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.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Kordia

Show Comments
[]