One NZ FY2023 EBITDAF Guidance Update slide image

One NZ FY2023 EBITDAF Guidance Update

On track to exceed FY2023 EBITDAF guidance Income statement $ millions FY2023 Key Trends • FY2023 FY2022 PCP H1 H1 H1 • Consumer SME 315 290 9% Enterprise 60 57 5% Mobile 375 347 8% Consumer SME - Fixed & ICT 174 195 (11%) Enterprise - Fixed & ICT 127 109 16% • Wholesale & other 83 79 4% Recurring revenue 758 730 4% Procurement & One-off revenue 232 225 3% Total Revenue 990 955 4% • Direct Cost (433) (439) 1% Gross Margin 557 516 8% Operating Expenses (299) (274) (9%) Normalised EBITDAF** 258 242 7% Normalised EBITDAF % 26% 25% 1pp Capex incl. Spectrum 125 211 41% Market leading total mobile service revenue growth ¹ due to strong acquisition in post-paid and ARPU increasing as customers move to higher value plans and roaming returns Consumer fixed ARPU is stable, but revenue has declined due to the intensely competitive market ICT is growing faster than market² due to good momentum in Contact Centres, public cloud migrations and Security via our partial acquisition of DEFEND Wholesale revenue uplift due to the continued growth in fixed line capacity Procurement revenue largely relates to lower margin device revenue with uplift due to buy back of our retail stores Operating expenditure increases largely due to in housing of our retail stores and investment in rebrand to One NZ Capex decrease largely relates to non-recurring spectrum cost in prior period. IT project spend mix changed between SaaS and Capital spend On track to exceed FY23 guidance range of $490 million to $520 million with estimated growth of ~10% PCP ** Normalised EBITDAF excludes impairment, impact of M&A activity and transaction costs 1 Dec-22 vs PCP, sourced from IDC 2 Relative to incumbents Spark and Datacom, latest reporting periods vs PCP. Spark (December-22) and Datacom (March-22) one.nz
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