• Refocus on core connectivity business, prioritising mobile, broadband, and business connectivity
• Invest in network leadership and customer experience to deliver 'better with Spark'
• Simplify and optimise beyond the core in cloud, IT services, and procurement

Spark New Zealand has released further details of its new five-year business strategy, SPK-30, which refocuses the business on its core of connectivity from a broader digital services ambition. The strategy has four key pillars: better network, better customer experiences, leading in core connectivity, and simplifying and optimising beyond the core.

The 'better network' pillar aims to grow Spark's leadership in reliability and coverage by investing in the network, proactively resolving issues through AI, and introducing satellite-to-mobile services. The 'better customer experiences' pillar focuses on evolving retail experiences, investing in digital journeys, and empowering all care channels through AI.

Leading in core connectivity, which contributes 80% of Spark's gross margin, will be the priority for capital allocation. Spark will focus on delivering customer choice, innovating to deliver new functionality and experiences, and upweighting its focus on rewarding and recognising loyal customers. In cloud, IT services, and procurement, Spark will focus on transitioning customers to more modern solutions, simplifying product offerings, and introducing greater levels of AI and automation.

These priorities will be enabled by a focus on people and culture, financial discipline, technology and AI, and sustainable practices. Spark's financial ambition is to deliver stable, annuity-like returns for shareholders through consistent annual growth in free cash flow, supporting a sustainable and growing dividend over time.

Spark's financial ambition is to deliver a return on invested capital (ROIC) of 11-13% over the next five years, up from 8.7% in FY25. This outperforms the majority of its global peers.

Spark's new SPK-30 strategy focuses the business on its core connectivity offerings, with a goal of delivering a better network and better customer experiences. The company will prioritise investment in mobile, broadband, and business connectivity, while simplifying and optimising its operations beyond the core. Spark aims to return the business to strong performance and maintain globally competitive industry returns for shareholders.