Improvement in NZ economy gives Spark more confidence
Wednesday, 18 February 2026
The economy is showing signs of “finding its footing”, according to Spark, which released its interim results today for the six months to the end of December.
Because of its broad customer base spanning consumers, businesses and government clients, the telco is often regarded as a bellwether for the trends in the economy.
Chief executive Jolie Hodson said there were signs during the first half of its financial year that the economy was stabilising.
“While conditions were still mixed consumer activity improved and there was a growing sense of stability as the period progressed,” she said.
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“That backdrop supports the progress we’re seeing in our business, particularly in ‘consumer’, and gives us confidence as we move into the second half.“
Spark’s revenues during the six months to the end of December slipped 1.2% from the same period the previous year to total just under $1.9 billion.
But its net profit rebounded 83% to reach $64 million and it reaffirmed its previous earnings guidance for the full year.
There were some other positive developments in the result, including evidence that artificial intelligence can have an impact on productivity in the services sector.
Hodson said Spark had managed to reduce the time needed to set up some services for businesses by about 60% by automating them using AI.
It was also using AI to identify customers with more complex needs so they could be dealt with faster by its service staff, she said.
Spark has been reducing its workforce under a changed strategy announced last year that has seen it largely retrench to its core connectivity business and exit other activities such as operating data centres.
The company announced in August that it had shed 1300 staff in the year to the end of June, leaving it with 4000 employees.
A spokesperson said its headcount had since reduced further, to about 3800.
Despite the cuts, Hodson said its surveys of employee engagement had improved, with a 9 percentage point improvement recorded in the second half of last year.
This year, Spark aims to plug a gap in its offerings that has emerged with rival One NZ by also offering a service that lets smartphone users send and receive text messages and make wi-fi calls via satellite in the parts of the country that don’t have traditional cellphone coverage.
Spark shares rose 2% to $2.19 in early morning trading in the wake of the result.