Spark New Zealand Limited (SPK.AX) Earnings Call Transcript & Summary

[Foreign Language] Good morning. My name is Justin 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 and 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. And I can tell you this morning, unexpectedly, we had a fire alarm go off, so we did 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 is there 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 of David Havercroft, Lindsay Wright, Tarek Robbiati, Jolie Hodson, Vince Harworth, Lisa Nelson, and Warwick Bray. Also present today is our Chief Financial Officer, our Chief Legal Officer, our Company Secretary, auditors from Deloitte's, lawyers from RustmcVay and Asher 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 faced 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 assets, expanding our cost-out reduction program and generating value through our data center 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 on momentum in the mobile market. To support this focus and recycle capital to our core business, we undertook a strategic review of noncore assets. And as a result, we completed the sale of our remaining stake in our cellar business, Kane and we disposed of our small shareholding in Hutchison Telecommunications Australia, delivering combined proceeds of $356 million. We introduced 4 new global partnerships into our IT network and IT operations to improve customer experiences while supporting significant cost reductions. And at the start of August, we announced an agreement to sell 75% interest in our data centers to Pacific Equity Partners, valuing the business at up to $705 million and securing a funding pathway to build out our significant data center 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 FY '25 financial performance. Our results include reported and adjusted figures following the [indiscernible] transaction and the transformation costs connected to our operating model changes. Reported results also exclude the data center business and it was classified as an as held for sale for accounting purposes. So 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, FY '25 revenue declined 4% to $3.7 billion, EBITDA declined 9% to $160 million, and net profit after tax declined 34% to $227 million. Free cash flow of $330 million was the same as in FY '24 despite lower earnings because we reduced total CapEx by 17% to $429 million. Our return on invested capital was 8.7%, which continues to outperform the majority of our peers. The Board declared a final dividend of $0.125 per share in line with guidance, bringing the total FY '25 dividend to $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 34 core focus areas: maintaining financial strength, ensuring an appropriate return on our investments and sustainable shareholder returns. From FY '26, 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 centers. We have also changed our target dividend payout ratio to 70% to 100% of free cash flow to provide plexity if needed in the future. This means that the dividend guidance we provide you each year will be aligned to free cash flows. So this brings me now to FY '21 guidance, which reaffirms what we provided to the market at our FY '25 results. Adjusted EBITDA $110 million to $170 million. This assumes that the data center sale completes by the end of December 2025, and it excludes any gain on that sale. Business as usual, capital expenditure $380 million to $410 million. Strategic capital expenditure, which is effectively our data centers, $50 million to $70 million. Free cash flow of $290 million to $330 million. And we're guiding to a dividend payout ratio for FY '26 of 100% of free cash flow. So 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 5-year strategy. Spark SPK 30 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 5 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 reelection today. Recognizing my tenure, the Board remains focused on identifying a new chair for Spark and the 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 tier and to support ongoing stability for Spark as it embarks on its new strategy. As I offer myself for reelection, 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 past 7. I acknowledge recent years have been especially tough. In restoring market confidence is my #1 priority as tier. We have made strong progress in transforming the business and we have started FY '26 with renewed focus and termination. The Board and I remain committed to realizing our ambitions in 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, Justin. I want to begin by thanking our shareholders for your support and our Spark people for their considerable efforts as we worked hard to transform our business and respond to the challenges we have faced in recent times. Justin has provided details on the actions that we've taken to transform during FY '25 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. So connectivity is our core business and mobile our #1 priority. We have a significant program of activity supporting mobile that is driving momentum in FY '26, including new high data plans, new brand campaigns and new price points across the market. This is moving the dial and Spark remains the #1 mobile provider by some distance with 41.4% total market revenue share. Broadband remains competitive with connections declining by 3.8%. But 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. And 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 new functions across the business. Our new technology delivery model includes 4 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. But to deliver a leaner more competitive business and 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 an $85 million cost reduction in the second half compared with the same period in FY '24. This ensures we're in a stronger position as we move into FY '26 and embark on our new 5-year strategy. After the first quarter of FY '26, trading is tracking in line with our expectations with the new brand campaign, iPhone launch price increases supporting mobile service revenue growth. The FY '26 productivity program is on track, with significant savings delivered across labor and more of the savings realized in product costs then in OpEx in FY '26. As noted in August, we have outweighted our investment around our marketing to support the growth in a competitive market. We've also seen the impact of some additional partnership costs in OpEx, which are more than offset by the labor reductions. So 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 3 years. This also drives up demand for cost-effective cloud and data center solutions. Rapid advancements will enable us to do things differently, both within our own business and for our customers. In the near term, we expect economic commission conditions to remain subdued. But 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 and performance has been challenged. We have leading positions in our markets and 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 5 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. And our return on investment continues to outperform global peers. So the first of our new strategy is to strengthen and grow this position. So this brings me to our FY '30 strategy. Our purpose on the lift 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 5 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 improve the things that matter most. That's our ambition for the next 5 years. This is underpinned by a focus on delivering a better network and better customer experiences. In network, we'll invest where it matters most for our customers. We'll leverage AI and automation to proactively resolve network issues and uplift regional resins. We'll also explore new commercialization opportunities from in 5G stand-alone 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 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, so such as managed data networks, the Internet of Things, collaboration and voice. And 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 have favorable profit margins. That aside, we operate a more fragmented competitive environment in these segments with changing mix and demand is impacting profitability. So this requires a different approach to our focus in the core. Only our strategy is enabled by 4 key areas: people and culture; technology and AI, financial discipline and sustainability. As Justin noted, our focus over the next 5 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% to 13% by FY '30. So I will finish today with our value proposition. This remains a profitable business with strong foundations within our sector. Our core connectivity businesses support our positive tailwinds as connectivity becomes more central to 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 and we need to and portfolio management to support shareholder returns. Our focus is clear, and our ambition is to deliver growing returns for our shareholders. And finally, as I offer myself for reelection 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 true and returning back 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, in UFG. Each of the resolutions 1 to 6 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 1 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'll 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 customers, these can be directed to the customer services support people we have available here at the desk in the 4 year 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 *1 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 reelection of Lindsay Wright as a Director of Spark. Lindsay joined the Board as a Non-Executive Director in August 2025 and Lindsay now offers herself for reelection in accordance with the NZX listing rules. The Board does recommend Lindsay to you as an Independent Director of Spark and unanimously supports her reelection. I now invite Lindsay to address you.

