Spark New Zealand Limited FY25 Results
| Stock | Spark New Zealand Ltd (SPK.ASX) |
|---|---|
| Release Time | 20 Aug 2025, 7:30 a.m. |
| Price Sensitive | Yes |
Spark New Zealand Limited FY25 Results
- Delivering EBITDAi, capex, and FY25 dividend within updated guidance
- Significant transformation on track with portfolio management and cost reduction
- Sale of 75% stake in data centre business to deliver ~$486m in initial cash proceeds
Spark New Zealand Limited 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's FY25 financial results include reported and adjusted figures, with reported revenue of $3,725 million declining 2.5% on FY24, reported EBITDAI of $1,053 million declining 7.7%, and reported NPAT of $260 million declining 17.7%. Spark undertook a strategic review of non-core assets, resulting in the sale of its remaining stakes in Connexa and HTAL for combined proceeds of $356 million. Spark also announced the sale of a 75% interest in its data centre business to Pacific Equity Partners, which is expected to deliver initial cash proceeds of ~$486 million. The combined $533 million that will be received from these transactions is expected to reduce Spark's net debt/EBITDAI ratio by 0.5x to ~1.7x. Spark's new five-year strategy focuses the company on its core business of connectivity, with priorities including growing core connectivity, simplifying and optimising beyond the core, and delivering a better network and better customer experiences.
For FY26, Spark provided the following guidance: Adjusted EBITDAI of $1,010-$1,070 million (excluding any gain on sale from the data centre transaction), free cash flow of $290-$330 million, BAU capital expenditure of $380-$410 million, strategic capital expenditure (data centres) of $50-$70 million, and a dividend payout ratio of 100% of FY26 free cash flow.
Spark's ambition over the next five years is 'It's better with Spark', focusing on delivering more for its customers, people, and shareholders through its core connectivity business. Spark will release details of its five-year strategy covering the period FY26-FY30 at an Investor Strategy Briefing on 11 September 2025.