Sharechat Logo

Kordia posts annual loss of $14.7 mln on early digital switchover, flags dividend

Thursday 1st September 2011

Text too small?

Kordia Group, the state-owned communications, made an annual loss of $14.7 million as it wrote down the value of an ageing analogue network ahead of the switch to digital television next year.

The loss was bigger than the $13.8 million targeted in this year’s Statement of Intent, and wider than the loss of $900,000 last year when it took a one-off hit on new tax treatment for the depreciation of buildings. Kordia took a $21.9 million charge, with the write-down accounting for $21 million and the impact of the Canterbury earthquakes adding an extra impairment of $900,000.

Still, the company boosted underlying profit to $7.2 million in the 12 months ended June 30, compared to $2.2 million a year ago, and will look to resume dividend payments next year, it said.

Kordia lifted revenue 14% to $295 million, beating the $283.4 million target, while earnings before interest, tax, depreciation and amortisation rose to $51.3 million from $50.8 million a year ago, also ahead of the expected $50 million.

“Strong performances were delivered by both Kordia Solutions and Orcon showing revenue increases of 12% and 31% respectively,” the company said in a statement.

Kordia has had to focus on new revenue streams after the government decided to free up radio spectrum for newer mobile technology by axing analogue TV in favour of a digital signal. That was initially scheduled for 2015, but Broadcasting Minister Jonathan Coleman last year brought that forward to start in 2012.

Chief executive Geoff Hunt said the group wants to resume paying dividends on the back of the stronger underlying earnings.

Kordia continued to repay debt through the year, with net debt now at $73.8 million.

The state-owned enterprise was valued at $198.5 million in the government’s 2010 investment statement.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

18th October 2021 Morning Report
T&G Global Limited (NZX: TGG) FY21 Earnings Guidance Update
Arvida Group Limited (NZX: ARV) Successful Completion of $155m Placement
FreshLeaf: Cannabis on course to be 'medicine of the masses'
Arvida Group Limited (NZX: ARV) to Acquire Arena Living Retirement Living Portfolio
My Food Bag Group Limited (NZX: MFB) Market Update and HY Results Announcement Date
Harmoney Corp Limited (NZX: HMY) Delivers Record September Quarter
Vital Healthcare Property Trust (NZX: VHP) Announces Successful Completion of $115m Placement
14th October 2021 Morning Report
General Capital Limited (NZX: GEN) Completes Greenfern Listing