Correction to FY25 Results - Detailed Financial Information

Spark New Zealand
Group result - reported
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Operating revenues and other gains2,5211,9431,9561,8641,9161,8093,8203,725(95)(2.5%)
Operating expenses(1,485)(1,269)(1,437)(1,242)(1,510)(1,162)(2,679)(2,672)70.3%
EBITDAI
1,036 674 519 622 406 647 1,141 1,053
(88)(7.7%)
Finance income161614161516303113.3%
Finance expense(43)(56)(63)(81)(75)(74)(144)(149)(5)(3.5%)
Depreciation and amortisation(244)(251)(244)(268)(293)(297)(512)(590)(78)(15.2%)
Net investment income(1)2(3)(5)-2(8)210NM
Net earnings before income tax76438522328453294507347(160)(31.6%)
Tax income / (expense)100(116)(69)(127)(23)(72)(196)(95)10151.5%
Net earnings from continuing operations86426915415730222311252(59)(19.0%)
Net earnings from discontinuing operations11233558360.0%
Total net earnings for the period86527015616033227316260(56)(17.7%)
Capital expenditure excluding spectrum (250)(265)(286)(232)(252)(177)(518)(429)8917.2%
Reported EBITDAI margin41.1%34.7%26.5%33.4%21.2%35.8%29.9%28.3%(1.6pp)
Reported effective tax rate(13.1%)30.1%30.9%44.7%43.4%24.5%38.7%27.4%(11.3pp)
Capital expenditure to operating revenues and other gains(9.9%)(13.6%)(14.6%)(12.4%)(13.2%)(9.8%)(13.6%)(11.5%)2.1pp
Reported basic EPS
1
(cents) from continuing operations
46.114.58.48.71.612.017.013.6(3.4) (20.0%)
Reported diluted EPS (cents) from continuing operations46.014.58.48.81.612.017.013.6(3.4) (20.0%)
Reported basic EPS (cents) from discontinuing operations0.10.10.10.20.20.30.30.40.1 33.3%
Reported diluted EPS (cents) from discontinuing operations0.10.10.10.30.20.30.30.40.1 33.3%
1
Earnings per share
Group result - adjusted
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Adjusted operating revenues and other gains1,9501,9581,9761,8851,9391,7613,8613,700(161)(4.2%)
Adjusted operating expenses(1,440)(1,275)(1,446)(1,252)(1,491)(1,149)(2,698)(2,640)582.1%
Adjusted EBITDAI
510 683 530 633 448 612 1,163 1,060
(103)(8.9%)
Finance income161614161516303113.3%
Finance expense(43)(56)(63)(81)(75)(74)(144)(149)(5)(3.5%)
Depreciation and amortisation(248)(256)(251)(276)(300)(304)(527)(604)(77)(14.6%)
Adjusted net investment income(1)(3)(3)(5)-2(8)210NM
Adjusted net earnings before income tax23438422728788252514340(174)(33.9%)
Adjusted income tax expense(69)(116)(70)(102)(32)(81)(172)(113)5934.3%
Adjusted net earnings for the period16526815718556171342227(115)(33.6%)
Capital expenditure excluding spectrum (250)(265)(286)(232)(252)(177)(518)(429)8917.2%
Free cash flows excluding spectrum1153744628477253330330--%
Adjusted EBITDAI margin26.2%34.9%26.8%33.6%23.1%34.8%30.1%28.6%(1.5pp)
Adjusted effective tax rate29.5%30.2%30.8%35.5%36.4%32.1%33.5%33.2%(0.3pp)
Capital expenditure to adjusted operating revenues and other gains(12.8%)(13.5%)(14.5%)(12.3%)(13.0%)(10.1%)(13.4%)(11.6%)1.8pp
Adjusted basic EPS
1
(cents)
8.814.48.610.13.19.218.712.3(6.4) (34.2%)
Adjusted diluted EPS (cents)8.814.38.510.23.19.218.712.3(6.4)(34.2%)
1
Earnings per share
Declared Dividends
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
Ordinary dividends (cents per share)13.5013.5013.5014.0012.5012.5027.5025.00(2.50)(9.1%)
Total dividend (cents per share)13.5013.5013.5014.0012.5012.5027.5025.00(2.50)(9.1%)
Reported revenue, expenses, EBITDAI and NPAT exclude the results of the data centre business which has been classified as a discontinuing operation in the Financial Statements.
