Kordia’s return to profit beats company forecast

Kordia’s shift to broadband has returned the company to profit, beating forecast figures in the process.

The communications firm posted a net profit of $12.1m in the year ended June 30, overcoming a $12.1m loss the previous year as the company moves away from relying on broadcast transmission fees.

Announcing a revenue increase of 35% to $399m, the Auckland-based company beat forecast sales of $305.6m with earnings before interest and tax rising 12% to $57.7m.

"We have had an exceptional year, and are starting to see the fiscal benefits of diversification and growth into the telco market," says CEO Geoff Hunt.

"The transformation from 'broadcast to broadband' was designed to establish new future growth paths for Kordia with the switch-off of analogue television."

The news follows the recent appointment of former Renaissance acting CEO Shaun Rendell as the companies new CFO, with his first day in the role September 3.

Kordia says it will pay its first dividend in three years while cutting debt to $65.9m.