Spark New Zealand Limited 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 – Wednesday, 20 August 2025



Spark announces FY25 results within updated guidance

• Delivering EBITDAI
i
, capex, and FY25 dividend within updated guidance
o Reported revenue
ii
of $3,725m declined 2.5%; adjusted revenue of $3,700m declined 4.2%
o Reported EBITDAI of $1,053m declined 7.7%; adjusted EBITDAI of $1,060m declined 8.9%
o Reported NPAT of $260m declined 17.7%; adjusted NPAT of $227m declined 33.6%
o Final dividend of 12.5 cents per share declared, bringing total FY25 dividend to 25 cents per
share
iii

• Significant transformation on track – with portfolio management delivering $356m
iv
in proceeds from
non-core asset divestments and cost reduction programme delivering $85m in H2 25 vs H2 24
• Sale of 75% stake in data centre business expected to deliver initial cash proceeds of ~$486m
v
at
completion, while retained 25% stake supports long-term shareholder value creation
• New five-year strategy and capital management reset refocus Spark and its capital investment on its
core connectivity business

Spark New Zealand (Spark) today announced its FY25 results within updated guidance, and a new five-
year strategy and capital management reset that refocuses Spark on its core connectivity business.

Spark Chair Justine Smyth said, “The past year has been one of the most challenging periods in Spark’s
history, as we navigated economic headwinds, materially lower customer spending, and ongoing
structural change in some of our markets.

“Not all the challenges we faced were beyond our control, and at our AGM in November we outlined the
significant transformation programme we would implement to improve performance. This included a
renewed focus on our core business, a strategic review of non-core assets, an expanded cost-out
programme, and a focus on realising value from our data centre business.

“We have made good progress since that time. We undertook a strategic review of non-core assets to
recycle capital into our core business and reduce net debt. This culminated in the sale of our remaining
stakes in Connexa and HTAL
vi
, delivering combined proceeds of $356 million.

“To support the growth of our data centre business, we were pleased to announce we had entered into
an agreement to sell a 75% interest to Pacific Equity Partners (PEP) in August. The agreement values
the business at up to $705 million
vii
, which represents a FY25 pro-forma EBITDA

multiple of 30.8x
viii
and
compares favourably to similar transactions.

“The combined $533 million
ix
that will be received in FY26 from the HTAL divestment and initial cash
proceeds from the data centre transaction are expected to reduce our net debt/EBITDAI ratio by 0.5x to
~1.7x.

“This progress lays the groundwork for ongoing performance improvements in the years ahead and is
further supported by the Board’s renewed commitment to disciplined capital management. The dividend
guidance we provide each year will be tied to a new definition of free cash flow (FCF), which now
incorporates changes in working capital and capital expenditure used to operate our core business.

“When these changes are applied to the year ahead, in FY26 we are guiding to free cash flow of $290-
$330 million and a dividend payout ratio of 100% of FCF.

“Recognising the environment has changed significantly since we announced our SPK-26 strategy, the
Board has approved a new five-year strategy that focuses Spark, and its capital investment, from a
broader digital services ambition to its core business of connectivity. Our focus is returning Spark to its

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


history of stable annuity-like returns, with predictable free cash flow and growing dividends over time for
our shareholders.”

FY25 operating performance   

Spark’s FY25 financial results include reported and adjusted figures (see note to editors). Reported
revenue of $3,725 million declined 2.5% on FY24, while adjusted revenue of $3,700 million declined
4.2%. Reported EBITDAI of $1,053 million declined 7.7%, while adjusted EBITDAI of $1,060 million
declined 8.9%.

Reported NPAT of $260 million declined 17.7%, while adjusted NPAT of $227 million declined
33.6%. Free cash flow remained steady at $330 million despite reduced EBITDAI, as Spark reduced total
capex by 17.2% to $429 million.

The Board declared a final dividend of 12.5 cents per share, to bring the total dividend in FY25 to
25 cents per share
x
– delivering on updated guidance and taking into account the return of some of the
Connexa sale proceeds. Given the anticipated receipt of proceeds from the data centre transaction and
subsequent reduction in net debt, the Dividend Reinvestment Plan has been suspended for the H2 FY25
dividend.

Mobile service revenue declined 2.3% to $987 million, driven by price competition in enterprise and
government and consumer prepaid, and further impacted by the removal of an insurance product in
consumer pay monthly, which will not reoccur in FY26.

Positively, consumer and SME pay monthly connections grew, and when the impact of insurance is
excluded, second half ARPU – a measure of the revenue earned per customer – increased by around
3%. In enterprise and government, price competition continued to put pressure on ARPU, while the
connection decline stabilised in the second half.

Broadband revenue stabilised, with a small decline of 0.8% to $608 million. Cloud revenues grew 4.4%
to $235 million as public cloud uptake continued to increase, and IT services revenue declined 7.7% to
$144 million in challenging economic conditions. Data centres revenue
xi
continued to grow, increasing
11.1% to $50 million.

The expanded cost-out programme delivered an $85 million reduction in costs in the second half of
FY25, compared to the same period in FY24.

Commenting on the results, Spark CEO Jolie Hodson said, “We have taken decisive action to transform
our business and cost base, with a particular focus on our core business of connectivity.

“Our connectivity products and solutions account for 80% of gross margins and given the scale of our
mobile business it is our number one priority. While our overall mobile service revenue declined during
FY25, performance is stabilising and improving into FY26, and we remain market leader by some
distance.

“In our largest mobile segment, consumer pay monthly, connections and underlying ARPU are growing,
and the mobile fleet reduction we experienced as businesses and government reduced workforces over
the last year has now stabilised. We were also pleased to retain over 95% of our top 50 business
customers, demonstrating the strength of our competitive advantage in the market.

“As we have focused on improving market momentum, we have also reshaped our business to deliver a
more efficient operating model in the face of changing demand. This included the transformation of our
IT and network operations through the establishment of four strategic partnerships with Nokia, Infosys,
HPE, and Microsoft. This enables us to access the scale, capability, and innovation investment of these
global businesses, to drive competitive advantage in New Zealand through the experiences we can
deliver to our customers, at a better cost.

“It is important to acknowledge that undergoing a transformation of this scale has also brought significant
change for our people. It is never easy to make changes that impact our teams, and we do not do so
lightly. But to deliver a leaner, more competitive business, we have made the necessary choices to put
Spark in a stronger position as we move into the years ahead.”

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


SPK-30 Strategy

Spark released a summary of its new five-year business strategy, which builds on the FY25
transformation focus by refocusing Spark to its core business of connectivity from a broader digital
services ambition. The strategy includes four key focus areas – growing core connectivity, simplifying
and optimising beyond the core, and delivering a better network and better customer experiences. These
priorities are enabled by a focus on people and culture, embedding technologies such as AI across
Spark, disciplined financial management, and an enduring commitment to sustainability.

Jolie continued “In an increasingly digital world, our products are only becoming more important and
more relevant for New Zealanders and businesses. Customer use of data continues to grow every year,
AI and digital transformation for productivity and efficiency gains remains an investment priority across
the public and private sectors, and we approach these opportunities with a brand that is the most trusted
in our sector
xii
.

“Our ambition over the next five years is ‘It’s better with Spark’. Whether it’s the returns we deliver to our
shareholders, our network performance, our customer experiences, or the culture we create with our
people – we want it to be better with Spark.

“Our market focus is on our core of connectivity – which includes mobile and broadband in the consumer
and SME market, as well as additional connectivity services in the business market, such as managed
data and networks, collaboration, and IoT.

“In adjacent segments – such as cloud and IT service management – we will simplify and optimise the
services we provide, transition legacy products to more modern solutions, introduce greater levels of AI
and automation, and leverage our new global partnerships to improve customer experiences and
efficiency.

“We will continue to invest in delivering a reliable and trusted network that is there when it matters for our
customers. We are adding satellite-to-mobile services in the second half, and we can leverage the lead
we have on 5G Standalone investment to bring new capabilities and monetisation opportunities to the
market.

“Our focus on productivity continues with our multi-year programme lifting our cost discipline and
efficiency, as we introduce new technologies, partnerships, and further simplify our business.

“Our business fundamentals remain strong. We are the market leader in mobile and broadband, our
customer satisfaction has increased five years running, and we have the most reliable mobile network,
with the widest coverage experience in the country
xiii
. We move into this next chapter with renewed
determination, to deliver more for our customers, our people, and our shareholders.”

Spark will release details of its five-year strategy covering the period FY26-FY30 at an Investor Strategy
Briefing on 11 September 2025.

FY26 guidance 

Spark provided the following guidance for FY26, subject to no adverse change in operating outlook.
FY26 guidance deconsolidates data centres from H2 26.
• Adjusted EBITDAI: $1,010-$1,070 million (excluding any gain on sale from the data centre
transaction)
• Free cash flow: $290-$330 million
• BAU capital expenditure: $380-$410 million
• Strategic capital expenditure (data centres): $50-$70 million
xiv

• Dividend payout ratio: 100% of FY26 free cash flow

Authorised by:

Rodney Deacon
Finance Lead Partner – Investor Relations and Commercial

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



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


Note to editors:

Spark’s FY25 financial results include reported and adjusted figures:

Reported
Reported revenue and EBITDAI exclude the data centre business, which is classified as a discontinuing
operation; and include the Connexa transaction gain on sale ($71m) and transformation costs ($53m)
associated with the cost out programme.

Adjusted
Adjusted revenue and EBITDAI include the data centre business and exclude the Connexa transaction
gain on sale ($71m) and transformation costs ($53m) associated with the cost out programme. In
addition, FY24 NPAT has been adjusted to include the data centre business results and exclude the $26
million impact of the government change to tax depreciation rules. This provides a like-for-like, year-on-
year performance comparison.


i
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.

ii
Operating revenues and other gains
iii
75% imputed
iv
$309 million from Connexa transaction (net of transaction costs), $47 million from HTAL transaction received 17 July 2025
v
Final net proceeds subject to completion adjustments
vi
Hutchison Telecommunications (Australia) Limited
vii
Headline enterprise value comprising base enterprise value of $575 million and up to a further $130 million of earn-out
enterprise value
viii
Assumes FY25PF EBITDA of $22.9m for Spark data centre business within the transaction perimeter
ix
$47 million from from HTAL transaction received 17 July 2025, initial cash proceeds of ~$486 million from data centre
transaction to be received at completion – final net proceeds subject to completion adjustments
x
75% imputed
xi
Data centres like-for-like revenue changed from previous reporting as Data Centres previously reported under Cloud and those
branded CCL were consolidated. Data centres revenue includes both continuing and discontinuing operations.
xii
TRA brand reputation monitor April – June 2025
xiii
Opensignal Awards – New Zealand: Mobile Network Experience Report, September 2024, based on independent analysis of
mobile measurements recorded during the period June 1 – August 29, 2024 © 2024 Opensignal Limited
xiv
Assumes a transaction completion date of 31 December 2025. The transaction is subject to regulatory and customary consents
including Overseas Investment Office approval.

---

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 12 months to 30 June 2025
Previous Reporting Period 12 months to 30 June 2024
Currency NZD - New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
NZD$3,725,000 (2.5%)
Total Revenue NZD$3,771,000
1
(2.3%)
Net profit/(loss) from
continuing operations
NZD$252,000 (19.0%)
Total net profit/(loss) NZD$260,000 (17.7%)
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 10 September 2025
Dividend Payment Date 03 October 2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
As at 30 June 2025: NZD$0.38 As at 30 June 2024: NZD$0.41
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
In FY25, the data centre business has been classified as a
discontinuing operation and its results are included in the total
revenue and total net profit/(loss). Changes in Spark’s total
earnings from continuing and discontinuing operations before
finance income and expense, income tax, depreciation,
amortisation and net investment income (adjusted total
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 &
Commercial
Contact phone number +64 21 631 074
Contact email address investor-info@spark.co.nz
Date of release through MAP

20 August 2025

Audited financial statements accompany this announcement.



Addendum:

Amount (000s) Percentage
change
Adjusted total EBITDAI (adjusted total earnings from
continuing and discontinuing operations before finance
income and expense, income tax, depreciation,
amortisation and net investment income)
2

NZD$1,060,000 (8.9%)

1
Total Revenue includes revenue from continuing and discontinuing operations.
2
Adjustments in the FY25 adjusted earnings from continuing and discontinuing operations
before finance income and expense, income tax, depreciation, amortisation and net investment
income (adjusted total EBITDAI) reflected the impact of the net gain on sale of the remaining
Connexa investment of $71 million, the transformation costs associated with Spark’s SPK-26
Operate Programme amounted to $53 million and any associated tax impacts (nil FY24).
Adjusted total EBITDAI is a non-GAAP measure which is defined and reconciled in note 2.5 of
Spark’s 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 X Quarterly
Half Year Special
DRP applies No
Record date 10 September 2025 AUST, NZ & USA;
Ex-Date (one business day before the
Record Date)
09 September 2025 AUST, NZ & USA;
Payment date (and allotment date for
DRP)
03 October 2025 AUST & NZ;
13 October 2025 USA
Total monies associated with the
distribution
NZD$236,165,313
(1,889,322,507 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)
N/A
Start date and end date for
determining market price for DRP


Date strike price to be announced (if
not available at this time)

Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product

Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms

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

20 August 2025

---

Spark Annual
Report FY25

Hello tomorrow
About this report1
About Spark2
Performance snapshot4
Chair’s address6
CEO review8
How we create value10
Creating value for shareholders12
Our performance16
Our Board and Leadership Squad20
Remuneration Report46
Governance54
Risk management69
Financial statements
Financial statements 71
Notes to the financial statements77
Independent auditor's report120
Appendix
Spark’s managing risk framework roles and responsibilities 125
Sustainability appendix126
Glossary130
Contact details132
Contents
Our network and
technology

page 28
Our customers

page 24
Our environment

page 32
Our communities

page 36
Our people

page 40

About this
report
• This report covers the activities of Spark New Zealand Limited
and its subsidiaries for the period 1 July 2024 to 30 June 2025.
• This is an integrated report that covers our financial performance
alongside the economic, social, and environmental factors that
underpin our short, medium, and long-term value creation for
our shareholders and other stakeholders.
• To inform our approach we have applied the International <IR>
Framework and the Global Reporting Initiative (GRI) standards,
two widely adopted global reporting standards. See pages
126 – 129 for more information on our approach to sustainability
reporting.
• This Annual Report is published alongside a suite of other
disclosures, including our Corporate Governance Statement,
Climate-related Disclosures Report, Modern Slavery and Human
Rights Statement, and Environmental, Social and Governance
(ESG) Data Pack.
• For the full suite of FY25 disclosures please visit
spark.co.nz/governance
• This report is dated 20 August 2025 and is signed on behalf
of the Board of Spark New Zealand Limited by Justine Smyth,
Chair; and Gordon MacLeod, Chair Audit and Risk Management
Committee.
Gordon MacLeod
Chair Audit and Risk
Management Committee
Justine Smyth CNZM
Chair
Key dates
Investor Strategy
Briefing
11 September 2025
Annual Meeting
7 November 2025
FY26 half-year
results announcement
27 February 2026
FY26 year-end
results announcement
21 August 2026
Spark Annual
Report FY25
Climate-related
Disclosures Report FY25
Modern Slavery and
Human Rights Statement FY25
Corporate Governance
Statement FY25
Spark New Zealand Annual Report FY25Hello tomorrow
1

Spark is New Zealand’s largest telecommunications
company. Our customers range from individual
New Zealanders and households to small businesses,
government, and large enterprise clients. Across all
our services – mobile, broadband, digital services,
and digital infrastructure – we have relevance for
almost every New Zealander.
2.6m+
mobile connections
About
Spark
Market share
in mobile and broadband
1
Most reliable
mobile network
with the widest coverage
experience
2

#
1
2
About Spark
About Spark
1. IDC New Zealand mobile market share report as at 30 June 2025.
2. Opensignal Awards – New Zealand: Mobile Network Experience Report, September 2024, based on independent analysis of mobile
measurements recorded during the period June 1 – August 29, 2024 © 2024 Opensignal Limited.
3. Total headcount as of 30 June 2025. Spark FTE (full time employee) number is 3,847 as of 30 June 2025.
4. Towns with a population over 1,500.
5. Includes Spark active equipment on 1,600 third party towers, 572 Rural Connectivity Group (RCG) towers and 90 small cells active at 30 June 2025.

