Should I buy Spark New Zealand stock in 2025?

What is Spark New Zealand?

How much is the Spark New Zealand stock?

The price of Spark New Zealand stock is relatively stable this week. Currently trading at NZD 2.23, the stock has gained 0.45% over the last 24 hours and hovered between NZD 2.20 and NZD 2.27 across the week.

The share’s recent movements suggest limited volatility in the short term, making it an interesting option for income-focused NZ investors seeking consistent returns.

Our full analysis on the Spark New Zealand stock

Having thoroughly reviewed Spark New Zealand’s most recent half-year financial statements, as well as the stock’s trajectory over the past three years, we have applied our proprietary multi-factor analysis—synthesising financial metrics, technical signals, real-time market data, and peer benchmarking—to assess its evolving investment case. In light of Spark’s strategic pivots, attractive income profile, and the increasingly dynamic telecommunications sector, a key question emerges: Why might Spark New Zealand once again represent a compelling strategic entry point into New Zealand’s tech-infrastructure sector for 2025 and beyond?

Recent Performance and Market Context

Spark New Zealand (NZX: SPK), the nation’s preeminent integrated telecommunications provider, has experienced significant volatility over the last twelve months. As of 30 May 2025, the share price rests at NZD 2.23—down 44.7% year-on-year, and 23.8% versus six months prior, mirroring broader turbulence within the sector and continued operational headwinds. Yet, this retracement may represent an oversold condition rather than a structural impairment, considering Spark’s resilient market position and robust dividend policy.

Amid recent share price consolidation (fluctuating within NZD 2.20 to 2.27), Spark has announced several potentially transformative partnerships:

• A May 2025 agreement with Nokia to outsource and optimise network operations;
• An April 2025 collaboration with Infosys to drive IT transformation and operational cost reductions;
• A landmark February 2025 public cloud partnership with Microsoft, the largest ever in New Zealand.

In parallel, private equity interest has surfaced, with at least two large funds exploring a possible buyout. This serves as a strong validation of Spark’s intrinsic value and long-term strategic appeal, despite near-term market caution.

On a broader level, the sector backdrop for Spark remains favourable. The ongoing digital transformation of the NZ economy, aggressive 5G and data centre investments, and resilient demand for bandwidth and connectivity form a structural tailwind for leading operators. Telecommunications remain essential services, supported by predictable revenue streams even in fluctuating macroeconomic environments.

Technical Analysis

From a technical standpoint, Spark’s current structure highlights opportunities for proactive investors. Key technical readings as at 30 May 2025 include:

• RSI (14d) at 55.3: Neutral territory, indicating neither overbought nor oversold conditions and potential for renewed upward momentum.
• MACD (12,26,9) at 0.028: Marginally negative, hinting at recent consolidation—but also suggesting possible upside reversal if supported by positive catalysts.

Shorter-duration moving averages have begun to stabilize or even revert to buy signals:

• 20-day MA at NZD 2.208 and 50-day MA at NZD 2.120 now both trigger buy signals as the share price consolidates above these levels.
• While the 100- and 200-day averages (NZD 2.398 and NZD 2.801, respectively) remain above the current price, indicating residual long-term downtrend, a sustained breakout above near-term resistance (NZD 2.13 and NZD 2.29) could mark the emergence of a new bullish phase.

Notably, strong support persists at NZD 2.02, with the 52-week low at NZD 1.95 acting as a potential downside floor. Such technical basing, married to evidenced institutional re-engagement, makes the current range particularly attractive for those seeking to enter ahead of a broader recovery.

Fundamental Analysis

Despite recent earnings softness, Spark’s fundamental story remains compelling:

• Market Leadership: Spark commands 40–45% share of NZ mobile and ~35% of fixed broadband, defending its position through scale, network leadership, and brand strength.
• Revenue and Profitability: While H1 FY25 revenue declined 1.9% year-on-year and EBITDAI dropped 16%, this was influenced in part by sector-wide price competition and margin pressure. EPS also declined (-64%), resulting in Spark revising full-year EBITDAI guidance to NZD 1,040–1,100m.
• Dividend Strength: The standout feature remains Spark’s dividend yield—currently an exceptional 16.03% gross, among the very highest in the NZX and indeed in the Australasian telecoms universe. Even if trimmed as part of future prudence, Spark offers a highly attractive income proposition at today’s entry levels.
• Attractive Valuation: Trading at a P/E of 20.94 and a P/S of 1.08, the stock looks appealing when considered against both historical multiples and sector peers, factoring in its leading market share and infrastructure footprint.
• Strategic Expansion: Core investments in data centres, 5G, cloud services, and digital/AI transformation are reorienting Spark towards higher-margin, growth-accretive segments—supported by the recent partnerships with Nokia, Infosys, and Microsoft, each set to drive cost efficiencies and revenue opportunities.