FY25 vs FY24
Spark’s policy is to present ‘adjusted EBITDAI’ and ‘adjusted net earnings’ when a financial year includes one-off significant items (such as gains, expenses and impairments) individually greater than $25
million. In the year ended 30 June 2025, 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 were deemed significant to adjust. In the year ended 30 June 2024, the tax effects resulting from the government change to tax depreciation rules for buildings effective
for Spark from 1 July 2024 of $26 million was deemed a significant item to adjust. Adjusted revenue, expenses, EBITDAI and NPAT include the results of the data centre business which has been classified as a
discontinuing operation in the Financial Statements.
FY25 vs FY24
FY25 vs FY24

Spark New Zealand
Group operating revenues and other gains
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25
FY24FY25
Connectivity$m$m$m$m$m$m$m$m$m
%
Mobile service revenue4805005105004914961,010987(23)(2.3%)
Mobile non-service revenue25223823922524821846446620.4%
Total mobile7327387497257397141,4741,453(21)(1.4%)
Voice 12210994867872180150(30)(16.7%)
Broadband
1
313313309304302306613608(5)(0.8%)
Managed data and networks
2
11011211211110299223201(22)(9.9%)
Collaboration
2
394040404442808667.5%
Total connectivity1,3161,3121,3041,2661,2651,2332,5702,498(72)(2.8%)
Other
Cloud
2,3
105103109116118117225235104.4%
IT Services
3
879980767272156144(12)(7.7%)
Procurement and partners319265339209332206548538(10)(1.8%)
Data centres
3
1715222325254550511.1%
High-tech313435444143798456.3%
Other products7110168686357136120(16)(11.8%)
Total other6306176535366515201,1891,171(18)(1.5%)
Adjusted operating revenues1,9461,9291,9571,8021,9161,7533,7593,669(90)(2.4%)
Other gains429198323810231(71)(69.6%)
Adjusted operating revenues and other gains1,9501,9581,9761,8851,9391,7613,8613,700(161)(4.2%)
Adjusting items - Net gain on sale/divestment of Connexa584(1)---71-7171NM
Operating revenues from discontinuing operations(13)(14)(20)(21)(23)(23)(41)(46)(5)(12.2%)
Reported operating revenues and other gains2,5211,9431,9561,8641,9161,8093,8203,725(95)(2.5%)
1
Wireless broadband revenues and connections are included in broadband revenues and connections.
--
2
The total of these three products falls under IT products as referenced in the financial statements.
Group operating expenses
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25FY24FY25
Product costs$m$m$m$m$m$m$m$m$m
%
Total mobile(255)(231)(253)(231)(251)(206)(484)(457)275.6%
Voice(51)(47)(43)(38)(36)(32)(81)(68)1316.0%
Broadband(164)(164)(161)(164)(162)(169)(325)(331)(6)(1.8%)
Managed data and networks
1
(64)(64)(67)(66)(59)(58)(133)(117)1612.0%
Collaboration
1
(15)(15)(17)(18)(19)(18)(35)(37)(2)(5.7%)
Cloud
1
(39)(33)(38)(47)(61)(50)(85)(111)(26)(30.6%)
IT services
1
(14)(19)(14)(28)(23)(26)(42)(49)(7)(16.7%)
Procurement and partners(292)(225)(315)(168)(307)(166)(483)(473)102.1%
Data centres(1)(1)(1)(1)(2)(1)(2)(3)(1)(50.0%)
High-tech(8)(11)(13)(21)(19)(20)(34)(39)(5)(14.7%)
Other product costs(46)(43)(22)(23)(26)(21)(45)(47)(2)(4.4%)
Total product costs(949)(853)(944)(805)(965)(767)(1,749)(1,732)171.0%
Labour(269)(242)(279)(233)(271)(172)(512)(443)6913.5%
Other operating expenses
Network support costs(45)(20)(40)(33)(52)(27)(73)(79)(6)(8.2%)
Computer costs(57)(52)(52)(63)(74)(58)(115)(132)(17)(14.8%)
Accommodation costs(23)(26)(29)(29)(29)(26)(58)(55)35.2%
Electricity - data centres
2
(2)(2)(2)(2)(3)(4)(4)(7)(3)(75.0%)
Electricity - non data centres(15)(15)(17)(17)(16)(18)(34)(34)--%
Advertising, promotions and communication(33)(23)(33)(21)(31)(27)(54)(58)(4)(7.4%)
Bad debts(4)(5)(7)(8)(10)(9)(15)(19)(4)(26.7%)
Other(43)(37)(43)(41)(40)(41)(84)(81)33.6%
(222)(180)(223)(214)(255)(210)(437)(465)(28)(6.4%)
Adjusted operating expenses(1,440)(1,275)(1,446)(1,252)(1,491)(1,149)(2,698)(2,640)582.1%
Spark Sport provision(52)(2)-------NM
Transformation costs----(29)(24)-(53)(53)NM
Operating expenses from discontinuing operations7891010111921210.5%
Reported operating expenses(1,485)(1,269)(1,437)(1,242)(1,510)(1,162)(2,679)(2,672)70.3%
2
Estimated electricity costs to run Spark Group's dedicated data centres.
