2degrees announces milestone year with record revenue and strategic vision for future growth
2degrees has today announced its financial results for the year ended June 30, 2025, celebrating another period of solid growth and the successful completion of its landmark integration project.
The company reported a $42.9 million increase in total revenue, representing 3.2% year-on-year growth, to post a figure of $1.385 billion for the year. Service revenue performed well delivering 3.9% year-on-year growth.
Despite economic headwinds, 2degrees has strengthened its position in the New Zealand market by continuing to grow across key product and market segments.
"Our business is doing very well and this result is a testament to the hard work from of a lot of passionate people across the company," said Mark Callander, 2degrees Chief Executive.
"Three years ago, we set a bold target to successfully integrate two great businesses, 2degrees and Vocus, into a single, powerhouse organisation. Our team has delivered on that ambition, ahead of schedule, setting us up well for the future.”
The financial results reflect the company's growth across its core services:
- Mobile revenue increased 4.8% year-on-year to $581.5 million from $555.0 million in the prior year.
- Broadband revenue grew 3.9% year-on-year to $432.3 million, up from $415.9 million in 2024.
- Energy revenue saw a rise of 8.7% year-on-year to $133.4 million from $122.7 million.
Trading EBITDA grew +11.5% year-on-year to $395.3m (up $40.7m), underscoring the strength of the underlying business and the ability to deliver earnings growth even through a year of transition. This performance reflects both disciplined cost management and continued revenue momentum across our core operations.
Callander says 2degrees operational earnings profile remains strong, as demonstrated by the double-digit increase in Trading EBITDA.
"Our financial health is represented in our cash flow, which has seen a sharp increase. Our net cash from operating activities jumped to $237.3 million, up from $169.4 million last year. This cash generation is what fuels our ability to continue investing in our network and our people to deliver for Kiwis and NZ Inc."
While the company reported a statutory net loss before tax of $22.6m in FY25 (vs. $4.8m in FY24), the movement was largely driven by non-cash valuation impacts and one-off integration costs. For example, the Fair Value changes in energy contracts and loan hedging reduced NPBT by $45.9m year-on-year.
The increase in one-off costs drove a further $10m reduction in NPBT, primarily reflecting the final year of integration activity.
These non-recurring items offset what was otherwise a year of solid underlying growth.
“This result highlights the resilience of our business model, the benefits of integration, and our ongoing commitment to disciplined capital allocation, evident in our increase in cash generation.”
A New Chapter of Innovation and Growth
With the integration successfully completed, 2degrees is now focused on a three-year strategy pillared on growth, innovation, value and customer experience.
"This achievement marks a pivotal moment," Callander added. "We’ve successfully transitioned from a period of high change to a new era of innovation and accelerated growth. Our new three-year strategy is ambitious and clear: to be the number one telco in New Zealand by value, innovation and growth. This isn't just an aspirational goal; it's a bold and deliberate plan to leverage our new scale and technology to challenge the market like never before."
The company is already executing on this strategy, demonstrated by a recently announced partnership with AST SpaceMobile, a multi-million-dollar investment that will allow the mobile network to connect directly to satellites. Callander says major account win with Network for Learning (N4L) in 2024 further reinforces the strength of 2degrees' infrastructure and wholesale business, and onboarding more than 2,500 schools is well progressed.
"We have invested in building a fixed and mobile network that gives New Zealand the coverage it demands, and we have built a business that delivers services customers want at the best value,.” said Callander.
"Our network can go head-to-head with the incumbents, and we continue to challenge the market, and maintain a hunger to innovate, focus on customer needs, and we want to enable customers to use technology and productivity tools to drive this country forward."
Read the report here