One NZ acquisition lifts revenue 112.9% but NPAT collapses 99.7% on disposal

With that disposal gain absent, current NPAT fell 99.7% to NZ$1.2m and PBT fell 99.6% to NZ$1.3m, even as the One NZ acquisition drove revenue 112.9% higher to NZ$1.3b — an unprecedented top-line move against a historical mean of 19.8% growth.

Underneath the comparability noise, the continuing-operations net parent surplus was NZ$1.2b and management lifted FY24 Proportionate EBITDAF guidance from NZ$800–840m to NZ$820–850m, citing 45% first-half Proportionate EBITDAF growth to NZ$400.0m. Operating cash flow swung to NZ$166.4m from negative NZ$234.6m, and the interim dividend rose to 7.0 cps from 6.75 cps.

• The HY23 result included NZ$336.5m of discontinued-operation profit from the Vodafone NZ disposal that does not recur. Continuing-operations economics — Proportionate EBITDAF NZ$400.0m (+45%) and net parent surplus from continuing operations NZ$1.2b — are the cleaner read, and they are directionally positive. PBT growth of -99.6% should not be treated as the operating signal here.
• Revenue mix is now dominated by One NZ. One NZ contributed NZ$650.9m, 50.6% of group revenue, with disclosed gross margin of 29.0% versus 26.6% prior. Manawa Energy revenue fell to NZ$217.8m from NZ$287.0m and its segment result dropped to NZ$66.8m from NZ$390.8m, so the group is materially more telco-weighted and less exposed to one-off renewable energy gains than a year ago. Diagnostic Imaging also expanded, with segment result up to NZ$65.2m from NZ$22.7m on 28.6% gross margin.
• Balance sheet has scaled sharply to fund the deal. Total assets rose to NZ$16b from NZ$10.2b, equity to NZ$8b from NZ$5.7b, and net debt edged up to NZ$2.8b. The supplied historical baseline classifies total assets as within the normal range and ROE of 14.7% (versus a 10.1% mean) as within normal too, so balance-sheet expansion is not yet stretching the historical envelope despite leverage drifting weaker.

With first-half Proportionate EBITDAF of NZ$400.0m, the upgraded midpoint of NZ$835m implies a second-half contribution of around NZ$435m — broadly consistent with Infratil's historically second-half-weighted shape (HY23 was only 39.3% of FY23 NPAT).

The release supports the guidance lift but does not isolate how much of the upgrade is CDC-led versus One NZ synergies, which matters for the durability of the step-up beyond FY24.

Operating cash flow of NZ$166.4m versus negative NZ$234.6m, and pre-lease free cash flow of NZ$1.3m against the supplied historical mean of negative NZ$168.5m, mark an above-normal cash outcome relative to Infratil's recent baseline. Capex intensity fell to 12.8% of revenue from 22.7%, reflecting the denominator effect of consolidating One NZ revenue more than a step-down in spend (capex dollars actually rose to NZ$165.1m from NZ$137.4m).

That said, FCF/NPAT of 0.1% is not a meaningful conversion ratio this period because NPAT is artificially depressed by the absence of the prior disposal gain; the payout ratio versus NPAT of 5.0% (versus 13.9% prior) is similarly distorted and not a sustainability signal. The cleaner durability questions are CDC's cash generation profile and One NZ's first integrated cash contribution, neither of which is disaggregated in the release.

This briefing cannot assess CDC's standalone cash generation, One NZ's integration economics, or segment-level leverage because those are not disaggregated in the supplied materials.