Group FTEs
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25FY24FY25
FTE permanent4,9765,1895,3565,0724,4563,7925,0723,792(1,280)(25.2%)
FTE contractors 182143977094557055(15)(21.4%)
Total FTE5,1585,3325,4535,1424,5503,8475,1423,847(1,295)(25.2%)
FY25 vs FY24
FY25 vs FY24
3
Spark has made minor reclassifications of segment revenues and costs between IT products, IT services, and data centres to more accurately reflect how these products are viewed. There is no change to the overall
Spark reported result because of these changes.
FY25 vs FY24
1
Spark has made minor reclassifications of segment revenues and costs between IT products, IT services, and data centres to more accurately reflect how these products are viewed. There is no change to
the overall Spark reported result because of these changes.

Spark New Zealand
Gross margin by product
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Total mobile47750749649448850899099660.6%
Voice7162514842409982(17)(17.2%)
Broadband149149148140140137288277(11)(3.8%)
Managed data and networks
1
4648454543419084(6) (6.7%)
Collaboration
1
242523222524454948.9%
Cloud
1
667071695767140124(16) (11.4%)
IT services
1
73806648494611495(19) (16.7%)
Procurement and partners2740244125406565--%
Data centres
1
161421222324434749.3%
High-tech2323222322234545--%
Other products2558464537369173(18)(19.8%)
Adjusted product gross margin
997 1,076 1,013 997 951 986
2,0101,937(73)(3.6%)
Other gains429198323810231(71) (69.6%)
Adjusted gross margin
1,001 1,105 1,032 1,080 974 994
2,1121,968(144) (6.8%)
Gross margin from discontinuing operations
1314202023 22
40455 12.5%
Gain on sale/divestment of Connexa
584(1)--- 71
-7171NM
Reported gross margin
1,598 1,118 1,052 1,100 997 1,087
2,1522,084(68)(3.2%)
Finance expense & income
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Finance expense
Finance expense on debt(22)(28)(33)(42)(41)(38)(75)(79)(4) (5.3%)
Other interest and finance expenses(7)(5)(8)(15)(10)(10)(23)(20)3 13.0%
Lease interest expense(15)(24)(24)(24)(25)(26)(48)(51)(3) (6.3%)
Leased customer equipment interest expense(4)(3)(4)(4)(3)(3)(8)(6)2 25.0%
(48)(60)(69)(85)(79)(77)(154)(156)(2) (1.3%)
Capitalised interest546443107(3) (30.0%)
(43)(56)(63)(81)(75)(74)(144)(149)(5) (3.5%)
Finance income
Finance lease interest income44444488--%
Other interest income121210121112222314.5%
161614161516303113.3%
Depreciation and amortisation expense
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Depreciation and amortisation expense
Depreciation - property, plant and equipment(114)(113)(112)(123)(147)(138)(235)(285)(50) (21.3%)
Depreciation - right-of-use assets(36)(39)(42)(47)(50)(55)(89)(105)(16) (18.0%)
Depreciation - leased customer equipment assets(19)(17)(17)(16)(13)(14)(33)(27)6 18.2%
Amortisation - intangible assets(79)(87)(80)(90)(90)(97)(170)(187)(17) (10.0%)
Adjusted depreciation and amortisation expense(248)(256)(251)(276)(300)(304)(527)(604)(77) (14.6%)
Depreciation and amortisation expense from discontinuing operations4578771514(1) (6.7%)
Reported depreciation and amortisation expense(244)(251)(244)(268)(293)(297)(512)(590)(78) (15.2%)
Net investment income
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25FY24FY25
Net investment income$m$m$m$m$m$m$m$m$m%
Share of associates' and joint ventures' net losses(3)(9)(8)(9)(6)-(17)(6)11 64.7%
Interest income on loans receivable from associates and joint ventures266662128(4) (33.3%)
Impairment of investments---(2)--(2)-2 100.0%
Net disposal and remeasurement of equity accounted investments--(1)---(1)-1 100.0%
Adjusted net investment income(1)(3)(3)(5)-2(8)210NM
Net gain on dilution of the investment in the Connexa group-5----- --NM
Reported net investment income(1)2(3)(5)-2(8)210NM
FY25 vs FY24
FY25 vs FY24
FY25 vs FY24
1
Spark has made minor reclassifications of segment revenues and costs between IT products, IT services, and data centres to more accurately reflect how these products are viewed. There is no change to the
overall Spark reported result because of these changes.