Good morning, shareholders. My name is Lindsay Wright and are honored to stand before you today to seek 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 demonstrate letup skills and experience, not only in traditional functional roles, but also in senior positions across the Asia Pacific region, including CEO and 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 have a 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 nonexecutive directorships positions here in New Zealand. Notably, I've served with the Guardians of the New Zealand Separation 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 Mergent Committee. Additionally, I'm an independent Director and Chair of the Auto 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 and ASX listed alternative term contributing as a member or sale 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, strong understanding of Spark's operations and the governance frameworks are necessary for effective oversight. I'm acutely aware of the challenges facing our business and I'm committed to support Spark's strategic repositioning through carefully considered enlichange. I believe that by pursuing the 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 I -- with regard to the first part, the succession plan, I joined the Board 3 months ago and have been working with the various other board colleagues and relationship the development of the refreshed 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 been a way for 23-odd years. But 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. And I think you heard that through both Justin and Jolie's address in terms of the strategy refresh.

Excellence. Any other questions on the floor. We do have a question online or on the phone.

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 on to 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 we've got both the bull and the team on the organic and partnership development strategy. I think I bring a lot of experience with regard to governance, both from my executive government's roles, but more particularly by 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, to 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 other questions. Great. Thank you. Our second resolution concerns the reelection of Tarek Robbiati as a Director of Spark. Tarek joined the Board as a Nonexecutive Director in October 2025, just last month. Tarek now offers himself for reelection in accordance with the NZX listing rules. The Board recommends Tarek to you as an Independent Director of Spark and unanimously supports his reelection. 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 honor 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 the privilege to be able to spend time here both personally and professionally. I 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. And then 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 plc in the U.K. and move to become Deputy Chief Financial Officer of Telstra Corporation in Australia. I then moved to China to take on the role of CEO of Telstra's mobile Surgery in Hong Kong, CSL Limited and became Group Managing Director of Telstra International Group. I also served as CEO of FlexiGroup Limited and Australian Financial Services company and eventually moved to the United States to become the 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 Hewitt Pat Enterprise. And I'm now the Chief Financial Officer of Pure Storage, the #1 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 organically. In parallel, I'll turn my attention to governance since 2006. When I became Director of Telstra Clear New Zealand and served in various nonexecutive and executive directorship roles in private and publicly listed companies. I currently serve on the Board and Chair the Audit Committee 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, 1 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 what shareholders expect I have a word 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 a 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 reelected as a Director of the company. Are there any questions concerning the motion relating to Tarek's reelection, either from the floor or from online.

