Good morning. My name is Justine Smyth, and I am the Chair of Spark New Zealand. On behalf of the Board, I'd like to welcome you to Spark's 2025 Annual Meeting of Shareholders. Just before we get started, some housekeeping matters. Bathrooms are located in the atrium. In the unlikely event of an emergency, please use the venue using the nearest exit and follow the instructions of the Spark employees, who will be on hand to direct you outside to the assembly point. I can tell you this morning, unexpectedly, we had a fire alarm go off, so we did all we have to evacuate, and our staff performed very well, so they know exactly what they're doing. You're in good hands. It's unfortunate, but never mind. With that taken care of, I'd now like to declare the meeting open.
Based on the information conveyed to me, I confirm there's a quorum of shareholders, and the meeting is duly convened. Today, you'll hear from me as Chair of the Board and from our CEO, Jolie Hodson. We then will put forward the resolutions as described in the notice of meeting and respond to general questions put to us by shareholders. For those of you joining us virtually, you'll be able to vote and submit questions during the meeting. We'll respond to the questions on the resolutions when we get to that part of proceedings, and we'll also have time to respond to general questions after the resolutions. I would now like to introduce my fellow Directors who are on the stage with me. From the left of the stage, we have David Havercroft, Lindsay Wright, Tarek Robbiati, Jolie Hodson, Vince Hawksworth, Lisa Nelson, and Warwick Bray.
Also present today is our Chief Financial Officer, our Chief Legal Officer, our Company Secretary, auditors from Deloitte, lawyers from Russell McVeagh, and our Share Registrar. I'd now like to turn to our performance over the past year. The past 12 months have been one of the toughest periods in Spark's history, as we faced economic headwinds and lower customer spending. We acknowledge that not all the challenges we face were beyond our control, and understand shareholders would rightly be concerned by our share price performance. At our AGM last year, I outlined the actions we would take to improve the performance. This included refocusing Spark on our core business of connectivity, simplifying our portfolio by divesting non-core assets, expanding our cost-out reduction program, and generating value through our data centre strategy. Good progress has been made against these priorities. Connectivity is at the heart of Spark.
It accounts for 80% of the group's gross margins. This is why we have renewed our focus on our core, and in particular, building our momentum in the mobile market. To support this focus and recycle capital into our core business, we undertook a strategic review of non-core assets, and as a result, we completed the sale of our remaining stake in our cell tower business, Connexa, and we disposed of our small shareholding in Hutchison Telecommunications Australia, delivering combined proceeds of NZD 356 million. We introduced four new global partnerships into our IT network and IT operations to improve customer experiences while supporting significant cost reductions. At the start of August, we announced an agreement to sell a 75% interest in our data centres to Pacific Equity Partners, valuing the business at up to NZD 705 million and securing a funding pathway to build out our significant data centre development pipeline.
This partnership allows us to realize value for our data centers in the short term, but while retaining a 25% stake in this growing market to create value for our shareholders over the longer term. There's still more work to do, and we remain focused on delivering what we said we would. I'd like to recognize our Spark people for their commitment as we have reshaped the business to respond to our changed operating environment and to set Spark up for a stronger future. Turning now to our FY25 financial performance. Our results include reported and adjusted figures following the Connexa transaction and the transformation costs connected to our operating model changes. Reported results also exclude the data center business, as it was classified as an asset held for sale for accounting purposes.
Both reported and adjusted year-on-year comparisons are provided on screen now, and I will speak to the adjusted numbers so that you have a like-for-like comparison. On an adjusted basis, FY2025 revenue declined 4% to NZD 3.7 billion. EBITDA declined 9% to NZD 1,060 million, and net profit after tax declined 34% to NZD 227 million. Free cash flow of NZD 330 million was the same as in FY2024, despite lower earnings, because we reduced total CapEx by 17% to NZD 429 million. Our Return on Invested Capital was 8.7%, which continues to outperform the majority of our global peers. The Board declared a final dividend of NZD 0.125 per share in line with guidance, bringing the total FY2025 dividend to NZD 0.25 per share. In line with our focus on transformation, the Board undertook a review of Spark's capital management settings during the year with an aim to maximize shareholder value.
Our updated capital management framework has three core focus areas. Maintaining financial strength, ensuring an appropriate return on our investments, and sustainable shareholder returns. From FY2026, we have made changes to our dividend policy to support a sustainable dividend funded by free cash flow. Our definition of free cash flow now includes changes in working capital and capital expenditure used to operate our core business. Moving forward, the only capital expenditure that will be excluded from free cash flow will be spectrum purchases and strategic investments outside our core business, such as data centres. We have also changed our target dividend payout ratio to 70%-100% of free cash flow to provide flexibility if needed in the future. This means that the dividend guidance we provide you each year will be aligned to free cash flows.
