Kordia posts $12 million profit

State owned telco rebounds from $14.7 million loss last year

Kordia has posted a net profit after tax of $12 million for its 2012 financial year, a dramatic turnaround from the $14.7 million loss the state-owned telco posted last year, which was mainly due to writing down its analogue network ahead of the digital TV switch over.

Kordia says its revenue was up 35 percent to $399 million, with EBITDA at $57.7 million.

CEO Geoff Hunt says Kordia’s move from broadcast to broadband infrastructure in 2006 was a key driver in the turnaround, adding that 60 percent of the revenue was derived from services that were not provided by Kordia five years ago.

“We have had an exceptional year, and are starting to see the fiscal benefits of diversification, and growth into the telco market,” says Hunt.

Kordia has four business units; Kordia Networks, Kordia Solutions NZ, Kordia Solutions Australia, and Orcon.

Hunt says consumer ISP Orcon has had particular success with its Genius naked broadband plan, which he says achieved a full year’s sales budget in its first two months.

Kordia board member Rhoda Phillippo says the SOE is in discussions with the Crown about the future of Kordia. A strategic review is in progress, with the results expected to be released to the public next month.

“From our perspective making the right decision in the telecommunications/ISP market, you have to be very aware of the economic environment both in Australia and New Zealand,” she says.

“It’s not just strategically reviewing the business and analogue switch off, it’s reviewing what context you are in, who’s changing, who’s moving and shaping and where would you fit into it. I think it will be carefully considered. There’s no rush to sell off the crown jewels in any way shape or form, (it’s) much more a board deciding strategically what is the right move for Kordia in the future.”

Hunt says he will not comment publicly on the review until it was “bedded in” with management and staff, a process which is not expected to be completed until next month.

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