- Spark is refocusing on connectivity (mobile, broadband, business) under its new five-year SPK-30 plan; non-core services will be simplified and optimised.
- Chair Justine Smyth will stand for re-election at the November AGM to allow for a stable transition period (up to 12 months) as the board implements a succession process.
What happened: Spark bets on core connectivity and leadership shake-up in FY30 plan
Spark New Zealand has revealed its FY30 strategy, dubbed SPK-30, which marks a return to its core connectivity business (mobile, broadband, and business services). Under this plan, it will prioritise investment in network reliability and coverage, especially in regional areas. Artificial intelligence and automation will be deployed to proactively resolve network issues, and importantly, the company plans to introduce satellite-to-mobile services in the second half of fiscal 2026.
Client experience is also central. Spark intends to enhance retail customer journeys, simplify offerings beyond its core services (cloud, IT services, legacy systems), and use AI to tailor offers and support across channels.
Financially, Spark is aiming for steady, “annuity-like” returns, with disciplined capital allocation favouring core connectivity, improved free cash flow, and a sustainable, growing dividend. Its current return on invested capital (ROIC) is about 8.7%, with a target to reach between 11-13% over the five-year horizon.
On governance, the company announced a board renewal: three new directors will join in FY26. Chair Justine Smythwill stand for re-election at the 2025 AGM for up to 12 months, during which a formal chair succession process will occur.
Also read: Spark New Zealand delivers on fiscal 2025 outlook
Also read: Australian warship disrupts New Zealand internet services
Why it’s important
Spark’s latest strategy comes amid challenging recent performance, particularly in FY25, which has put pressure on both operational focus and profitability. The refocus on connectivity suggests a pull-back from more ambitious (“digital services”) diversification seen in recent years. That may reduce risk, but also limits scope for growth beyond traditional telco services.
The deployment of satellite-to-mobile technology could help bridge rural coverage gaps, a recurring issue in New Zealand’s geography. But implementation may be costly and technologically complex; success is not guaranteed.
Moreover, the chair succession plan signals that Spark’s board acknowledges the need for renewed leadership amid this strategic pivot. Stability during the transition will be critical; if not well handled, leadership transitions can cause concern among investors, regulators, and consumers.
Finally, to meet the financial targets—ROIC between 11-13% and consistent free cash flow—Spark will need to strike a balance between capital investment on infrastructure and cost optimization. With competition in connectivity strong and customer expectations rising (for speed, reliability, service), Spark’s strategy may face significant headwinds.
