112916959496949 (20) (29.0%)
VoIP60595351485348(5) (9.4%)
Voice over wireless14886686(2) (25.0%)
Total voice connections186 158 130 116 103130 103 (27) (20.8%)
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
000's 000's 000's 000's 000's 000's 000's 000's%
Consumer46322824202820(8) (28.6%)
Business111 1049082749074 (16) (17.8%)
Wholesale and other292212109129(3) (25.0%)
Total voice connections186 158 130 116 103130 103 (27) (20.8%)
1
Includes voice access (baseband), interconnect, and international calling costs.
Analysis & KPIs - Broadband
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m%
Total broadband revenue313 313 309 304 302309 302(7) (2.3%)
Broadband product costs
2
(164) (164) (161) (164) (162) (161) (162)(1) (0.6%)
Broadband gross margin149 149 148 140 140148 140(8) (5.4%)
Broadband gross margin %47.6% 47.6% 47.9% 46.1% 46.4% 47.9% 46.4% (1.5pp)
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H1 FY24 H1 FY25
000's 000's 000's 000's 000's 000's 000's 000's%
Copper79645443365436 (18) (33.3%)
Fibre423 426 427 428 424427 424(3) (0.7%)
Wireless202 209 214 216 218214 2184 1.9%
Total broadband connections704 699 695 687 678695 678 (17) (2.4%)
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
000's 000's 000's 000's 000's 000's 000's 000's%
Consumer594 589 584 580 570584 570 (14) (2.4%)
Business104 102 102 1009810298(4) (3.9%)
Wholesale and other6897109101 11.1%
Total broadband connections704 699 695 687 678695 678 (17) (2.4%)
2
Includes broadband access (UBA/UCLL/Fibre) and modem costs.
H1 FY25 vs H1 FY24
Voice connections by typeH1 FY25 vs H1 FY24
Voice connections by customer segmentH1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
Broadband connections by technologyH1 FY25 vs H1 FY24
Broadband connections by customer segmentH1 FY25 vs H1 FY24

Spark New Zealand
Analysis & KPIs - Data centres
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Data centre revenue
1
17152223252225313.6%
Data centre product cost(1)(1)(1)(1)(2)(1)(2)(1)(100.0%)
Data centre gross margin1614212223212329.5%
Data centre gross margin%94.1%93.3%95.5%95.7%92.0%95.5%92.0%(3.5pp)
Data centre KPIsH1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
Data centre capacity built (in MW)11112222222222- -%
Data centre capacity under construction (in MW)111111111--%
Data centre development pipeline (in MW)19197070118701184868.6%
Total capacity (in MW)41419393141931414851.6%
Weighted average lease term with options (WALE)16.6 16.6 16.5 16.5 16.716.5 16.7 0.2 1.2%
Contracted utilisation dedicated data centres
2
84% 84% 88% 88% 87%88% 87% (1.0pp)
Target power usage effectiveness (PUE)N/A N/A 1.2 1.2 1.21.2 1.2 - -%
PUE - Legacy data centre assets1.54 1.56 1.57 1.57 1.60 1.57 1.60 (0.03) (1.9%)
2
Includes contracted and reserved racks at dedicated data centres and exchanges.
Analysis & KPIs - IT products
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Cloud revenue
1
105 103 109 116 118109 1189 8.3%
Cloud product costs
1
(39) (33) (38) (47) (61)(38) (61) (23) (60.5%)
Cloud gross margin66707169577157 (14) (19.7%)
Cloud gross margin%62.9% 68.0% 65.1% 59.5% 48.3% 65.1% 48.3% (16.8pp)
Managed data and networks revenue110 112 112 111 102112 102 (10) (8.9%)
Managed data and networks product costs
3
(64) (64) (67) (66) (59)(67) (59)8 11.9%
Managed data and networks gross margin46484545434543(2) (4.4%)
Managed data and networks gross margin %41.8% 42.9% 40.2% 40.5% 42.2% 40.2% 42.2% 2.0pp
Collaboration revenue394040404440444 10.0%
Collaboration product costs(15) (15) (17) (18) (19)(17) (19)(2) (11.8%)
Collaboration gross margin242523222523252 8.7%
Collaboration gross margin %61.5% 62.5% 57.5% 55.0% 56.8% 57.5% 56.8% (0.7pp)
3
Includes wide area network access, international data, network backhaul and videoconferencing platform costs.
