Mercury's record hydro generation powers strong quarter, telco growth

Mercury NZ experienced a robust quarter ending September 30, 2025, with national hydrological inflows reaching the 87th percentile. This contributed to lower spot electricity prices of $134/MWh in Auckland. The company achieved record hydro generation in July, hitting 566GWh, the highest since 1980. Total Q1 hydro generation was 1,389GWh, a 44% increase year-on-year. Wind generation was 471GWh, down 14%, while geothermal generation saw a slight increase to 691GWh.

The company's commercial and industrial yield growth was $6/MWh higher, driven by contract repricing, while mass market yield growth was $4/MWh higher due to a 2.6% price uplift. Mercury also commenced a 20-year power purchase agreement (PPA) with Visy, supplying about 115GWh per annum for the initial decade.

In its telco growth strategy, Mercury surpassed 150,000 fibre connections nationwide, with over 94% of its 163,000 broadband connections now fiber-optic. A total of 31,000 telco connections were added during the quarter.