Spark New Zealand (ASX:SPK): FY26 Dividends, Cash Flow and Telecom Earnings

Aditi Sarkar

02 November 2026 03:12 PM AEDT

Spark New Zealand (ASX:SPK): FY26 Dividends, Cash Flow and Telecom Earnings

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Highlights

Spark New Zealand (ASX:SPK) declared an 8.0-cent final FY26 dividend, bringing its annual distribution to 16.0 cents per share.
The September 2026 ex-dividend date preceded payment on 2 October, with the final Dividend 50% imputed.
FY26 free Cash Flow increased 18.5% YoY to NZD 308 million, while adjusted EBITDAI decreased 2.4%.
FY27 guidance outlines free cash flow of NZD 300–350 million and a target dividend range of 16–18 cents per share.

Spark New Zealand Limited (ASX:SPK) provides mobile, broadband, connectivity and digital services across New Zealand. On 2 November 2026, its ASX share-price information stood at AUD 1.573, with a 0% franking figure in the dividend-stock listing. Spark’s FY26 report describes the company’s declared dividends, operating performance, free cash flow and capital-management priorities.

FY26 Dividend Payments and Imputation

In August 2026, Spark New Zealand (ASX:SPK) declared a final ordinary dividend of NZD 0.08 per share. Together with its NZD 0.08 interim payment, the total FY26 ordinary dividend was NZD 0.16 per share. The FY26 total was nine cents lower than the 25.0 cents per share declared for FY25, a decrease of 36.0% YoY. These figures are expressed in New Zealand dollars and relate to the company’s declared distributions.

The final dividend went ex-dividend on 10 September 2026, had a Record Date of 11 September and was paid on 2 October. It was 50% imputed, with 1.556 cents per share in imputation credits. New Zealand Imputation Credits differ from Australian franking credits.

Telecommunications Operations and 2026 Developments

Spark New Zealand (ASX:SPK) serves consumer, Business and government customers through mobile, broadband, business connectivity, cloud-related offerings and IT services. Network Investment and migration from older products remain operating priorities.

In FY26, mobile Revenue rose 4.4% YoY to NZD 1,517 million, including mobile service revenue of NZD 998 million, up 1.1%. Broadband revenue declined 2.0% to NZD 596 million, and business connectivity revenue decreased 9.9% to NZD 327 million. Cloud revenue was broadly flat at NZD 233 million, while IT services revenue fell 10.3% to NZD 104 million.

In 2026, Spark sold 75% of its data centre business for NZD 462 million in net proceeds, retaining 25%. A review of Digital Services is expected to conclude during H1 FY27.

Earnings, Free Cash Flow and Dividend Framework

For FY26, Spark New Zealand (ASX:SPK) reported revenue of NZD 3,949 million, up 6.0% YoY, and net profit after tax of NZD 499 million, up 91.9%. Transaction-related effects influenced reported results. Adjusted revenue was unchanged at NZD 3,700 million; adjusted EBITDAI fell 2.4% to NZD 1,035 million; adjusted net profit decreased 0.9% to NZD 225 million.

Free cash flow increased 18.5% YoY to NZD 308 million, while business-as-usual Capital expenditure was NZD 401 million. The FY26 dividend represented a payout equivalent to 100% of free cash flow under Spark’s stated calculation. Its revised dividend policy targets 70–100% of free cash flow, placing cash generation at the centre of future distribution decisions.

FY27 guidance included adjusted EBITDAI of NZD 1,010–1,080 million, free cash flow of NZD 300–350 million and business-as-usual Capital Expenditure of NZD 350–380 million. The target annual dividend was 16–18 cents per share, subject to board approval.

Risks and What to Monitor

Spark New Zealand (ASX:SPK) faces mobile and broadband competition, declining Demand for legacy services and shifts in enterprise technology spending. Network investment costs, portfolio changes and cash conversion can affect funds available for distributions.

Upcoming updates will clarify mobile service growth, the Digital Services review and cash-flow guidance. The annual shareholders meeting on 6 November 2026 and H1 FY27 results expected on 19 February 2027 are reporting milestones.

Key Insights

Spark New Zealand (ASX:SPK) declared NZD 0.16 per share in FY26 ordinary dividends, with the final payment 50% imputed. The company recorded higher free cash flow alongside lower adjusted EBITDAI, completed a partial data centre divestment and set FY27 dividend targets linked to free cash flow. Subsequent cash generation, operating performance and board decisions will determine actual future distributions.

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