SPK Reports Lower EBITDA as It Implements Cost Reduction Measures and Partners on Fraud Prevention

Spark NZ Reports Lower Earnings and Adjusts Outlook

• Spark NZ saw its adjusted EBITDA for the first half of FY2025 fall by 15.5% year-over-year, reaching NZD 448 million.
• The company has revised its EBITDA guidance for FY2025 downward to a range of NZD 1.04 billion to NZD 1.1 billion, citing ongoing economic challenges and a decline in enterprise mobile business.
• To counter these difficulties, management is rolling out a cost reduction program targeting NZD 110–140 million in savings and pursuing a long-term strategy involving data center co-investments.

The company’s full-year FY2025 results indicate an 8.9% decrease in adjusted EBITDA, largely due to weaker demand for IT services and heightened competition in the mobile market. Spark NZ is aiming to stabilize its EBITDA in FY2026 by achieving $85 million in cost reductions and implementing a strategic overhaul.

As part of its efforts to enhance performance, management intends to continue paying out 100% of free cash flow as dividends.

Joint Efforts to Combat Fraud in New Zealand’s Telecom Sector

The leading telecom providers in New Zealand—Spark, One NZ, and 2degrees—are joining forces to develop unified APIs for fraud and scam prevention as part of the GSMA Open Gateway initiative. These tools are designed to verify phone numbers and detect SIM swaps, strengthening digital security for industries such as banking and e-commerce. The project follows standards set by CAMARA, an open-source collaboration between the GSMA and Linux Foundation, and is scheduled to launch later this year.

Key Factors Behind Spark’s EBITDA Decline

Spark NZ’s EBITDA drop in FY2025 is mainly attributed to ongoing recessionary pressures in New Zealand. The company also faced a shrinking enterprise mobile segment and reduced IT services demand, which together contributed to the 8.9% fall in adjusted EBITDA. Additionally, intensified competition in mobile services has put further pressure on revenues.

Spark’s Strategic Response

To address these headwinds, Spark is implementing a cost reduction initiative targeting NZD 110–140 million in savings. The company is also investing in long-term data center partnerships to drive future growth. Looking ahead to FY2026, Spark plans to stabilize EBITDA with $85 million in cost efficiencies and a renewed strategic focus, while maintaining its commitment to a full free cash flow dividend payout.

Impact of Telecom Collaboration on Fraud Prevention

The partnership between Spark, One NZ, and 2degrees under the GSMA Open Gateway initiative is expected to boost digital security and reduce risks of identity theft. By creating shared APIs for fraud detection—including number verification and SIM swap alerts—the telcos aim to protect consumers and support critical sectors like finance and online retail. These solutions, built to global standards, will enhance customer confidence and deliver a secure digital environment.

The APIs are currently in development and are set to roll out later this year. This initiative demonstrates the telcos’ ongoing commitment to innovation and customer safety, building on previous efforts such as the Anti-Scam Alliance, and aligns with global mobile operator standards.