Yes, Mr. Shroff, a shareholder. So Mr. Robbiati, where are you currently based and how much time would you -- do you expect to be able to devote to Spark in your role, if you're a late?

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 Justin and my fellow directors about my commitment of time. I'm committed to serve the right amount of time necessary to help Spark executed 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.

Yes. I'll just add to that. I mean, any director spends the time required to both attend Board meetings and prepared for Board meetings. And Tarek is absolutely committed to doing the same amount of work that any director you'd expected to undertake as a Director of Spark. The other thing I'd add is that we are incredibly fortunate to have and being able to attract. And I think it has something to do with the wife, but to be able to attract the talent of tariff to this Board, it is really hard to get somebody with the amount of experience in-depth variance has across all parts of the sector. So we are really hugely fortunate and we're really fortunate that he has as I say, committed to the time and to spend with us and really deliver in his role.

I'm a shareholder. I welcome your visiting our companies in New Zealand. And 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 area?

Thank you very much for the question. I think it's absolutely pertinent, given the journey that Spark has been on for the past 2 years, which are 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. And I am vividly focused on this issue. Strategy is wonderful. But without execution, you don't get anywhere. And that's why I'm here.

Thanks, Tarek. Are there any other questions from the floor? We do have 1 online. So I'll go there.

I've got a question from Sheldon 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 -- and 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 why we're here, too. So returning to growth is the #1 priority to get the share price to rise again as the valuation multiples are directly correlated to the amount of that we're able to generate.

Thanks, Tarek. Any other questions for Tarek? Sorry, we hit 1 on -- another one online.

Yes, we've got a question from Stephen Mayne shareholder. It's unusual to appoint 3 independent new directors in the 3 months leading into the AGM. Which recruitment firm assisted with this process and did the full board interview any other candidates? And could each of the new Directors, including Tarek comments about their experience of the recruitment process?

So 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, and we have spoken to other candidates than what's sitting in front of you here today. But what we realized was when we were trying to choose particular candidates that between the 3 of Tarek, Vince and Lindsay, we had such a great broad range of skills that are covered right across the board. And so we decided that the Board refresh to appoint all 3 directors was really going to set Spark in terms of the new strategy execution and obviously as well with the fact that I will be only serving for another period of 12 months. So that is a -- we brought on 3 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 3 because they really do complement each other. They have very different skill sets, some but they really do complement each other. So we did use a recruitment firm. I don't think we normally would disclose the name of that firm, but we did. It's a firm with us and had a relationship with a long period of time.

Great. I've got 1 more question online from J[indiscernible] 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. [indiscernible] 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 returned 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 reelection 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 reelection in accordance with the NZX listing rules. The Board recommends Vince to you as an Independent Director of Spark and unanimously supports his reelection. I now invite Vince to address you. As [indiscernible] 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 White Cato University. Most recently, I was Chief Executive of Mercury in 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, Joel Lee and the executive team. It is a privilege to put myself forward with reelection as a Nonexecutive 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 Data Grid New Zealand on its ambitions to develop a hyperscale data center in Southland. Spark's board charter sets high standards for governance and independence requiring nonexecutive directors to act autonomously, remain free from conflicts and place shareholder interest first. My career has been guided by these values. And if I am reelected, 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 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 permission -- position me to contribute meaningfully to spark and you, its shareholders. I ask you a 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 reelected as a Director of the company. Are there any questions concerning the motion relating to Vince's reelection, either from the floor or online? Okay, nothing from floow? I'll take the online question.

A question from Shareholder Paul Grant. Vince, what area of expertise can you offer in terms in 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. You've got to remember the competitive environment isn't just telcos anymore, competitive environment is full of people entering. I guess I was Chief Executive of 1 of those competitors. So I've seen Spark as both a customer and a competitor, and what I can bring is insight and some New Zealand relevance and cohesion to the debates that will occur around the Board table.

Thanks, Vince. Have a further question online.

Yes. A question -- just a follow-up question from Stephen Maine. Specifically, could Vince and Tarek and Lindsay comments 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.

Yes, Look, from my perspective, the recruitment process was robust and arduous. We had numerous sub-indus with the Board, opportunity to ask questions and do our due diligence. In my case, in terms of knowing people who are already on the board, I guess New Zealand is 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 those customer of sport, but also as 1 of our competitors. But I would -- I think I would summarize it by saying that the process explored deeply the contribution that we could make or 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. And I think also it explored our equipment. And I can tell you, I am committed to seeing this strategy work.

