Source: Radio New Zealand
Chairperson Justine Smyth says she will step down as chairperson and board member within the next 12 months. Photo: Supplied / BCFNZ
Shareholders in telecommunications company Spark have grilled the board on its poor performance over the past couple of years.
Spark chairperson Justine Smyth told shareholders at the annual meeting the company was on track to deliver a flat underlying profit of just over a billion dollars in the year ending June 2026, which was little changed from the year earlier, assuming the 75 percent sale of its data centres went ahead.
Smyth also said she would step down as chairperson and board member within the next 12 months.
The company also laid out a strategy that renewed its focus on connectivity rather than an ambition to deliver broader digital services.
Chief executive Jolie Hodson said the telco had put in place a programme to drive mobile growth with new high data plans, brand campaigns and pricing.
“This is moving the dial and Spark remains the #1 mobile provider by some distance, with 41.4 percent total market revenue share,” Hodson said.
However, she said broadband remained competitive, with connections down 3.8 percent.
Hodson said the fresh strategy would see Spark partner with others to deliver key services, though it would retain control over all components of critical assets that deliver competitive advantage.
“Our new technology delivery model includes four key partnerships which allow us to leverage our partners’ global expertise and investments in AI and automation to deliver better customer experiences in a more efficient way,” Hodson said.
The transformation had resulted in $85m of savings in the second half of the June 2025 year.
“This ensures we are in a stronger position as we move into FY26 and embark on our new five-year strategy.
“After the first quarter of FY26, trading is tracking in line with our expectations, with the new brand campaign, iPhone launch, and price increases supporting mobile service revenue growth.”
She said a productivity programme was also on track, with significant savings delivered across labour and cost savings.
“Our focus over the next five years is on returning Spark to its history of stable performance, with predictable free cash flow and growing dividends over time.
“We have a proven track record of cost discipline and adapting our business when we need to, and portfolio management to support shareholder returns.
“The past couple of years have been incredibly challenging, and I acknowledge the impact this has had on our shareholders. We have taken decisive action to transform our business within this changing environment, and I am committed to seeing this through and returning Spark to growth,” Hodson said, as she offered herself for re-election to Spark’s board as executive director.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand