Spark New Zealand has announced a strategic review of its Digital Services division as part of an acceleration of its SPK-30 strategy aimed at sharpening focus on core connectivity operations. The Board has initiated a formal assessment process to evaluate options for maximizing value and returns from this division for shareholders. An external advisor has been engaged for the review, which is scheduled for completion during the first half of FY27 (ending June 2027). The company notes there is no certainty that the review will result in any transaction, nor does it specify valuation expectations or terms, indicating the Board is genuinely open to a range of outcomes.
To support the strategic review and organizational transition, Spark is restructuring into two distinct business divisions: Connectivity (encompassing consumer mobile, broadband, and business connectivity services) and Digital Services (cloud, IT services, and adjacent products). This separation reflects the broader SPK-30 strategic direction launched in 2025, which prioritized the connectivity core while signaling the need to simplify and optimize non-core cloud and IT services. By creating standalone divisions with clear accountability, Spark aims to enable more nimble execution and appropriate capital allocation across businesses with different growth profiles and market dynamics. The structure maintains centralized shared functions to preserve operational efficiency.
The strategic review itself is the headline news from an investor perspective. For years, Digital Services has been viewed as a drag on earnings and return on capital, with questions lingering about the best path forward for non-core IT and cloud assets in an increasingly focused telecom industry. The Board’s decision to formally evaluate strategic options, from internal optimization through to divestment or partial sale, suggests genuine openness to transformative outcomes. Success here could materially improve financial metrics and capital efficiency for shareholders.
The leadership changes underscore Spark’s commitment to the new accountability structures. Mark Beder has been appointed Chief Customer Officer of Connectivity, taking direct responsibility for core business performance. Greg Clark, who has spent 13 years at Spark in various customer-facing roles, transitions to an interim role as Chief Customer Officer of Digital Services through December 2026, providing continuity during the strategic review and organizational transition. These appointments signal clear divisional accountability going forward. Other leadership changes include Tommy Bjorkberg as Chief Operating Officer and Leela Ashford as Chief Marketing and Corporate Affairs Officer, completing an updated leadership team positioned to execute the restructure.
For investors, several factors support confidence in execution. The unchanged FY26 guidance suggests the review is not expected to materially disrupt near-term operations or profitability. The clear divisional structure also sets up a cleaner operating model that should simplify future investor communication and capital allocation decisions.
The key watch points ahead include the composition and initial findings from the external review team, any announcements regarding strategic options before the H1 FY27 completion date, and market reaction to the new divisional structure. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About SPK (ASX: SPK)
SPK is listed on the Australian Securities Exchange (ASX: SPK).
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