2degrees delivers 5.5% revenue growth and returns to pre-tax profit
2degrees today announced its financial results for the year ended 30 June 2026, delivering another year of revenue growth and a return to pre-tax profit despite challenging market conditions.
Revenue increased 5.5% to $1.46 billion, while trading EBITDA rose 6.5% to $421.1 million, reflecting growth across Consumer, Business and Wholesale. The result marks the fourth consecutive year of revenue growth since the merger with Vocus in 2022 and follows the successful completion of a multi-year integration programme.
Profit before tax was $27.4 million, a $50 million turnaround as one-off integration and non-cash impacts of recent years continued to unwind.
2degrees CEO Mark Callander said the result marked an important transition from integration to a new phase of growth, innovation and value creation.
“Four years ago, we brought together two outstanding businesses with a clear ambition to build a stronger platform for growth. Since then, we have successfully completed that integration, delivered record trading EBITDA and returned the business to pre-tax profitability, while continuing to deliver for our customers.
“Achieving this while navigating a challenging economic environment reflects the strength of our business, the resilience of our strategy and the dedication of our people.”
Business momentum supports further growth
The FY26 result reflected continued growth across mobile, broadband and energy, alongside further progress in the Business segment, where 2degrees secured several major enterprise and public-sector customer wins during the year.
Callander said Business remained a key growth area, with customer wins demonstrating the company’s ability to compete for and support large, complex organisations across New Zealand.
“We are consistently winning business and building momentum with enterprise and government customers. This is a significant growth opportunity for 2degrees, and one where we are already delivering results.
“Organisations are looking for a partner that makes technology easier to navigate and more valuable to their business. They are choosing 2degrees because we bring together connectivity, technology, infrastructure and service, backed by our people who take the time to understand their needs and work alongside them.”
Technology and innovation underpin the next phase
During the year, 2degrees expanded its as-a-service portfolio and increased the use of AI across its in-house development team, helping accelerate product development and bring new capabilities to market faster.
Callander said owning key elements of its technology stack gave 2degrees greater control over how it developed services and responded to customer needs.
“Our technology capabilities give us more scope to move quickly, simplify how we work and improve the customer experience. AI is becoming an increasingly important part of how we do that, helping our teams turn ideas into practical improvements faster.”
2degrees also progressed its partnership with AST SpaceMobile, recently opening its ground station in Marton and laying the foundations for direct-to-mobile satellite connectivity across New Zealand.
Positioned for continued growth
2degrees Chair Liz Coutts said the results reflected the strength of the company’s fundamentals and its progress against the three-year 2d28 strategy, which is focused on growth, innovation, value creation and customer experience.
“2degrees has continued to grow through a challenging economic cycle while successfully completing a complex integration programme and strengthening the foundations of the business for the future.
“These results demonstrate the progress we have made over recent years and provide a strong foundation for the next phase of our strategy.”
Callander said 2degrees entered FY27 with a clear focus on execution and growth.
“We have a strong network, modern platforms and a clear strategy for sustainable growth. Our focus is on winning customers, growing our Business portfolio and using technology to deliver better service and value.
“We have built a strong platform for growth. Now we are focused on realising its full potential while continuing to challenge the market and fight for fair for New Zealanders.”