Thank you, Vince. And 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. So just to make that clear, even though New Zealand is a very small market. So -- and what I would add, whether you've observed it or not, we are really -- 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 -- no, none of us sit on another board with the other which is quite something in this very small market.

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 reelection of Jolie Hodson as a Director of Spark. Jolie joined the Board as an Executive Director September 2019. Joey retires by rotation in accordance with the NZX listing rules and now offers herself for reelection. The Board recommends Jolie to you as a Director of Spark and unanimously supports her reelection. You have already heard from Joey earlier, so I now propose that Jolie Hodson be reelected as a Director of the company. Are there any questions concerning the motion relating to Jolie's reelection either from the floor or online I do have a question online.

Question from Paul Grant. Jolie, in what areas is Spark losing market share? And what are you doing about it?

Our focus in terms of market share, particularly in mobile has been making sure that we are investing in that connectivity. You've seen additional work we've been doing around our brand, but also network, which that provides really strong experience for our customers and is the thing that enables us to do everything that we do or whether you're a business, an individual or a community group wanting to achieve the things you do through digital technology. So our share, just to clarify our share market share. We have leading positions in all of our markets. So if you look at our overall mobile market share 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, with a tougher economic environment, people have looked for some more cost-efficient plans. But 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 reelection as a Director of Spark New Zealand. I have asked Warwick Bray to chair this part of the meeting. Thank you.

Thanks, Justine. Justine is retiring by rotation in accordance with the NZX listing rules and offers herself for reelection. Recognizing Justin's tenure, -- the Board remains focused on identifying a new chair for Spark and this succession process continues. Justin's intention is to serve for a period of up to 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 as an Independent Director of Spark and unanimously support her reelection. I now propose to Justine Smyth to be reelected as a Director of the company. Are there any questions concerning the motion relating to Justine's reelection either from the floor or 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 5 directors up for election today. She suffered the largest protest vote 7% against reelection. Did any of the proxy advisers recommend against reelection based on 10-year concerns?

So I guess another way of putting that is that more than more than -- well more than 90% of the votes were for Justin reelection. She was unanimously supported by the Board and specifically all of the proxy advisers supported Justine's reelection. One more? I've got a question online.

Thank you. A question from Edmond Good, shareholder. Justine, why should shareholders reelect 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 Stellite in the Board and to be -- to oversee the company in this time of transition, the Board felt stability was important. Another question.

Sorry, just compiling the list. One second -- compared with 1 year ago, the stock price of Spark significantly decreased. What is the reason behind this, even if SPACdid sell some assets and 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 Justin and Jolie 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 would lead to a return to growth.

Thanks. No further questions online. So...

Question from the floor.

I'm a shareholder. I noticed the Board has said that Justin is an independent director. And it seems to fly in the face of the NZX guidelines. I wonder if you could explain that, please?

Yes. So we evaluate director independence annually of all of our directors. And the length of -- and that review led to a view that Justin's tenure has not eroded the separation of the Board and management. The Board strongly consider that Justin's understanding of Spark her experience and skills in the industry add significant ongoing value to Spark and are of the view that her tenure doesn't interfere with her capacity to bring an independent judgment. And I see that in every Board meeting on issues to act in the best interest of Spark and to present the interests of its shareholders. And I would note that Justine is putting yourself up for election for a period of 1 year, not 3 years. With that, there are no more questions from the floor, and there are no more questions online. So pass back to Justine to continue chairing the meeting.

Thank you. Our resolution relates to the remuneration of the company's auditor, Deloitte. Following the procedure set out in the company's act, Deloitte is automatically reappointed as the auditor of the company. Deloitte was first appointed as auditor in 2020, and Spark's policy requires that the lead audit partner is changed every 5 years. In line with this policy, Ms. Melissa Collier has been appointed as the new lead audit partner for FY '26. The motion concerns the fixing of the auditor's remuneration and seeks shareholder approval that the directors be authorized fix the auditor's remuneration for the ensuing year. In line with this motion, I propose that the Directors are authorized to fix the remuneration of the auditor, Deloitte for the ensuing year. Are there any questions for the Board concerning the motion relating to Deloitte's remuneration either from the floor or online? Nothing from the floor, but I think there is a question online.

A question from Stephen Maine. Shale, when was the external audit last put out to Tinder and when will it likely next be put out for Tinder?