Structural strengths include not just Spark’s scale and market share, but also its diversified plays into IT services, cloud computing, IoT, and digital enablement—positions that future-proof the business in a rapidly evolving environment.

Volume and Liquidity

Spark’s liquidity remains robust. The average three-month daily trading volume is approximately 5 million shares, ensuring ample access for both retail and institutional investors. This underlines strong underlying confidence, especially given the majority float is split almost equally between institutional (48%) and retail investors (52%).

Such liquidity is advantageous for both active traders and longer-term holders, as it mitigates slippage and supports dynamic valuation adjustments, particularly around major corporate news or sector-wide events.

Catalysts and Positive Outlook

Looking forward, multiple catalysts underscore a positive outlook for Spark:

• Digital Infrastructure Expansion: Spark is investing NZD 221m in 5G rollout and new state-of-the-art data centres, supporting higher ARPU and business diversification.
• Strategic Partnerships: Collaborations with Nokia (network), Infosys (IT transformation), and Microsoft (public cloud) have the potential to unlock new efficiency gains and revenue streams, accelerate digital transformation, and elevate Spark's competitiveness in emerging technology verticals.
• Sector Consolidation: The heightened interest from private equity not only reflects undervaluation but raises the possibility of outright corporate action or industry consolidation, a significant re-rating catalyst.
• Innovation and AI: Focus on automation, AI, and digital tools to improve customer experience and operational performance is likely to drive incremental gains over the coming quarters.
• Dividend Resilience: A sustainable and attractive dividend remains in focus, reinforcing shareholder returns and providing an anchor during periods of market volatility.

All of these factors suggest that Spark is positioning itself to benefit from macro-trends in connectivity, enterprise digitisation, and cloud adoption—trends that are only accelerating across New Zealand and the wider Asia-Pacific region.

Investment Strategies

Given Spark’s current technical and fundamental configuration, several approaches seem particularly well-founded:

• Short-to-Medium-Term Positioning: Entry at or near the key technical floor (NZD 2.02–2.23) allows for participation in a potential bounce, supported by recent stability above critical short-term moving averages, and offers exposure to imminent news/catalyst events.
• Medium-to-Long-Term Accumulation: Investors seeking steady income and moderate capital appreciation may view the present valuation and rich dividend yield as especially favourable for incremental portfolio building, with sectoral and digital transformation tailwinds likely to favour Spark’s repositioned business model.
• Opportunistic Entry Ahead of Catalysts: For those driven by event risk or corporate activity, observing price action ahead of significant announcements—in particular, clarity on private equity interest, further partnership news, or regulatory changes—could offer heightened return opportunities.

The shares’ current technical consolidation, deep valuation discount to historical averages, and fundamentally positive structural direction make a strong case for multi-horizon positioning.

Is it the Right Time to Buy Spark New Zealand?

In summary, Spark New Zealand’s combination of market leadership, appealing valuation, high dividend yield, and strategic shift towards next-generation connectivity and digital services, forms a compelling investment thesis. Despite recent earnings softness and revision cycles, the underlying fundamentals are robust—and the company’s ability to attract top-tier partners and possible acquisition interest highlights the confidence of sophisticated stakeholders in Spark’s future.

As the NZ telecommunications sector pivots to a more innovation-driven and digitally reliant landscape, Spark appears poised to be a primary beneficiary of value creation over the coming years. The current share price level, underpinned by strong technical support and significant upside potential towards the medium-term target of NZD 2.90, seems to represent an excellent entry opportunity for investors seeking both growth and sustainable income in a blue-chip NZX name.

In this context, Spark New Zealand offers a rare combination of yield, quality, and transformation, making it an opportunity that deserves thorough consideration as part of any forward-looking portfolio.

How to buy Spark New Zealand stock in NZ?

Buying Spark New Zealand (SPK) shares online is simple, accessible, and protected when using a regulated broker in New Zealand. As an investor, you can choose between two main methods: spot (cash) buying, where you own the shares outright, or trading via Contracts for Difference (CFDs), which lets you trade on share price movements with leverage. Both approaches are secure when conducted through authorised platforms. To help you make an informed choice, a detailed comparison of leading NZ brokers is available further down the page.

