Profitability Improvement
Adjusted EBITDAI increased to $471 million, up 5.1% year‑on‑year (reported EBITDAI up ~10%), and adjusted NPAT rose to $73 million, up 30.4%, driven primarily by higher EBITDAI and cost discipline.
Strong Free Cash Flow
Free cash flow strengthened to $107 million in H1, up 84% year‑on‑year, reflecting operating leverage and lower cash tax payments (timing related); management reaffirmed FY'26 free cash flow guidance of $290–$330 million.
Mobile Momentum
Total mobile service revenue grew 1.6% in H1; consumer/SME pay monthly ARPU grew 5%; pay monthly mobile acquisitions increased 15%; Skinny prepaid New Zealand base grew 2%; enterprise ARPU decline moderated to -7.8% from -13.4% at end FY'25.
Cost‑out Program Delivering
Delivered $51 million of net cost savings in the half (including $55 million net labor cost reductions and $12 million product cost reductions), and remains on track for an FY'26 cost‑out target narrowed to $40–$50 million.
Network and CX Leadership
Extended coverage leadership to include 5G (independently rated by Opensignal); completed 100+ site builds/upgrades; transitioned to a 5G standalone core improving peak speeds by ~75%; iNPS rose 5 points year‑on‑year; AI initiatives improving network efficiency and CX.
Data Center Transaction Strengthens Balance Sheet
Completed sale of data centers while retaining a 25% stake in TenPeaks Data Centres; received initial cash proceeds of ~NZ$453 million (with up to NZ$98 million deferred contingent proceeds), reducing pro‑forma net debt ex leases to ~NZ$940 million and lowering net debt/EBITDAI to ~1.7.
Capital Expenditure Discipline
H1 total CapEx was NZ$271 million (including NZ$54 million strategic CapEx for data center land); BAU CapEx of NZ$217 million was down ~8.8–9% year‑on‑year as 5G rollout matured; FY'26 BAU CapEx guidance maintained at NZ$380–$410 million.
Shareholder Returns
Board declared an interim dividend of NZ$0.08 per share (50% imputed), supported by improved cash generation and reaffirmed cashflow guidance.
Sustainability and Social Progress
Scope 1 and 2 emissions are 32% lower than the required path to meet the 2030 target; Skinny Jump now supports more than 34,500 households; continued focus on ethical supply chain management.