How Will Spark’s SPK-30 Strategy Transform New Zealand Connectivity?

Strategic Refocus on Core Connectivity

Spark New Zealand has announced its SPK-30 five-year strategy, marking a decisive pivot back to its core strengths in mobile and broadband connectivity. After a period of broader digital services ambitions, the company is now prioritising capital investment in network leadership, particularly its 5G Standalone infrastructure, which it touts as the first of its kind in New Zealand. This refocus aims to solidify Spark’s competitive advantage by delivering reliable, high-quality connectivity experiences where they matter most to customers.

Harnessing AI to Transform Customer Experience

Central to the strategy is a commitment to leveraging artificial intelligence and automation to enhance customer journeys. Spark plans to invest heavily in AI-powered digital channels and self-service capabilities, aiming to reduce friction and speed up issue resolution. The company’s in-house AI assistant, SparkGPT, is already helping employees improve productivity, while AI-driven predictive models are personalising customer communications and accelerating campaign delivery. These innovations are expected to drive higher customer satisfaction and loyalty.

Unlocking Value Through Data Centre Partnership

SPK-30 also features a significant partnership with Pacific Equity Partners to create 'DC Co', a dedicated data centre platform. This move crystallises value from Spark’s data centre assets, with an enterprise valuation of approximately NZ$705 million. Spark will retain a 25% stake, enabling ongoing participation in the fast-growing data centre market while freeing capital to focus on core connectivity investments. The partnership is expected to generate both short-term cash proceeds and long-term growth opportunities.

Financial Discipline and Sustainable Growth

Financially, Spark aims for stable, annuity-like returns with predictable free cash flow and a growing dividend profile. The company targets a return on invested capital (ROIC) of 11-13% by FY30, supported by disciplined capital allocation and cost management. Sustainability is also a key pillar, with ambitious goals to reduce greenhouse gas emissions by 56% by 2030 and to champion digital equity across New Zealand. Spark’s strategy underscores a balance between growth, efficiency, and responsible business practices.

Leadership Continuity and Governance

Chair Justine Smyth confirmed her intention to stand for re-election at the upcoming AGM, with a structured succession plan underway to ensure board stability during this strategic transition. The leadership team, including CEO Jolie Hodson, emphasises a culture focused on performance, customer centricity, and innovation as critical enablers of the SPK-30 ambitions.