Spark New Zealand's FY25 financial update

Spark New Zealand (ASX:SPK) has revised its financial guidance for the fiscal year 2025. The company announced reductions in its EBITDAI, capital expenditure, and dividend forecasts. This decision comes in response to subdued economic activity in New Zealand, affecting consumer spending and business investments.

Spark's strategic adjustments and future plans

Spark New Zealand has lowered its FY25 guidance due to ongoing economic challenges. The company has decided to reduce its EBITDAI to $1,120-$1,180 million, capex to $415-$435 million, and dividends to 25 cents per share. Spark is also reviewing its non-core assets, including the divestment of its shareholding in Connexa, to optimize shareholder value. The SPK-26 Operate Programme will be expanded to enhance cost savings. Looking forward, Spark aims to stabilize earnings and maintain market leadership despite current pressures. The company is committed to improving its core performance, simplifying its portfolio, and exploring capital partnerships for sustainable growth.

Executive commentary on strategic decisions

The economic environment remains challenging, with weak consumer spending and business investment impacting our markets. We are taking decisive actions to strengthen Spark’s balance sheet and enhance shareholder value. This includes reviewing our non-core assets and expanding our cost reduction initiatives through the SPK-26 Operate Programme.