We last put it out for Tinder. Someone can correct me if I'm wrong, but that was 6 years ago. We've had long-standing auditors for the previous 20 years. So at this point in time, there's no further comment on when we would be putting it out to tender. Obviously, we do review all our various external advisers from time to time, but there's no intention at this time. No further questions on that resolution. Thank you. Please now submit your vote for the resolutions on your election voting for or for the shareholders attending in person, you should have a ballot paper which has given to when you registered. So please select for, against or abstain. Representatives from our share registrar will now collect your voting cards. If you require further information and guidance on the voting process, please refer to the Notice of Meeting. Please note that the company's auditors will act as scrutineers for the polls. I'd like to thank shareholders for -- I think, actually, we're just going to -- are we going to just wait while some -- while the voting takes place. [Voting]

We will go to general questions. We will do that in a moment. Yes, sorry. We'll definitely have some time for questions. No, don't worry about that. Just so I'd like to thank shareholders for their level of participation in today's meeting. Online voting should hopefully be completed by now. Final results will be released to the NZX and ASX following the meeting. Before we take general questions from the floor and we'll start with you first, I'd like to advise the outcome of the proxy votes that were launched in respect of the resolutions, they just see your information. I won't be reading them out, but they are showing on the screen for you. I'd now like to offer shareholders the opportunity to raise general questions. Any person wishing to speak should raise their hand to receive the microphone as we've done previously. We'll also be responding to questions from shareholders attending virtually as you know, via online portal and those attending over the phone. A reminder for shareholders by phone pressing the *1 key to join the queue to ask the question. And remember to please make your questions succinct and concise so that everyone does have the opportunity to ask the question. In the interest of time, questions dealing with similar topics may be combined into 1 question for those coming online. And before I take questions from the floor, we did have a few pre-submitted questions. prior to the AGM starting from shareholders, which I'm just going to address now. Some of the questions have been edited to make them more concise, some were quite lengthy. There are also shareholders who submitted multiple questions in advance. And so we will respond to some of the questions individually via e-mail in the interest of insurer ensuring all shareholders have the opportunity to participate in this meeting. So I will just deal with those 5 of those questions just now to -- before we start taking questions from the floor.

Michael Watson has asked when the DRP is being reinstated? So at the time of our FY '25 full year result in August, we announced that our dividend reinvestment plan has been suspended. If the Board decide to reinstate the DRP in the future, it will make a market announcement at that time. So I have no further information on that at this time. Alan Turner wants to know why Spark has so many Directors? Spark currently has 7 nonexecutive directors on the Board. And they bring a wide range of skills and experience and expertise, which is what you would expect as required to govern a company of this size. I'd also note that the number of directors is consistent with many other listed companies of our size in the market. Lavino-Calico says that the business remains heavily reliant on the New Zealand economy. -- and ask why we haven't considered exploring minority stakes in overseas companies as this would diversify Spark's revenue and hedge against domestic economic stagnation. So look, businesses have varying degrees of success investing overseas. I think we all are aware of that. In Spark's competitive advantage is in New Zealand. And that is why it is our focus. And what you've also heard today is our strategy is very much getting back to the core of connectivity. And so that is where we need to remain focused to really start getting that growth back that we've talked about and adding that shareholder value. Gale Bennett had submitted a list of questions. many of which have already been addressed earlier by myself or Jolie and our addresses. So I'm just going to talk to or raise 2 of those now, and our team will respond to the rest of the questions individually through e-mail. So 1 of those questions is how many senior managers are currently employed and what's been done to reduce overheads. So Spark currently has 9 members on its leadership team and 62 senior leaders who report into members of that leadership team. As Jolie and I noted earlier, we've made significant changes to the business in the past year to streamline our operations and to align our structure with changing markets. So this resulted in a reduction of 25% of our workforce and $85 million cost reduction. So it is never easy to make changes that impact our people, but we've had to make tough and necessary choices to get a -- to set Spark up for that future growth. Another question. What is Spark's plan to restore shareholder value given the decline in share price. I think we have covered a lot of this in our addresses, but I think it's important to reiterate. We do understand the impact that this has had on shareholders. The decline in share price reflects both cyclical economic pressures and structural challenges that we have faced. But we also have said that we except to respond ability for our performance and we have responded decisively with a reset of our strategy, divestment of noncore assets and a renewed focus on our core connectivity business, as I've said. So we are confident that these actions will restore long-term value. Okay. So with that underway, I'm now going to take questions from the floor. And this gentleman can start us off.

