Spark signals potential business sale as it splits into two

Monday, 27 July 2026

Spark New Zealand is reorganising its business into two distinct divisions — Connectivity and Digital Services.

The company’s board has launched a review of the Digital Services division, which handles cloud and IT services, to assess options for maximising shareholder value.

An advisor has been appointed, with the review expected to be completed in the first half of FY27, though Spark noted there is no certainty it will result in a transaction.

Spark confirmed its FY26 financial guidance remains unchanged ahead of its full-year results release on August 20.

Spark is splitting its business into two separate operating units as it launches a review into the future of its digital services division.

The move, announced on Monday, will see the telecommunications provider’s core operations rebranded into a Connectivity division, while its cloud and IT services will move into a standalone Digital Services division.

Spark has hired an advisor to conduct a strategic review of the Digital Services division to assess options for maximising shareholder returns.

The review is expected to take until the end of the first half of the 2027 financial year, and the company signalled a potential sale of part of the business.

“There is no certainty that the review will result in a transaction, nor as to the terms or value of any outcome,” the company’s market statement said.

The corporate shake-up follows the direction set under Spark’s SPK-30 strategy, which aims to focus investment on core connectivity while simplifying its adjacent IT offerings.

Chief commercial officer Mark Beder has been appointed chief customer officer of Connectivity to lead the core business. Customer director Greg Clark will serve as interim chief customer officer of Digital Services until December 2026 to guide the review, before leaving the business after 13 years.

Spark chief executive Jolie Hodson said the split creates clear performance ownership across both parts of the business.

“This next step creates clear ownership of performance across Connectivity and Digital Services, strengthens execution, and enables us to allocate capital and resources appropriately to support each division to perform in line with its distinct needs and growth potential,” Hodson said.

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The company also confirmed further changes to its executive team, with Tommy Bjorkberg stepping in as chief operating officer from October 1 to oversee network operations, business technology, and cyber security. Leela Ashford has been appointed chief marketing and corporate affairs officer.

The Connectivity unit will cover consumer mobile, broadband, business connectivity, managed services, collaboration, internet of things (IoT), and security. Digital Services will handle cloud, IT services, and adjacent digital products.

Spark confirmed its FY26 financial guidance remains unchanged, with full-year financial results scheduled to be reported on August 20