Kordia returns to profit, beats guidance in shift away from broadcast

Wednesday 29th August 2012

Kordia Group, the state-owned communications company, returned to profit as a shift away from relying on broadcast transmission fees underpinned sales growth, and beat its own guidance in the 2012 Statement of Corporate Intent.

Net profit was $12.1 million in the 12 months ended June 30, turning around a loss of $12.1 million a year earlier, the Auckland-based state-owned enterprise said in a statement. Revenue climbed 35 percent to $399 million and earnings before interest, tax, depreciation and amortisation advanced 12 percent to $57.7 million. That beat forecast sales of $305.6 million and ebitda of $48.9 million.

"We have had an exceptional year, and are starting to see the fiscal benefits of diversification and growth into the telco market," chief executive Geoff Hunt said. "The transformation from 'broadcast to broadband' was designed to establish new future growth paths for Kordia with the switch-off of analogue television."

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 was brought forward to kick off this year.

The company said it will pay its first dividend for three years, and cut net debt to $65.9 million. That gives it gearing of 42 percent, ahead of the 46 percent target in its SCI.

Sales in Kordia's solutions Australia unit increased 58 percent, while Orcon revenue grew 27 percent, and its network sales gained 14 percent.

BusinessDesk.co.nz

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