This brings me now to FY26 guidance, which reaffirms what we provided to the market at our FY25 results. Adjusted EBITDA: NZD 1,010 million to NZD 1,070 million. This assumes that the data centre sale completes by the end of December 2025, and it excludes any gain on that sale. Business-as-usual capital expenditure: NZD 380 million to NZD 410 million. Strategic capital expenditure, which is effectively our data centres, NZD 50 million to NZD 70 million. Free cash flow of NZD 290 million to NZD 330 million. We are guiding to a dividend payout ratio for FY26 of 100% of free cash flow. As we look ahead, we are firmly focused on returning Spark to top-line growth and improving shareholder returns. Recognizing our environment has changed significantly since we last announced our last strategy in April 2023, the Board has approved a new five-year strategy.
Spark takes a long-term view and provides our shareholders with clarity around Spark's strategic priorities and where we will invest to differentiate ourselves from our competitors. We are refocusing Spark from a broader digital services ambition to our core business of connectivity. Capital allocation will be prioritized to our core, and we will continue to build a scalable cost base through partnerships and AI. By focusing our investment on what matters most to our customers, our network, and customer experiences, we will give our customers more reason to keep choosing Spark. Jolie will take you through the strategy in more detail shortly, but our focus over the next five years is returning Spark to its history of stable performance with predictable free cash flow and growing dividends for our shareholders.
In a year of significant change for Spark, we've also taken the opportunity to undertake Board Renewal to bring further depth and breadth to an already experienced Board. Lindsay Wright, Vince Hawksworth, and Tarek Robbiati bring broad governance and senior management experience and deep sector knowledge across telecommunications, capital markets, infrastructure investment, and retail customer sectors. You will hear more from each of our new directors this morning. Before I wrap up, I am offering myself for re-election today. Recognizing my tenure, the Board remains focused on identifying a new Chair for Spark, and this succession process continues. As such, my intention is to serve for a period of just up to 12 months to facilitate successful transition to a new Chair and to support ongoing stability for Spark as it embarks on its new strategy.
As I offer myself for re-election, I want to say what an honor and a privilege it has been to serve you, our shareholders, as a Director for the past 14 years and a Chair for the past seven. I acknowledge recent years have been especially tough. Restoring market confidence is my number- one priority as Chair. We have made strong progress in transforming the business, and we have started FY26 with renewed focus and determination. The Board and I remain committed to realizing our ambitions in the years ahead, and thank you for your continued support. [Foreign language] I will now invite Jolie to address the meeting.
[Foreign language] Good morning, everyone, and thank you, Justine. I want to begin by thanking our shareholders for your support and our Spark people for their considerable efforts as we've worked hard to transform our business and respond to the challenges we have faced in recent times. Justine has provided details on the actions that we've taken to transform during FY25 and our high-level financial results. I will now take you through the steps we're taking to drive momentum in our business before detailing our new strategy. Connectivity is our core business, and Mobile is our number- one priority. We have a significant program of activity supporting Mobile that is driving momentum in FY26, including new high-data plans, new brand campaigns, and new price points across the market. This is moving the dial and Spark remains the number- one mobile provider by some distance, with 41.4% total market revenue share. Broadband remains competitive, with connections declining by 3.8%.
Positively, the revenue decline we have experienced in the first half stabilized in the second. This remains a key part of our core connectivity portfolio. In IT, we saw cloud revenues continue to grow off the back of strong public cloud growth. However, the shift from private cloud put pressure on margins. IT services revenue declined due to lower market demand. As we look ahead, we'll continue to simplify this portfolio. During the year, we expanded the focus of our cost reduction program and undertook a significant redesign of our operations. We also transformed our technology delivery model, which refers to how we operate our IT and network functions across the business. Our new technology delivery model includes four key partnerships, which allow us to leverage our partners' global expertise and investments in AI and automation to deliver better customer experiences in a more efficient way.
Across all these partnerships, Spark retains our critical assets and control over all components of competitive advantage. This transformation has brought significant change for our people. It's never easy to make changes that impact our teams, and we do not do so lightly. To deliver a leaner, more competitive business in a changing market, we have had to make the tough but necessary choices to set Spark up for future growth and to ensure our cost base is sustainable. Overall, we delivered a $85 million cost reduction in the second half compared with the same period in FY2024. This ensures we're in a stronger position as we move into FY2026 and embark on our new five-year strategy. After the first quarter of FY2026, trading is tracking in line with our expectations with a new brand campaign, iPhone launch, and price increases supporting mobile service revenue growth.