Yes. Just what's the tenor direct lens -- no problem. I voted for it, but she was on the Board with the Milford management. I see that financial management on the board with Sifford. I see they swooped in and bought millions of sheer back in or back a few months ago when the wind park fell a bit price come off the everybody saying coming off that index is the cause, but -- and I just wonder if that's a conflict of interest.

That's a really good question.

Plus just 1 more.

Can I just deal with that one because.

Yes, okay.

So just on that, so in terms of her directorship with Milford on the Board, Milford, and obviously, we looked into this and satisfied ourselves. So Lindsay can comment if she needs to, but the Board doesn't make any decisions of milk. It doesn't make any decisions about investments in individual issuer companies. Obviously, they have funds that make those decisions, which Lindsay doesn't sit on those funds. And yes, Milford has been a long-term shareholder, actually, and it does buy and sell she is on a on a regular basis. It's holding enough does go up and down. At the moment, they're not as substantial, they're not over 5% and not a substantial shareholder of us at the moment.

Just reiterate that as a Board member of Milford, I have absolutely nothing to do, neither does any other board member for that matter, with the investment decisions made in respect of funds of Milford Asset Management, that is a responsibility of the portfolio managers and the teams -- and just to reiterate, I had no visibility around that. So then buying and selling and/or voting, I have 0 visibility. My roles on the Board of the corporate and the man funds is done by the investment teams and professionals as you would expect.

Thanks, Lindsay.

Okay. Okay. It's probably a positive in if you did here -- the second question about Facebook and the messaging. What's the ballpark figure for spoke they get out of that? I mean that's Facebook is up the cash, you need mobile effort.

I'm not sure of the question, Jolie, do you want to?

Well, Facebook, that will be an application that runs over we don't get necessarily any money in relation to that. That will be their own revenues from that.

Are there any other questions from the floor? You should probably actually join me too, Jolie, just in case I need.

Yes. Michael Shroff, shareholder. Where is your call center currently based?

Our call center you can -- our call centers are no different. Our call center for years have been based. We have both presence in New Zealand, and we do have presence overseas in the Philippines, the Philippines. That's been the same for a number of years. There's been no change there.

And the 111 call center is in New Zealand as well.

Yes.

I noticed that you have sold some the data center recently as the whole wells are really hot on data center, is that a good strategy? And most recent that selling 75% of the data center state?

Yes, it's a good question. The data center strategy required to invest in data centers and to build, we have a number of sites. We're 1 of the biggest data seen to owners in New Zealand, as you know. But the investments that's required to grow those sites and put capacity into those sites is probably about $2 billion. So the -- over the next 5 to 10 years, and so by doing this partnership and selling 75%, basically, that growth will be funded through that partnership. And by retaining our 25% stake, we will have access to that investment as the enlistment grows. So that's the reason of what we've retained a stake but also funding $2 billion of growth in data centers would have taking money away from our core connectivity business, which is where we make 80% of our margins. So that is why we have done that. And realized, I would add, recycling capital in that way, realized a very attractive multiple on that sale. It's about 30x in terms of the value that the data centers were valued at in that transaction and keeping -- obviously, keeping those data centers in our business, the multiple is around 8x. So it's a significant value uplift for shareholders in doing that transaction.

I'm Helen. I'm the shareholder I'm just wondering how much the Ilo masks a like the satellite settings will affect sparks in long term? And what's the strategy of that?

So Starlink has a role to play in New Zealand in terms of connectivity and the role that it plays within that. So -- if you think about the progress made in the last 3 years with broadband, it's about 53,000 connections. If you think about it in the context of a market of maybe 1.7 million households. So we have 660,000 connections. So we see it as playing a role in helping to support a if you think about rural places that there may not be either fiber to those homes or sometimes not the mobile connectivity there as well. So it has a complementary role to play within the network offerings.

My name is Gary Jameson, I'm a shareholder. I have 2 comments on. Tthe first is that I don't think much of some of your TV advertising, particularly with the [indiscernible]? And the second thing is I get a little bit of noise at home when making payments that I keep forgetting. I'll go to go and get my phone for the code that you keep sending out before the payment could be made?

