Spark NZ opens strategic review of Digital Services, with update due February 2027

Spark New Zealand (ASX: SPK) has started a strategic review of its Digital Services businesses, a group spanning cloud, IT services, data and artificial intelligence. The company revealed the review in a shareholder newsletter published on Monday 9 November 2026. The work will weigh up how the division should be owned and run in future, with growth and long-term value as the goals.

Spark plans to report back when it releases half-year results in February 2027. Spark said, "No outcome has been reached," and described the review as a search for the structure best placed to back growth while the company stays centred on connectivity. Under its five-year SPK-30 strategy, these businesses sit outside the core connectivity focus.

The review lands as Vince Hawksworth takes the chair following the annual meeting on 6 November. He replaces Justine Smyth, who retired after 15 years on the board, seven of them as chair. Hawksworth, who has led critical infrastructure businesses in New Zealand and Australia, said that as technology evolves "strong connectivity becomes more important, not less". Tommy Björkberg joins in November 2026 as chief operating officer, covering network operations, business technology services and cyber security. He most recently served as Vice President Network and Cloud at KPN, the Netherlands' largest telecommunications provider.

Spark said its FY27 guidance has not changed. It reported continued mobile service revenue growth following a return to growth in FY26, and said iPhone 18 Pro and Pro Max acquisition volumes rose 40 per cent year-on-year during the launch. It has also introduced Spark Upgrader, which offers trade-ins and interest-free payment terms of 24 or 36 months.

The newsletter also addressed One NZ and 2degrees, which have proposed pooling their radio access network infrastructure in a jointly owned wholesale business. The proposal still needs Commerce Commission and Overseas Investment Office approvals. Spark said the plan "would entail a significant change to industry structure and needs to be carefully considered". On spectrum, Spark said it expects no material direct impact from the government's intended approach to renewing 2300MHz and 2600MHz rights, though it still wants predictable settings for long-term investment.

Spark said Digital Services is still winning customers during the review, citing an ICT services agreement with Auckland Airport and data modernisation work for Kiwibank by its Qrious data and AI team. It also said AI-powered network optimisation has delivered a 15 per cent network-wide improvement in effective capacity since 2019.