The FY26 productivity program is on track, with significant savings delivered across labor and more of the savings realized in product costs than in OpEx in FY26. As noted in August, we've outweighed our investment around our marketing to support the growth in a competitive market. We've also seen the impacts of some additional partnership costs in OpEx, which are more than offset by the labor reductions. Turning now to the future, we know that connectivity will only become more central to our customers' lives. Data usage on our mobile network has averaged around 14% growth every year over the past three years. This also drives up demand for cost-effective cloud and data center solutions. Rapid AI advancements will enable us to do things differently, both within our own business and for our customers. In the near term, we expect economic conditions to remain subdued.
We are hopeful of improvement as we continue to see quantitative easing and incentives for businesses to invest. We know our competitive environment will continue to change, and this makes our adaptability as a business and the scalability of our cost base critical to our success. It is important to remember that we are building on strong foundations, and this can be overlooked during times when performance has been challenged. We have leading positions in our markets, in our network quality, and in our brand strength. We have privileged positions in the highest value mobile segments with high levels of customer loyalty. Our customer experience, Net Promoter Score, has grown every year for the last five years to an all-time high. We have a significant customer base across Consumer, SME, and Enterprise and a highly valuable asset base that reaches almost all New Zealanders.
Our Return on Investment continues to outperform global peers. The focus of our new strategy is to strengthen and grow this position. This brings me to our FY30 strategy. Our purpose on the left is enduring. We see ourselves as an enabling business that is here to help all of New Zealand win big in a digital world. Our ambition for the next five years is it's better with Spark, whether it's our financial performance, network performance, customer experiences, or workplace culture. We want it to be better with Spark, better than our competitors, but also better than we are now, continually improving the things that matter most. That's our ambition for the next five years. This is underpinned by a focus on delivering a better network and better customer experiences. A network will invest where it matters most for our customers.
We'll leverage AI and automation to proactively resolve network issues and uplift regional resilience. We'll also explore new commercialization opportunities from our leading 5G Standalone investment. Customer experience remains core to our success, and we aim to continue improving every year by being there for our customers when it matters, being simple and easy to deal with, and by valuing our loyal customers. We've then made two clear strategic choices: to Lead in Core Connectivity and Simplify and Optimize Beyond the Core. Our capital investment will be prioritized behind Core Connectivity, and that includes Mobile, Broadband, and our Business Connectivity, such as Managed Data Networks, the Internet of Things, Collaboration, and Voice. When we look beyond the Core to Cloud, IT services, and Procurement, our focus will be on simplifying these parts of the business.
We have leading positions in these areas in the New Zealand market, and when we compare ourselves with global peers with similar scale IT business, we have favorable profit margins. That aside, we operate in more fragmented competitive environments in these segments, where changing mix and demand is impacting profitability. This requires a different approach to our focus in the core. Finally, our strategy is enabled by four key areas: People and Culture, Technology and AI, Financial Discipline, and Sustainability. As Justine noted, our focus over the next five years is on returning Spark to its history, stable performance with predictable free cash flow and growing dividends over time, and with an ambition of growing Return on Invested Capital to 11%-13% by FY2030. I will finish today with our value proposition. This remains a profitable business with strong foundations within our sector.
Our core connectivity business is supported by positive tailwinds as connectivity becomes more central in our customers' lives and data usage increases year on year. We have leading market positions across all connectivity segments. We have leading AI capability and access to new global partnerships that will enhance our competitive advantage in New Zealand. We have a proven track record of cost discipline and adapting our business when we need to. Portfolio management supports shareholder returns. Our focus is clear, and our ambition is to deliver growing returns for our shareholders. Finally, as I offer myself for re-election as an executive director this year, I want to finish by saying that it has been an absolute privilege to lead our team of incredible people here at Spark and to serve on the Board.
The past couple of years have been incredibly challenging, and I acknowledge the impact this has had on our shareholders. We have taken decisive action to transform our business within this changing environment, and I'm committed to seeing this through and returning Spark to growth. I would like to acknowledge the support of you, our shareholders. [Foreign language]
Thank you, Jolie. We now return to matters requiring resolutions. Outlined in the Notice of Meeting, with a poll to be called on each resolution. The polls will be conducted at the end of the resolutions, and your ballot papers and online voting cards will be collated by our Share Register, MUFG. Each of the resolutions one to six set out in the Notice of Meeting are to be considered as ordinary resolutions.
