State-owned communications company Kordia Group has posted a net profit after tax of $1 million in the six months to December 31, compared to a $4.4m loss in the same period last year.The company said it was ahead of budget in both revenue and profit in t
State-owned communications company Kordia Group has posted a net profit after tax of $1 million in the six months to December 31, compared to a $4.4m loss in the same period last year.
The company said it was ahead of budget in both revenue and profit in the period. It has reduced its net debt level from $105.4m to $101.1m in the past six months.
Until 2003, the company was the transmission arm of Television New Zealand. It is now a trans-Tasman company providing customised broadcast and telecommunications services employing more than 700 people.
"The transformation of the Kordia Group from a sunset, analogue, broadcast-centric business to a technology, media and telecommunications business with new services and products is really starting to deliver to the bottom line," said chief executive Geoff Hunt.
About $167m had been invested in the business in the past four years.
The company said nothing about its trans-Tasman cable project other than that it continued to develop.
Sales activity had picked up for its integrated two-way digital radio and carrier ethernet products in New Zealand.
"However, we are noting a reduction in capex investment, and considerable delays in decision-making inside customer organisations - and more generally, across the industry - as a result of the challenging economic climate," said Mr Hunt.
Kordia Solutions Australia had delivered a strong result, and had a good pipeline of work for the next six months.
"Kordia Solutions New Zealand also has some promising contracts in the pipeline after a difficult first half, and we are working hard to ensure that recent consolidation is delivering tangible results."
Orcon was now achieving its targets in a highly competitive market, and was ahead of budget on both revenue and earnings before interest and tax, Mr Hunt said.