Analysis & KPIs - IT services
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Service management revenue
1
76796864616861(7) (10.3%)
Security revenue11201212111211(1) (8.3%)
Service management and security revenue87998076728072(8) (10.0%)
Service management and security product costs(14) (19) (14) (28) (23)(14) (23)(9) (64.3%)
Service management and security gross margin73806648496649 (17) (25.8%)
Service management and security gross margin %83.9% 80.8% 82.5% 63.2% 68.1% 82.5% 68.1% (14.4pp)
Analysis & KPIs - Procurement and partners
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H1 FY24 H1 FY25
$m $m $m $m $m$m $m $m
%
Procurement and partners revenue319 265 339 209 332339 332(7) (2.1%)
Procurement and partners product costs(292) (225) (315) (168) (307) (315) (307)8 2.5%
Procurement and partners gross margin274024412524251 4.2%
Procurement and partners gross margin %8.5% 15.1% 7.1% 19.6% 7.5%7.1% 7.5% 0.4pp
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
1
Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for
FY23-24.
1
Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for
FY23-24.
1
Prior periods have been restated due to inconsistent classification of certain products across various subsidiary entities. These product misalignments have been corrected and restated for
FY23-24.

Spark New Zealand
Statement of cash flows
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Cash flows from operating activities
Receipts from customers 1,975 1,815 1,972 1,739 1,977
1,972 1,9775 0.3%
Receipts from interest 16 13 13 15 15
13152 15.4%
Payments to suppliers and employees (1,460) (1,270) (1,519) (1,134) (1,566)
(1,519) (1,566) (47) (3.1%)
Payments for income tax (120) (70) (101) (88) (78)
(101) (78)23 22.8%
Payments for interest on debt (23) (32) (31) (49) (46)
(31) (46) (15) (48.4%)
Payments for interest on leases (15) (22) (23) (23) (24)
(23) (24)(1) (4.3%)
Payments for interest on leased customer equipment assets
(4) (3) (4) (3) (3)
(4)(3)1 25.0%
Net cash flows from operating activities 369 431 307 457 275
307 275 (32) (10.4%)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 1 10 14 20 2
142 (12) (85.7%)
Proceeds from sale of business 894 (1) - 4 -
--- NM
Proceeds from long-term investments - - - 7 -
--- NM
Receipts from finance leases 1 2 1 - -
1-(1) (100.0%)
Receipts from loans receivable - 11 10 - 3
103(7)(70.0%)
Payments for purchase of business, net of cash acquired
- - (2) (3) (2)
(2)(2)- -%
Payments for, and advances to, long-term investments (2) (1) (1) - -
(1)-1 100.0%
Payments for purchase of property, plant and equipment, intangibles
(excluding spectrum) and capacity
(246) (229) (347) (235) (228)
(347) (228) 119 34.3%
Payments for spectrum intangible assets - (6) - (8) -
--- NM
Payments for capitalised interest (5) (4) (6) (4) (4)
(6)(4)2 33.3%
Net cash flows from investing activities 643 (218) (331) (219) (229)
(331) (229) 102 30.8%
Cash flows from financing activities
Net proceeds from/(repayments of) debt (517) 54 489 21 190
489 190 (299) (61.1%)
Payments for dividends (234) (252) (249) (245) (160)
(249) (160)89 35.7%
Payments for share buy-back - (146) (159) - -
(159)- 159 100.0%
Payments for leases (31) (33) (38) (40) (44)
(38) (44)(6) (15.8%)
Receipts from lease incentive - - - - 22
-2222 NM
Payments for leased customer equipment assets (15) (22) (20) (14) (11)
(20) (11)9 45.0%
Net cash flows from financing activities (797) (399) 23 (278) (3)23(3)(26)NM
Net cash flows 215 (186) (1) (40) 43 (1)4344NM
Opening cash position 71 286 100 99 59 10059(41)(41.0%)
Closing cash position
1
286 100 99 59 102 9910233.0%
Analysis & KPIs - Free cash flows and movement in working capital