23MW
Over 23MW data centre capacity
2,262
mobile sites housing our
active infrastructure
5
50%+
of the population reached
by our 5G network
4
99%
of New Zealanders reached
by our 4G network
24
regional business hubs
59
retail stores
4,043
employees
3
1,100+
enterprise and government
customers
110 k+
small-medium business customers
660k+
broadband connections
+40
customer net promoter score
2. 37m+
devices connected to our Internet
of Things (IoT) network
Spark New Zealand Annual Report FY25Hello tomorrow
3

Reported operating revenues and other gains
1
$3,725m
2.5% decrease vs FY24
Mobile service revenue
$987m
2.3% decrease vs FY24
Adjusted EBITDAI
2,3
$1,060 m
8.9% decrease vs FY24
IT revenue
5
$666m
2.6% decrease vs FY24
Reported net earnings
4
$260m
17.7% decrease vs FY24
Data centre revenue
5,6

$50m
11.1% increase vs FY24
Adjusted operating revenues and other gains
2
$3,700m
4.2% decrease vs FY24
Broadband revenue
$608m
0.8% decrease vs FY24
Reported EBITDAI
1,3
$1,053m
7.7% decrease vs FY24
Adjusted net earnings
2
$227m
33.6% decrease vs FY24
Performance
snapshot
1. Reported revenue and EBITDAI excludes the results of the data centre business which has been classified as a discontinuing operation in the financial statements.
2. Adjusted numbers in FY25 include the impacts of removing the $71 million gain on sale of the remaining investment in Connexa, and the $53 million transformation
costs associated with Spark’s SPK-26 Operate Programme and any associated tax impacts. They also include the results of the data centre business for both years which
has been classified as a discontinuing operation in the financial statements. The prior year net earnings has been adjusted for the $26 million impact of the government
change to tax depreciation rules for buildings.
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 the financial statements.
4. Reported net earnings includes earnings from both continuing and discontinuing operations.
5. The prior year IT revenue and data centre revenue has been restated to more accurately reflect how these products are viewed.
6. Data centre revenue includes both continuing ($4 million) and discontinuing operations ($46 million).
7. Free cash flow is a non-GAAP measure and is defined on page 7 of Spark's FY25 Detailed Financials.
8. Reported return on invested capital (ROIC) is calculated as net operating profit (EBITDAI less depreciation and amortisation for both continuing and discontinuing
operations) after tax (at 28%) as a percentage of average invested capital (total debt including leases plus equity).
4
Performance snapshot
Performance snapshot

Capital expenditure
3
$429m
17.2% decrease vs FY24
Reported return on invested capital
8
8.7%
Adjusted free cash flow
7
$330m
no change vs FY24
Spark New Zealand Annual Report FY25Hello tomorrow
5

Chair‘s
address
Tēnā koutou,
The past financial year has been one of the most challenging
periods in Spark’s history, as we navigated economic headwinds,
materially lower customer spending, and ongoing structural change
in some of our markets. We acknowledge that not all the challenges
we faced were beyond our control and understand our shareholders
will rightly be concerned by our performance over the past year.
At our AGM in November, I outlined the action we would take to
stabilise performance. Good progress has been made against these
priorities since that time, and we have also reviewed Spark’s future
strategy and capital management settings to improve shareholder
returns over the long term.
Transforming today, for a stronger tomorrow
Through our transformation programme we have taken decisive
action in four key areas – refocusing Spark on our core business of
connectivity, simplifying our portfolio by divesting non-core assets,
expanding our cost-reduction programme, and generating value
through our data centre strategy.
Connectivity is at the heart of Spark. Our connectivity services across
the consumer, SME, and business markets account for 80% of gross
margins. This is why we have renewed our focus on our core, and in
particular building momentum in the mobile market.
To support this focus and recycle capital into our core business, we
undertook a strategic review of non-core assets. This culminated in
the sale of our remaining stakes in Connexa and Hutchison
Telecommunications (Australia) Limited, delivering combined
proceeds of $356 million.
Our expanded cost-out programme introduced four new global
partnerships into our network and IT operations, which enables us to
improve customer experiences while underpinning significant cost
reductions.
To support the growth of our data centre business, we commenced
a process during the year to identify a capital partner. At the start
of August, we announced we had entered into an agreement to sell
a 75% interest in our data centre business to Pacific Equity Partners
(PEP)
1
– valuing the business at up to $705 million
2
and securing a
funding pathway to build out our planned 130MW+ development
pipeline.
Justine Smyth
CNZM
6
Chair’s address
Chair’s address

PEP is one of Australia’s leading private capital managers, with a
strong track record of growing businesses across New Zealand and
Australia. Through this partnership we will realise value for our data
centre assets in the short term, while also continuing to participate
in the growing market through our 25% retained stake – creating
further value for our shareholders over the long term.
The Board declared a final dividend in August 2025 of 12.5 cents
per share, to bring the total FY25 dividend to 25 cents per share –
delivering on updated guidance and taking into account the return
of some of the Connexa sale proceeds.
Finally, our return on invested capital (ROIC)
3
in FY25 of 8.7% was
in excess of our cost of capital and continues to outperform the
majority of our global peers.
Resetting capital management for long-term
shareholder value
As part of our transformation focus, the Board undertook a review
of Spark’s capital management settings to maximise shareholder
value. Our updated Capital Management Framework has three core
focus areas – maintaining financial strength, ensuring an appropriate
return on our investments, and sustainable shareholder returns.
From FY26, we have made changes to our Dividend Policy to support
a sustainable dividend funded by free cash flow (FCF). Our definition
of FCF now includes changes in working capital and capital
expenditure used to operate our core business. Moving forward,
the only capital expenditure excluded from FCF will be spectrum
and strategic investments outside our core business, such as data
centres. We have also changed our target dividend payout ratio to
70–100% of FCF, to provide flexibility if needed in the future.
In practice, this means the dividend guidance we provide each
year will be tied to forecast free cash flows, which will also be
included within guidance. In FY26 we are guiding to free cash flow
of $290–$330 million and a dividend payout ratio of 100%.
Board renewal
In a year of significant change for Spark we have also taken the
opportunity to undertake Board renewal, with three new
independent, non-executive directors joining in FY26, which will
bring further depth and breadth to an already experienced board.
Lindsay Wright, Vince Hawksworth, and Tarek Robbiati bring broad
governance and senior management experience, and deep sector
knowledge across the telecommunications, capital markets,
infrastructure investment, and retail customer sectors.
Gordon MacLeod and Sheridan Broadbent will retire from the Board
during FY26 and I would like to thank them both for the significant
contribution they have made over the past three years and wish
them every success in the future.
Looking to the future
As we look ahead, we are firmly focused on returning Spark to
topline growth and improving shareholder returns. Recognising the
market has changed significantly since we announced our SPK-26
strategy, the Board has approved a new five-year strategy that
refocuses Spark from an ambition to become a broader digital
services business to its core of connectivity.
Through this new strategy our ambition is to deliver stable annuity-
like returns, with sustainable free cash flow funding a growing
dividend profile over time.
Your Board and Management remain committed to realising
these ambitions in the years ahead and thank you for your
continued support.
Ngā mihi
Justine Smyth CNZM
Chair
1. Transaction subject to regulatory and customary consents.
2. Headline enterprise value comprising base enterprise value of $575 million and up to a further $130 million of earn-out enterprise value.
3. ROIC is calculated as net operating profit (EBITDAI less depreciation and amortisation for both continuing and discontinuing operations) after tax (at 28%)
as a percentage of Invested Capital (total debt including leases plus equity). Peers are comparable telecommunications companies.
Spark New Zealand Annual Report FY25Hello tomorrow
7

CEO
review
Jolie Hodson
MNZM
Tēnā koutou,
Over the past year, like many businesses across New Zealand,
we have continued to experience the impacts of a recessionary
environment, felt more acutely due to our exposure to the
enterprise and government markets through our scale IT business.
We completed FY25 with adjusted EBITDAI
1
of $1,060 million, in
line with revised guidance but down 8.9% on FY24. Adjusted NPAT
of $227 million was down 33.6%. Free cash flow of $330 million
was the same as in FY24 despite lower earnings, as we reduced
total capex by 17.2% to $429 million.
While we are not immune to economic volatility, we accept
responsibility for our performance and have undertaken a
significant transformation programme to reset the business and
leverage our strong foundations. We are making good progress,
laying the groundwork for ongoing performance improvements in
the years ahead.
Refocusing on our core of connectivity
Connectivity is our core business, with mobile alone contributing
over half of our group gross margin – making this our number
one priority.
Our overall mobile service revenue reduced during the year, driven
primarily by the removal of an insurance product in consumer,
aggressive pricing and reducing workforces in the enterprise
and government segment, and more competition in consumer
prepaid. Positively in consumer and SME pay monthly (the largest
part of the market) connections grew and when we exclude the
one-off impact of insurance, ARPU – our measure of the revenue
we earn per customer – increased by around 3% in the second half.
The prepaid market was tougher and is characterised by more
competition in the value segments of the market. Here we saw
connections decline, while our December plan refresh and price
increases maintained ARPU.
Enterprise and government comprises around 10% of our mobile
service revenues, and while price competition continues to put
pressure on ARPU, we were pleased to see the connection decline
stabilise in the second half.
We have implemented a significant programme of activity that is
driving momentum into FY26 – including new high data plans,
brand campaigns, and new price points across the market. This is
moving the dial – with our market share stabilising in the fourth
quarter and Spark remaining #1 mobile provider
2
by some
distance, with 42% total market share.
We were also pleased to be named ‘New Zealand’s most reliable
mobile network with the widest coverage experience’ in The
New Zealand Mobile Network Experience Report, released by
Opensignal
3
during the year. This recognises the significant and
sustained investment we make into our network each year, which
underpins our most valuable market.
Transforming our cost base and technology
delivery model
As we expanded the focus of our cost-reduction programme, we
undertook a significant organisational redesign to align our
business to our new transformation priorities, and to simplify our
8
CEO review
CEO review

enterprise and government division in the face of changing market
demand. We integrated our cloud and data and AI subsidiaries
into Spark to create a more efficient operating model and connected
experience for our customers, improved utilisation, and undertook
a simplification programme across our product portfolio.
We also transformed our technology delivery model, which refers
to how we operate our IT and network functions across the business.
When we looked at our global peers, many had already moved to
new partnership models in these areas of their businesses. Their
experience showed that a partnership model would not only enable
greater efficiency by leveraging existing global resources, but also
create better customer experiences by tapping into the
considerable investments these companies make into new products,
services, and technologies.
Our new technology delivery model includes four key partnerships
– Nokia in network, Infosys and HPE in IT, and Microsoft in cloud.
Our network partnership with Nokia will enable us to accelerate
our use of AI and automation in our network for better customer
experiences, while delivering network operations more efficiently.
Our IT partnership with Infosys will help us deliver digital and
AI-driven customer experiences more quickly, while our IT
partnership with HPE will ensure that our IT environments are
continuously updated in line with advancements in technology.
Finally, our cloud partnership with Microsoft will support us to
continue providing compelling hybrid cloud options for our
customers, while modernising our own cloud environment and
improving overall cloud margins.
Undertaking a transformation of this scale has brought significant
change for our people. It is never easy to make changes that impact
our teams, and we do not do so lightly. But to deliver a leaner, more
competitive business in a changing market, we have had to make
tough but necessary choices to set Spark up for future growth, and
to ensure our cost base is sustainable.
We also continued to invest in our artificial intelligence (AI) capability,
which is leading in New Zealand. The AI tools we are implementing
are improving the productivity of our people and delivering tangible
benefits for our customers – such as shorter wait times in our call
centres and faster identification and resolution of network issues.
With the acceleration of agentic AI, and the capability of our global
partners, we will continue to expand this capability to underpin both
cost and experience improvements in FY26.
Overall, we delivered an $85 million reduction in costs in the
second half of FY25, compared to the same period in FY24.
This has helped ensure we are in a stronger position as we move
into FY26, and as we embark on our new five-year strategy.
Our new five-year strategy
In an increasingly digital world, our products and solutions are only
becoming more important and more relevant for New Zealanders
and businesses. Customer data use continues to grow every year,
data centre capacity demand is growing off the back of strong AI
and cloud uptake, and digital transformation for productivity and
efficiency gains remains an investment priority across the public
and private sectors.
Our SPK-30 strategy takes a long-term view, recognising the scale
and pace of technological change that is reshaping customer
expectations, ways of working, and the products and services we
offer. This longer time frame provides our shareholders with clarity
around Spark’s strategic priorities, and where we will invest to
differentiate Spark from our competitors.
At the heart of our strategy is our ambition, It’s better with Spark.
Spark has a proud history in New Zealand – we are the country’s
largest telecommunications provider, we make significant
investments into connectivity every year, and our brand is the most
trusted in our sector nationally
4
. Our customers are at the centre of
everything we do, and we are proud to have improved customer
satisfaction five years running. Over the next five years our ambition
is clear – whether it’s our network performance, our customer
experiences, or the workplace culture we create with our people
– we want it to be better with Spark.
Where we focus our investment is also clearly defined through this
new strategy. Our focus is on our core of connectivity – which
includes mobile and broadband in the consumer and SME market,
as well as additional connectivity services in the business market,
such as managed data and networks, collaboration, and IoT.
To enable a greater focus on core connectivity, in adjacent segments
– such as cloud and IT service management – we will simplify our
operations and optimise the margin contribution of these businesses
by leveraging greater levels of AI and automation, and our new
global partnerships.
Underpinning these focus areas are four key enablers – people and
culture, embedding technologies such as automation and AI within
our operations, cost and financial discipline, and our ongoing
commitment to sustainability.
Guided by our new strategy, we move into FY26 with renewed
determination to return Spark to its history of stable performance,
and deliver globally competitive shareholder returns.
In closing I would like to acknowledge our Spark people, who have
experienced a year of significant change as we have transformed
our business and thank our teams for the support they provide to
our customers each and every day.
And to you, our shareholders – we thank you for your continued
support.
Ngā mihi
Jolie Hodson MNZM
CEO
1. Our FY25 financial results have been split into reported and adjusted numbers. Adjusted revenue and EBITDAI include the data centre business and exclude the
Connexa transaction gain on sale ($71m) and transformation costs ($53m) associated with the cost out programme. In addition, FY24 NPAT has been adjusted to
include the data centre business results and exclude the $26 million impact of the government change to tax depreciation rules. This provides a like-for-like, year-on-
year performance comparison.
2. Market share estimates sourced from IDC as at 30 June 2025.
3. Opensignal Awards – New Zealand: Mobile Network Experience Report, September 2024, based on independent analysis of mobile measurements recorded
during the period June 1 – August 29, 2024 © 2024 Opensignal Limited.
4. TRA brand reputation monitor April – June 2025.
Spark New Zealand Annual Report FY25Hello tomorrow
9