To be passed, they require the approval of a simple majority of votes cast by shareholders entitled to vote and voting on the resolution. There will be an opportunity for shareholders to ask questions in person, online, and over the phone on each matter at the end of the discussion of the resolution. There will also be a further opportunity to ask general questions following the resolutions. When I call for questions, for those of you who are attending in person, can I please ask that you raise your hand to receive a microphone and clearly state your name prior to asking your question? In the interest of fairness to all shareholders, anyone wishing to speak should be as concise as possible and be considerate to other shareholders.
Shareholders are asked that they ask one question at a time to give other shareholders a reasonable opportunity to raise any questions they may have, with opportunities to ask further questions later. We will also be responding to questions from shareholders attending virtually via the online portal and those attending on the phone. If there are any questions that relate to personal customer matters, these can be directed to the Customer Services support people we have available here at the desk in the foyer once the meeting is closed. Any customer-related questions online will be directed to our Investor Relations team, who will address these directly following the meeting. For shareholders attending via the online portal, please submit any questions you have on any of the resolutions or on General Business now. For shareholders participating by phone, please press star one to join the queue to ask a question.
The operator will ask for your name and the Resolution that you'd like to ask a question on, and you'll be introduced at the appropriate time during the Q&A session. I'd like to take this opportunity to remind everyone that this meeting is being webcast, so you'll also be heard and recorded by an audience outside of this room. Our first Resolution concerns the re-election of Lindsay Wright as a director of Spark. Lindsay joined the Board as a Non-Executive Director in August 2025. Lindsay now offers herself for re-election in accordance with the NZX listing rules. The Board does recommend Lindsay to you as an Independent Director of Spark and unanimously supports her re-election. I now invite Lindsay to address you.
Good morning, shareholders. My name is Lindsay Wright, and I'm honored to stand before you today to seek re-election as a Director of Spark. I bring extensive commercial, business, and strategic expertise to Spark. With over 30 years in executive roles across the financial services sector, I have a deep understanding of asset management and capital markets, both within New Zealand and internationally. I have well-developed expertise in risk management, capital management, strategy, investments across public markets and alternative assets, finance, and business transformation, including digital transformation. Throughout my career, I've developed demonstrable leadership skills and experience, not only in traditional functional roles, but also in senior positions across the Asia-Pacific region, including CEO and head of region responsibilities at several of the world's leading asset management firms. As a result, and I think importantly, I understand how to grow businesses organically and through acquisition and partnerships and have a deep understanding of the expectations and requirements of investors.
My executive career has given me a well-developed appreciation for diversity, informed by living and working in cities around the world such as Sydney, Tokyo, Singapore, New York, Beijing, and Hong Kong. I value diversity of thought, knowing it leads to better outcomes, and I bring this perspective to Spark. In addition to my executive experience, I also have strong governance capability, spanning a wide array of executive directorships and regulated asset managers, securities firms, banks, and private equity and infrastructure investments throughout the Asia-Pacific region. I also have over 15 years of experience serving non-executive directorship positions here in New Zealand. Notably, I've served with the Guardians of the New Zealand Superannuation Fund as Deputy Chair and Chair of the Audit and Risk Management Committee, as well with Kiwi Bank and Kiwi Wealth.
I currently serve as an Independent Director of NZX Limited, where I Chair the Audit and Risk Management Committee. Additionally, I'm an Independent Director and Chair of the Audit and Risk Management Committee at Milford Asset Management and serve on its Board Investment Committee and Remuneration Committee. I also act as an Independent Director for Navigator Global Investments, an ASX-listed alternative firm, contributing as a member also of the Audit and Risk Management Committee. This governance experience has enriched my ability to contribute significant value to Spark. I bring well-developed understanding of industry best practices and regulatory compliance specific to public markets. Overall, I'm committed to leveraging my skills and experience to support Spark's success. Ensuring that my contributions advance the company's growth and effective capital management. On a personal note, my intellectual curiosity drives my passion for the industry and its crucial role across the economy.
I believe in the continued growth of New Zealand's telecommunications sector, with Spark continuing to play a leading role. In my current capacity on the Spark Board, I serve as the Chair of the Audit and Risk Management Committee. These roles have provided me, albeit early days, a strong understanding of Spark's operations and the governance frameworks necessary for effective oversight. I'm acutely aware of the challenges facing our business, and I'm committed to supporting Spark's strategic repositioning through carefully considered and deliberate change. I believe that by pursuing this strategic change, we are laying the foundations for a more robust enterprise capable of delivering sustainable value to you, our shareholders. Progress has already been made. However, there is a lot more to do. While we have encountered challenges along the way, our focus remains on continuously learning, actively listening, and responding constructively to challenges.