Okay. Just maybe to answer that first question. We know that not everybody is going to be a fan of a particular commercial that we make, but the importance for us is making sure we are demonstrating that we're doing around the near work, and we have very strong tracking around those commercials when we do make them, and we're seeing good response to that. On the second piece around the code, I'm presuming you're talking about 2 factor authentication. And 1 of the things that is really important is to make sure that -- we are dealing with the person we think we are and to avoid scam and fraud. So that is why we're requiring number of levels of authentication. And while that might be frustrating, we would rather keep you safe and secure and make sure that there is a -- it is from us, and we know it's you on the other end of that transaction. That's why we have security processes like that. I'd also add to, obviously, through your phone, a lot of it is -- might be your bank or the transactions you're doing with the bank. It is your bank that requires that 2-factor authentication it happens to be coming through your phone, but it's actually the protocols and requirements of the person who's using the app often as well.

Vivian, both a shareholder and a customer. So question is from a customer perspective. Is it possible for a customer to pick and mix your products and services? Because at the moment, I'm finding it a bit rigid.

There should be every opportunity to use different of our services, whether that's mobile and that's whether it's our Spark brand or our Skinny brand or in broadband or voice. We have a customer team who are sitting outside. So maybe perhaps after the meeting or might be worthwhile going out and chatting to them about what were specific needs, and then I'm sure we'll be able to help you.

Is there a consideration for further staff layoff in the name of cost cutting?

If you think about the industry that we work in -- there is always change happening. -- technologies, new technologies come in automation. So we constantly need to look at both what we need within the organization, but also the environment that we're working in. And when the economy has changed like it has, we needed to adapt to do that. It's not something we do lightly. But I would be wrong here to stand here and say that we would never have future people change. Will it be of the scale and size that we've had in the last 12 months? I wouldn't expect so. But as we use new automation, artificial intelligence, so with things that help complement and augment what our people do.

[indiscernible], just a quick question. Given that your operating revenue is down $100 million, and by the way, after complementary on the operating expenses, we were minus $7 on the previous year. You just said that there were cost savings of $85 million. Where did that come from?

In the second half, so that was from labor in relation to some of our product costs. So things set up in our gross margin. and then our other operating costs. So a combination of the partnerships that we've done, the work we continue to do in terms of bringing together different parts of our organization, subsidiaries and eliminating duplication within the organization. So that's what's driven it. You will also see further costs flow through from the changes we made in FY '25 into our FY '26 year and I sort of touched on that in my notes in terms of that program being on track.

Okay. Just 1 other. The -- if '24 tax was $16 -- $196 million, 2025 was $95 million. What can you explain that?

There were very different changes in the tax expense. So 1 of the things it was a change around in 2024, I think around the government depreciation policies. We also had some divestments of different assets as well. We can come back with maybe perhaps a more detailed response to you.

Just 1 other question. And I can really not too exactly like the other lady, I go down to the Spark shop down here, and I asked them why can't I have an independent watch plan. The keep telling me, no, it's got to be tilted phone plan.

Okay. We don't you talk with the team outside about that particular...

It's really annoying. I think there's a big, huge opportunity for revenue growth in that.

Thank you.

Yes, we've got a few questions from shareholders online. First question from Mr. Grant. With your home broadband monthly fees going up faster than the rate of inflation, are you planning another increase in the next 12 months? If you do plan another increase, Don't you agree you will lose even more market share and shrink the loyalty of your consumers?

So we review our price annually, and we increased our broadband prices this year by $5 depending on which plan you're on -- that also includes some of the things like we have Netflix and things added with those plans. So if they have price increases, we need to reflect that a large amount of our cost related to, for example, fiber comes from the local fiber companies over time, those costs increase. Ultimately, we need to make sure we are making suitable price increases to reflect the investments that need to be made, whether that's in the mobile network to support wireless broadband or whether that's in our customer experiences. So we're very cognizant about making sure we have a rate plans that are available for our customers. And so that can be from -- at the lower end really good value to some of the things where there's more inclusions up. So we hope to be able to serve everyone with a wide range of plans within that.

Okay. The next question comes from Henry Chan. You mentioned previously about the use of satellite capability for mobile phone users. Compared with the key competitors in New Zealand, you seem to have a little bit of a product gap there? How is the company addressing this gap?

So we are testing a satellite proposition, and we will be a market with that at the beginning of the year. We haven't seen significant market share shift in relation to satellite. What I was talking about before was really satellite broadband, not so much or our mobile. Again, it's an offering that all of our bidders in the marketplace will have in 2026 at July expands coverage. If you think about our mobile networks, the relates 99% of the population. So they deliver really great service for New Zealanders wherever they are, but there's an opportunity with satellite just to extend to those periods where people aren't regularly there.

