Table of Contents
What changed
Revenue slipped 0.8% to $3,593.0m as the loss of mobile roaming revenue dragged the Voice segment down 21.2% to $308.0m. EBITDAI rose 1.0% to $1,124.0m, which management describes as the top end of guidance. Below EBITDAI, however, PBT fell 4.2% to $553.0m and NPAT fell 10.1% to $384.0m, with the effective tax rate stepping up from 26.0% to 30.6%. Operating cash flow declined 5.0% to $858.0m and capex eased modestly to $354.0m. Net debt improved to roughly $1,331.0m from $1,419.0m, taking net debt/EBITDAI to about 1.18x from 1.27x. The final dividend was held at 12.5 cents, taking the full-year dividend to 25.0 cents.
In the segment mix, Mobile grew to $1,311.0m (36.5% of revenue) and Managed data/networks rose to $282.0m, while Voice shrank to 8.6% of revenue from 10.8%. Cloud, security and service management remained the highest-margin segment at roughly 80.8% contribution margin.
What matters
- Tax rate is doing the damage below EBITDAI. PBT growth of -4.2% is the cleaner operating read; the additional 5.9pp drop to NPAT is tax-driven rather than reflecting a disclosed one-off or discontinued operation. Investors should not anchor to the -10.1% NPAT move as the operating signal.
- Cash conversion weakened. OCF/EBITDAI fell from 81.1% to 76.3%, and receivable days extended from 29.1 to 31.9. EBITDAI "growth" of 1.0% therefore did not translate into cash; pre-lease free cash flow is implied at roughly $504.0m vs $529.0m prior, even with capex $20.0m lower.
- Leverage and capital returns are moving in opposite directions. Net debt fell and leverage improved to 1.18x EBITDAI, yet the payout ratio against NPAT climbed to 60.4% from 53.9%. The dividend remains covered by pre-lease FCF (46.0% payout), but the cover is narrower than 12 months ago.
Expectations
No numeric forward-work or multi-year target was extracted, and management limits itself to saying FY21 "delivered to guidance." The interim context is informative: HY21 was 50.0% of full-year revenue but only 44.7% of EBITDAI and 38.5% of NPAT, so the second half carried disproportionate profit. That shape implies operating leverage returned in H2 as cost discipline landed, rather than a broad top-line recovery — revenue growth was still negative for the full year. Against the single disclosed marker (EBITDAI at the top of guidance), the release supports management's claim; it does not, in isolation, support a read on FY22 revenue or margin trajectory.
Quality of result
The earnings quality is mixed. EBITDAI growth was delivered through cost discipline against a shrinking revenue base, and the drivers flagged — roaming loss and voice decline — look structural rather than timing. Segment mix modestly helped: share rotated from Voice into Mobile, Managed data, and Cloud/security, all higher-margin lines. Working against durability, cash conversion deteriorated by roughly 4.8pp and receivable days lengthened, so a portion of the EBITDAI result sat in the balance sheet rather than in cash. ROE also slipped from 28.8% to 25.6%. The $433.0m free cash flow figure cited by management is the cleanest single data point supporting the dividend, but it is a company-defined measure without a full reconciliation in the extracted material.
Unresolved
- Why did the effective tax rate rise by roughly 4.6pp, and is 30.6% the new run-rate or a one-period step-up?
- How much of the 1.0% EBITDAI growth is one-off cost-out versus a sustainable lower cost base, given revenue is still contracting?
- What is the path for roaming recovery, and how sensitive is FY22 EBITDAI to border-reopening timing?
- What drove the 2.8-day extension in receivable days, and does it reverse in H1 FY22?
- Is the 60.4% NPAT payout ratio a deliberate target or a function of a depressed NPAT denominator?
This briefing cannot assess valuation, competitive positioning versus peers, or forward guidance, because no target, multiple, or numeric outlook was supplied in the extraction.
Key metrics
| Metric | FY21 | FY20 | Change |
|---|---|---|---|
| Revenue | $3.6m | $3.6m | -0.8% ↓ |
| Net profit after tax | $0.4m | $0.4m | -10.1% ↓ |
| Net cash inflow from operating activities | $0.9m | $0.9m | -5.0% ↓ |
| Final dividend per share | 12.5c | 12.5c | flat |
| Cash and cash equivalents | $0.1m | $0.1m | +35.8% ↑ |
| Total assets | $4.1m | $4.3m | -5.4% ↓ |
Reference: annolyse.ai/briefings/spk-fy21
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Mobile | $1.3m | $1.3m | $0.8m | +0.9pp |
| Voice | $0.3m | $0.4m | $0.2m | -2.2pp |
| Broadband | $0.7m | $0.7m | $0.3m | -0.1pp |
| Cloud, security and service management | $0.4m | $0.4m | $0.4m | +0.1pp |
| Procurement and partners | $0.4m | $0.4m | $0.0m | +0.3pp |
| Managed data, networks and services | $0.3m | $0.2m | $0.1m | +1.0pp |
| Other operating revenues1 | $0.1m | $0.1m | $0.1m | +0.2pp |
Reference: annolyse.ai/briefings/spk-fy21
Analytical metrics
| Metric | FY21 | FY20 | Context |
|---|---|---|---|
| PBT growth | -4.2% | — | cleaner earnings measure |
| Effective tax rate | 30.6% | 26.0% | — |
| OCF / EBITDAI (cash conversion) | 76.3% | 81.1% | deteriorated |
| FCF pre-lease | $0.5m | $0.5m | −$0.0m |
| FCF post-lease | $433.0m | — | — |
| FCF / NPAT | 131.3% | 123.4% | complementary conversion metric |
| Capex % revenue | 9.9% | 10.3% | — |
| Capex | $0.4m | $0.4m | −$0.0m |
| Free cash flow | $433.0m | — | — |
| Debtor days | 31.9 | 29.1 | +2.8 days |
| Inventory days | 6.5 | 9.7 | -3.2 days |
| Trade debtors | $0.3m | $0.3m | +$0.0m |
| Net debt | $1.3m | $1.4m | −$0.1m |
| Net debt / EBITDAI | 1.18x | 1.27x | Strengthening |
| Gross borrowings | $1.4m | $1.5m | −$0.1m |
| Payout ratio vs NPAT | 60.4% | — | — |
| Payout ratio vs FCF pre-lease | 46.0% | — | covered |
| ROE (annualised) | 25.6% | 28.8% | Weakening |
| HY21 share of FY21 revenue | 50.0% | — | Other half was 50.0% |
| HY21 share of FY21 EBITDAI | 44.7% | — | Other half was 55.3% |
| HY21 share of FY21 NPAT | 38.5% | — | Other half was 61.5% |
| Profit from continuing operations | $0.4m | $0.4m | −$0.0m |
Reference: annolyse.ai/briefings/spk-fy21
This analysis was generated using Annolyse, an AI-powered tool that extracts and analyses NZX company announcements. The underlying data is extracted from official company filings and verified against source documents. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.