We are dedicated to integrating these valuable lessons into our operating model, ensuring ongoing improvement in how we manage the business. I'm seeking election to the Board because I believe . With regard to the first part, the succession plan, I joined the board three months ago. I have been working with the various other board colleagues in relationship to the development of the refresh board and the related succession planning, which will occur both for the Chair and the other senior leadership management, as you would expect. In terms of international capability and bringing that back to New Zealand, I've been back in the country about a year, so I've been away for 23- odd years. Certainly, I think having been involved in very competitive businesses, particularly the financial services, bringing that real focus to the core activities and doing them extremely well. I think you heard that through both Justine and Jolie's address in terms of the strategy refresh.
Thanks, Lindsay. Any other questions from the floor? We do have a question online or on the phone.
Thank you. We've got a question from shareholder Paul Grant from online. Lindsay, what area of Spark do you feel needs the most of your attention?
Given my skill set coming onto the board. Where I believe I add a lot of value, and I just mentioned it in my address, is around the commercial and business acumen and working with both the board and the team on the organic and partnership development of the strategy. I think I bring a lot of experience with regard to governance, both from my executive governance roles, but more particularly my independent roles through the last 15 years here in the New Zealand market.
Given my broader background, particularly my capability in risk management, both financial and broader enterprise, I think I bring a lot of value. And then really working with the team on the ongoing business transformation. I think those are probably the key skills that I'll be bringing to the organization and to the Board.
Thank you, Lindsay. Any other.
No?
No other questions? Great. Thank you. Our second resolution concerns the re-election of Tarek Robbiati as a Director of Spark. Tarek joined the Board as a Non-Executive director in October 2023, just last month. Tarek now offers himself for re-election in accordance with the NZX listing rules. The Board recommends Tarek to you as an Independent Director of Spark and unanimously supports his re-election. I now invite Tarek to address you.
Thank you, Justine. And good morning, shareholders. It is a pleasure for me to meet you and an honour and privilege to be here at my first Spark annual shareholder meeting to be considered for election to the Spark Board. By way of background, I come here from my home in Los Gatos, California. I am an Italian citizen, and I have been lucky enough to work around the world throughout my career, from Italy to France, Latin America, the U.K., Australia, China, and now New Zealand and the United States. I am married to a New Zealand citizen, and I have been coming to New Zealand very frequently since 2015 and obtained my permanent residency in Aotearoa in 2021. I consider it a privilege to be able to spend time here both personally and professionally. I have spent more than 30 years of my career in telecoms, technology, and financial services industries in various roles.
I started my career as a Strategy Consultant with Accenture, working on various assignments in the telecommunications space and technology industries in Europe, Latin America. I became a Senior Research Analyst in telecommunications and media in London with Lehman Brothers and subsequently moved into various executive roles in the industry since then. I served as head of corporate finance with Orange in the U.K. and moved to become Deputy Chief Financial Officer of Telstra Corporation in Australia. I moved to China to take on the role of CEO of Telstra's mobile subsidiary in Hong Kong, CSL Limited, and became Group Managing Director of Telstra International Group. I also served as CEO of Flexi Group Limited, an Australian financial services company, and eventually moved to the United States to become the Chief Financial Officer of Sprint Corporation, leading its transformation ahead of its merger with T-Mobile.
Since 2018, I have worked in the technology sector in Silicon Valley, first as Chief Financial Officer and Executive Vice President of Strategy for Hewlett Packard Enterprise, and I'm now the Chief Financial Officer of Pure Storage, the number one provider of data storage and management solutions globally with a market capitalization of $33 billion. Throughout my career, I have helped companies fundamentally transform and grow their businesses organically and inorganically. In parallel, I'll turn my attention to governance since 2006, when I became Director of Telstra Clear New Zealand and served in various non-executive and executive directorship roles in private and publicly listed companies. I currently serve on the Board and Chair the Audit Committee of Digicel Holding Bermuda Limited, the largest mobile operator in the Caribbean, operating in 25 countries. Now on to Spark.
The reason why I joined the Spark Board is because I believe this company is uniquely positioned in New Zealand to drive the next generation of intelligent communications to consumers and businesses alike. I bring a unique perspective to the Board, one that combines 25 years of telecom industry operating experience with deep financial expertise that will contribute to the diversity of our discussions. I have extensive executive experience in strategy, finance, and enterprise transformations. I have worked in major corporations globally and have deep knowledge of debt and equity capital markets that have helped me appreciate and understand what shareholders expect. I have worked with companies that required transformation and restructuring, companies that are leading their industries, as well as companies that have a complex portfolio of assets that embarked on a journey back to growth.