Okay. Thank you. it seems the only way Spark is making money is by selling off assets. Sorry, this is from shareholder, Simon Todd. I've held shares for a number of years, and they have obviously decreased in value. Given you've been selling off assets, how is that going to help with improvement in investment value?

Yes. I mean, the -- just -- In terms of making money, if you look at our adjusted numbers, the money that we make and the revenue is not from selling off assets. That is excluded. So the revenue is from our transactional business. And we exclude, as we said we often, when we have a one-off gain on sale, we exclude that, and we're very clear about that. So you acknowledge the share price has dropped. We're all well aware of it and we -- as we've said on a number of occasions, I think already today that there's been a tough year in the New Zealand economy. We haven't been immune to that volatility but we also accept responsibility for our performance, and we've taken a significant transformation program to reset the business, and that is where we're focused and continuing on growing both revenue and profitability for this business over time in terms of getting back to that long-term shareholder value creation.

Thank you. Next question comes from Grant Collingwood online. What does Spark New Zealand actually doing to build and improve core service, pricing and coverage to gain market share from competitors?

If you take a look at our new 5-year strategy, it is resented the core of our business, so mobile, particularly -- it's based on a better network experience and a better customer experience. So therefore, our investments as we think about capital allocation is going into making sure we're investing in the network throughout the country. We're making sure we've got good resilience within that. And we're making sure we're innovating in the plans and the ways that we are helping our customers to use those. Use the networks or use the services to really enable them to do the things they need to. One of those areas in enterprise is private network. So very much working with different organizations within New Zealand to see how they can improve their operations and do it through this new capability they're bringing together -- so for us, it's the focus on really clear focus on the core part of the business that generates most of the revenue and earnings for that and making sure where we are investing in network to really help uplift that experience is aligned to that part of the business, too.

Thank you -- next question is from Simon shareholder. I've been a shareholder and a Spark customer for over 20 years. As there's no optical fiber in the part of New Zealand where I live, and in addition, Spark has chosen not to provide any cellular coverage here. I rely on a copper landline for my Spark service. I understand that Corus will be retiring the copper network completely by the end of the decade. Do you have any plans for keeping me as a customer in a few years' time?

Yes, we do. When you think about the copper networks and the PST in which is our voice network is being retired over time. Those technologies are very old. For example, our PSD in voice network hasn't had parts made for that since 2003. So it's very important that we do move to new form technology. Clearly, we need to make sure that there's a service that is able to meet your needs and whether that is a satellite, which helps to support Internet or across mobile, they will be an important part of that. So we're very cognizant of making sure that customers have the services where they need them.

I'll just say to that, too, obviously, that customer sounds like lives in a very must be quite part of the country you're not getting selling service because we have 99% of the country covered.

Okay. We've got another question online from Grant Collingwood. How much duplication is there by operating skinny besides Spark?

Well, if you think about Skinny and Spark, they offer 2 very different brand propositions. Skinny very much is that nofrills last value we get a good service, but I don't want any of the bells whistles you might add. If you think about space, it offers more of a premium service. And so it serves different customer needs. There are many services within it that are supported by the organization, i.e., they don't run in duplication, including the network within that. So I don't think there's significant cost associated with having 2 brands. In fact, it helps us better meet the needs of our customers and be more competitive across the mobile.

And I've got a question from Stephen Main shareholder. At last year's AGM, I asked you to put up a voluntary remuneration report advisory today, but you have refused unlike the practice by Zero and Fletcher Building which have embraced Australian-style remuneration voting practices because they're also dual listed on the ASX. Did you discuss the idea of putting up a remuneration report vote and have any of the other investors ask you to do this?

Look while putting up our remuneration report as required by Australian law. It's not the requirement of the NZX which we may listing is, so we're well aware of that. It's not something we're currently considering. And given we have other priorities of focus at this time, there is a significant amount of disclosure regarding remuneration within the annual report, you will have seen that, and that should provide comfort to shareholders. And I know they've called out there, but Xero's primary listing is on the ASX that is required by law to do that.

Thanks no further questions online at this point.

Thank you. This seems to be no further questions. That was a really great and active meeting. Thank you very much for those contributions. I'd like to thank you all for coming today and also to those who have attended virtually, we value your input as shareholders. We will announce the or results of the poll to the stock exchange this afternoon. I now declare the meeting closed. For those of you attending the meeting here at Spark City, I invite you to join us for morning tea in the function room at the front out here. It'd be nice to have a chat to you. [Foreign Language]