State-owned Kordia's profit inflates

  • 31/08/2015

State-owned telecommunications network operator Kordia has surprised itself with an annual profit of $9.2 million, beating its own forecast by 400 percent.

Kordia, which had been the transmission arm of TVNZ until it was made a state-owned enterprise in 2003, had been expecting a net profit for the year to June 2015 of $1.9 million.

Ordinary revenue was actually down 18 percent to $248 million, but earnings before interest, tax, depreciation and amortisation rose 193 percent to $38 million, it announced today.

Chairwoman Lorraine Witten said that was because in Australia, Kordia Solutions had secured several "multi-year annuity-type revenues", meaning it now had eight times the revenue.

"Our media business has also had a buoyant year, with the addition of online streaming services and growth in FM radio," she said.

The company's performance had been "outstanding" and it had cut net debt by nearly 80 percent to $12.5 million from $60.4 million, she said.

Last year, Kordia reported a loss of $8.6 million.

Kordia has decided it won't pay a dividend to the government because it wants to recover from the loss of $14 million in revenue from the analogue television switch-off in 2013.