Kordia FY profit up 33% despite lower revenue

Monday 29th August 2016

State-owned telecommunications service provider Kordia increased tax-paid profit by 33 percent to $12.3 million in the year to June 30, thanks in part to a focus on completing profitable projects in the Australian market.

Revenue for the year fell 3 percent to $240.7 million, with a reduction in total Australian revenues of 8 percent offset somewhat by a 3 percent rise in total billings in New Zealand.

"The substantial growth in profitability was realised through a strong result from New Zealand operations and the completion of large scale projects in Australia," said chair Lorraine Witten in a statement. The company has yet to publish full financial accounts.

"We've maximised the profitability of our Australian contracting, engineering and consulting businesses, completing substantial design work on infrastructure projects" which were now either complete or close to fruition, meaning "a more muted performance" is anticipated from Australian operations in the year ahead.

"While the project pipeline for FY2017 looks positive, the conclusion of several large projects in the Australian business unit means that overall the group is expecting the coming year to be slightly leaner," Witten said.

Dividends derived in the last financial year are expected to total $13.5 million, with the board to sign off a $7.5 million final dividend next month and includes payment of a $5 million special dividend last October.

During the year, Kordia purchased a cyber security firm in New Zealand, Aura Infosec, to add to its range of services aimed at delivering what it describes as "mission-critical networks for business customers".

BusinessDesk.co.nz

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