Backing Kiwi businesses: How 2degrees is powering the next phase of growth

It’s not often we pause and take stock in the fast-moving world of telecommunications. Technology constantly improves, customer expectations evolve, and competition never slows. But this year marks an important milestone for 2degrees, and it’s one that’s worth reflecting on.

We’ve recently released our FY25 annual results, reporting another year of strong growth across key segments. Total revenue rose to $1.385 billion – up $42.9 million year-on-year – while service revenue increased 3.9%. Trading EBITDA lifted 11.5% to $395.3 million, showing strong operational performance and disciplined cost management despite ongoing economic headwinds.

That might sound like a lot of numbers, but behind each of those figures is a simple story: 2degrees is thriving.

A business on the move

Three years ago, we set out on one of the largest integration projects in New Zealand corporate history, merging 2degrees and Vocus into a single powerhouse organisation – a true third competitor to the duopoly. This mammoth task involved bringing more than two million mobile, broadband, and energy connections needed to be brought together.

We completed the integration earlier this year (and ahead of schedule), giving us the scale, systems, and network strength to move confidently into the future. We’ve entered a new chapter – one focused squarely on innovation, growth, and customer experience. Our goal over the next three years is clear: to be the number one telco in New Zealand by value, innovation and growth.

That’s an ambitious goal, but it’s one we’re already well on our way to achieving.

The business engine behind our growth

A lot of our momentum this year has come from our business division, led by our Chief Business Officer, Andrew Fairgray. Andrew and his team have built a reputation for delivering reliable, fit-for-purpose solutions for businesses of all sizes – from small retailers and local trades through to large enterprises and government agencies.

Our business portfolio has grown strongly across mobile, broadband, and cloud-based services. We’re seeing particular strength in the SME sector, where value and reliability matter most.

As Andrew often says, “SMEs are the backbone of New Zealand’s economy, and our job is to make sure they’ve got the tools to run efficiently, connect seamlessly, and grow confidently.”

From the Kāpiti café that relies on our 5G network for its payment systems, to the Invercargill manufacturer connecting multiple sites through fibre and voice services, our focus is on helping Kiwi businesses do more.

Why results matter

We didn’t share our financial results just for the headlines. We did it because transparency matters. It’s important that customers, partners, and the wider business community see that 2degrees is not only a credible alternative – we’re a large, successful, and sustainable business in our own right.

Strong results like these prove we’re not just competing; we’re winning. They also show that we have the financial strength to keep investing in the areas that matter like our network, software technology, and our customer experience.

Our operating cash flow increased to $237.3 million this year – up from $169.4 million. That strong cash generation allows us to invest where it counts: expanding 5G coverage, improving customer support systems, and developing next-generation services that help businesses stay ahead.

Building for the future

Innovation is central to how we think about the future. In March this year we announced a partnership with AST SpaceMobile, which will allow our network to connect directly to satellites. This collaboration aims to enhance 2degrees’ mobile coverage in New Zealand, bringing broadband data services via satellite starting in 2026.

We’re also expanding our fixed network footprint and accelerating our 5G rollout, with more than 550 sites now live nationwide. Our infrastructure today rivals anything in the market – and we’re proud to say it’s built right here, for Kiwis by Kiwis.

We’re not stopping there. Across both consumer and business segments, we’re exploring how emerging technologies – from IoT to AI-driven service platforms – can help New Zealand businesses work smarter, not harder.

Partnering for productivity

We know connectivity is just one piece of the puzzle. Businesses increasingly need partners who can help them integrate communication, data, and cloud systems in a way that boosts productivity and reduces costs.

That’s where 2degrees shines. Our scale means we can deliver the performance of a large telco, but with the agility and customer focus of a challenger.

Andrew’s team is working closely with companies across every sector – from logistics to professional services – helping them digitise their operations, protect their data, and connect their people securely.

The feedback we’re hearing from customers is consistent: they value responsiveness, the straight-talking service, and the sense that they’re more than just a number.

The power of competition

When 2degrees entered the market in 2009, we helped end an era where Kiwis paid 20 cents for every text message. That moment became known as “the 2degrees effect” – and it changed the industry for good.

Fifteen years on, that same spirit of competition drives us. We believe a more competitive market delivers better outcomes for everyone – lower prices, better service, and more innovation.

Our purpose has always been clear: to fight for fair. It’s not just a slogan – it’s the principle that underpins everything we do. Fair pricing. Fair competition. Fair access to reliable technology.

In a challenging economic environment, that matters more than ever. Our role is to give business owners one less thing to worry about – reliable connectivity that simply works, at great value, with support they can count on.

We’re proud of the progress we’ve made, but we’re even more excited about what’s ahead. With our integration complete, our strategy clear, and our momentum building, 2degrees is entering a new phase of growth – one that’s good for our customers, good for competition, good for businesses, and good for New Zealand.

Because when Kiwi businesses thrive, we all do.