Kordia's annual report shows increase in profit

October 12, 2007 New Zealand state-owned enterprise (SOE), Kordia published its annual report a few days ago for the financial year ending June 30, 2007.

Formerly known as Broadcast Communications Ltd (BCL) prior to the name change in November 2006, the Crown-owned company offers contracting, consulting, and networking services. They operate a national communication network and provides network feeds and broadcast services for the major television and radio networks in New Zealand.

The annual report shows Kordia Group Limited's net profit, after tax, at NZ$11.9 million, the 2006 result was $9.8 million. Revenue was up from $201 million in the 2006 financial year to $264 million this year; a 31% increase. Chairman of Kordia, Wayne Brown, described this financial year as "solid achievement" while being "on track to record further growth in the exciting fields in which it operates."

These increases is despite the major acquisition of Orcon Internet Limited, an ISP (Internet service provider). Kordia will use Orcon, acquired on 2 July, 2007, to invest and deliver the possibilities of the current progress of local loop unbundling, new Wi-Fi zones, and WiMAX technology. CEO of Kordia, Geoff Hunt, said, "Orcon will soon offer a complete range of Voice over IP products". Orcon is being operated at arms-length to the rest of the company.

Other areas where Kordia is advancing itself is mobile television transmission where they are already prepared to start services once content providers have been secured. Hunt said, "Spectrum is available, so all we need are the content providers and some good consumer demand. Then we'll be ready to roll."

Kordia is also immersing itself further in the television sector as well as its mobile television service. Other advances includes New Zealand's new digital television service, Freeview with it set to start terrestrial transmission next year.

Parliament TV also began this year in July. All House proceedings are available via the Parliament website and a broadcast quality feed is provided to all broadcasters, with full coverage being televised by Freeview and Sky Network Television. The manager of Kordia's Transmission Control Centre, Merv Brooks, said, "This is another example of people and technology coming together to deliver a truly unique product to New Zealanders."

Being a SOE, Kordia is required to give the Government a dividend. The Government will receive a total dividend of $8.4 million; $6.8 million in 2006. A $3 million dividend had already been received by the Government so a payment of only $5.4 million was made.