FY25 vs FY24

Spark New Zealand
Core Connectivity
Analysis & KPIs - Mobile
Consumer & SMEH1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25FY24FY25
Pay monthly
Connections (k)1,1461,1751,1891,1931,2021,1991,1931,19960.5%
ARPU ($)44.3644.4945.5144.3644.2545.1244.9344.68(0.25)(0.6%)
Prepaid
Connections (k)1,1181,1731,2101,1731,1061,1121,1731,112(61)(5.2%)
ARPU ($)17.2616.9116.0915.8816.2116.0015.9916.100.110.7%
Total Consumer & SME mobile service revenue ($m)410427438431428433869861(8)(0.9%)
Enterprise & Government
Pay monthly
Connections (k)325334336324317318324318(6)(1.9%)
ARPU ($)32.1631.0530.4929.4526.68 25.8130.4426.22(4.22) (13.9%)
Total Enterprise & Government mobile service revenue ($m)626262585149120100(20)(16.7%)
Wholesale & other
1
Mobile service revenue ($m)811101112142126523.8%
Total mobile service revenue4805005105004914961,010987(23)(2.3%)
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
Total mobile$m$m$m$m$m$m$m$m$m
%
Mobile service revenue4805005105004914961,010987(23) (2.3%)
Mobile non-service revenue
2
25223823922524821846446620.4%
Total mobile revenue7327387497257397141,4741,453(21) (1.4%)
Mobile product costs
3
(255)(231)(253)(231)(251)(206)(484)(457)275.6%
Mobile gross margin47750749649448850899099660.6%
Mobile gross margin %65.2%68.7%66.2%68.1%66.0% 71.1%67.2%68.5%1.3pp
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25FY24FY25
000's000's000's000's000's000's000's000's000's
%
Pay monthly connections1,4711,5091,5251,5171,519 1,5171,5171,517--%
Prepaid connections1,1181,1731,2101,1731,106 1,1121,1731,112(61) (5.2%)
Internal connections44444343(1) (25.0%)
Total mobile connections
4
2,5932,6862,7392,6942,629 2,6322,6942,632(62) (2.3%)
Total ARPU ($)31.3030.7830.6630.0330.17 30.4130.3530.29(0.06) (0.2%)
1
Includes MVNO revenue, but excludes other customer segment mobile revenue which is now captured in non-service revenue.
2
Mobile non-service revenue includes handset sales and mobile interconnect.
3
Includes handset, interconnect and cellphone tower access costs.
4
Mobile connections excluding MVNO connections but including legacy machine to machine and SIM based SmartWatch connections and internal connections.
Analysis & KPIs - IoT
1
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
000's000's000's000's000's000's000's000's000's
%
Total IoT connections1,1601,4611,7992,0482,2502,3762,0482,37632816.0%
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m
%
Total IoT revenue141620262523464824.3%
IoT product costs(6)(9)(9)(17)(13)(13)(26)(26)--%
IoT gross margin8711912102022210.0%
IoT gross margin %57.1%43.8%55.0%34.6%48.0%43.5%43.5%45.8%2.4pp
1
IoT is defined as core connectivity but is currently classified within the High-tech product in revenue and expenses.
