Menu
Australia's Huawei ban drives state-owned Kordia Group into a loss

Australia's Huawei ban drives state-owned Kordia Group into a loss

Australia's ban on Huawei and other Chinese vendor takes a chunk out of Kordia

John Quirk (Kordia Group)

John Quirk (Kordia Group)

Credit: Supplied

State-owned technology company Kordia Group has reported a net loss of $149,000 for the year ended 30 June 2019, down from a $5.7 million profit in 2018.

As reported in April, the ban on Huawei and other Chinese telco equipment makers affected Kordia's results across the ditch.

The group posted revenue of $203.4 million in 2019, down from $217.2 million in 2018, and EBITDA down from $27 million to $16.7 million.

"While the group’s New Zealand business units performed exceptionally well, the Australian business unit struggled in a highly volatile and disruptive Australian telecommunications market," chair John Quirk wrote in the company's annual report. 

"This was largely due to Australia’s Chinese vendor ban which resulted in delays to several projects and significantly affected the Group’s overall performance."

The group grew in many other areas, with the networks and cyber divisions experiencing particularly strong growth over the past year, Quirk reported.

"As cyber threats continue to skyrocket, so too does demand for expert advice and support – something Kordia’s independent cyber security division, Aura Information Security, has been extremely well placed to leverage.

"Aura continues to carve out a solid reputation as the ‘go to’ provider in the cyber security market. As a result, the company has experienced rapid growth with revenue up 36 per cent on the previous year."

CEO Scott Bartlett, currently on leave due to illness, said that growth looked set to continue.

"While rapid growth often brings challenges to business, for the team at Aura it has simply inspired them to continue to do more of what they’re doing – that is, being a trusted advisor to customers and continuing to stay at the cutting edge of research and developments in information security," he wrote.

"Testament to this is the fact the team took out the Best Security Company award for the second year running at the iSANZ Awards, and that several members of our team were invited to present their research at security conferences all over the world."

The networks division  also performed strongly in the corporate sector, with the introduction of new technology solutions including unified security management, SD-WAN and SIP for Microsoft Teams.

"The New Zealand solutions division successfully completed several large-scale projects over the past year, including a comprehensive upgrade of the Radio 2AP AM broadcast transmission infrastructure in Apia, Samoa, on behalf of ABC International Development.

"With 5G rollout gaining momentum, the New Zealand solutions team was involved in the design, planning and implementation of several significant 5G in-building coverage (IBC) projects," Quiks wrote.

"We expect this activity to increase over the coming years."

During the second half of the year, the Australian solutions team secured two significant 5G projects, which Kordia sees as a "positive indication that 5G investment is reigniting, albeit with a different set of underlying technology providers."

Kordia’s media business continued to place a big focus on innovation and disruption in broadcasting.

The completion of Kordia’s new state-of-the-art digital playout facility – and home of Parliament TV – the Kordia Media Hub, and the introduction of Kordia Pop Up TV, all rounded off another eventful and successful year for this business, Quirk reported.

"We are now seeing positive signs that this period of market disruption is coming to a close, and the group is confident the Australian Solutions business is well poised to leverage its strong reputation, expertise and long-standing relationships with major telco carriers to maximise on future opportunities."


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Kordia Group. Huawei

Featured

Slideshows

Reseller News Platinum Club celebrates leading partners in 2019

Reseller News Platinum Club celebrates leading partners in 2019

The leading players of the New Zealand channel came together to celebrate a year of achievement at the annual Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months.

Reseller News Platinum Club celebrates leading partners in 2019
Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosted its second annual alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers. Photos by Gino Demeer.

Reseller News hosts alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Show Comments