This article first appeared on GuruFocus .
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Adjusted Revenue:$1.917 billion, down 1.1% or $22 million.
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Adjusted EBITDAI:$471 million, up 5.1%.
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Adjusted NPAT:$73 million, up 30.4%.
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Free Cash Flow:$107 million, up 84%.
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Capital Expenditure:$271 million, including $54 million strategic CapEx.
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Interim Dividend:$0.08 per share, 50% imputed.
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Mobile Service Revenue Growth:1.6% increase.
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Consumer Pay Monthly ARPU:Grew 5%.
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Enterprise and Government ARPU:Down 7.8% year-on-year.
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Cloud Revenue Growth:1.7% increase.
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Service Management Revenue Decline:19.7% decrease.
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Net Cost Savings:$51 million achieved.
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Net Debt (Excluding Leases):$1.39 billion, 5% lower than June 2025.
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Net Debt-to-EBITDAI Ratio:2.2.
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Pro Forma Net Debt-to-EBITDAI Ratio:Reduced to around 1.7 after data center transaction.
Release Date: February 17, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Spark New Zealand Ltd ( NZTCF ) reported a 5.1% increase in adjusted EBITDAI to $471 million, showcasing improved profitability.
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Free cash flow strengthened significantly to $107 million, up 84%, reflecting better operating leverage and reduced cash tax payments.
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The company declared an interim dividend of $0.08 per share, 50% imputed, indicating a commitment to returning value to shareholders.
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Mobile service revenue grew by 1.6%, driven by product innovation and plan refreshes, with a 15% uplift in pay monthly mobile acquisitions.
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Spark New Zealand Ltd ( NZTCF ) completed a data center transaction, retaining a 25% stake in TenPeaks Data Centres, providing exposure to long-term growth opportunities.
Negative Points
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Adjusted revenue decreased by 1.1% or $22 million, partly due to the divestment of Digital Island and muted business project spending.
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Broadband connections declined in a competitive market, although revenues remained stable.
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Voice revenue fell by 16.7%, consistent with the long-term decline of this legacy product.
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Service management revenue declined by 19.7% as businesses continued to defer or scale back larger projects.
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The mobile service revenue growth rate was slower than the market, resulting in a small contraction of 0.5 percentage points in market share.
Q & A Highlights
Q: Can you discuss the expected uplift in other OpEx in the second half, which offsets any further cost savings, and whether this will trend into FY '27? A: Jolie Hodson, CEO: We've delivered upfront labor and product cost savings, but expect some costs like severances and inflationary pressures in the second half. Marketing will normalize, and while we've achieved most of our cost targets, we'll continue simplification efforts into FY '27.
Q: Wireless broadband subscriptions were marginally down. Is this a reflection of the market or share losses? Can you provide more details on the plan refresh? A: Jolie Hodson, CEO: We have a strong market share in wireless broadband, but it's competitive. We plan to refresh pricing and bundled products in the second half, and as 5G expands, we expect to increase wireless broadband connections.
Q: Are you seeing competitive intensity in the mobile market decrease, or is the recovery driven by economic stabilization? A: Jolie Hodson, CEO: The market remains competitive, but our plan changes and value offerings have led to customers stepping up to higher-value plans. The economy's stabilization also contributes to improved performance in consumer and SME segments.
Q: How is the morale within Spark after significant changes and rebranding? A: Jolie Hodson, CEO: The new strategy focusing on core connectivity has provided clear direction, boosting engagement and morale. We're seeing progress in the market, reflected in improved non-financial metrics like employee engagement.
Q: Can you explain the $33 million difference in the data center final payment compared to initial guidance? A: Stewart Taylor, CFO: The initial purchase price was based on the top end of strategic CapEx guidance. The difference includes adjustments for working capital, employee liabilities, and transaction costs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
