Improved Profitability (Adjusted EBITDAI)
Adjusted EBITDAI of $471 million, up 5.1% year‑on‑year, driven by mobile momentum and disciplined cost‑out execution.
Strong Net Profit After Tax (Adjusted NPAT)
Adjusted NPAT increased 30.4% to $73 million, primarily reflecting higher EBITDAI.
Material Free Cash Flow Improvement
Free cash flow strengthened to $107 million in H1, up 84% versus prior year, reflecting operating leverage and reduced cash tax payments (timing effect expected to normalize in H2).
Data Center Transaction Strengthens Balance Sheet
Completed sale of data centers, receiving approximately $453 million upfront (plus up to $98 million deferred contingent proceeds) while retaining a 25% stake in TenPeaks Data Centres; pro forma reduction in net debt (ex leases) by ~$453 million to ~ $940 million and implied net debt/EBITDAI around 1.7x.
Mobile Revenue and ARPU Momentum
Total mobile service revenue grew 1.6%; consumer pay monthly ARPU up ~5%; pay monthly mobile acquisitions up 15%; Skinny prepaid NZ base grew 2% driven by long‑term plan uptake.
Capital Expenditure Discipline
H1 total CapEx $271 million (includes $54 million strategic CapEx for data center land); BAU CapEx $217 million down 8.8% year‑on‑year as 5G rollout matured; FY26 BAU CapEx guidance reaffirmed in $380–410 million range.
Dividend and Financial Guidance Maintained
Interim dividend declared of $0.08 per share (50% imputed); FY26 EBITDAI guidance reaffirmed at $1,010–1,070 million and free cash flow guidance maintained at $290–330 million.
Operational and Customer Experience Gains
Network improvements included 100+ site builds/upgrades and transition to 5G standalone core delivering ~75% improvement in peak speeds; iNPS rose 5 points year‑on‑year reflecting improved CX and digital experiences.
Productivity and Cost Savings Delivered
Cost program delivered $51 million net savings in H1 (including $55 million net labor cost reduction and $12 million product cost reductions), enabling reinvestment in network and CX while FY26 cost‑out target narrowed to $40–50 million.
Sustainability and Inclusion Progress
Scope 1 & 2 emissions are 32% lower than the path required to meet the 2030 target; Skinny Jump now supporting >34,500 households and ethical supply chain management advanced.
Recurring & One‑off Balance Sheet Actions
Sale of interest‑free payments (IFP) receivable book for $240 million provides working capital flexibility and an ongoing financing arrangement to support growth of the IFP book without working capital strain.