Kordia Group recovers from 2019 loss in pre-COVID half year

Kordia Group recovers from 2019 loss in pre-COVID half year

COVID-19 impact on second half trading remains unclear

John Quirk (Kordia Group)

John Quirk (Kordia Group)

Credit: Supplied

State-owned Kordia Group has reported a revenue of $101.2 million for the half year ended 31 December 2019, down 7 per cent from $108.9 million in the same period of 2018. 

The telecommunications, broadcast and cyber security business' EBITDA was $13.6 million, up 29 per cent from $10.5 million, and a profit after tax of just over $1 million, up 37 per cent.

The half year was free of any COVID-19 impact, but the shadow of the pandemic now hang over Kordia's full year results.

"It is too early to assess the impact on our full year results, as there are still uncertainties around the midterm impacts of the pandemic on the economy," the company told Reseller News in a statement.

"However, all divisions of Kordia have continued to operate throughout the lockdown period, as we are both an essential business, as well as a supplier to other essential businesses."

In results delivered to Treasury, group chair John Quirk said the figures reflected the solid performance by Kordia’s New Zealand business units, coupled with improved stability of the Australian telecommunications market which has enabled the Australian solutions business to recover.

Kordia’s New Zealand was strong and the acquisition of cloud consultancy Emerging Technology Partners in February was expected to deliver new streams of work, complementing Kordia’s existing cloud connectivity and cyber security businesses.

“Our New Zealand networks division had a strong first half, driven by continued customer growth in secure WAN," Quirk said.

"The business is optimistic heading into the latter part of the year, with the introduction of new connectivity and cloud solutions providing ongoing opportunities.” 

Kordia’s specialist cyber security division, Aura Information Security, also made progress with 18 per cent year on year revenue increases. 

“As a digital technology business, Kordia’s commitment lies in positioning itself as a trusted partner to its customers with the high-tech capability to aid business transformation, capitalising on new business opportunities within our connectivity, cyber security and cloud offerings, and bringing more and more relevant digital services to market," Quirk said.

"Combined this puts the company in a better position to help our customers thrive."

Kordia's telco infrastructure services had been impacted by the effective ban on the use of Huawei's gear in regional 5G networks, taking the company into the red in the year to 30 June, 2018.

The impact of the ban trailed into the start of the current financial year as well, however from late in the first quarter work volumes had begun to pick up on the back of various 5G roll-out programmes.

“At the start of September, Kordia Solutions Australia was awarded the Optus Mobile contract which covers work for a term of three years," Quirk said. 

"Initial work volumes have been received with work commencing in September and will ramp as the programme grows in 2020. Our Australian contracting business is recovering, with revenue and EBIT improving quarter on quarter."

In New Zealand, the solutions business was delivering several significant projects, including one in Vanuatu to upgrade the national infrastructure, as well as a Wi-Fi and LAN install for the Christchurch Convention Centre.

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