Kordia posts loss due to digital TV switch asset-writedown

Impairment charge due to analogue phase-out prompts loss: SOE makes operating profit

Kordia has reported a loss of $14.7 million for the year to June 30, due to a $21.9 million impairment charge. In operating terms, the company made a $7.2 million profit on revenue of $295 million. This compares with $258 million for the 2009-2010 year. The $21.9 million impairment charge that plunged Kordia into the red for 2010-2011 was due to a reduction in the carrying value of its network broadcast assets in the lead-up to the switching off of analogue television transmission and issues relating to the February Christchurch earthquake, the company says in a statement announcing the yearly result. The statement notes: "On 16 September 2010, the Government announced that the date for the switch over to digital television would commence in September 2012, with completion by late 2013. Kordia had planned for a later switch over. Accordingly the Group reassessed the carrying value of the Network broadcast assets." $20 million of the impairment was due to the asset write-down, and $0.9 million due the earthquake. Kordia's ISP, Orcon, recorded a 31 percent rise in revenue, and the Kordia solutions division saw a 12 percent increase.

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