I have real-world operating experience on a global basis to provide sound counsel to Spark as it works to realize its full potential. I am very excited to have joined the board of Spark and to be here in front of you today asking for your vote and endorsement for my election. Thank you very much.
Thank you, Tarek. I now propose that Tarek Robbiati is re-elected as a director of the company. Are there any questions concerning the motion relating to Tarek's re-election, either from the floor or from online? Thank you.
Yes, Mr. Sharoff, shareholder. Mr. Robbiati, where are you currently based and how much time do you expect to be able to devote to Spark in your role, if you're elected?
Thank you for the question. I'm currently based in California, and needless to say, as part of my appointment to the Board of Spark, we had extensive discussions with Justine and my fellow Directors about my commitment of time. I'm committed to serve the right amount of time necessary to help Spark execute its strategy, and this is why I'm here. It will be as necessary for all the board meetings and around the Board meetings as the company requires it.
Yeah, I'll just add to that. I mean, any Director spends the time required to both attend Board meetings and prepare for Board meetings. Tarek is absolutely committed to doing the same amount of work that any Director you'd expect to undertake as a Director of Spark. The other thing I'd add is that we are incredibly fortunate to have and b eing able to attract, and I think it has something to do with the wife, but to be able to attract the talent of Tarek to this board, it is really hard to get somebody with the amount of experience, in-depth experience he has across all parts of the sector. We are really hugely fortunate, and we're really fortunate that he has, as I say, committed the time and to spend with us and really deliver in his role. Any?
Is there a mic or do I need a mic? Best to have one. Best to have one. Hi, I'm a shareholder. I welcome your. Visiting our companies in New Zealand. I want to ask you, what is the single biggest thing you see with all the experience you have with all the other companies around the world and in our space that Spark needs to do immediately to turn the financial performance around?
Thank you very much for the question. I think it's absolutely pertinent. Given the journey that Spark has been on for the past two years, which were very tough. Our focus is really around executing the strategy. It's all about strategy execution and delivery of the commitments and the guidance we stated to the market. I am vividly focused on this issue. Strategy is wonderful, but without execution, you don't get anywhere. That's why I'm here.
Thanks, Tarek. Are there any other questions from the floor? We do have one online, so I'll go there.
Thank you. I've got a question from shareholder Paul Grant. Tarek, what do you believe will get Spark's share price rising again?
Thank you, Mr. Grant, for the question. Again, it's about execution and returning the company to growth. I think our Chief Executive, Jolie, made a strong point about this. This is where the focus of the management team is, the focus of the Board is. Essentially, our strategy, just to repeat a little bit what Jolie has said, is really to reignite the growth in our core mobile connectivity business, and that's what we're here to do. Returning to growth is the number- one priority to get the share price to rise again as the valuation multiples are directly correlated to the amount of growth that we are able to generate.
Thanks, Tarek. Any other questions for Tarek? Sorry, we had another one online.
Yeah, we've got a question from Stephen Mayne, shareholder. It's unusual to appoint three new independent directors in the three months leading into the AGM. Which recruitment firm assisted with this process? Did the full Board interview any other candidates? Could each of the new Directors, including Tarek, comment about their experience of the recruitment process?
Yes, we have done an extensive search and process in relation to appointing new Directors. As we went through that process and had a lot of very good candidates that we spoke to, we have spoken to other candidates than what's sitting in front of you here today. What we realized was when we were trying to choose particular candidates, that between the three of Tarek, Vince, and Lindsay, we have such a great broad range of skills that are covered right across the Board.
We decided that the Board refresh to appoint all three directors was really going to set Spark up in terms of the new strategy execution. Obviously, as well with the fact that I will be only serving for another period of 12 months. That is why we brought on three new Directors. We had great talent in front of us, and we thought it was the right thing to do to really reinvigorate and actually bring such a broad range of experience across these three because they really do complement each other. They have very different skill sets, some common, but they really do complement each other. We did use a recruitment firm. I do not think we normally would disclose the name of that firm, but we did. It is a firm we have used and had a relationship with a long period of time.
Great. We've got one more question online from Zhao Ganggan, a shareholder, to Tarek. Right now, Tarek, you're a full-time CFO. What is your vision for the Spark from the financial and technology perspectives?
Thank you, Mr. Zhao, for the question. I think this has been by and large answered by our Chief Executive, Jolie, but let me reiterate. I think it's really important that we return the core mobile business to growth and that we stand out in the New Zealand market with our mobile business capabilities. That should translate into better financial performance given our position, enabling also a number of different applications for consumers and businesses alike.