FY25 vs FY24
FY25 vs FY24
FY25 vs FY24
FY25 vs FY24
FY25 vs FY24

Spark New Zealand
Other connectivity
Analysis & KPIs - Voice
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25FY24FY25
000's000's000's000's000's000's000's000's000's
%
POTS and ISDN11291695949395939(20)(33.9%)
VoIP6059535148495149(2)(3.9%)
Voice over wireless148866565(1)(16.7%)
Total voice connections1861581301161039311693(23)(19.8%)
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25
FY24 FY25
$m$m$m$m$m$m$m$m$m
%
Total voice revenue12210994867872180150(30)(16.7%)
Voice product costs
1
(51)(47)(43)(38)(36)(32)(81)(68)13 16.0%
Voice gross margin
7162514842 409982
(17)(17.2%)
Voice gross margin %58.2%56.9%54.3%55.8%53.8% 55.6%55.0%54.7% (0.3pp)
1
Includes voice access (baseband), interconnect, and international calling costs.
Analysis & KPIs - Broadband
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25FY24FY25
000's000's000's000's000's000's000's000's000's
%
Copper7964544336264326(17)(39.5%)
Fibre423426427428424422428422(6)(1.4%)
Wireless202209214216218213216213(3)(1.4%)
Total broadband connections704699695687678661687661(26)(3.8%)
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m
%
Total broadband revenue313313309304302306613608(5)(0.8%)
Broadband product costs
2
(164)(164)(161)(164)(162)(169)(325)(331)(6) (1.8%)
Broadband gross margin149149148140140137
288277
(11)(3.8%)
Broadband gross margin %47.6%47.6%47.9%46.1%46.4%44.8%47.0%45.6%(1.4pp)
2
Includes broadband access (UBA/UCLL/Fibre) and modem costs.
Analysis & KPIs - Managed data and networks
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m
%
Managed data and networks revenue11011211211110299223201(22)(9.9%)
Managed data and networks product costs
3
(64)(64)(67)(66)(59)(58)(133)(117)1612.0%
Managed data and networks gross margin4648454543419084(6)(6.7%)
Managed data and networks gross margin %41.8%42.9%40.2%40.5%42.2%41.4%40.4%41.8%1.4pp
3
Includes wide area network access, international data, network backhaul and videoconferencing platform costs.
Analysis & KPIs - Collaboration
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m
%
Collaboration revenue394040404442808667.5%
Collaboration product costs(15)(15)(17)(18)(19)(18)(35)(37)(2)(5.7%)
Collaboration gross margin242523222524454948.9%
Collaboration gross margin %61.5%62.5%57.5%55.0%56.8%57.1%56.3%57.0%0.7pp
Voice connections by typeFY25 vs FY24
FY25 vs FY24
FY25 vs FY24
FY25 vs FY24
Broadband connections by technologyFY25 vs FY24
FY25 vs FY24

Spark New Zealand
Other
Analysis & KPIs - Data centres
1
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Data centre revenue
2
1715222325254550511.1%
Data centre product cost(1)(1)(1)(1)(2)(1)(2)(3)(1)(50.0%)
Data centre gross margin161421222324434749.3%
Data centre gross margin%94.1%93.3%95.5%95.7%92.0%96.0%95.6%94.0%(1.6pp)
Data centre KPIsH1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
Data centre capacity built (in MW)111122222223222314.5%
Data centre capacity under construction (in MW)1111111-1-(1)(100.0%)
Data centre development pipeline (in MW)19197070118130701306085.7%
Total capacity (in MW)41419393141153
93
1536064.5%
Weighted average lease term with options (WALE)
3
16.916.916.415.915.414.916.215.1(1.1) (6.8%)
Contracted utilisation dedicated data centres
4
84%84%88%88%88%87%88%88%-%
Target power usage effectiveness (PUE)N/AN/A1.21.21.21.21.2 1.2 --%
PUE - Legacy data centre assets1.541.561.571.571.601.601.57 1.60 (0.03)(1.9%)
4
Includes contracted and reserved racks at dedicated data centres and exchanges.