Cash buying

A cash purchase means you buy Spark New Zealand shares directly on the NZX, becoming a registered shareholder. This method is ideal for those aiming for long-term growth and dividend income. Typical NZ brokers charge a fixed commission per order, usually between NZD 3 and NZD 15 depending on the broker and order size.

Example

If the Spark New Zealand share price is NZD 2.23, with a NZD 1,000 investment (including a NZD 5 broker fee), you could buy around 446 shares.
✔️ Gain scenario:
If the share price rises by 10% (to NZD 2.45), your holding value increases to NZD 1,100.
Result: That's a NZD 100 gain before brokerage or tax—representing +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on the price movements of Spark New Zealand shares without actually owning them. This instrument is popular with active traders due to the ability to use leverage—meaning you can multiply your exposure with a smaller initial outlay. For SPK, brokers typically offer 2x to 5x leverage. Instead of fixed commissions, you pay the spread (the broker’s buy/sell price difference) and, for overnight positions, daily financing fees.

Example

With NZD 1,000 and 5x leverage, your market exposure becomes NZD 5,000.
✔️ Gain scenario:
If the share price rises by 8%, your position grows by 8% × 5 = 40%.
Result: This translates to a NZD 400 gain on your NZD 1,000 stake (excluding spreads and overnight costs).

Final advice

Before you start, it’s wise to compare each broker’s fees, available features, and security standards. The best option will depend on your investment style and goals: long-term wealth building via cash shares, or active trading with the flexibility of CFDs. For tailored guidance on which broker suits you best, consult the detailed comparison tool provided further below on this page. Investing is straightforward when you take the time to inform yourself—so you can invest in Spark New Zealand confidently and efficiently.

Our 7 tips for buying Spark New Zealand stock

The latest news about Spark New Zealand

Spark New Zealand has entered a new strategic partnership with Nokia to manage its network operations. Announced in May 2025, this deal strengthens Spark’s capacity to deliver next-generation network infrastructure by leveraging Nokia’s global expertise. The agreement is expected to optimise the reliability and efficiency of Spark's services for both mobile and fixed broadband customers across New Zealand. Industry analysts point out that the partnership could facilitate accelerated 5G deployment and improved cost structure, both vital in maintaining Spark’s competitive edge in the local telecommunications landscape.

Spark has confirmed further advances in its digital transformation through a major IT collaboration with Infosys. In April 2025, Spark initiated a comprehensive IT modernisation effort via a strategic partnership with Infosys, targeting a significant reduction in operational costs and improved scalability for Spark’s growing service portfolio. This transformation is positioned to enhance the agility of Spark’s business platforms, streamlining customer experience and supporting the company’s ambitions in areas such as IoT, public cloud, and digital services, thus reinforcing Spark’s leadership in New Zealand’s rapidly evolving telecom and IT market.

Recent technical analysis signals short-term support as Spark’s shares show stabilisation above short-term moving averages. Despite Spark’s share price having declined approximately 44.7% in the past year, the stock has remained relatively stable this week, trading within the NZD 2.20–2.27 range. Short-term buy signals are observed on 20- and 50-day moving averages, while the 14-day RSI at 55.3 indicates neutral momentum. This suggests a pause in the downward trend and hints at improved investor sentiment, supported by continued high average trading volumes of around 5 million shares, reflecting robust liquidity and local market engagement.

Spark boasts an attractive gross dividend yield of 16.03%, distinguishing it on the New Zealand Exchange. The company’s commitment to shareholder returns is evident in its persistently high dividend payout, which remains one of the most significant positive signals for local income-oriented investors despite the recent contraction in share price and earnings. The elevated yield, supported by the company’s dominant market position and diversified service offerings, provides a buffer against market volatility and appeals to long-term holders seeking stable returns in a challenging sector environment.

Spark’s growth outlook is reinforced by NZD 221 million investment in 5G and data centre expansion. This forward-looking capital allocation toward next-generation networks and infrastructure underlines Spark’s strategic intent to anchor digital transformation in New Zealand. The deployment of new data centre capacity and 5G rollout is anticipated to unlock new revenue streams and supports Spark’s partnerships with leading IT and cloud providers, such as Microsoft and Infosys, positioning the company to capture sustained demand for connectivity and digital services nationwide.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.