No further questions.
Okay, thank you. Our third resolution concerns the re-election of Vince Hawksworth as a director of Spark. Vince joined the board as a Non-Executive Director in October 2025. Vince now offers himself for re-election in accordance with the NZX listing rules. The Board recommends Vince to you as an independent director of Spark and unanimously supports his re-election. I now invite Vince to address you. He's keen as mustard. I can tell that.
[Foreign language] I extend my welcome to you, our shareholders, today. My name is Vince Hawksworth. I was born in the U.K. and trained as a mining engineer. I also have an MBA from Waikato University. Most recently, I was Chief Executive of Mercury New Zealand, having previously led TrustPower and Hydro Tasmania. My career has always put me at the intersection of customer needs, people, and technology. I have significant leadership experience and believe that organizational culture and belief are at the heart of performance.
I respect Spark's distinguished heritage and its critical role as a leader in New Zealand's digital future. I also recognize that shareholders expect their company to deliver results, and this requires focus and teamwork. I look forward to working with my Board colleagues, Jolie, and the executive team. It is a privilege to put myself forward for re-election as a Non-Executive Director at Spark New Zealand. I am currently a director of Powerco New Zealand and a Trustee of the Starship Foundation. I'm also working with DataGrid New Zealand on its ambitions to develop a hyperscale data centre in Southland. Spark's Board Charter sets high standards for governance and independence, requiring Non-Executive Directors to act autonomously, remain free from conflicts, and place shareholder interests first. My career has been guided by these values, and if I am re-elected, I will bring impartial oversight and an independent perspective.
Through my executive experience in the energy sector, I have led transformation initiatives that parallel Spark's ambitions. Like driving the integration of TrustPower and Mercury systems to increase performance, reduce costs, and bring new products to customers, creating New Zealand's largest multi-utility retailer, which resulted in increased value to shareholders. Spark's strategy demands Directors who combine industry knowledge, ethical judgment, and commercial acumen. I bring a strong track record in strategic leadership, risk management, and sustainable growth. My executive roles have spanned large-scale integration projects, resilience planning, and responsible capital allocation, delivered with culture as a key enabler of performance and success. All directly relevant to Spark's vision for market leadership and innovation. I will work to ensure Spark meets its obligations for transparency, environmental stewardship, and risk governance, helping the company grow responsibly and remain a trusted partner for stakeholders.
In summary, my passion for technology, proven leadership in transformation, and dedication to responsible governance positioned me to contribute meaningfully to Spark and you, its shareholders. I ask for your trust and support as we work to ensure Spark thrives in a dynamic digital landscape. [Foreign language]
Thanks, Vince. I now propose that Vince Hawksworth be re-elected as a director of the company. Are there any questions concerning the motion relating to Vince's re-election, either from the floor or online? Okay, nothing from the floor. I'll take the online question.
Thank you. Question from shareholder Paul Grant. Vince, what area of expertise can you offer in terms of getting Spark's share price growing again?
Thank you, Mr. Grant. Look, I think what I really bring is the ability to integrate thinking, some real industry experience in New Zealand, in this utility sector, in the broader sector. Got to remember, the competitive environment isn't just telcos anymore. The competitive environment is full of people entering. I guess I was Chief Executive of one of those competitors. So I've seen Spark as both a customer and a competitor. I think what I can bring is insight and some New Zealand relevance and cohesion to the debates that will occur around the Board table.
Thanks. Thanks, Vince. Have a further question online?
Yes, thank you. Just a follow-up question from Stephen Mayne. Specifically, could Vince and Tarek and Lindsay comment about their experience of the recruitment process that you talked about before? And just detail if they knew any of our Directors or Senior Executives before engaging with the recruitment process.
Why don't you take that, Vince? Yeah,
Yeah . Look, from my perspective, the recruitment process was robust and arduous. We had numerous sub-interviews with the Board. Opportunity to ask questions and do our due diligence. In my case, in terms of knowing people who were already on the Board. I guess New Zealand's a relatively small market, so I would have probably bumped into most of those people. Obviously, as a former Chief Executive in the New Zealand market, I knew Jolie, and that's not surprising, both as a customer of Spark, but also as one of our competitors. I think I would summarize it by saying that the process explored deeply the contribution that we could make or that I could make to the Board, the fit, which I think is incredibly important, the cultural fit to make a difference, to get things going in the direction we want them to. I think also it explored our commitment. I can tell you, I am committed to seeing this strategy work.