INPUTS
What we rely on to operate
our business
OUR BUSINESS MODEL
How we use these inputs to create outputs and outcomes
Network &
Technology
Our mobile and fixed
networks, technology,
and data centres
People
Skilled, engaged and
effective teams
Nature
Energy, water, materials,
and land we use in our
operations
Partnerships
Global and local partnerships
that strengthen and broaden
our capability
How we
create value
Relationships
With customers, suppliers,
communities and
stakeholders
Finance
Strong balance sheet
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UNDERPINNED BY STRONG GOVERNANCE
AND OUR VALUES
Whakamana (We empower)
Matomato (We succeed together)
Tūhono (We connect)
Māia (We are bold)
OUR PURPOSE
To help all of New Zealand win big in a digital world
10
How we create value
How we create value

OUTPUTS
What we aim to create
OUTCOMES
The benefits of these outputs
See pages 12 – 15
See page 40
See page 28
See page 24
See page 32
See page 24 and 36
Connected and enabled
New Zealanders
Reliable connectivity
for our customers
Skilled, safe and diverse
workforce
Employment and skill
development
Protecting the environment
and supporting New Zealand’s
decarbonisation
Reduced use of
natural resources
Resilient, automated
and adaptive network
and technology
Connected New Zealand
and resilient digital
economy
Improved customer
experience, digital equity,
and supply chain practices
Better customer experience,
social outcomes, and
participation
Financial growth and
shareholder returns
Creating value for
shareholders
Spark New Zealand Annual Report FY25Hello tomorrow
11

We recognise our performance has
not met shareholders expectations
in FY25, and we remain focused on
transforming our business to improve
shareholder returns in the years ahead.
The recessionary economic environment in New Zealand created
a challenging operating environment for Spark throughout FY25.
Lower consumer spending resulted in higher levels of price
competition in the market, while materially lower government and
business spending reduced demand in Spark’s IT business.
As businesses reduced workforces this also flowed through to lower
numbers of mobiles needed for employees.
At the same time, we continued to experience structural changes
in some of our markets and performance was not where it needed
to be in others – and we take responsibility for this. This was a year
of facing into those challenges, setting a plan for immediate
transformation, and a strategy for the years ahead.
Our strong fundamentals and position in the telecommunications
sector remain. Spark has New Zealand's most reliable mobile
network, with the widest coverage experience in the country
1
.
We are the market leader in the growing mobile market (leading
the consumer segment in pay monthly and prepaid connections),
in broadband, and in the SME and enterprise and government
segments.
As New Zealand continues to digitise, our products and solutions
are only becoming more important and relevant. New Zealanders
continue to use more data every year, data centre growth is strong,
and digital transformation remains an investment priority for
businesses, and we approach these opportunities with a brand
that is the most trusted in our sector
2
nationally.
1. Opensignal Awards – New Zealand: Mobile Network Experience Report, September 2024, based on independent analysis
of mobile measurements recorded during the period June 1 – August 29, 2024 © 2024 Opensignal Limited.
2. TRA brand reputation monitor April – June 2025.
Transforming today,
for a stronger tomorrow
Creating value
for shareholders
12
Creating value for shareholders
Creating value for shareholders

During FY25 we established four strategic priorities to transform our
performance:
Market momentum in our telco core
We renewed our focus on our core business, with a particular focus
on our market of mobile, to build momentum and strengthen our
market leadership. While the mobile market was challenging in
FY25, this renewed focus has improved performance as we move
into FY26 – with ARPU growth in consumer (our measure of how
much revenue we earn from each customer), connection
stabilisation in enterprise and government, and Spark stabilising
its market share
3
in the fourth quarter.
Simplified portfolio
We reviewed non-core assets to consider if Spark remained the
best owner, or if greater shareholder value could be created from
divestment. This culminated in the divestment of our Connexa and
HTAL
4
shareholdings, generating combined proceeds of
$356 million
5
.
In our enterprise and government division, we undertook a
significant simplification programme focused on integrating
subsidiaries into Spark and product rationalisation for improved
customer outcomes.
Transformed cost base
We transformed our IT delivery model, which refers to how we
operate our network and IT at Spark, through the formation of four
strategic global partnerships – with Microsoft, Nokia, Infosys and
HPE. We are leveraging the scale and capability of these partners
to augment our own expertise and deliver efficiency and customer
experience improvements.
Combined with a review of our broader Spark operating model,
our workforce reduced by approximately 1,300 full-time employees
at the end of FY25. This reduction in labour costs, combined with
other reductions in opex and product costs, supported savings
of $85 million in the second half of FY25 compared to the same
period in FY24.
Generating value through our data centre
strategy
We undertook a process to identify a capital partner for our data
centre business, to enable Spark shareholders to benefit from this
rapidly growing sector in the long-term, without shouldering the full
capital investment required.
This culminated in an agreement to sell a 75% interest in our data
centre business to Pacific Equity Partners (PEP)
6
– valuing the business
at up to $705 million
7
and securing a funding pathway to build out
our planned 130MW+ development pipeline.
Through this partnership we will realise value for our data centre
assets in the short term, while also continuing to participate in the
growing market through our 25% retained stake – creating further
value for our shareholders over the long term.
3. Market share estimates sourced from IDC as at 30 June 2025.
4. Hutchison Telecommunications (Australia) Limited (HTAL).
5. $309 million from Connexa transaction (net of transaction costs), $47 million from Hutchison Telecommunications (Australia) Limited
(HTAL) transaction received 17 July 2025.
6. Transaction subject to regulatory and customary consents.
7. Headline enterprise value comprising base enterprise value of $575 million and up to a further $130 million of earn-out enterprise value.
Spark New Zealand Annual Report FY25Hello tomorrow
13

Resetting capital management
In line with our transformation focus, the Board undertook a review
of Spark’s capital management settings, to consider shareholder
value creation in the context of current market performance and
Spark’s future strategic priorities. The key components of the new
Capital Management Framework include:
To maintain financial strength, we are focused on a strong balance
sheet, and targeting metrics consistent with our current credit rating.
When considering investment and portfolio management,
investments and M&A for growth must meet our hurdle rates –
which include being net present value (NPV) positive, with ROIC
greater than the cost of capital. New definitions of capex have also
been introduced – with BAU capex covering all capital investment
in our core business (with the exception of spectrum), and strategic
capex including any capital investment outside the core business,
such as data centres. A long-run target of capex to revenue of
10–12% has been maintained.
To deliver sustainable shareholder returns, Spark’s Dividend Policy
has been updated. The dividend guidance we provide each year
will be tied to a new definition of free cash flow (FCF), which now
incorporates changes in working capital and capital expenditure
used to operate our core business. Moving forward, the only capital
expenditure excluded from FCF will be spectrum and strategic
investments outside our core business. We have also changed our
target dividend payout ratio to 70-100% of FCF, to provide flexibility
if needed in the future.
When applied to FY26, we are guiding to FCF of $290–$330 million
and a dividend payout ratio of 100% of FCF.
Looking to the future
Overall good progress has been made, but more must follow.
We move into FY26 with a new five-year strategy that builds on our
transformation focus and is designed to return Spark to its history
of stable performance, while maintaining globally competitive
shareholder returns.
Our vision is It’s better with Spark. Better for our shareholders, better
for our customers, better for our people, and better for New Zealand
as a whole. This speaks to our ambition to maintain and grow our
leadership position in the market, grounded in the things that matter
to our customers – delivering a better network, and better customer
experiences.
Our focus is on our core of connectivity – which includes mobile and
broadband in the consumer and SME market, as well as additional
connectivity services in the business market, such as managed data
and networks, collaboration, and IoT. In segments beyond the core,
we will simplify and optimise our business to improve margins while
continuing to deliver great experiences for our customers.
Our new strategic plan is shared on the following page. Across the
remainder of this report, we outline our financial and non-financial
performance across a range of areas that support our success in
the marketplace and therefore shareholder returns. This includes
how we serve our customers, how we invest in our network and
technology, how we reduce our impact on the environment, how
we maintain our licence to operate with our communities, and
how we invest in our employees.
For running header don't delete
14
Creating value for shareholders

Our Strategic Choices
Our AmbitionOur Purpose
Our Enablers
Technology
and AI
People and
culture
Financial
discipline
Sustainable
Spark
Lead in core
connectivity
Simplify and
optimise beyond
the core
1
2
Better network
Better customer
experiences
It’s better
with Spark
To help all of
New Zealand
win big in a
digital world
SPK-30 Strategy
Spark New Zealand Annual Report FY25Hello tomorrow
15

Our performance
1. EBITDAI is a non-GAAP performance measure that is defined in note 2.5 of the financial statements.
2. Reported revenues, operating expenses, and EBITDAI exclude the results of the data centre business which has been classified as a discontinuing operation in the
Financial Statements.
3. Reported net earnings and basic earnings per share includes earnings from both continuing and discontinuing operations.
4. Adjusted numbers in FY25 include the impacts of removing the $71 million gain on sale of the remaining investment in Connexa, and the $53 million transformation
costs associated with Spark’s SPK-26 Operate Programme and any associated tax impacts. They also include the results of the data centre business for both years which
has been classified as a discontinuing operation in the Financial Statements. The prior year net earnings has been adjusted for the $26 million impact of the
government change to tax depreciation rules for buildings.
5. This represents the H1 FY25 first-half dividend of 12.5 cents per share, together with the H2 FY25 second-half ordinary dividend declared of 12.5 cents per share.
Referenced on page 106.
$ Million
Mobile
Broadband
IT revenue
Procurement
and partners
Voice
High-tech
Other operating
revenue and
other gains
Gain on divestment
of Connexa
FY25 FY24
1,600
1,400
1,200
1,000
800
600
400
200
0
$3,725m
reported (down 2.5%)
$3,700m
adjusted (down 4.2%)
Reported basic earnings per share
3
14.0 cents
19.1% decrease vs FY24
Adjusted basic earnings per share
4
12.3 cents
34.2% decrease vs FY24
Dividends per share
5
25.0 cents

Reported EBITDAI
1,2
$1,053m
7.7% decrease vs FY24
Adjusted EBITDAI
1,4
$1,060 m
8.9% decrease vs FY24
Adjusted net earnings
1,4
$227m
33.6% decrease vs FY24
Reported net earnings
3
$260m
17.7% decrease vs FY24
Operating revenues and other gains
Reported revenues
2
• Mobile service revenue reduced $23 million or 2.3%. This was
driven by continued price pressure in enterprise and government
and consumer prepaid, the removal of a Spark-owned insurance
product in consumer pay monthly. Non-service revenue
increased $2 million, or 0.4%, with an uplift in wholesale device
sales largely offset by lower volumes of handset and accessories
sales in the consumer market.
• Within mobile, consumer and SME pay monthly connections
grew 0.5%, while ARPUs declined 0.6pp – impacted by the
reduction in insurance revenue, which will not reoccur in FY26.
Excluding the impact of insurance, H2 ARPU increased 3%. In
consumer prepaid, connections declined 5.2% while ARPU
grew 0.7%, as new offers were introduced. In enterprise and
government, ARPU declined 13.9%, however the reduction in H2
improved on H1. Connections declined 1.9% and stabilised in H2.
• Broadband revenue declined $5 million, or 0.8%, with the
benefit of price increases offset by a decline in broadband
connections of 26,000, or 3.8%, in a highly competitive market.
• IT revenue declined $18 million, or 2.6%. Continued uptake of
public cloud drove cloud revenue growth of $10 million, or
4.4%, which was more than offset by a $22 million decline in
managed data and networks, due to declines in legacy WAN
revenues, and a $12m decline in IT services revenue, as tough
economic conditions dampened demand.
Reported and adjusted results
Spark’s FY25 financial results include reported and adjusted figures. Reported EBITDAI includes continuing operations and removes the results
of the data centre business, which is classified as a discontinuing operation. This means data centre net earnings are disclosed separately in the
Financial Statements. Adjusted numbers include the results of the data centre business, remove the $71m gain on sale from the Connexa stake
and the $53 million of transformation costs in FY25, and in FY24 remove the $26 million impact of the government change to tax depreciation
rules for buildings. This provides a like-for-like, year-on-year performance comparison. A detailed reconciliation is contained on page 9 of
Spark’s Detailed Financials.
• Procurement and partners revenue decreased $10 million, or
1.8%, mainly due to lower procurement volumes across the
customer base, noting this was offset by associated lower
procurement costs.
16
Our performance
Our performance

0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
$ Million
Product
costs
LabourOther
FY25 FY24
0
100
200
300
400
500
600
Depreciation
and
Amortisation
Net
Finance
Expense
Tax
Expense
$ Million
FY25 FY24
Operating expenses
Reported operating expenses
2

• Product costs decreased $17 million, or 1.0%, with declines
broadly in line with decreases in associated revenues. The major
declines were associated with lower mobile handset sale
volumes, reduced voice connections, lower procurement
volumes, and product cost savings, partly offset by higher
broadband input costs.
• Labour costs decreased by $68 million, or 13.4%, as the business
undertook a transformation of its operating model.
• Other operating expenses increased $78 million, or 18.4%, due
largely to transformation costs (totalling $53 million) and CPI
increases in software licence costs impacting computer costs
and increased network support costs due to network expansion.
Adjusted operating expenses
4
• Total adjusted operating expenses (including data centre costs
and removing the transformation costs) decreased by $58m, or
2.1% from FY24.
$2,672m
reported (down 0.3%)
$2,640m
adjusted (down 2.1%)
Other
• Total depreciation and amortisation increased $78 million, or
15.2%, largely driven by higher costs associated with the
increased capital spend in prior years combined with increased
depreciation on right-of-use assets in line with increased mobile
tower and property leases.
• Net finance expense increased $4 million, driven by higher debt
levels, as well as increased interest on leases due to long-term
infrastructure leases.
• Tax expense decreased $101 million, largely due to decreased
earnings before tax, the non-taxable gain on sale of Connexa and
the cycling of $26 million additional tax in the prior year relating to
the tax depreciation on buildings.
• Voice revenues declined $30 million, or 16.7%, in line with the
long-term trend. Legacy voice revenues now contribute only 4%
of total company revenue.
• High-tech revenue increased $5 million, or 6.3%, driven by
strong connection and revenue growth in the IoT business.
• Other operating revenue declined $16 million, or 11.4%, largely
due to lower network build work in Entelar.
• Other gains of $102 million includes the $71 million gain on sale
of Connexa investment. Excluding this gain the remaining other
Net earnings from discontinuing operation
The data centres business has been classified as a discontinuing operation held for sale at 30 June 2025 resulting in separate disclosure of its
net earnings after tax of $8 million, an increase of $3 million from FY24. The increase in earnings is largely due to revenue growth of $5 million,
or 12.2%, driven by scaling utilisation, customer wins, and price increases.
gains of $31 million were down $71 million due to fewer lease
modifications and terminations and lower vendor funded test
and development equipment.
Adjusted revenues
4
• Adjusted revenues include $46 million data centre revenues
reported within the discontinuing operation and excludes the
gain of $71 million from the Connexa shareholding divestment.
Operating revenues and other gains (continued)
Spark New Zealand Annual Report FY25Hello tomorrow
17