Analysis & KPIs - Cloud
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Cloud revenue
1
105103109116118117225235104.4%
Cloud product costs
1
(39)(33)(38)(47)(61)(50)(85)(111)(26) (30.6%)
Cloud gross margin667071695767140124(16)(11.4%)
Cloud gross margin%62.9%68.0%65.1%59.5%48.3%57.3%62.2%52.8%(9.4pp)
Analysis & KPIs - IT services
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Service management revenue
1
767968646155132116(16) (12.1%)
Security revenue1120121211172428416.7%
Service management and security revenue879980767272156144(12)(7.7%)
Service management and security product costs(14)(19)(14)(28)(23)(26)(42)(49)(7)(16.7%)
Service management and security gross margin738066484946
11495
(19)(16.7%)
Service management and security gross margin %83.9%80.8%82.5%63.2%68.1%63.9%73.1%66.0%(7.1pp)
Analysis & KPIs - Procurement and partners
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Procurement and partners revenue319265339209332206548538(10)(1.8%)
Procurement and partners product costs(292)(225)(315)(168)(307)(166)(483)(473)102.1%
Procurement and partners gross margin2740244125406565--%
Procurement and partners gross margin %8.5%15.1%7.1%19.6%7.5%19.4%11.9%12.1%0.2pp
FY25 vs FY24
FY25 vs FY24
FY25 vs FY24
FY25 vs FY24
2
Spark has made minor reclassifications of segment revenues and costs between IT products, IT services, and data centres to more accurately reflect how these products are viewed. There is no change to the
overall Spark reported result because of these changes.
3
Based on a total contract value weighted average of remaining lease years for global cloud/content provider contracts. Prior periods have been restated to reflect a change in reporting methodology, now
considering the remaining contract terms rather than the contract length at commencement.
FY25 vs FY24
1
This represents a total data centre view, the majority of which has been classified a discontinuing operation in the Financial Statements.
1
Spark has made minor reclassifications of segment revenues and costs between IT products, IT services, and data centres to more accurately reflect how these products are viewed. There is no change to the
overall Spark reported result because of these changes.
1
Spark has made minor reclassifications of segment revenues and costs between IT products, IT services, and data centres to more accurately reflect how these products are viewed. There is no change to the
overall Spark reported result because of these changes.

Spark New Zealand
Statement of cash flows
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Cash flows from operating activities
Receipts from customers 1,975 1,815 1,972 1,739 1,977 1,717 3,7113,694(17)(0.5%)
Receipts from interest 16 13 13 15 15 14 282913.6%
Payments to suppliers and employees (1,460) (1,270) (1,519) (1,134) (1,566) (1,145)(2,653) (2,711)(58)(2.2%)
Payments for income tax (120) (70) (101) (88) (78) (108)(189)(186)31.6%
Payments for interest on debt (23) (32) (31) (49) (46) (44)(80)(90)(10)(12.5%)
Payments for interest on leases (15) (22) (23) (23) (24) (26)(46)(50)(4)(8.7%)
Payments for interest on leased customer equipment assets (4) (3) (4) (3) (3) (3)(7)(6)114.3%
Net cash flows from operating activities 369 431 307 457 275 405 764680(84)(11.0%)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 1 10 14 20 2 - 342(32)(94.1%)
Proceeds from sale of business 894 (1) - 4 - 8 484100.0%
Proceeds from long-term investments - - - 7 - 326 7326319NM
Receipts from finance leases 1 2 1 - - - 1-(1)(100.0%)
Receipts from loans receivable - 11 10 - 3 - 103(7)(70.0%)
Payments for purchase of business, net of cash acquired - - (2) (3) (2) - (5)(2)360.0%
Payments for, and advances to, long-term investments (2) (1) (1) - - - (1)-1100.0%
Payments for purchase of property, plant and equipment, intangibles
(excluding spectrum) and capacity
(246) (229) (347) (235) (228) (204)(582)(432)15025.8%
Payments for spectrum intangible assets - (6) - (8) - (10)(8)(10)(2)(25.0%)
Payments for capitalised interest (5) (4) (6) (4) (4) (3)(10)(7)330.0%
Net cash flows from investing activities 643 (218) (331) (219) (229) 117 (550)(112)43879.6%
Cash flows from financing activities -