Thank you, Vince. Just perhaps I'll add for clarity. Before we went through the process, before I spoke in my conversations with any of Vince, Tarek, or Lindsay, I had never met them before. Just to make that clear, even though New Zealand is a very small market. What I would also add, whether you've observed it or not, we make quite a determined effort on our Board here to make sure there's not a lot of cross-directorships on the Board. I don't think any of us, none of us, sit on another Board with the other, which is quite something in this very small market. Anything? Yes.
Thank you, Vince, for that very comprehensive presentation. Can I ask you, with your experience in the electrical market in New Zealand, can you see a big opportunity for Spark to get some real cost efficiencies from our suppliers?
I'm really looking forward to the answer.
I would say that Spark would be a fantastic customer for any of the suppliers, and we should never shy away from putting commercial pressure on those suppliers to do better.
Any other questions for Vince? There's nothing more online. Okay. Thank you. Our fourth resolution concerns the re-election of Jolie Hodson as a director of Spark. Jolie joined the board as an executive director in September 2019. Jolie retires by rotation in accordance with the NZX listing rules and now offers herself for re-election. The Board recommends Jolie to you as a director of Spark and unanimously supports her re-election. You have already heard from Jolie earlier, so I now propose that Jolie Hodson be re-elected as a Director of the company. Are there any questions concerning the motion relating to Jolie's re-election, either from the floor or online? I do have a question online.
Thank you. Question from Paul Grant. Jolie, in what areas is Spark losing market share, and what are you doing about it?
Thank you, Mr. Grant. Our focus in terms of market share, particularly in Mobile, has been making sure that we are investing in that core connectivity. You've seen the additional work we've been doing around our brand, but also in our network, which provides really strong experience for our customers and is the thing that enables us to do everything that we do to support whether you're a business, an individual, or a community group wanting to achieve the things you do through digital technology. Just to clarify, our market share, we have leading positions in all of our marketplaces. If you look at our overall mobile market share, our revenue share sits at 41.4%.
We lost 0.4 of a percentage point, some of that to smaller MVNO players, and particularly in that lower end of the market, where with a tougher economic environment, people have looked for some more cost-efficient plans. Overall, when we look through all of the segments that we operate in, we have strong positions.
Thank you, Jolie. Any other questions for Jolie? Great. Thank you. The next resolution concerns my own re-election as a director of Spark New Zealand. I have asked Warwick Bray to Chair this part of the meeting for me. Thank you.
Thanks, Justine. Justine is retiring by rotation in accordance with the NZX listing rules and offers herself for re-election. Recognizing Justine's tenure, the Board remains focused on identifying a new Chair for Spark, and this succession process continues.
Justine's intention is to serve for a period of up to 12 months to facilitate a successful transition to a new chair and to support ongoing stability for Spark as it embarks on its new strategy. The Board recommends Justine to you as an Independent Director of Spark and unanimously supports her re-election. I now propose that Justine Smyth be re-elected as a Director of the company. Are there any questions concerning the motion relating to Justine's re-election, either from the floor or online?
Oh, from online. Thank you. We've got a question from Stephen Mayne. Thank you for disclosing the proxies early to the ASX along with the formal addresses. Could the chair comment on whether she is surprised that of the five Directors up for election today, she suffered the largest proxy protest vote with 7% against her re-election? Did any of the proxy advisors recommend against her re-election based on tenure concerns?
I guess another way of putting that is that more than 90% of the votes were for Justine's re-election. She was unanimously supported by the Board, and specifically, all of the proxy advisors supported Justine's re-election. I've got one more. I've got a question online.
Thank you. A question from Edmund Good, shareholder. Justine, why should shareholders re-elect you as a director considering the result of the company's performance and failure to adequately manage the changes in the economy/government policy?
Justine has been an outstanding Chair of Spark. Justine has overseen the new strategy that's put in place. The directors unanimously asked Justine to stay on for this extra year. In this period of transition, which we felt was very important to have stability in the board and to. Oversee the company in this time of transition, the board felt stability was important. Another question online.
Yeah. Sorry, you were just compiling the list. One second. Compared with one year ago, the stock price of Spark significantly decreased. What is the reason behind this, even if Spark did sell some assets? Justine, how do you expect to address this?
In terms of selling assets, we had a strategic review, and as part of that review, we sold further assets in terms of the telecommunications towers, our holding in Hutchison in Australia, and our data centers. It has been a tough year, as acknowledged in Justine and Jolie's speeches. It's been a tough year in terms of cost of living. It's been a tough year in the telecommunications environment. We've put in place a new strategy, and we're confident that implementation of that strategy will lead to a return to growth.
Thanks. No further questions online.
There's a question from the floor.