Spark shifts focus to connectivity with new FY30 strategy

Spark New Zealand announced its new five-year business strategy, SPK-30, effective from September 11, 2025, shifting its focus back to core connectivity from a broader digital services ambition. The strategy targets leadership in network reliability and coverage, with plans to invest in AI-driven issue resolution, regional resilience, and satellite-to-mobile services by the second half of FY26. Spark aims to monetise network investments and explore new solutions through a partnership with API aggregator Aduna.

The company plans to enhance customer experiences by evolving retail interactions, investing in digital journeys, and empowering care channels through AI to deliver tailored offers. Mobile, broadband, and business connectivity, which constitute 80% of Spark's gross margin, will be the priority for capital allocation. Spark will also increase its focus on mobile and broadband bundling to support customer value and retention.

Financially, Spark targets stable, annuity-like returns for shareholders through consistent annual free cash flow growth and a sustainable dividend. The company aims to grow its return on invested capital from 8.7% to 11-13% over the next five years. Additionally, chair Justine Smyth will seek re-election at the upcoming AGM in November, intending to serve for up to 12 months to facilitate a successful chair succession.