600
620
640
660
680
700
720
740
760
780
800
FY24 net cash flows from
operating activities
Payments to suppliers
and employees
Receipts from customers
Payments for interest on debt
Payments for interest on leases
Payments for interest on leased
customer equipment assets
Receipts from interest
Payments for income tax
FY25 net cash flows from
operating activities
$ Million
764
(58)
(17)
(10)
(4)
1
1
3
680
Cash flows
• Operating cash flows decreased $84 million, largely due to
severance payments as part of transformation costs, lower
receipts from customers as a result of lower revenue during
the year, higher payments for interest on debt, and higher
payments for interest on leases resulting from increased
infrastructure leases.
• Investing cash outflows of $112 million decreased by
$438 million. The main drivers of the difference were the receipt
of net proceeds from the sale of the remaining interest in the
Connexa business of $309 million, and a $150 million reduction
in payments for capital expenditure
7
, largely due to lower spend
on the Standalone 5G network, combined with timing-related
higher network payments in the prior year.
• Financing cash outflows were $593 million in FY25, consisting
mainly of dividend payments of $302 million and net
repayments of debt of $197 million (following the receipt of the
Connexa proceeds).
• Free cash flow was flat year-on-year, with the decline in EBITDAI
offset by lower cash payments for capital expenditure included
in free cash flow, and increased payments for interest.
20252024
YEAR ENDED 30 JUNE$M$M
Net cash flows from operating activities680764
Net cash flows from investing activities(112)(550)
Net cash flows from financing activities(593)(255)
Net cash flows(25)(41)

Free cash flow
6
330330
6. Free cash flow is a non-GAAP measure and is defined on page 7 of Spark’s
FY25 Detailed Financials.
7. Payments for capital expenditure includes purchase of property, plant and
equipment, intangibles (excluding spectrum), capacity, and assets
classified as held for sale.
Operating cash flows
$680m (down 11. 0 %)
For running header don't delete
18
Our performance

Capital expenditure in FY25 included the following key focus areas
and projects:
• Continued investment in Spark’s mobile core and radio access
network (RAN), delivering greater network capacity, coverage,
and reliability.
• Strategic investment in the lifecycle and licensing of internal IT
systems focused on automation and enterprise platform
integration to drive efficiency.
• Expanding AI investment to embed intelligence across
operations, accelerating automation and service transformation.
• Fixed network infrastructure and international cable capacity to
meet requirements for Spark's fibre, transport, and IP network,
continuation of the core network expansion and resilience
programme, PSTN decommissioning, and international cable
capacity purchases to meet forecasted demand for data.
• Data centre investment, including the ongoing construction of
the University of Waikato data centre and the upgrade of the
Aotea Campus, as well as the commencement of pre-construction
activities for the Takanini and North Shore campuses.
• Property investment in Spark’s retail store fitouts and refits, and
sustain investment for power and building services for Spark-
owned exchanges and data centres.
$429m
Capital expenditure
8

Capital expenditure to adjusted operating
revenues and other gains
9

$
1
6
3
m

$
1
4
9
m

Cloud
Fixed network and international cable capacity
IT systems
Mobile network and 5G standalone readiness
Property
Data centres
Sundry

$
7
m

$
2
7
m

$
1
1
m

$
7
1
m


$
1
m

12345678
8. CAPEX is a non-GAAP performance measure that is defined in note 2.5 of the
financial statements.
9. CAPEX to operating revenues and other gains for FY25 is calculated on
adjusted operating revenue (excluding the gain on divestment of Connexa) to
enable a meaningful analysis.
10. Reported return on invested capital (ROIC) is calculated as net operating profit
(EBITDAI less depreciation and amortisation for both continuing and
discontinuing operations) after tax (at 28%) as a percentage of average
invested capital (total debt including leases plus equity).
11. 6%

(FY24 13.4%)
Reported return on invested capital (ROIC)
10
ROIC of 8.7% in FY25 was in excess of estimated weighted average
cost of capital of 8.0% and outperforms the majority of Spark’s
global peers.
Spark New Zealand Annual Report FY25Hello tomorrow
19

Jolie Hodson MNZM
Chief Executive and
Executive Director
Jolie joined the Board in
September 2019, following her
appointment to CEO in July
the same year. Jolie brings
strategic knowledge within the
telco and technology sector,
financial and commercial, and
people leadership and culture
development experience to
the Board.
Warwick Bray
Non-executive Director
Warwick joined the Board
in September 2019 and
brings financial, commercial,
capital markets, customer
insight, listed company
governance, and strategic
telecommunications industry
experience to the Board.
David Havercroft
Non-executive Director
David joined the Board in
October 2021 and became
Chair of the Human Resources
and Compensation Committee
(HRCC) in 2024. David brings
risk management, regulatory
policy, data, digital
technologies, and strategic
telco industry knowledge and
experience to the Board.
Our Board and
Leadership Squad
Justine Smyth CNZM
Chair and Non-executive
Director
Justine was appointed to the
Board in December 2011 and
was last re-elected in November
2022. She was appointed Chair
in October 2017, and has
experience in listed company
governance, capital markets,
and the financial and
commercial performance of
large corporate enterprises.
Our Board
More information
about the Board:
spark.co.nz/leadership
Sheridan Broadbent
Non-executive Director
Sheridan joined the Spark Board
in August 2022 and brings risk
management, regulatory,
people leadership, and strategic
telco and technology industry
experience to the Board.
Sheridan will resign from the
Board, effective 1 October 2025.
Lisa Nelson
Non-executive Director
Lisa joined the Spark Board in
May 2024 and brings financial,
commercial, customer insight,
listed company governance,
capital structures, global data,
and digital technology business
experience to the Board.
Gordon MacLeod
Non-executive Director
Gordon joined the Board in
August 2022 and became Chair
of the Audit and Risk
Management Committee
(ARMC) in 2023. Gordon brings
experience in the financial and
operational performance of
large businesses, capital
markets, and people leadership
to the Board. Gordon will resign
from the Board effective
1 September 2025.
20
Our Board and Leadership Squad
Our Board and Leadership Squad

Lindsay Wright
Non-Executive Director
Lindsay joined the Board on
1 August 2025, and brings
substantial expertise in
commercial operations,
strategy, investment
management, finance, capital
markets, and risk and capital
management to the Board.
1

Tarek Robbiati
Non-Executive Director
Tarek will join the Board from
1 October 2025, and brings
financial and commercial
acumen, strategic business
transformation, and deep
telecommunications industry
experience to the Board.
Vince Hawksworth
Non-executive Director
Vince will join the Board from
1 October 2025, and brings
experience in infrastructure
investment, management of
large-scale customer bases,
and people and culture
leadership to the Board.
The following Directors were appointed to the
Board during FY26:
1. Lindsay has joined the ARMC and will assume
the role of Chair upon Gordon MacLeod’s
retirement.
Spark New Zealand Annual Report FY25Hello tomorrow
21

Mark Beder
Customer Director
Mark joined Spark in 2003 and was
appointed to the Leadership Squad in
2016. He moved from the role of Chief
Operating Officer to Customer Director
in 2023. He brings technology leadership,
network operations, capital investment,
sales, and business strategy expertise to
the business.
Greg Clark
SME and Consumer Director
Greg joined Spark in 2013 and was
appointed SME and Consumer Director in
2023. He brings retail, sales, and customer
service expertise to the business.
Stewart Taylor
Chief Financial Officer
Stewart joined Spark as Chief Financial
Officer in 2024. He brings financial,
capital management, business strategy,
and performance delivery expertise to
the business.
Matt Bain
Data and Marketing Director
Matt joined Spark in 2018 as Marketing
Director, taking on the role of Data and
Marketing Director in 2023. He brings
brand strategy, AI, technology, digital and
data-driven marketing, and customer
experience expertise to the business.
Leadership Squad
Renee Mateparae
Network and Operations Director
Renee joined Spark in 2017 and was
appointed Network and Operations
Director in 2023. She brings technology
leadership and network operations
expertise to the business.
Heather Langton
People and Culture Director
Heather joined Spark in 2013 and was
appointed People and Culture Director in
2019. She brings leadership development,
culture, and workforce transformation
expertise to the business.
22
Our Board and Leadership Squad

Leela Ashford
Corporate Relations
and Sustainability Director
Leela joined Spark in 2020 and brings
corporate affairs, government relations,
sustainability, and stakeholder engagement
expertise to the business.
More information about the
Leadership Squad:
spark.co.nz/leadership
John Wesley-Smith
Strategy and Regulatory Director
John joined Spark in 2005 and became
Strategy and Regulatory Director in 2023.
He brings strategy, public policy, and
regulatory expertise to the business.
Melissa Anastasiou
Commercial Director
Melissa joined Spark in 2009 and was
appointed Group General Counsel in 2012.
She moved into the role of Commercial
Director in 2025. She brings legal,
regulatory, and commercial expertise
to the business.
Spark New Zealand Annual Report FY25Hello tomorrow
23

The key to our success lies in how
satisfied and loyal our customers
are to Spark, which puts customer
experience at the heart of our
strategy. We provide mobile,
broadband, cloud, digital, and IT
services that connect individuals
and households, small businesses,
government, and large enterprise
customers. These products and
services connect customers and
communities across the country,
creating value for New Zealand as
well as Spark.
Improving customer experience
We have an enduring focus on improving the experiences of Spark
customers, by making their interactions with us easy and effective.
This work continues to show up in customer feedback, with our
interaction net promoter score (our measure of customer
satisfaction) for our consumer and SME customers up 2 points
to +40 in FY25.
This is the fifth year running we have improved customer experience
– with a total 18 point improvement since FY20. We continue to
focus on training for our store and call centre teams, improvements
to our digital journeys, and utilising new technologies like Artificial
Intelligence (AI) to better serve our customers.
Our
customers
+40
Net promoter score up 2 points in FY25
Our customers
24
Our customers

More data than ever before for our
mobile customers
Mobile is central to our business, and in FY25 we improved
New Zealand's data for dollars ratio by introducing big data
mobile plans.
Our research told us that customers valued data above everything
else, and to meet that need we launched new ‘high data at max
speed’, pay monthly mobile plans – matching the increased
customer demand for mobile data seen year-on-year. In the first six
months since its launch, we’ve seen acquisition in our consumer
and SME segments increase more than 7% compared to the same
period last year.
In March we launched our new mobile brand campaign, ‘What a
time to be’, along with free data for Spotify music on all eligible pay
monthly mobile plans – allowing our customers to enjoy their
favourite tunes without cutting into their data allowances.
We also re-introduced ‘Companion Plans’, rewarding friends and
family on the same account (with the same data inclusions) with a
discounted rate. Spark’s prepaid offering was then refreshed, with
an increase in base data allowances across all plans, the inclusion of
Australia in SMS and minutes allowances in some of our plans, and
the launch of two new lower-priced value packs for price-conscious
prepaid customers.
Launching a world-first AI ambassador
with Skinny
Skinny made history selecting Liz, a long-time customer from
Kerikeri, as its new AI-created brand ambassador, following a
nationwide search. The campaign paired AI with a team of local
creative minds, and over 11 weeks, Liz’s voice, facial expressions,
and personality were captured to bring her AI clone to life. The result
is a highly realistic AI version of Liz, capable of delivering new
campaign out-of-the-box advertising without the need to film a new
ad each time a new campaign is created – keeping prices low for
Skinny customers. Liz’s AI likeness will feature in Skinny advertising
over the next two years.
Preparing to launch satellite-to-mobile
in FY26
During FY25, Spark entered a new partnership with another
US-based satellite provider to offer customers satellite-to-mobile
services from the second half of FY26. We are making good
progress preparing for launch, and have recently started testing on
our network, with customer trials to follow ahead of a commercial
launch early next year.
For our business customers we already offer fixed site and land
mobility satellite broadband as part of a range of managed
connectivity solutions, enabling them to add an additional layer of
resilience to traditional networks and providing connectivity to
remote areas.
Using Generative AI to improve
customer experience
In FY25 we launched a new tool called ‘Bravety’ to support
our customer care teams. Bravety uses Generative AI
(Gen-AI) to transcribe and summarise live customer calls
in real-time and provides the summary to the care team
member for review immediately after the completion of
the call.
This ensures we have consistent and accurate records and
allows our people to spend more time focusing on our
customers, and less time taking notes.
For customers it means our people are well informed
about previous interactions they may have had with our
team, which makes it faster and easier to receive the
support they need. Since its launch, Bravety has
summarised customer calls within 5 seconds and saved,
on average, ~1.5-2 minutes per call.
Spark New Zealand Annual Report FY25Hello tomorrow
25

Connecting New Zealand businesses,
big and small
As tough economic conditions persisted, our Enterprise and
Government division continued to experience reductions in
business spending and shrinking mobile fleets and fixed connections,
as the public and private sectors reduced workforces. Positively,
connection decline stabilised in the second half and Spark
continued to win new business, with notable new accounts including
Summerset, Deloitte, and New Zealand Red Cross. We also delivered
a range of innovative new services, including the country's first
private 5G network for business with Air New Zealand.
Spark supports over 110,000 small and medium enterprises (SMEs)
in New Zealand through our network of local business hubs. Our
'local like you' model, where each Business Hub is locally owned,
has resonated well with customers, resulting in a notable increase
in our SME Business Hub customer satisfaction score of +5 points in
FY25 to +71. In response to the challenging economic environment
our SME customers faced during the year, we launched the 'AI
Foundations' course in partnership with New York’s Section Business
School. This initiative provided 2,000 Spark customers with essential
AI skills to enhance their productivity.
Keeping our customers safe online
Spark puts cyber security, customer safety, and privacy at the
forefront of everything we do. We invest in the security of our
networks, ensure our people undergo regular training, provide our
customers with tools and education, and regularly update our
policies and frameworks, so that we can keep our customers safe on
our network.
Online safety
We recognise the important role we must play in protecting our
customers from the growing list of threats they face online –
including scams, cyber security risks, and objectionable material.
Because we cannot stop scamming from occurring, or objectionable
material from being shared, we implement a range of blocking
measures on our network, provide additional tools for our
customers to utilise on their own devices, and empower our
customers with education and information on how to keep
themselves safe online.
Our SMS Firewall (which is designed to identify and block scams
before they reach our customers) has blocked nearly 1.4 million
SMS messages since October 2024. The SMS firewall monitors and
blocks all SMS traffic, whether it originates overseas or locally, and
can detect and block scammers attempting to use our network five
times faster than our previous methods. We expect this to improve
further as we continue to refine our blocking rules and respond to
current scam trends.
Privacy
Protecting our customers’ personal information is a responsibility
we take seriously. As we continue to embed new technologies like
AI throughout our business processes, we also continue to evolve
our governance approach to data ethics and privacy to ensure we
have the right guardrails in place to protect our customers’ and
employees’ information.
We are committed to keeping customers’ personal information safe
and managing it in ways that align with their expectations. We do
this through various frameworks including Spark’s Artificial
Intelligence Principles and Spark’s Privacy Values, and by adhering
to relevant laws, including the Privacy Act 2020, and the
Telecommunications Information Privacy Code 2020.
Spark’s Digital Trust team leads Spark’s privacy programme,
providing frameworks, tools, and training to support our people to
follow our Privacy Policy and Values. The Privacy and Online Safety
section on our website contains a range of tools and services to help
our customers safely manage their privacy and security.
In FY25 our people reported 156 data breaches for investigation.
When required, Spark reports these breaches to the Office of the
Privacy Commissioner (OPC). We also continue to see incidents
where fraudsters use personal information obtained from non-Spark
sources, such as compromised online accounts to obtain access to
customer accounts.
Spark also received 39 substantiated privacy complaints from
customers. There were no substantiated complaints received
through the OPC. More details on our approach to ethics, legal
compliance and employee training can be found on page 54.
More information about Spark’s approach
to privacy: spark.co.nz/privacy
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26
Our customers