Net proceeds from/(repayments of) debt (517) 54 489 21 190 (387)510(197)(707)NM
Payments for dividends (234) (252) (249) (245) (160) (142)(494)(302)19238.9%
Payments for share buy-back - (146) (159) - - - (159)-159100.0%
Payments for leases (31) (33) (38) (40) (44) (48)(78)(92)(14)(17.9%)
Receipts from lease incentive - - - - 22 - -2222NM
Payments for leased customer equipment assets (15) (22) (20) (14) (11) (13)(34)(24)1029.4%
Net cash flows from financing activities (797) (399) 23 (278) (3) (590)(255)(593)(338)NM
Net cash flows 215 (186) (1) (40) 43 (68)(41)(25)1639.0%
Opening cash position 71 286 100 99 59 102 10059(41)(41.0%)
Closing cash position
1
286 100 99 59 102 34 5934(25)(42.4%)
Analysis & KPIs - Free cash flows and movement in working capital
H1 FY23H2 FY23H1 FY24H2 FY24H1 FY25H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Reported EBITDAI 1,036 674 519 622 406 647 1,141 1,053 (88)(7.7%)
EBITDAI from discontinuing operations 6 6 11 11 13 12 22 25 3 13.6%
Adjusting items and non cash other gains(536) (11) (20) (58) 6 (54) (78) (48) 30 38.5%
EBITDAI for free cash flow
506 669 510 575 425 605 1,085 1,030 (55)(5.1%)
Less
Cash paid on maintenance capital expenditure (200) (128) (261) (89) (169) (124) (350) (293) 57 16.3%
Cash paid on interest (26) (44) (45) (60) (58) (59) (105) (117) (12)(11.4%)
Cash paid on tax payments (120) (70) (101) (88) (78) (108) (189) (186) 3 1.6%
Cash paid on leases (45) (53) (57) (54) (43) (61) (111) (104) 7 6.3%
Total cash payments on items above (391) (295) (464) (291) (348) (352) (755) (700) 55 7.3%
Free cash flow 115 374 46 284 77 253 330 330 - -%
Change in working capital
Change in receivables 59 (126) 27 (78) 80 (57) (51) 23 74 NM
Change in payables (3) 53 (20) 65 41 (50) 45 (9) (54)NM
Change in inventory (1) 28 (27) 18 (25) 32 (9) 7 16 NM
Change in contract assets (3) (30) (8) 12 (6) 4 4 (2) (6)NM
Change in prepayments (excluding CAPEX) (22) 31 (45) 36 (66) 58 (9) (8) 1 11.1%
Total change in working capital - (increase)/decrease 30 (44) (73) 53 24 (13) (20) 11 31 NM
Cash paid on growth capital expenditure (51) (105) (92) (140) (57) (70) (232) (127) 105 45.3%
Free cash flow including working capital and growth cash capex 94 225 (119) 197 44 170 78 214 136 NM
Analysis & KPIs - Reconciliation to new free cash flow definition
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25FY24FY25
$m$m$m$m$m$m$m$m$m%
Adjusted free cash flow (FY25 definition) 115 374 46 284 77 253 330 330 - -%
Include: Working capital 30 (44) (73) 53 24 (13) (20) 11 31 NM
Additional BAU cash capex (1) (41) (73) (118) (43) (38) (191) (81) 110 57.6%
Adjusted free cash flow (new definition) 144 289 (100) 219 58 202 119 260 141 NM
FY25 vs FY24
FY25 vs FY24
1
H1 FY25 closing cash position includes cash of $100m and cash classified as assets held for sale of $2m.
FY25 vs FY24

Spark New Zealand
Group capital expenditure (Capex)
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25FY24FY25
Maintenance Capex
1
$m$m$m$m$m$m$m$m$m%
Cloud(11)(8)(24)(13)(9)(2)(37)(11)2670.3%
Fixed network & International cable capacity(35)(58)(55)(10)(37)(26)(65)(63)23.1%
IT systems(62)(54)(80)(67)(73)(75)(147)(148)(1) (0.7%)
Mobile network(77)(21)(65)(24)(91)(29)(89)(120)(31) (34.8%)
Property(11)(12)(7)(4)(4)(3)(11)(7)436.4%
Other(4)(6)(4)(6)(1)-(10)(1)9 90.0%
Total maintenance capex excluding spectrum(200)(159)(235)(124)(215)(135)(359)(350)92.5%
Growth Capex
1
5G Acceleration & SA Readiness -(42)(32)(74)(23)(28)(106)(51)55 51.9%
Data centres(50)(64)(19)(22)(14)(14)(41)(28)1331.7%
Converged Tech---(12)--(12)-12 100.0%
Total growth capex excluding spectrum(50)(106)(51)(108)(37)(42)(159)(79)8050.3%
Total capex excluding spectrum(250)(265)(286)(232)(252)(177)(518)(429)8917.2%
Mobile spectrum--(23)---(23)-23 100.0%
Total capex including spectrum(250)(265)(309)(232)(252)(177)(541)(429)11220.7%
Cash Capex
Growth(51)(105)(92)(140)(57)(70)(232)(127)105 45.3%
Maintenance(200)(128)(261)(89)(169)(124)(350)(293)5716.3%
Total cash capex excluding spectrum(251)(233)(353)(229)(226)(194)(582)(420)162 27.8%
1
From FY26 maintenance and growth capex will be classified as BAU and strategic capex as illustrated below.
