Spark Finance Limited

Overview

On 8 August 2014, TCNZ Finance Limited changed its name to Spark Finance Limited (Spark Finance).

Spark Finance Limited is a wholly owned subsidiary of Spark New Zealand Limited (formerly Telecom Corporation of New Zealand Ltd) and is the principle finance company for the Spark New Zealand Group.

Spark Finance raises debt funding in New Zealand and internationally. The majority of these funds are then advanced to other members of the Spark New Zealand group in order to assist in funding their operations. Spark Finance enters into derivative financial instruments in order to manage the foreign exchange and interest rate risk associated with its borrowings, as well as to manage the foreign exchange risk associated with the operations of the Spark New Zealand Group.

Spark Finance solely lends to other companies within the Spark New Zealand Group and accordingly, its financial performance should be considered in conjunction with the financial performance of the Spark New Zealand Group.

Performance

The following information was extracted from Spark NZ Limited Full Year Results, released on 20 August 2026:

Mobile service revenue returns to growth as Spark advances SPK-30 strategy

• Delivered FY26 results within guidance:

o Reported revenue¹ of $3,949 million increased 6.0%; adjusted revenue of $3,700 million unchanged

o Reported EBITDAI² of $1,295 million increased 23.0%; adjusted EBITDAI of $1,035 million declined 2.4%

o Reported NPAT³ of $499 million increased 91.9%; adjusted NPAT of $225 million declined 0.9%

o BAU capital expenditure was $401 million, flat on FY25

o Free cash flow (FCF) increased 18.5% to $308 million

• First year of SPK-30 strategy execution delivered mobile revenue up 4.4%, mobile service revenue back in growth at +1.1%, and $40 million in productivity benefits

• Completion of data centre transaction returning net debt to targeted levels

• Board declared a final dividend of 8 cents per share, taking the total FY26 dividend to 16 cents per share4, representing 100% of FCF

Spark New Zealand (Spark) today announced its FY26 results, with the first year of its SPK-30 strategy delivering a return to mobile service revenue growth, strong free cash flow growth, ongoing cost reduction, and a strengthened balance sheet following completion of the data centre transaction.

Spark Chair Justine Smyth said “Our SPK-30 strategy reflects clear choices about where Spark can build sustainable competitive advantage and deliver improved shareholder returns over time. We are encouraged by the progress made during this first year of execution, and by the momentum in areas where we have concentrated effort and investment, particularly mobile. “With an 18.5% increase in free cash flow to $308 million, the total FY26 dividend is 16 cents per share4, representing a 100% payout ratio, in line with guidance.