Cyber security
Spark is a trusted advisor to a large number of New Zealand
businesses on cyber security, and we work alongside cyber security
agencies and partners to monitor and respond to threats.
Our Chief Information Security Officer (CISO) has responsibility for
Spark’s cyber security. We have a large cyber security team and
established processes that ensure appropriate ownership, oversight,
and ongoing risk management is applied to our customers’ and
Spark’s IT systems and data.
Spark people also play a critical role in helping to detect and defend
against potential cyber security threats. For that reason, all our
people are required to undertake regular cyber security training, to
equip them in identifying and helping to mitigate potential threats.
More information about Spark’s approach to online safety
and cyber security: spark.co.nz/protecting-our-customers
Spark and Air New Zealand
implement country’s first private
5G network
Spark worked with Air New Zealand to develop
New Zealand's first private 5G network for business.
The network enables a drone connected to a robot to
carry out stocktaking, increasing productivity.
The trial took place at Air New Zealand’s logistics
warehouse at Auckland Airport. The warehouse holds
hundreds of items, ranging from aircraft spare parts to
passenger supplies like blankets and headphones.
Stocktakes were taking place twice a year at the 5,000
square metre facility.
Spark's 5G technology allows a drone tethered to an
autonomous ground robot to operate on Air New Zealand's
private network. The single, automated device helps
employees with regular stocktakes by scanning barcodes
and sending data through to an app. This also supports a
safer workplace, reducing the need for team members to
complete stocktakes at up to 15 metres high.
The private network was built with partner Ericsson and
its Ericsson Private 5G product, while the stocktaking
drone solution, Captis, comes from Spark's partner
Cypher Robotics.
This trial has shown what is capable in large warehouse
environments – and more opportunities are being
explored with other customers.
Using Spark's 5G technology, Air New Zealand is
using a drone connected to a robot to assist with
regular stock takes at its warehouse.
Spark New Zealand Annual Report FY25Hello tomorrow
27

Transforming our technology
delivery model
A key strategic focus in FY25 has been the transformation of our
technology delivery model, which refers to our IT and network
operations.
We have had a long-term focus on modernising our technology,
embedding AI into our business, and building a resilient, adaptive,
and automated network. Our new technology delivery model
accelerates this focus through the establishment of several strategic
partnerships, which is a common structure utilised by telcos in
offshore markets.
Through these partnerships we will be able to leverage the scale,
capability, and innovation of global partners, to support better
customer outcomes and improved cost efficiency. The four new
partnerships are outlined below:
Network partnership with Nokia
This partnership will accelerate our network strategy and support us
to create better customer experiences, while also contributing to
reduced network operating costs.
Nokia will manage day-to-day monitoring and support for our
network through their global delivery team, and have also established
a local Network Operations Centre (NOC) in New Zealand. Spark
retains all components of future network strategy and planning,
network design engineering, critical incident oversight, and
complex operations. We will also work together to jointly develop
AI and automation capabilities.
Our network and technology
underpin value creation for our
shareholders, enabling the
products and services that
connect and empower our
customers and New Zealand.
Our customers rely on us to keep
them connected in as many
places as possible, and we make
significant investments into our
network every year to improve
coverage, capacity, and resilience,
and create a better network
experience for our customers.
Our network
and technology
Our network and technology
28
Our network and technology

IT partnership with Infosys
This partnership will help us deliver digital and AI-driven customer
experiences more quickly, while also contributing to reduced IT
operating costs. Infosys will work with us to provide global DevOps
1

and software engineering capabilities to help build, test, integrate,
and deliver our systems and applications, along with monitoring and
support. We will retain our IT assets and control of our technology
architecture strategy, product design and innovation roadmap, and
business applications.
IT partnership with HPE
This partnership will help us ensure that our IT environments are
continuously updated in line with advancements in technology,
while also contributing to reduced IT operating costs.
HPE will provide us with IT infrastructure and capability to manage
our compute, storage, and backup through HPE GreenLake cloud,
which will enable us to adapt our usage in line with market demand.
We will retain control over our IT environments, including critical
infrastructure, service delivery, innovation, IT architectural decisions,
security policies, and service orchestration.
Cloud partnership with Microsoft
Through this partnership we will continue to provide compelling
hybrid cloud options for our customers, while modernising our own
cloud environment, enabling further AI uptake by our people, and
improving our overall cloud economics. To achieve this, we will be
moving a proportion of our own workloads to Microsoft Azure and
have rolled out additional Microsoft 365 Copilot licenses to our
people. We now have 2,500 of our people using Copilot.
Creating long-term shareholder value
through data centres
During FY25 we continued to grow our data centre revenues and
position the business for future expansion.
Globally we are seeing increased demand for data centre capacity,
as cloud adoption continues and the use of AI accelerates.
1. DevOps is an abbreviation for Development Operations, which is a process that aims to automate and integrate the processes
between software development and IT operations.
2. Transaction subject to regulatory and customary consents.
3. Headline enterprise value comprising base enterprise value of $575 million and up to a further $130m of earn-out enterprise value.
4. Opensignal Awards – New Zealand: Mobile Network Experience Report, September 2024, based on independent analysis of mobile
measurements recorded during the period June 1 – August 29, 2024 © 2024 Opensignal Limited.
Spark is a significant player in the market, with existing international
cloud and content provider contracts and our local capability a
compelling proposition to customers.
During the year we commenced a process to secure a capital
partner to support this future investment.
This culminated in an agreement to sell a 75% interest in our data
centre business to Pacific Equity Partners (PEP)
2
– valuing the
business at up to $705 million
3
and securing a funding pathway to
build out our planned 130MW+ development pipeline.
Through this partnership we will realise value for our data centre
assets in the short term, while also continuing to participate in the
growing market through our retained 25% stake – creating further
value for our shareholders over the long term.
The most reliable network, with the widest
coverage experience
Our customers rely on us to keep them connected in as many places
as possible. Spark invests significantly into our network every year, to
expand coverage and capacity, and further strengthen resilience.
Testament to this, in FY25 we were awarded the Reliability
Experience award in The New Zealand Mobile Network Experience
Report, released by Opensignal
4
during the year. Reliability
experience measures the ability of users to connect to, and
successfully complete basic tasks on a mobile network such as
stream video, browse the internet, and use applications, as well as
analysing user experience and connectivity issues. Additionally,
we also secured the top position for Coverage Experience. The
Opensignal Coverage Experience metric measures the extent of
mobile networks in the places people live, work, and travel and
represents the experience users receive as they travel around areas
where they would reasonably expect to find coverage.
Spark's planned new data centre campus on Auckland's North Shore.
Spark New Zealand Annual Report FY25Hello tomorrow
29

Boosting resilience to natural disasters
One of the main reasons for telecommunications outages in a
natural disaster is a loss of power or backhaul (fibre between cell
sites that transport local towers to the core network). Most of our
cell sites are equipped with battery backup and the ability to
connect standalone generators when those battery reserves are
exhausted. Over the past year, we have been working to extend
battery life on critical sites to ensure they can withstand longer
power outages. We are also rolling out a monitoring solution that
will enable our cell sites to detect when they are unable to draw
power from the grid, report real-time power consumption, and
conserve power by automating decision-making to prioritise
connectivity for essential communications such as calls and texts.
We have been working to establish a network of satellite-connected
small cells throughout the country, which can be deployed to
provide access to a basic level of mobile connectivity during
emergencies when fibre backhaul (which connects a cell tower back
into the network) becomes compromised. These satellite-connected
emergency small cells are housed in strategic locations around the
country, including Northland, Auckland, Gisborne, Palmerston
North, Canterbury, and Westport, making them readily available
to deploy in a disaster.
In June, this satellite solution was successfully deployed in Murchison,
when areas of the South Island were impacted by severe flooding
and storms. This was the first time we used this type of solution as
part of our standard emergency response.
We also work collaboratively with our peers on disaster
preparedness and during major incidents. The sector comes
together through our industry group, the Telecommunications
Forum (TCF), which coordinates operators, other infrastructure
sectors, including electricity and roading, as well as government,
to restore services.
Investing in new technologies
Unlocking the power of 5G
Our national 5G rollout has continued at pace, with 5G now live on
more than 950 cell sites. These sites span 130 locations with a
population greater than 1500 across Aotearoa, from large cities to
smaller regional towns. This means more than half the population
can now access 5G through Spark’s network.
As we build our 5G network across the country, we are also
deploying a 5G core network – known as 5G standalone, which will
deliver a true end-to-end 5G experience without any dependency
on legacy technologies. 5G standalone introduces new 5G network
features such as lower latency, and network slicing, which allows us
to create different service slices of the network that can be tailored
for different purposes. This means we can optimise the network to
suit the specific needs of different customers and industries. In FY25,
together with Ericsson and Red Hat, we successfully completed the
deployment of the first network slice of our 5G Standalone network
in a lab environment and trialled our first data session.
This milestone brings us closer to introducing the next wave of 5G
to Aotearoa, bringing with it all the transformative capabilities an
end-to-end 5G network can offer. We will launch 5G standalone to
customers in FY26.
AI and automation for better customer and employee
experiences
We have been investing in AI and automation across our business
for many years, with a particular focus on enhancing customer and
employee experiences and boosting operational efficiency.
In addition to our Bravety tool that is mentioned earlier in the report,
other examples of successful initiatives include:
• SparkGPT – an internal assistant for our employees that helps
them access company, product, and financial information
quickly, reducing the workload for common database queries.
• Writer – a generative AI platform that helps our people create
content quickly, while maintaining brand consistency, tone,
and compliance.
• Bravo – an assistant for our customer care teams that uses our
internal knowledge base to get the right information for our
customers more quickly. Bravo is answering around 20,000
questions every month, resulting in a 60% reduction in queries
being referred to back-office teams.
• AI marketing tool – which automates customer communications
and tailors offers to our customers’ needs, reducing campaign-
to-market time from weeks to hours.
• Mercury (SME) and ClientHQ (Enterprise) – AI sales platforms
that provide our teams with the insights and priorities they need
to best serve our customers and grow our business.
• Microsoft Copilot – An AI assistant embedded in Microsoft tools
like Word, Excel, and Teams that helps Spark employees work
faster and smarter by automating tasks, generating content,
and surfacing insights from data and documents.
During FY25 we have been working to increase the uptake and
proficiency of AI use amongst our people, as part of our ambition to
establish a strong foundation for AI-enabled future productivity and
customer experience improvements.
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30
Our network and technology

Spectrum
Spark currently holds a comprehensive portfolio of spectrum rights
in New Zealand, which gives us optionality to meet future demand
on our network and deploy new technologies.
At the start of FY24, Spark was allocated long-term spectrum
management rights to 80 MHz of 3.5 GHz (or C-band) spectrum,
and over the past two years, this has been used to deliver high-
speed 5G services to our customers through our accelerated 5G
roll out program, and our commitment to extend 5G availability to
regional towns.
The next spectrum renewal is expected to occur in FY29, however
we expect an auction for mmWave frequencies (24GHz-29GHz) at
some stage in FY27, with the spectrum being available for long-term
use in early 2028. mmWave is a future step that will allow us to
further deliver on 5G’s potential – with increased speeds and
significantly more capacity. 5G mmWave will be valuable for
business applications such as ultra-HD video streaming, advanced
analytics and machine learning, intelligent transport systems,
e-health, education and much more.
Spark is already planning for this future by trialling mmWave
technology in different scenarios and working with the business
community to identify and test other cutting-edge use cases.
Migrating customers off legacy technology
onto future-proof alternatives
We continue to migrate customers off end-of-life technology and
onto modern alternatives already used by the majority of
New Zealanders, such as fibre and wireless. This includes the
retirement of our 3G network and the Public Switched Telephone
Network (PSTN).
Closing our 3G network
In FY25 we confirmed that we will close our 3G network on
31 March 2026, as this technology reaches its end-of-life. Since
announcing our shutdown plan in 2023, we have been expanding
our 4G network – building over 70 new 4G mobile sites and
upgrading more than 600 others. All 3G-only cell towers will be
upgraded to 4G and 5G technology, with the majority of these
upgrades already completed.
We know that some of our customers still use 3G–only devices, and
we are communicating directly with them. We are also providing
information to the community more broadly through instore
brochures, community outreach, and advertising on radio, social,
print, and out-of-home media outlets, through our industry group,
the Telecommunications Forum.
To make it easier for customers to figure out what action they need
to take, we launched a device checker service where customers can
text ‘3G’ to 550, free of charge, to check if their device will work
after the 3G network is switched off. We also set up a dedicated
customer phone line to answer queries on 0800 3G EXIT, and
closer to shut down, we will add a pre-recorded voice message that
will automatically play when a customer uses a 3G-only device to
make calls.
Retiring the Public Switched Telephone Network
(PSTN)
The Spark-operated PSTN – the traditional way of providing landline
services – was built in the 1980s and is rapidly reaching the end of its
life. The network’s components have not been manufactured since
2003 and the people with the skills needed to maintain it are getting
harder to find.
The majority of New Zealanders have already made the switch to
fibre or wireless proactively. In 2017 we had over a million customer
lines on the PSTN, and by the end of FY24 only 77,000 remained.
At the end of FY25 this had dropped further to 38,000. As customers
move off the PSTN, we are able to decommission legacy PSTN
equipment. To date, we have decommissioned almost 74% of our
PSTN switches, which has resulted in a significant decrease in
our power usage and carbon emissions.
Spark New Zealand Annual Report FY25Hello tomorrow
31

