PBT rose 20.7% as margins outpaced 5.2% revenue growth

Net profit after tax was NZ$179.0m, but the prior-period NPAT figure is suppressed pending source verification, so no reliable NPAT growth rate can be stated even though the release describes NPAT as "in growth."

Operating cash flow rose 25.8% to NZ$458.0m, lifting cash conversion (OCF/EBITDAI) to 85.1% from 72.5%, both of which sit within Annolyse's historical range (3-period mean 76.0%). Net debt/EBITDA eased to 2.55x from 2.90x, and gross borrowings fell to NZ$1.5b from NZ$1.6b.

PBT growth of 20.7% well outpaced the 5.2% revenue increase, with mobile — the largest segment at NZ$678.0m of revenue — showing derived gross margin expansion to 64.45% from 62.52%. This matters because it signals pricing and cost discipline are doing the work, which is a more durable driver than a demand surge but also more exposed if competitive pricing pressure returns.

NPAT growth cannot be verified. The prior-comparable NPAT figure is suppressed pending source verification, so the release's framing of NPAT "in growth" cannot be independently checked against the reported NZ$179.0m. PBT growth of 20.7% is the cleaner operating read available this period, and investors should treat any NPAT-based growth claim with caution until the prior figure is confirmed.

Leverage improved but payout still exceeds NPAT. Net debt/EBITDA fell to 2.55x from 2.90x and the payout ratio versus NPAT eased to 130.2% from 156.3%, yet dividends are still being paid out at more than the full NPAT. Free cash flow of NZ$183.0m covered 102.2% of NPAT, which supports the interim dividend of 12.5 cents per share for now, but a payout ratio above 100% of NPAT still relies on cash generation staying strong.

The FY21 full-year anchor showed revenue of NZ$3.6b and EBITDAI of NZ$1.1b, with the first half historically contributing around 44.7% of full-year EBITDAI, implying a second-half-weighted pattern; the current half's EBITDAI of NZ$538.0m is broadly consistent with that shape rather than representing an acceleration. Because the prior comparable period was affected by the loss of mobile roaming revenue, some of the current growth reflects an easier base rather than a step-change in underlying demand.

Operating cash flow growth of 25.8% and cash conversion of 85.1% — both within the historical range — indicate the EBITDAI increase is backed by actual cash generation rather than accounting timing, and free cash flow of NZ$183.0m covering 102.2% of NPAT reinforces that read. Capex intensity held steady at 11.5% of revenue versus 11.9% prior, suggesting no unusual capitalisation is flattering earnings.

The main quality caveat is the unverifiable prior-period NPAT figure, which prevents confirmation of the headline NPAT growth narrative independent of PBT. Leverage reduction to 2.55x net debt/EBITDA is a genuine balance-sheet improvement, but a payout ratio still above 100% of NPAT means dividend cover depends on continued strong cash conversion rather than accounting profit alone.

This briefing cannot assess NPAT growth against the prior comparable period because the prior NPAT figure is suppressed pending source verification.