Kordia returns to profit, looks to Australia for growth

Thursday 26th August 2010

Kordia Group, the state-owned telecommunications and media company, returned to profit this year and is looking for opportunities in the Australian federal National Broadband Network project.

Profit before the one-off hit from tax changes was $2.2 million in the 12 months ended June 30, compared to a $1.1 million loss a year earlier. Kordia made a net loss of $900,000.

Earnings before interest tax depreciation and amortisation climbed 24% to $50.8 million, just ahead of the forecast $49.4 million in the SOE's statement of intent. Revenue climbed 1.8% to $258.3 million.

"The company is well-positioned in Australia for work on the National Broadband Network rollout or any alternative should there be a change of government. Orcon is expected to maintain the current growth rate, and Kordia Networks has a very strong sales pipeline, particularly for newer products," chief executive Geoff Hunt said in a statement.

Kordia's future took a knock earlier this month when it abandoned plans for a rival trans-Tasman cable to Telecom's Southern Cross after Pacific Fibre partnered with Asia's Pacnet.

The company's solutions unit secured a long-term network engineering and maintenance agreement with Nokia Siemens Network to support Vodafone Hutchison Australia's mobile network across Australia, though its local business was weak.

Network revenue dropped 2.1% as Kordia prepares for the close down of analogue television, beginning with Sky Network Television's UHF transmission.

Internet service provider Orcon Internet boosted its revenue 43% as it resumed investment in local loop unbundling equipment at Telecom exchanges and had immediate success with the launch of its mobile phone products.

Businesswire.co.nz

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