Spark New Zealand Ltd reported a 91.9% jump in reported net profit after tax to NZD 499 million for the fiscal year ended June 2026, driven by a NZD 278 million gain on the sale of its data center. Adjusted EBITDA declined 2.4% to NZD 1.035 billion, while reported EBITDA increased 23% to NZD 1.295 billion. Free cash flow rose 18.5% to NZD 308 million, and net debt fell 35% to NZD 899 million, according to the company's earnings update.
The telecom operator maintained adjusted revenue at NZD 3.7 billion, with mobile revenue up 4.4% to NZD 1.5 billion. Mobile service revenue grew 1.1% to NZD 998 million, supported by a 3.6% increase in consumer and SME pay-monthly ARPU. Prepaid connections declined 3.6%, a slower pace than the 5.2% drop in FY25. Enterprise and government mobile service revenue remained under pressure, with ARPU falling to NZD 1.92 from NZD 3.26 in FY25.
Broadband connections fell 4.9%, with fiber and copper accounting for 84% of the decline. Business connectivity revenue dropped 9.9% to NZD 327 million, while IoT connections rose 5.1% to 2.5 million devices. Digital services revenue declined 3.4%, and legacy voice revenue represented 3.2% of total revenue. The company's Skinny Jump initiative now reaches over 38,000 households.
Spark declared a final dividend of NZD 0.08 per share, bringing the full-year payout to NZD 0.16 per share, fully covered by free cash flow. The board also guided for FY27 adjusted EBITDA between NZD 1.01 billion and NZD 1.08 billion, with business-as-usual capex expected to fall to NZD 350 million–NZD 380 million. Free cash flow is forecast at NZD 300 million–NZD 350 million, with dividends projected at NZD 0.16–NZD 0.18 per share.
CEO Jolie Hodson described FY26 as the first year of execution under the company's SPK-30 strategy, emphasizing a focus on core connectivity and simplification. CFO Stewart highlighted NZD 101 million in annualized cost savings delivered and reiterated confidence in the cost program and balance sheet. The company's shares rose 3.72% to NZD 1.68 following the results.