Commitment to responsible environmental
management
Spark’s approach to environmental management is integrated into
our overarching ESG governance. See the ESG Governance section
on page 64 for a detailed description.
Our overarching environmental commitment is contained within
our Environmental Policy, which can be found on our website, and
sets out our expectations for our people to consider environmental
impacts when making decisions at work, including examining our
business practices, understanding their impacts, and taking
reasonable steps to reduce our environmental footprint.
Performance against our climate
commitments
We provide detailed reporting on our performance against climate
metrics and targets in our Climate-related Disclosures Report, which
includes our FY25 Greenhouse Gas (GHG) Inventory and tracks our
year-on-year emissions performance.
Our key target is our science-based emissions reduction target,
which has received verification by the Science Based Targets
initiative (SBTi). This target includes a commitment
1
to reduce our
scope 1 and 2 emissions by 56% by FY30 against a FY20 baseline,
alongside a scope 3 emissions target that 70% of our suppliers (by
spend) have science-aligned targets in place by the end of 2026.
For FY25, approximately 61% of our spend was with suppliers that
The natural resources we rely
on are not just essential to our
operations, they’re essential to
delivering long-term success.
By using natural resources
responsibly and efficiently –
and supporting our customers
to do the same – we strengthen
the sustainability of our business
model, drive operational
excellence, and deliver lasting
value for all of New Zealand.
Our
environment
Our environment
32
Our environment

have targets, up from 43% in FY24 (see page 29 of our Climate-
related Disclosures Report for a more detailed explanation).
Emissions reduction does not track a straight-line trajectory and
often occurs in step changes tied to specific initiatives. We remain
committed to our FY30 emissions target and we are taking
meaningful steps to work towards our emissions reduction target,
with progress made on underlying performance in the past year
which lays the foundation for future emissions reduction.
A significant initiative that launched in the second half of the year
was the commencement of our ten-year renewable energy
partnership with Genesis Energy, which enables Spark to reduce
our reported (market based) scope 2 emissions through linking
emissions from electricity consumption to new renewable
generation.
This new partnership will allow us to decouple our market-based
scope 2 emissions from the national grid emissions factor. This factor
is heavily influenced by the share of hydroelectric generation, which
is the largest source of electricity feeding the New Zealand grid.
In the past year, a winter energy crisis caused by poor hydrological
conditions meant more coal was burnt to meet energy generation
needs. This contributed to an 11.0% increase in our year-on-year
scope 1 and 2 emissions. This means our emissions are tracking
41.8% above our reduction trajectory plotted as a straight line
between our FY20 baseline and FY30 target year.
Our emissions are also influenced by one-off events, such as the
release of fire suppressant, which also occurred in FY25 increasing
our scope 1 fugitive emissions. In FY25 these factors were offset by a
reduction in scope 2 electricity consumption, and a 26.3% reduction
in fleet emissions. For FY26 we will need to consider the impact of
the sale of 75% of our data centre business on our reporting and
target baseline and boundaries. See page 27 of our FY25 Climate-
related Disclosures Report for more information.
Detailed environmental reporting
This section of our Annual Report is a high-level
summary of our approach to environmental
management, including a summary of our
environmental performance over the past year.
As part of our annual reporting, we publish more
detailed environmental disclosures across
accompanying reports:
Our FY25 Climate-related
Disclosures Report is
published in compliance
with the New Zealand
Climate Standards. It
includes detailed reporting
on all aspects of how
climate change impacts
Spark’s value creation. This
includes our climate-related
risks, climate scenario
analysis, and reporting our
greenhouse gas emissions
against our science-based
emissions reduction target.
Spark’s FY25 ESG Data
Pack includes our detailed
GRI Index and ESG
performance data. This
includes a summary of
environmental performance
data, including climate,
energy, waste and water.
Climate-related
Disclosures Report FY25
FY25 ESG DATA PACK
Introduction and contents
This data pack is an accompanyment to Spark’s FY25 annual reporting disclosures. It includes our GRI Index table and
additional voluntary detailed ESG data disclosure against a number of social and environmental metrics. It also incorporates
employee and climate reporting data included in our integrated Annual Report and Climate-related Disclosures Report.
Contents
Spark’s FY25 Annual Reporting suite of documents
GRI Index
List of GRI topics Spark is reporting against,
with reference to location of disclosures
Social Data
Detailed employee data
Community and volunteering data
Key sections related to ESG disclosure
• How we create value: our Integrated
Reporting value creation model
• Our customers: includes topics such as
privacy, cybersecurity
• Our network and technology: includes
investment in infrastructure and resilience
• Our environment: includes our approach
to envrionmental management, waste,
recycling/water
• Our communities: includes our approach
to digital equity, empoloyee volunteering,
Spark Foundation
• Our people: includes diversity and inclusion,
health safety and wellbeing, training and
development
• Governance and ESG Governance:
includes our approach to integrating ESG/
sustainability across Spark
• Sustainability appendix: includes materiality
apporoach / matrix, stakeholder engagement
Prepared in compliance with the Aotearoa
New Zealand Climate Standards
Prepared in accordance with the
requirements of the Australian Modern
Slavery Act 2018
Reporting against the requirements of
the NZX Corporate Governance Code
(NZX Code)
FY25 Annual Report
FY25 Climate-related
Disclosures Report
FY25 Modern Slavery and
Human Rights Statement
FY25 Corporate
Governance Statement
Environmental Data
Waste, recycling, water use
Scope 1 / 2 / 3 emissions data
Energy use
Spark Annual
Report FY25
Climate-related
Disclosures Report FY25
Modern Slavery and
Human Rights Statement FY25
Corporate Governance
Statement FY25
Spark’s Environmental policy, ESG Data Pack
and Climate-related Disclosures Report
are here: spark.co.nz/governance
1. This means Spark is committed to pursuing this target and we are working towards it.
For clarity, this is not a guarantee that we will meet this target.
Reduction pathway
required to meet
FY30 target
FY25FY24FY23FY22FY21FY20
Mobile combustion
- vehicle fleet
Fugitive emissions   
Data centre
Fixed network
Mobile network
Corporate/Retail
Natural gas combustion
Stationary combustion
- diesel generators
GHG emissions (tCO
2
e)
Baseline
year
0
5,000
10,000
15,000
20,000
25,000
Spark New Zealand Annual Report FY25Hello tomorrow
33

Cutting the ribbon at Lauriston solar farm were, from left, Michael Steiner of FRV, South Island Minister and local MP James Meager, Genesis CEO
Malcolm Johns, Spark CEO Jolie Hodson, Genesis Renewables Development Manager Craig Brown, Chief Operating Officer Tracey Hickman.
Our electricity consumption performance
In the past year we have seen a decrease in electricity consumption
linked to our scope 2 emissions. Our electricity consumption is
down 4.9% from 156.3GWh to 148.7GWh.
This decrease is largely due to our long-standing programme of
network simplification, including the decommissioning of legacy
equipment, such as the public switched telephone network (PSTN),
which has driven year-on-year reductions in electricity use across our
business. These savings offset growth in other areas, such as our
mobile network, which is increasing its energy use as we roll out 5G.
In the past year the relocation of Spark’s Auckland corporate office
to 50 Albert Street also supported our efforts to reduce our
environmental impact. Since our move in December 2024, we have
already seen significant energy savings. This has contributed to a
reduction in our office and retail site consumption, down 23.2%
compared to the previous year.
Renewable energy partnership
Spark’s renewable energy partnership with Genesis Energy
commenced in FY25. Through the partnership, Spark’s energy
consumption is matched via Renewable Energy Certificates with
new renewable energy generated by the Lauriston solar farm, which
officially started supplying the grid in early 2025.
The partnership demonstrates how New Zealand businesses can
work together to support New Zealand’s decarbonisation – with
Spark's procurement supporting Genesis’s renewable energy
investments, and those investments in turn enabling Spark to meet
its emissions reduction target.
The annual production from the solar farm is projected to be
equivalent to approximately 60% of Spark’s annual electricity
consumption. Although the site was only operational for part of the
FY25 period, it enabled Spark to reduce reported market-based
electricity emissions by 3,954 tCO
2
e across scope 2 and 3.
60%
The annual production from the solar farm is
projected to be equivalent to approximately
60% of Spark’s current annual electricity
consumption
Electricity consumption
FY25FY24FY23FY22FY21FY20
Data centre
Fixed network
Mobile network
Corporate/Retail
Residual Supply Factor
c
  
GWh consumed
tCO
2
e/GWh
69.62
113.5
77.95
110.77
124.69
99.28
0
20
40
60
80
100
120
140
160
180
200
0
20
40
60
80
100
120
140
160
180
200
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34
Our environment

Real-time flood monitoring for
Hawke’s Bay
In FY25 we supported Hastings District Council to improve flood
resilience by using real-time IoT sensor technology to protect
communities in high-risk areas.
In the aftermath of Cyclone Gabrielle, the Council was looking for
a smarter, faster way to detect and respond to rising stream levels
across Havelock North. Partnering with engineering consultancy
Beca, we deployed a network of solar-powered sensors to monitor
water levels at 15 key sites — transmitting data via our IoT network,
with satellite connectivity as fallback in low-coverage areas.
These sensors feed critical data to our Adroit cloud platform, where
automated alerts flag rapid water-level increases, and trigger early
warnings to Council teams and emergency agencies. From there the
data is integrated into a public-facing dashboard, giving residents
real-time visibility of stream activity and empowering them to assess
local risk and respond more effectively during severe weather events.
The project is the most comprehensive deployment of
environmental sensors for flood detection in New Zealand to date.
It also marks the first time a Council has committed to making this
level of real-time flood data available to the public — enhancing
transparency, trust, and community preparedness.
With a scalable platform and a growing suite of environmental
sensors, Spark is enabling local councils to respond more effectively
to climate-driven challenges — improving decision-making, safety,
and long-term infrastructure resilience across the country.
Reducing electronic waste
Electronic waste includes valuable and potentially hazardous
elements. For Spark, it is an important issue due to the potential
volume generated by our operations and the end-of-life impact of
customer equipment. That’s why we are focused on circularity and
minimising environmental harm from improper disposal.
We recycle end-of-life network equipment, with materials separated
and processed by local recycling partners. Some components are
sent overseas for recycling, reselling, or reusing. In FY25 we
recovered 207 tonnes of electronic waste via our e-waste recycling
partner. We also recover scrap metal and other material from
network equipment. In FY25 we recovered 364 tonnes of scrap
metal. Across both categories this represents a 27% increase in
materials collection and recovery from FY24, when we collected
450 tonnes across e-waste and scrap metal combined.
In FY25 Spark also received 20,828 mobile devices for recycling and
trade-in, up from 16,425 in FY24. Trade-ins are increasingly popular
our customers, allowing them to unlock value from their older
devices, while supporting reuse through refurbishment and resale.
Devices that can’t be redeployed are stripped for essential materials,
which are reused in new products.
Spark is a member of the Telecommunication Forum’s (TCF’s)
RE:MOBILE product stewardship scheme. The RE:MOBILE scheme
takes unused mobile phones, and either refurbishes and on-sells
them in overseas markets or recycles them to recover the materials
used. Profit from the scheme is donated to the charity Sustainable
Coastlines.
Spark is a part of the TCF Product Stewardship working group, which
is reviewing the RE:MOBILE scheme. This included a gap analysis
conducted by a third-party, which provided recommendations on
how we can strengthen RE:MOBILE to deliver the best
environmental outcomes.
We recycle end-of-life network equipment, with materials separated and
processed by local recycling partners.
Technicians installing solar-powered sensors in Havelock North.
Spark New Zealand Annual Report FY25Hello tomorrow
35

Championing digital equity
At Spark our commitment to digital equity starts with our purpose –
to help all of New Zealand win big in a digital world. Digital equity
starts with having access to devices and a connection to the internet,
but it doesn’t stop there. To close the digital divide, our communities
need the skills to use technology, trust in the digital world, and the
motivation to participate.
$10m+
In FY25 we committed over $10 million in free data and funding,
alongside internal resources, to achieve our digital equity ambitions
and contribute to our communities.
We recognise that earning the
trust of our communities and
stakeholders is critical to
maintaining our licence to
operate and the long-term health
of our brand, which supports
value creation for our
shareholders.
We work alongside New Zealand
communities to harness the
power of technology to create
a positive digital future for all.
Our products and services help
our communities to stay
connected and enable the
provision of community services.
Our
communities
Our communities
36
Our communities

Spark’s investment into the community
In FY25 we committed nearly ~$10.5 million in free data and
funding, alongside internal resources, to achieve our digital equity
ambitions and contribute to our communities.
This included $1.9 million donated to Spark Foundation, with
$1.4 million designated specifically for community projects, and the
remaining funding operational costs. It also includes the commercial
value of the data provided to households in need through Spark’s
subsidised broadband service Skinny Jump, which totalled over
$8.6 million in FY25. Skinny Jump has been designed to operate on
a not-for-profit basis – with the revenue generated covering the
costs of the free modems, community partner network, product
development, and customer care and education.
Spark also funds the Spark Give and Spark Volunteer programmes,
which match employee charitable donations (up to a total pool of
$250,000 per annual year) and provides all Spark people with one
day leave a year to commit to volunteering.
Improving access and affordability through
Skinny Jump
Skinny Jump is Spark’s not-for-profit wireless broadband service for
people who find cost a barrier to having an internet connection at
home. The service is entirely prepaid, so there are no long-term
contracts or credit checks needed. Customers are provided with
35GB of data for just $5, with the first 15GB of data each month free
and the ability to purchase up to six top-ups a month.
Jump is delivered by a dedicated squad of Spark people alongside
a community partner network, which is overseen by the Digital
Inclusion Alliance Aotearoa (DIAA) and includes over 300 local
organisations nationwide. There are now over 33,917 households
across the country who are actively using Skinny Jump. For wireless
broadband an active connection is defined as a customer having
used their modem in the last 30 days. However, Skinny Jump
customers are more likely to have infrequent internet use as they
have to reprioritise their monthly spending when budgets are tight.
This is why for Jump, we also measure customers who have used
their modem in the last 90 days, and in FY25 this totalled 36,202
households.
In FY25, Skinny Jump continued its key partnerships, including the
‘Ciena Jump for Students Fund’, which gives eligible students a free
Skinny Jump connection until the end of the school year. There are
now 1,094 students using the Ciena Jump for Students Fund.
Skinny Jump also continued to support the ‘Awhi Matihiko:
Red Cross Digital Settlement Package’ – a collaboration with
New Zealand Red Cross, Internet NZ, and Digital Inclusion Alliance
Aotearoa that gives new refugees free Skinny Jump connections
(for 12 months), laptops, and digital skills training.
The Spark Foundation team with rangatahi from the P-Tech programme.
3 3 ,9 17
Households across the country who are actively using Skinny Jump
Library Digi-Coaches setting up a customer with Jump at the War
Memorial Library in Lower Hutt.
Spark New Zealand Annual Report FY25Hello tomorrow
37

Spark Foundation
Spark Foundation leads Spark’s work in the community. The
Foundation has a single-minded focus on digital equity, and its
vision is that no New Zealander is left behind in a digital world. It has
focused its strategy on the areas it can make the biggest difference
– digital access, digital skills and pathways, and digital wellbeing.
Spark Foundation allocates funding for programmes through a
strategic partnership approach, working with organisations whose
objectives are aligned to improving digital equity for Aotearoa.
After many years of focus on digital access, over the past two years
the Foundation has increased its focus on digital pathways. The
exponential growth of digital transformation in the last few years has
accelerated the need for people with advanced digital skills.
Spark Foundation wants to ensure that people from all communities,
particularly those who have been traditionally underrepresented in
the technology industry, including Māori, Pasifika, and women, have
the opportunity to learn the skills they need to participate in this
growing digital economy.
A Tūrama Pathways intern being welcomed to Spark.
Students attending a Tōnui Collab after-school coding lab.
More information about Spark Foundation:
spark.co.nz/spark-foundation
Providing dual language STEMM learning for youth
Tōnui Collab provides reo rua (dual language) Science, Technology,
Engineering, Mathematics, and Mātauranga Māori (STEMM) learning
opportunities that empower youth in the local community to explore
animation, engineering, 3D design, robotics, coding, game
development, virtual reality (VR) and more – blending mātauranga
Māori and cutting-edge technology.
Some of the opportunities provided to the local community include
partnerships with local marae to create learning experiences for
children to experiment with VR while learning pūrakau (traditional
stories) significant to their marae. They also support girls from local
schools in Years 6 to 9 to engage with Robotics, run an after-school
coding lab for Years 7 to13 students to create games and other
digital experiences, and partner with Spark Foundation Partner, RAD
(Recycle a Device) to teach young people to refurbish second-hand
laptops that are then distributed to the community.
In just five years, Tōnui Collab has created over 2500 unique
learning opportunities, which have enabled over 50,000 children
and young people across the region to explore the diversity of and
consider futures in STEMM.
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38
Our communities