Group capital expenditure (Capex) - updated to align to new capital management framework
H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25FY24FY25
BAU Capex$m$m$m$m$m$m$m$m$m%
Cloud(11)(8)(24)(13)(9)(2)(37)(11)2670.3%
Fixed network & International cable capacity(35)(58)(55)(10)(37)(26)(65)(63)23.1%
IT systems(62)(54)(80)(67)(73)(75)(147)(148)(1) (0.7%)
Mobile network(77)(21)(65)(24)(91)(29)(89)(120)(31) (34.8%)
Property(11)(12)(7)(4)(4)(3)(11)(7)436.4%
Other(4)(6)(4)(6)(1)-(10)(1)9 90.0%
5G Acceleration & SA Readiness -(42)(32)(74)(23)(28)(106)(51)55 51.9%
Converged tech---(12)--(12)-12 100.0%
Total BAU capex excluding spectrum(200)(201)(267)(210)(238)(163)(477)(401)7615.9%
Strategic Capex
Data centres(50)(64)(19)(22)(14)(14)(41)(28)1331.7%
Total capex excluding spectrum(250)(265)(286)(232)(252)(177)(518)(429)8917.2%
Mobile spectrum--(23)---(23)-23 100.0%
Total capex including spectrum(250)(265)(309)(232)(252)(177)(541)(429)11220.7%
Cash Capex
BAU(201)(169)(334)(207)(212)(162)(541)(374)16730.9%
Strategic(50)(64)(19)(22)(14)(32)(41)(46)(5) (12.2%)
Total cash capex excluding spectrum(251)(233)(353)(229)(226)(194)(582)(420)162 27.8%
FY25 vs FY24
Capital expenditure is the additions to property, plant and equipment and intangible assets (excluding goodwill, acquisitions and other non-cash additions that may be required by NZ IFRS, such as
decommissioning costs) and additions to capacity right-of-use assets where such additions are paid upfront.
FY25 vs FY24
Capital expenditure is the additions to property, plant and equipment and intangible assets (excluding goodwill, acquisitions and other non-cash additions that may be required by NZ IFRS, such as
decommissioning costs) and additions to capacity right-of-use assets where such additions are paid upfront.

Spark New Zealand
Reconciliation of reported to adjusted net earnings
FY25
Operating revenues and other gains
3,72546(71)3,700
Operating expenses
(2,672)(21)53(2,640)
Total EBITDAI
1,05325(18)1,060
Net finance income
(118)
0
-(118)
Depreciation and amortisation
(590)(14)-(604)
Net investment income
2--2
Total net earnings before tax
34711(18)340
Net tax expense
(95)(3)(15)(113)
Net earnings
2528(33)227
FY24
Operating revenues and other gains
3,82041-3,861
Operating expenses
(2,679)(19)-(2,698)
Total EBITDAI
1,14122-1,163
Net finance income
(114)--(114)
Depreciation and amortisation
(512)(15)-(527)
Net investment income
(8)--(8)
Total net earnings before tax
5077-514
Net tax expense
(196)(2)26(172)
Net earnings
311526342
Spark’s policy is to present ‘adjusted EBITDAI’ and ‘adjusted net earnings’ when a financial year includes one-off significant items (such as gains, expenses and impairments) individually greater
than $25 million. In the year ended 30 June 2025, 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 were deemed significant to adjust. In the year ended 30 June 2024, the tax effects resulting from the government change to tax
depreciation rules for buildings effective for Spark from 1 July 2024 of $26 million was deemed a significant item to adjust. Adjusted revenue, expenses, EBITDAI and NPAT include the results of the
data centre business which has been classified as a discontinuing operation in the Financial Statements.
Reported (continuing operations)
Discontinuing operations
1
Adjusting items
2
Total adjusted
3
Adjustment for tax effects of zero-rating of tax depreciation on buildings.
Reported (continuing operations)
Discontinuing operations
1
Adjusting items
3
Total adjusted
1
The data centre business has been classified as a discontinuing operation in FY25, see note 1.5 of the financial statements for further details.
2
Adjustments for the gain on sale of Connexa of $71m other gains and the $53m one-off costs in association with the implementation of SPK-26 Operate Programme.