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H1 FY24H1 FY25
$m $m $m $m $m$m $m $m
%
Reported EBITDAI 1,042 680 530 633 419 530419(111)(20.9%)
Less
Adjusting items and non cash other gains536 11 20 58 (6)20(6)(26)NM
EBITDAI for free cash flow 506 669 510 575 425 510425(85)(16.7%)
Less
Cash paid on maintenance capital expenditure (200) (128) (261) (89) (169)(261)(169)9235.2%
Cash paid on interest (26) (44) (45) (60) (58)(45)(58)(13)(28.9%)
Cash paid on tax payments (120) (70) (101) (88) (78)(101)(78)2322.8%
Cash paid on leases (45) (53) (57) (54) (43)(57)(43)1424.6%
Total cash payments on items above (391) (295) (464) (291) (348)(464)(348)11625.0%
Free cash flow 115 374 46 284 77 46773167.4%
Change in working capital
Change in receivables 59 (126) 27 (78) 80 278053NM
Change in payables (3) 53 (20) 65 41 (20)4161NM
Change in inventory (1) 28 (27) 18 (25)(27)(25)27.4%
Change in contract assets (3) (30) (8) 12 (6)(8)(6)225.0%
Change in prepayments (excluding CAPEX) (22) 31 (45) 36 (66)(45)(66)(21)(46.7%)
Total change in working capital - (increase)/decrease 30 (44) (73) 53 24 (73)2497NM
Cash paid on growth capital expenditure (51) (105) (92) (140) (57)(92)(57)3538.0%
Free cash flow including working capital and growth cash capex 94 225 (119) 197 44 (119)44163NM
H1 FY25 vs H1 FY24
H1 FY25 vs H1 FY24
1
H1 FY25 closing cash position includes cash of $100m and cash classified as assets held for sale of $2m.

Spark New Zealand
Group capital expenditure
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H1 FY24 H1 FY25
Maintenance Capex$m $m $m $m $m$m $m $m
%
Cloud
(11)(8)(24)(13)(9)(24)(9)1562.5%
Fixed network & International cable capacity
(35)(58)(55)(10)(37)(55)(37)1832.7%
IT systems
(62)(54)(80)(67)(73)(80)(73)78.8%
Mobile network
(77)(21)(65)(24)(91)(65)(91)(26)(40.0%)
Property
(11)(12)(7)(4)(4)(7)(4)342.9%
Other
(4)(6)(4)(6)(1)(4)(1)375.0%
Total maintenance capital expenditure excluding spectrum(200)(159)(235)(124)(215)(235)(215)208.5%
Growth Capex
5G Acceleration & SA Readiness
-(42)(32)(74)(23)(32)(23)928.1%
Data centres
(50)(64)(19)(22)(14)(19)(14)526.3%
Converged Tech
---(12)----NM
Total growth capital expenditure excluding spectrum(50)(106)(51)(108)(37)(51)(37)1427.5%
Total capital expenditure excluding spectrum(250)(265)(286)(232)(252)(286)(252)3411.9%
Total capital expenditure excluding spectrum to operating revenue and
other gains
(9.9%)(13.5%)(14.5%)(12.3%)(13.0%)(14.5%)(13.0%)1.5pp
Total capital expenditure excluding spectrum to adjusted operating
revenue and other gains
(12.8%)(13.5%)(14.5%)(12.3%)(13.0%)(14.5%)(13.0%)1.5pp
Mobile spectrum
--(23)--(23)-23100.0%
Total capital expenditure including spectrum(250)(265)(309)(232)(252)(309)(252)5718.4%
Cash Capex
Growth
(51)(105)(92)(140)(57)(92)(57)3538.0%
Maintenance
(200)(128)(261)(89)(169)(261)(169)9235.2%
Total cash capital expenditure excluding spectrum(251)(233)(353)(229)(226)(353)(226)12736.0%
Analysis & KPI's - Capital expenditure depreciation and amortisation
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H1 FY24 H1 FY25
$m $m $m $m $m$m $m $m
%
Depreciation - property, plant and equipment
(114)(113)(112)(123)(147)(112)(147)(35)31.3%
Depreciation - right-of-use assets
1
(11)(11)(12)(12)(12)(12)(12)--%
Amortisation - intangible assets(79)(87)(80)(90)(90)(80)(90)(10)(12.5%)
Total capital expenditure depreciation and amortisation(204)(211)(204)(225)(249)(204)(249)(45)(22.1%)
H1 FY25 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 FY25 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.
1
Includes depreciation on capacity right-of-use assets only as these are included within Spark’s definition of capital expenditure.