Spark New Zealand has revised its earnings guidance downward due to a challenging economic environment that has resulted in decreased demand for mobile and information technology services.

The Auckland-based telecommunications company has announced that operating earnings for the fiscal year ending in June could be up to NZ$45 million ($27 million) lower than previously expected.

As a result, Spark has adjusted its projected full-year dividend to 25 cents per share, down from the earlier forecast of 27.5 cents. The company also plans to reduce capital spending and is considering asset sales as part of its strategy to navigate the current economic landscape.