5 Mar 2013

Kordia confident of profit target

7:29 am on 5 March 2013

Kordia expects to meet its full year profit target of $8.5 million, boosted by strong growth in Australia.

Profit for the state-owned telecommunications and media company more than halved to $2.2 million in the six months to December, due to to a one-off settlement gain from Telecom in the same period a year ago.

Underlying sales rose 11% to $208 million, largely due to its Australian arm winning telecommunications contracts and supplying a mining operation with its communications needs.

Its New Zealand operations also enjoyed strong growth in providing data services between firms.

Outgoing chief executive Geoff Hunt said Australia is now an important part of Kordia's expansion plans.

"We're actually going to enter a six month phase in Australia where it will be a softer result - with the natural cycle of projects in the telco sector - then we're going to see very strong investment in ... the second half of this calendar year," he said.

"So, yes, ongoing, very significant growth in Australia."

Mr Hunt is stepping down at the end of the month after eight years.