Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Kordia posts annual loss of $14.7 mln on analogue charge

Kordia posts annual loss of $14.7 mln on early digital switchover, flags dividend

By Paul McBeth

Sept. 1 (BusinessDesk) – Kordia Group, the state-owned communications, made an annual loss of $14.7 million as it wrote down the value of an ageing analogue network ahead of the switch to digital television next year.

The loss was bigger than the $13.8 million targeted in this year’s Statement of Intent, and wider than the loss of $900,000 last year when it took a one-off hit on new tax treatment for the depreciation of buildings. Kordia took a $21.9 million charge, with the write-down accounting for $21 million and the impact of the Canterbury earthquakes adding an extra impairment of $900,000.

Still, the company boosted underlying profit to $7.2 million in the 12 months ended June 30, compared to $2.2 million a year ago, and will look to resume dividend payments next year, it said.

Kordia lifted revenue 14% to $295 million, beating the $283.4 million target, while earnings before interest, tax, depreciation and amortisation rose to $51.3 million from $50.8 million a year ago, also ahead of the expected $50 million.

“Strong performances were delivered by both Kordia Solutions and Orcon showing revenue increases of 12% and 31% respectively,” the company said in a statement.

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 Broadcasting Minister Jonathan Coleman last year brought that forward to start in 2012.

Chief executive Geoff Hunt said the group wants to resume paying dividends on the back of the stronger underlying earnings.

Kordia continued to repay debt through the year, with net debt now at $73.8 million.

The state-owned enterprise was valued at $198.5 million in the government’s 2010 investment statement.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Stats NZ: Quarterly Inflation Rising Steadily Across The Board

Higher prices for transport and food have driven up inflation for the all households group in the June 2021 quarter, Stats NZ said today. The ‘all households group’ represents all private New Zealand-resident households... More>>


Stats NZ: Primary Products Push Exports To A New High

New Zealand exports reached a new high in June 2021, off the back of record export values for logs and beef, Stats NZ said today. In June 2021, the value of all goods exports rose... More>>



Energy: New Zealand Could Be World’s First Large-scale Producer Of Green Hydrogen

Contact Energy and Meridian Energy are seeking registrations of interest to develop the world’s largest green hydrogen plant. The plant has the potential to earn hundreds of millions in export revenue and help decarbonise economies both here and overseas... More>>




Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>

ALSO: