Kordia ups profit, cuts debt, resumes dividends

Kordia will pay a dividend of $1 million to the Crown, the first interim dividend payment since the 2013 financial year.
Kordia will pay a dividend of $1 million to the Crown, the first interim dividend payment since the 2013 financial year.

Kordia Group, the state-owned broadcasting and telecommunications network operator, posted a jump in first-half profit, allowing it to pay down debt and deliver an interim dividend to the Crown for the first time in three years.

Profit rose to $5.8 million in the six months ended December 31, ahead of its budget forecast of $2.4 million and up from $100,000 in the first half of 2015 and a loss of $3.8 million in the first half of 2014, according to the Auckland-based state-owned enterprise. Revenue increased 2 percent to $124.1 million in the latest period, it said.

Kordia will pay a dividend of $1 million to the Crown, the first interim dividend payment since the 2013 financial year. During the half, its Australian unit completed its biggest ever design and build contract, with Australian Pacific LNG, helping the company generate cash, pay down debt and boost earnings.

It didn't detail revenue and profit for its Australian and New Zealand units.

The company's New Zealand unit paid $10 million for Wellington-based cyber security consulting business Aura InfoSec during the half, saying there was "unprecedented demand" for such services and early trading was "encouraging". It said the New Zealand unit is tracking ahead of its targets and "performed well".

Kordia's net debt declined to $5.8 million at December 31, 2015, from $12.5 million at June 30, 2015, and $36.1 million at December 31, 2014.

- BusinessDesk

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