Spark New Zealand (ASX:SPK) disclosed full-year FY26 financial results at its 2026 Annual Meeting of Shareholders held on 6 November 2026, reporting adjusted revenue stable at $3.7 billion, free cash flow of $308 million, and a total dividend of 16 cents per share, with all results delivered within guidance.

Key Points

  • Adjusted EBITDAI declined 2.4% to $1.035 billion for FY26
  • Adjusted net profit after tax declined 0.9% to $225 million
  • Free cash flow increased 18.5% to $308 million, enabling a total dividend of 16 cents per share
  • Completion of the sale of a 75% interest in the data centre business generated net proceeds of approximately $462 million
  • Strategic review of Digital Services remains ongoing, with a further update expected at the half-year results in February

FY26 Financial Results Within Guidance

Spark New Zealand disclosed that adjusted revenue was stable at $3.7 billion for FY26, with the return to mobile service revenue growth offsetting the impact of five fewer months of data centre earnings following the sale partway through the year. Adjusted EBITDAI declined 2.4% to $1.035 billion, primarily reflecting declines in non-core digital services, the continued decline in legacy voice — which now represents 3.2% of overall revenue — and the data centre sale. Adjusted net profit after tax declined 0.9% to $225 million. The company said all results were delivered within guidance.

Data Centre Sale and Capital Management

A significant event during FY26 was the completion of the sale of a 75% interest in Spark's data centre business, which generated net proceeds of approximately $462 million. The company said the transaction returned net debt to targeted levels. Spark retained a 25% interest in the resulting data centre business, named Ten Peaks. The company's Capital Management Framework is built around three priorities: maintaining financial strength, ensuring appropriate returns on investment, and delivering sustainable shareholder returns. Free cash flow increased 18.5% to $308 million, enabling the Board to declare a total dividend of 16 cents per share for FY26.

Digital Services Strategic Review and Outlook

Spark disclosed that a strategic review of its Digital Services businesses — which includes cloud, IT services, data and artificial intelligence — remains ongoing. The company stated that no outcome has been predetermined and that an update is expected at the half-year results in February. The company's five-year business strategy, SPK-30, centres on two strategic choices: leading in core connectivity and simplifying and optimising beyond the core. Vince Hawksworth presided over the meeting as Chair, his first AGM in that role, following the departure of outgoing Chair Justine Smyth, who served on the Spark Board for 15 years, including seven years as Chair.