Tūrama Pathways
During FY25 Spark launched Tūrama Pathways, in partnership with
Spark Foundation, as part of our commitment to support pathways
into the technology sector for underrepresented communities.
One cohort of eight students was selected from Manurewa High
School, Mangere College, and Aorere College to intern at Spark
over a five-week period. As part of the programme, students
experienced working in Spark retail stores and head office and had
opportunities to network and learn from experienced industry
professionals. After completing the programme, five interns were
successfully placed and offered part-time roles in Spark retail stores,
with other candidates offered ongoing mentoring and support from
Spark to help them on their journeys. Additional cohorts are
planned for FY26.
Connecting our people to our communities
Spark encourages our people to give back to the community
through our Spark Give and Spark Volunteer programmes. You can
find more information on these programmes and participation levels
in our ESG Data Pack.
The Spark team with a cohort of students from the Tūrama
Pathways programme.
Spark’s ESG Data Pack is available here:
spark.co.nz/governance
Spark signs Quadrent Green Lease
A partnership between Quadrent and Spark has resulted in
hundreds of high school students in low-decile schools
receiving laptops to use, with more laptops to be donated over
the next four years
Through the Quadrent Green Lease initiative, Spark leases the
laptops its employees use. Once the lease has ended, the
laptops are then donated to schools, helping to bridge the digital
divide for students without access to essential learning tools.
To accelerate Spark’s donations, Quadrent bought more than
3,000 laptops from Spark. The proceeds from their resale in the
secondary market have enabled more than 800 brand new
laptops to be purchased for donation. Four hundred of these
have already been delivered to schools, providing vital digital
resources to up to 30 classrooms, with the first beneficiaries
being South Auckland schools – Papakura High School,
Papatoetoe High School, and Māngere College.
Spark New Zealand Annual Report FY25Hello tomorrow
39

Operating model transformation
Over the past year Spark has undertaken a large-scale transformation
programme, with the realignment of our organisational structure
to reflect our changing strategic priorities. This has also included
the establishment of several strategic partnerships across our IT
delivery model (see page 28), which has brought significant change
for our people.
As a result of these changes, we now have 4,043 employees across
the business, compared to 5,291 at the end of FY24. It is never easy
to make changes to our business that impact our people, and this in
no way reflects the quality of our teams. But to deliver a leaner, more
competitive business, we have had to make tough but necessary
choices to set Spark up for future growth. As we have worked
through these changes, we have been focused on supporting our
people and teams who have been impacted. All our people are
provided with redundancy packages, as well as outplacement
support. This includes access to wellbeing services through our
wellbeing platform, Clearhead, which provides mental health
support tools and the option to access fully funded therapy sessions.
Our people are essential to
our business.
We are focused on creating a
high-performance culture that
offers our people leading-edge
learning and development and
the opportunity to grow their
careers in an inclusive, agile
environment.
Our
people
Our people
40
Our people

People engagement
We measure the engagement of our people at least twice a year
to understand our people’s views and needs. We use a globally
recognised measure of engagement that covers pride in working
at Spark, whether they would recommend Spark as a great place to
work, their level of motivation, and the likelihood of staying with
Spark in the near future.
Feedback from these surveys is shared with our people, with
improvement actions then co-created within teams to improve
our ways of working and culture. At the end of FY25 our people
engagement score was 50%, which is down from 67% a year ago.
This drop in engagement, while disappointing, is understandable
given the scale of operational change in the business and
challenging performance context over the past 12 months. It is also
in line with the typical reductions experienced by companies going
through significant change.
We did see several positive results emerge from this survey, with
85% of our people saying they feel empowered to make decisions in
their role, and 79% knowing how their work contributes to the goals
of Spark. Feedback on wellbeing and inclusion-related topics were
also strong with 83% agreeing that their leader cares about their
wellbeing, and 81% saying they bring their authentic self to work.
Despite the decrease in overall people engagement, we remain
focused on our ambition to create a culture of high engagement
and inclusion and have clear action plans in place – from the
Leadership Squad to all individual teams – to return to strong
engagement levels, with continual improvement.
Fifty Albert Street
In December, Spark shifted its Auckland head office to a new
location at 50 Albert Street.
The move to Fifty Albert allowed Spark to bring its Auckland
teams together into one fit-for-purpose space over six levels,
with a smaller and more efficient footprint that better aligned
with its leaner workforce and new ways of working.
Fifty Albert has 6-Green-Star and 5-Star-NABERS energy
efficiency ratings, aligning to Spark’s sustainability ambitions.
Multiple open spaces across each floor offer opportunities for
our people to come together to collaborate and create
innovative products and solutions for our customers.
The building is located in the heart of the city, in close proximity
to trains, buses and ferries – providing a range of public
transport commuting options for our people.
Spark New Zealand Annual Report FY25Hello tomorrow
41

Investing in learning and development
Continuous learning is a core focus of how we develop our people
at Spark. We want to enable personal growth and adaptability, so
our people are clear on what our customers want and need, are
open to diverse ideas and perspectives, can adapt at pace, and
sustain high performance.
Our skilling centre – Te Awe
We continued to upskill our people through our internal skilling
centre, Te Awe.
In FY25 we offered programmes in cloud computing in partnership
with AWS and Microsoft. We also offered two programmes in
Generative AI, with 870 Spark people completing at least one
module, and a tiered learning programme via our partnership with
Tech Academy, which over 1,000 Spark people participated in.
During the year we also launched a New Zealand Qualifications
Authority (NZQA) accredited Generative AI Foundations micro-
credential in partnership with Open Polytechnic and Te Pūkenga,
that offers our people Level 3 and 4 NZQA credits.
Leadership development
Given the scale and pace of change in our operating environment,
adaptive leadership skilling continues to be a key focus for Spark.
During FY25 we evolved our leadership standard, which sets
consistent company-wide expectations of our senior leaders.
The new standard was informed by global research identifying the
attributes required for people who are leading transformative
change. All of Spark’s senior leaders completed an assessment to
evaluate their current interpersonal and leadership skills against this
standard, as well as opportunities for growth. This then informed
ongoing development plans as part of Spark’s enduring focus on
further upskilling our leaders and embedding our leadership
standards across the business.
Health, safety, and wellbeing
Spark has a well-established health and safety management system,
focused on continuous improvement. It covers all Spark employees
and contractors working at Spark sites and aligns to the Health and
Safety at Work Act (2015) and other relevant legal and regulatory
requirements.
During FY25 no Spark employee or contractor suffered serious
injury or death whilst at work. Our TRIFR (Total Recordable Incident
Frequency Rate) increased to 3.9 per million hours worked, primarily
due to an increase in the number of recordable soft tissue injuries.
No notifiable events were reported under current New Zealand
health and safety legislation.
Spark received one health and safety improvement notice issued by
WorkSafe to its subsidiary, Entelar Group. While no harm occurred
and no injuries were sustained, the usual safety process was not
followed. As a result, Entelar Group reviewed its policy, provided
additional training for its warehouse teams and contractors, and
built better traffic management plans at its warehouses.
Wellbeing remains a clear priority at Spark through Mahi Tahi, our
wellbeing programme. The four pillars of the Mahi Tahi framework
are closely aligned with Te Whare Tapa Wha (the four cornerstones
of Māori health) – healthy work environment; connection,
collaboration, and community; mind health; and energy.
We have an online Wellbeing Hub that includes opportunities for
our people to book sessions with Spark-certified Mahi Tahi coaches
(who are trained and supervised by psychologists and act as
first-line support to our people) or one of our psychologists, who we
have partnered with directly to provide specialist care to people in
critical need.
We continued our partnership with Clearhead – a wellbeing platform
using an online app to support people to proactively manage their
mental health and resilience by, providing access to specialised care
with trained psychologists and counsellors. We also continue to
work with Take A Breath to offer the tools and approaches that help
our people improve their energy, reduce anxiety and manage
healthy sleep cycles.
We continued to
upskill our people
through our
internal skilling
centre, Te Awe.
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42
Our people

Diversity, equity, and inclusion
Research demonstrates, and we know from our own experience
and agile ways of working, that diverse teams and diversity of
thought deliver better business results. This is why our commitment
to diversity, equity, and inclusion is a strategic business priority.
In addition to measuring our diversity and setting targets for
improvement, we also take the time to celebrate the things that
make our teams unique through our ‘Blue Heart’ programme. In
FY25 we celebrated many cultural events that are important to our
people, such as Diwali, Eid, Matariki, and Pasifika language weeks.
Te Korowai Tupu
Building our cultural competency in te ao Māori supports our ability
to engage our people, our customers, and our communities –
particularly iwi. Guided by Te Korowai Tupu, our Māori strategy,
we have embedded te ao Māori competency into our learning
framework over the past year.
During FY25, over 500 of our people have participated in various
learning activities – including te reo Māori or tikanga courses
through our partners Te Wānanga o Aotearoa and Education Perfect,
Māori development training with Hapai Tūhono, and in-house
training. Feedback has been overwhelmingly positive, with
increased confidence in engaging with Māori customers and
stakeholders.
We celebrated Waitangi Day, Matariki, and Te Wiki o te Reo Māori
to encourage engagement with kaupapa Māori and build our
people’s te reo Māori language skills. A highlight for FY25 was the
blessing of our new office in Tāmaki Makaurau (Auckland) by Ngāti
Whātua Ōrakei.
Read our Diversity and Inclusion Policy:
spark.co.nz/diversity-policy
Spark New Zealand Annual Report FY25Hello tomorrow
43

Gender composition by role (with headcounts)
1
There are an additional 52 people who have not provided/prefer not to disclose their gender.
Gender
2

Number of people Female % Male % Female # Male # Gender diverse
Directors757%43%FY25: 4FY25: 3
-1-6%6%FY24: 5 FY24: 3
Leadership Squad
3
1050%50%FY25: 5FY25: 5
-1-5%5%FY24: 6 FY24: 5
Other leadership
roles
4
6245%55%FY25: 28FY25: 34
-102%-2%FY24: 31 FY24: 41
Permanent starters39748%52%FY25: 189FY25: 208
-4479%-7%FY24: 330 FY24: 497
Permanent leavers1,48929%71%FY25: 437 FY25: 1,050
514-9%11%FY24: 369 FY24: 583
Total
5
4,04935%65%FY25: 1,405FY25: 2,576FY25: 10
-1,2491%-1%FY24: 1,778 FY24: 3,435 FY24: 16
Our diversity performance
Over the past year we have continued to focus on improving female representation to achieve our ambition of 40:40:20 representation
Spark-wide, which refers to 40% men, 40% women, and 20% of any gender
1
. In FY25, female representation across Spark increased from
34% in FY24 to 35%.
Across our Leadership Squad and senior leaders, we maintained 40:40:20 representation, which is fundamental to reaching our broader
diversity ambitions. Our Leadership Squad had a 50% female and 50% male split in FY25. Our Board had a 57% female and 43% male split
in FY25, with four female directors (including our CEO) and three male directors. Following the conclusion of the financial year we announced
changes to our Board composition, with two directors resigning from the Board, and three new directors joining in FY26. As a result, from
October 1 2025, our Board composition will be 50% female and 50% male, meeting our 40:40:20 ambition.
In addition to the tables below, we also publish a stand-alone ESG Data Pack which includes detailed employee reporting, including
employees by contract type, benefits available to employees by contract type, and parental leave return rates.
Spark’s ESG Data Pack
is available here:
spark.co.nz/governance
1. The “20” in the 40:40:20 ratio refers to the
remaining portion of a group or team that can
be filled by any gender including male, female,
non-binary, and other gender identities,
allowing for further diversity and inclusion
beyond the 40/40 split.
2. For the purposes of NZX Listing Rule 3.8.1(c)
no directors or members of the Leadership
Squad self-identify as gender diverse.
3. Includes the CEO who is also included as a
Director in the line above. The Leadership
Squad is considered ‘senior managers’ for the
purposes of the Financial Markets Conduct Act
2013 and ’senior executives’ for the purposes
of the ASX Corporate Governance Council’s
Principles and Recommendations.
4. Substantive roles that report directly to
members of the Leadership Squad.
5. Includes non-executive directors. Spark’s
employee headcount, including our CEO, is
reported as 4,043.
Age distribution by role (with headcounts)
Age
Number
of people
Under
30 years old
30 – 50
years old
Over
50 years old
Directors70%14%86%
-1No changeNo changeNo change
Leadership Squad
3
100%50%50%
-1No change-5%5%
Other leadership
roles
4
620%58%42%
-10-2%0%2%
Permanent starters39738%55%7%
-4475%-1% -4%
Permanent leavers1,4894%67%28%
514-24%14%10%
Total
5
4,04915%59%26%
-1,249-2%2%0%
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44
Our people

Reducing our gender pay gap
Our ambition was to reduce our median gender pay gap by 10 percentage points from 28% in FY21 to 18% by the end of FY25. We have
made steady progress in recent years, with our closing pay gap at the end of FY25 at 23%. Whilst we did not achieve the 10 percentage point
reduction we had targeted, looking ahead to FY26 we will maintain our focus on achieving a reduction in our median gender pay gap with new
goals to be set as part of our FY30 strategic ambitions. This will continue to require improvements in female representation and progression in
specialist skilled areas and roles as well as a sharper focus on our partnerships, pathways and practices.
Despite the median gender pay gap progress not being as significant as we would have liked by FY25, our mean (average) gender pay gap
has continued to improve from 12% in FY24 to 11% in FY25.
CategoryNumber of employees
in category
Gender gap:
mean
1
Gender gap:
median
2
Leadership: FY25: 72 (39 Male, 33 Female)FY25: 4%FY25: 18%
CEO, Leadership Squad and substantive roles
that report directly to members of the Leadership
Squad
FY24: 83 (46 Male, 37 Female) FY24: -1% FY24: 19%
Technology: FY25: 2,001 (1,552 Male, 449 Female)FY25: 10%FY25: 14%
employees who work in technology-focused
areas of the business
FY24: 2,728 (2,081 Male, 647 Female) FY24: 12% FY24: 20%
Customer Channels: FY25: 791 (394 Male, 397 Female)FY25: 3%FY25: 0%
people primarily employed within our contact
centres and retail operations
FY24: 820 (418 Male, 402 Female) FY24: 0% FY24: 0%
Rest of Spark: FY25: 1,117 (591 Male, 526 Female)FY25: 18%FY25: 18%
including corporate, product, marketing, and
customer units
FY24: 1,582 (890 Male, 692 Female) FY24: 16% FY24: 17%
Total
3
FY25: 11%FY25: 23%
FY24: 12% FY24: 22%
1. Pay gap = (mean male salary - mean female salary)/mean male salary
2. Pay gap = (median male salary - median female salary)/median male salary
3. Gender diverse individuals and those who have not provided or prefer not to disclose their gender were excluded from the analysis.
Calculated using hourly On Target Earnings or Total Base Remuneration plus Short-Term Incentive Target values as at 30 June 2025.
Focusing on improving ethnic representation
In FY25 we continued our focus on attracting, retaining, and progressing a diverse range of people across our organisation. Our people
identify with 176 unique ethnicities, and this diversity contributes strongly to our workplace culture. We had an ambition to lift Māori and
Pasifika representation by 5 percentage points by the end of FY26, which at this point in time has proven challenging. In FY25, Māori and
Pasifika represented ~8% of our workforce, which was down on the previous year. We remain committed to improving Māori and Pasifika
representation to ensure we reflect New Zealand's changing demographics and the diversity of our customers. As part of our strategic
ambitions ahead we will put in place a revised ambition and pathway out to FY30.
0102030405060708090100
Rest of Spark
Other
leadership
roles
Leadership
Squad
Board
Total
NZ European/
European
Asian
Pasifika
Middle East,
Latin America
and Africa
Māori
Other
Percentages based on permanent and fixed-term employees at Spark; employees as of 30 June 2025 who had provided ethnicity data (n=3179). NZ European/European
includes all European ethnicities (e.g. British, German) and Australian European. Spark collects information on main and other ethnicity where an individual identifies with
more than one ethnicity. Consistent with the Champions for Change methodology, where an individual reports more than one ethnicity these are represented equally (e.g.
two ethnicities represented as 0.5 each).
Spark New Zealand Annual Report FY25Hello tomorrow
45

