Kordia moves into cyber security to boost revenue

Scott Bartlett, Kordia's New Zealand chief executive.

State-owned transmission company Kordia is developing a cyber security business to counter its diminishing role in the broadcasting sector after the demise of analogue service at the end of last year.

New Zealand chief executive Scott Bartlett said this week the company would be putting more resources into the emerging business. It is also developing new telecoms services linked with the growth of ultra-fast broadband.

Kordia was widely tipped for privatisation but the Government has ruled out further asset sales.

The company's dominance of transmission has fallen amidst competition from satellite and broadband.

Kordia still controls Digital Terrestrial Television that delivers digital signals, along with satellite services to reach isolated geographic spots, the Kordia network foundation for free-to-air television and radio in New Zealand.

However, Scott Bartlett said the broadcast transmission arm had a diminished role in the future and Kordia was working on other revenue streams.

Bartlett took over the New Zealand end of the business in 2013 after running its former internet service provider division Orcon.

He said cyber security services would meet a rapid growth in demand from companies that were not being well served.

"Normally you would say that small places create issues with security but the internet is more dangerous as it gets larger," Bartlett said.

Kordia was offering improved cloud storage and close oversight of communications, with 24-hour scrutiny, he said. More resources were being directed at the new revenue stream.

Kordia is split into two operations - New Zealand and Australia.

Bartlett said that last year's financial result - a loss of $8.6 million in the 12 months ended June 30 - was because of a bad year from the Australian constituency operation.

He said the company was performing well this year, and would not want to repeat last year's loss.

Profit in the six months ended December 31 was $100,000.