Spark New Zealand Restructures Finances, Sells NZD 240M in Interest-Free Payment Plans to Challenger Limited
Spark New Zealand has restructured its finances by selling NZD 240 million in interest-free payment plan receivables to Challenger Limited, allowing the company to free up working capital while retaining customer relationships. This transaction is part of a larger divestment strategy that includes plans to sell 75% of its data center business and its remaining stake in Connexa by late 2025. Despite a decline in adjusted net profit, Spark reported stable free cash flow and aims to use the proceeds for net debt reduction in early 2026.
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Spark New Zealand announced a financial restructuring in partnership with Challenger Limited, involving the sale of NZD 240 million in receivables from interest-free payment plans (IFP). The deal, finalized yesterday, allows Spark to transfer eligible receivables for mobile devices and accessories to Challenger while retaining control over customer relationships and credit checks.
This move aims to release tied-up working capital associated with 24 to 36-month interest-free terms. The transaction is part of broader divestments planned for late 2025, including selling 75% of its data center business for up to NZD 705 million and divesting its remaining stake in Connexa for approximately NZD 310 million.
Despite a 33.6% decline in adjusted net profit to NZD 227 million for FY 2025, Spark maintained free cash flow of about NZD 330 million, aided by a 17% reduction in capital expenditures. The proceeds are expected to be used for net debt reduction in H1 2026, with results anticipated in February 2026.
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