A note from David Havercroft,
Chair of the HRCC
As the Chair of the Human Resources and Compensation
Committee (HRCC) I am pleased to present Spark’s Remuneration
Report for FY25.
The HRCC is tasked with reviewing and refining our framework and
practices to ensure they remain competitive and fair, to support the
attraction, retention, and motivation of a talented workforce. Our
approach is underpinned by robust governance and benchmarking
against industry standards, ensuring that our policies reflect both
market conditions and the long-term interests of our shareholders.
At Spark, in addition to our competitive salaries for our people
we operate incentive schemes for our Leadership Squad and a
select group of senior leaders that drive business-wide outcomes.
Our Short-Term Incentive (STI) focuses on core financial metrics,
customer service and for FY26 I am pleased that we are introducing
mobile network leadership as a key component. Our Long-Term
Incentives (LTI) are focused on sustainable value growth for our
shareholders. No STI payments were made for FY25 as the EBITDAI
threshold was not met and all options issued through our FY22 LTI,
which was due to vest in September 2024, lapsed as the
performance hurdle was not achieved.
Recognising the significant transformation programme currently
underway, which will underpin business results in the years ahead,
we introduced a new transformation delivery incentive for a select
group of individuals within the business, including our Leadership
Squad. This incentive is equity-based and will vest in September
2027 if partnering and operating model targets are achieved.
This year we undertook a review of our total remuneration framework.
To ensure our continued focus on rewarding contribution and
delivery of business performance we made changes to our
short-term and long-term performance measures for FY26. In our
short-term incentive this includes a stronger weighting of financial
metrics, the inclusion of free cash flow alongside EBITDAI and in our
long-term incentive the inclusion of both relative and absolute total
shareholder return hurdles.
Remuneration
Report
David Havercroft
The HRCC plays a pivotal role in aligning remuneration policies
and practices to support business performance and the Committee
works hard to acknowledge the needs of both our shareholders and
people as it makes decisions and recommendations to the Board.
As Chair, I am committed to ensuring that we maintain these robust
practices to reward individual and collective success for all our
employees.
Over the past year our transformation programme has brought
significant change for our people, as we have adapted our
business to changing markets. During this time, we have focused
on supporting our team members who have been impacted,
through the redundancy packages we provide as well as broader
outplacement support. I would like to thank all our people for their
continued commitment to Spark, and I look forward to FY26 as we
start working towards our new five-year strategy ambitions.
Ngā mihi nui,
David Havercroft
Chair of the HRCC
46
Remuneration Report
Remuneration Report

Remuneration at Spark
Spark remunerates our people with salaries in line with the market,
alongside consideration of performance, scope, skills, and
experience, to recruit and retain the best talent.
We have an annual salary review process for all eligible permanent
employees. For most employees this is based on our Contribution
Model, which considers employee development in their ‘craft’ as
well as the application of people skills, customer focus, and
commercial acumen. The aim is to ensure progression is transparent,
with a five-step career ladder from beginner to expert and clearly
defined competencies to progress against. Salary ranges for steps
are transparent for our people and benchmarked against the
New Zealand market.
Fixed remuneration
All Spark employee packages include a fixed remuneration
component that is set based on contribution, experience, and market
relativities. Fixed remuneration consists of base salary. KiwiSaver sits
outside fixed remuneration and as such, employees with KiwiSaver
receive employer contributions on top of base salary and incentives.
A number of Spark-funded benefits, including medical and life
insurances, are also available to eligible employees on top of fixed
remuneration.
Short-Term Incentive schemes
Spark operates a small number of Short-Term Incentive schemes,
from monthly and quarterly commission and sales incentive plans
to annual cash-based short-term incentives. Some employees in
specific sales positions may have a component of their remuneration
subject to individual or divisional sales performance targets, such
that their total remuneration potential is directly linked to the
acquisition and retention of profitable business for Spark.
For senior leaders, including the Leadership Squad, a component of
their remuneration packages are at risk in the form of a discretionary
annual cash-based Short-Term Incentive (STI). Spark’s STI scheme
rewards senior leaders for the achievement of annual performance
objectives, with payments awarded from a fixed pool that is set
based on overall Spark performance against financial and/or
non-financial annual performance objectives. The actual payment
to individuals is at the discretion of the Board.
Eligibility to participate in the STI scheme on an annual basis is at the
discretion of the company and is targeted at individuals in senior
roles who play a significant role in driving the overall performance of
Spark. The STI scheme rules contain a clawback provision that allows
Spark to clawback any payments made under the STI scheme. This
provision can be used in the event Spark has relied on incorrect data
or information in calculating the payment, for a period of 12 months
following the payment.
FY25 Short-Term Incentive scheme outcomes
For FY25, substantively all STI participants shared the same Spark
Group targets comprising of EBITDAI, customer experience
measures, as well as additional measures based on our SPK-26
strategy. The on-target percentages are provided in the table below.
Where the result of a performance metric falls below a specified
threshold, there is no payment for that proportion of the STI. Where
results exceed the target, the payment can scale to up to twice the
target percentage, with a maximum overall payment of 200%.
The FY25 Group performance outcome, as approved by the Board,
is summarised in the table below.
Performance
measure
% of
STITarget Outcome Result
Group EBITDAI 50% $1,163m 0% Did not meet
threshold
Customer
experience
– iNPS and
digital journey
completion
rate (JCR)
30%
+41 (iNPS)
22.5%
Performance
above
threshold
55% (JCR) Performance
above
threshold
Digital
infrastructure
revenue
(Data centres,
converged
tech, IoT)
20% $105m 15% Performance
above
threshold
Total 100% 0% No payment
through STI
scheme as
EBITDAI
threshold
was not met
FY26 Short-Term Incentive scheme target
The mechanics of the FY26 STI will be the same as those for FY25.
Group results will be the main determinate of the STI pool, with
substantively all participants sharing the same Group measures.
The FY26 group measures will be a combination of EBITDAI, free cash
flow, customer experience, network leadership and mobile growth.
MeasureWeighting
Core financial metrics (EBITDAI and Free Cash Flow)50%
Strategy measure – Mobile growth30%
Customer experience and network leadership20%
Spark New Zealand Annual Report FY25Hello tomorrow
47

Long-Term Incentive schemes
Spark believes that some senior leaders should have part of their
remuneration linked to the long-term performance of the company,
so for the Leadership Squad and a select group of senior leaders,
a long-term incentive forms part of their remuneration package.
Spark’s long-term incentive targets focus on total shareholder return,
as well as environmental, social and governance targets. In FY25,
Spark operated one main scheme: the Spark New Zealand Long
Term Incentive Scheme (LTI).
FY22 Long-Term Incentive outcome
The Spark Long-Term Incentive scheme is issued annually with a
three-year vesting period. This means the grant scheduled to vest
in FY25 was issued in FY22 (September 2021). This grant did not
vest in FY25 as the Absolute Total Shareholder Return (TSR) was not
achieved.
Grant
year Securities
Performance
period
Performance
measure
Vesting
outcome
FY22Options September
2021 –
September
2024
Absolute TSR,
hurdle
– Spark’s
annual cost of
equity + 1%
compounding
0%. No
options
were
vested as
3-year TSR
result was
-14.94%
compared
with a
32.25%
target
FY25 Long-Term Incentive Scheme performance measures
For FY25, members of the Leadership Squad (including the CEO)
and selected senior leaders were granted options under the Spark
Long-Term Incentive Scheme (LTI). Under the scheme, participants
were granted options at the start of the three-year vesting period.
The number of options granted equalled the gross LTI value divided
by the volume-weighted average price of Spark New Zealand shares
for the 20 days prior to the grant date. Subject to satisfaction of each
performance hurdle and continued employment, at vesting in three
years’ time the portion of options associated with each achieved
performance hurdle convert to Spark shares based on a zero exercise
price. Where a performance hurdle is not met the associated portion
of options simply lapse.
Vesting of the FY25 LTI grant (September 2024) is contingent on
participants’ continued employment with Spark through to
September 2027 with vesting depending on meeting or exceeding
set performance measures. 75% of the allocated shares will vest
based on aTSR exceeding cost of equity +1.5% (compounding
annually) over the vesting period and 25% will vest based on
performance against environmental and diversity targets. aTSR is
a measure of share price appreciation and dividends paid over the
three-year period of the grant.
MeasureTarget
Vesting
outcome
Absolute TSRCost of equity + 1.5% compounding75%
Scope 1 & 2
Emissions
Reduce absolute scope 1 and scope 2
GHG emissions by at least 39.2%
against baseline GHG performance
12.5%
Gender pay
gap (median)
Reducing gender pay gap by six
percentage points to 16%
12.5%
FY26 Long-Term Incentive scheme performance measures
For FY26, members of the Leadership Squad, including the CEO,
and selected senior leaders will be granted options under a similar
scheme as FY25, with performance measures relating to TSR
performance hurdles.
Vesting of the FY26 LTI grant (September 2025) is contingent on
participants’ continued employment with Spark through to
September 2028 and meeting or exceeding set performance
measures. 50% of the allocated shares will vest based on a Total
Shareholder Return (TSR) exceeding cost of equity + 1%
(compounding annually) over the vesting period and 50% will vest
based on performance relative TSR against NZX20 comparators.
TSR is a measure of share price appreciation and dividends paid
over the three-year period of the grant.
Measure Target Weighting
Absolute Total
Shareholder Return (aTSR)
Cost of equity + 1%
compounding
50%
Relative Total Shareholder
Return (rTSR)
Upper quartile
performance against
the NZX20 (excluding
Spark)
50%
FY27 Transformation Delivery Incentive
A transformation delivery incentive has been established as an
equity-based incentive for a select group of individuals within the
business, including our Leadership Squad. This one-off medium-
term incentive will vest in September 2027 subject to achieving
partnering and operating model targets related to our
transformation programme in FY27.
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48
Remuneration Report

Employee remuneration
The table below shows the number of employees and former employees, not being directors of Spark, who, in their capacity as employees,
received remuneration and other benefits during FY25 totalling NZ$100,000 or more.
1

RangeCurrentFormerTotalRangeCurrentFormerTotal
$100,000 – $110,00025465319$320,001 – $330,000325
$110,001 – $120,00018951240$330,001 – $340,000134
$120,001 – $130,00023754291$340,001 – $350,000628
$130,001 – $140,00023351284$350,001 – $360,000303
$140,001 – $150,00022342265$360,001 – $370,000303
$150,001 – $160,00018823211$370,001 – $380,000213
$160,001 – $170,00019928227$380,001 – $390,000202
$170,001 – $180,00012919148$390,001 – $400,000101
$180,001 – $190,00011414128$400,001 – $410,000101
$190,001 – $200,0008020100$420,001 – $430,000101
$200,001 – $210,00059968$430,001 – $440,000101
$210,001 – $220,000351045$440,001 – $450,000112
$220,001 – $230,00034741$460,001 – $470,000213
$230,001 – $240,00027835$470,001 – $480,000112
$240,001 – $250,00022426$490,001 – $500,000101
$250,001 – $260,00022224$520,001 – $530,000101
$260,001 – $270,00010010$540,001 – $550,000101
$270,001 – $280,00012113$570,001 – $580,000101
$280,001 – $290,000628$610,001 – $620,000101
$290,001 – $300,00011516$650,001 – $660,000101
$300,001 – $310,000415$880,001 – $890,000101
$310,001 – $320,00012214
2,1354292,564

1. Remuneration in the table includes all earnings including base salary, incentive payments, employer KiwiSaver contributions and redundancy payments. The table does
not include: amounts paid after 30 June 2025 relating to FY25; long-term incentives that have been granted and have yet to vest (based on grant values, the total value
of which as NZ$14.8 million as at 30 June 2025); product and service concessions received by employees; contributions paid towards health and other insurances; and
contributions paid to the Government Superannuation Fund (a legacy benefit provided to a small number of employees).
Spark New Zealand Annual Report FY25Hello tomorrow
49

Leadership Squad remuneration
All Leadership Squad packages include a fixed remuneration
component that is set based on contribution, experience, and market
relativities. Fixed remuneration supports the attraction, motivation,
and retention of highly skilled executives. Fixed remuneration
consists of base salary and employer KiwiSaver contributions.
A component of each Leadership Squad member’s remuneration
package is at risk through both the Spark LTI and the discretionary
annual cash-based STI schemes. Under the LTI scheme, Leadership
Squad members are granted options annually at the start of a
three-year vesting period, with vesting subject to the achievement of
specific performance hurdles. The STI scheme rewards Leadership
Squad members for meeting annual performance objectives, which
vary from year to year.
Remuneration mix
The table below shows the standard FY26 remuneration mix for the
Leadership Squad expressed as a percentage of fixed remuneration.
The LTI values represent the maximum LTI value. The STI scheme
is expressed at target, with payment range from no payment, where
no target thresholds are met, to a maximum payment of double the
target value, where all stretch targets are met. Leadership Squad
members will also participate in our FY27 Transformation Delivery
Incentive (see page 48) which is a non-recurring component of
remuneration.
Leadership Squad remuneration
Long-term incentive 40% of base
Short-term incentive 50% of base
Salary Base

Performance evaluation
The CEO annually reviews the performance of her direct reports.
The evaluation is undertaken using criteria set by the CEO, including
the performance of the business, the accomplishment of strategic
and operational objectives, and other non-quantitative objectives
agreed with the HRCC at the beginning of each financial year.
Spark undertakes appropriate checks before appointing someone
onto the Leadership Squad.
CEO remuneration
Remuneration policy, strategy, and governance
CEO Jolie Hodson’s remuneration package reflects the scope, risk
and complexity of her role and is set by the Board with reference to
the remuneration of CEOs of similarly sized organisations. For FY26
the Board has resolved that the CEO remuneration package
should remain unchanged. While there are no changes to the CEO’s
contractual remuneration, the Board approved the CEO’s
participation in the FY27 Transformation Delivery Incentive which is a
one-off non-recurring equity-based scheme worth 20% of base salary.
Subject to achievement of transformation-related performance
targets in FY27 the options would vest in September 2027.
CEO remuneration FY25
For FY25 the CEO’s remuneration package comprised of a fixed
cash component, an at-risk long-term incentive, to be awarded
under the Spark Long-Term Incentive Scheme, and an at-risk
short-term incentive. The targets and operation of the CEO’s LTI and
STI is the same as those applied to other Spark executives and more
fully described under Short-Term Incentive scheme and Long-Term
Incentive scheme on pages 47 – 48. The construct of the CEO’s
remuneration package is such that 60% of her remuneration package
is at risk. The table below shows the at target remuneration mix:
Long-Term Incentive 75% of base
Short-Term Incentive 75% of base
Salary Base

The CEO is also expected to maintain a holding of Spark shares as
set out on page 52 of this report.
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50
Remuneration Report