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Kordia revenue up 14%

01 Sep 2011

State-owned telco Kordia has announced its latest financial results, posting a revenue increase of 14% for the year to June 30, from $258m to $295m.

This saw the SOE achieve an underlying profit of $7.2m, although this was impacted by an impairment charge of $21.9m.

The charge mostly relates to the government’s announcement last year that it will commence switching to digital television in September 2012. Kordia had planned for a later switch, and has been forced to re-value its network assets accordingly.

A small impairment charge was also reported as a result of the Christchurch earthquake.

Kordia CEO Geoff Hunt says the company will continue a strong focus on debt reduction, which has thus far seen net debt drop from a high of $123.7m in November 2008 to $73.8m now.

"In addition to debt reduction,” Hunt says, "Kordia Group has continued its investment programme with $23m of capital expenditure in the current year to develop new products and services like OnKor and Genius, as well as maintaining its existing infrastructure.”

Revenue from Kordia Solutions increased 12%, while that of Orcon was up 31%.