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Kordia Group Results Announcement

By  Kordia,
 1 July 2023

Kordia Group, a leading provider of mission critical connectivity, cyber security and cloud solutions, has reported a revenue of $145m for the full year ended 30 June 2023. The Group’s EBITDA was $27m and the company posted a profit after tax of $7.3m. The Group has declared a FY23 final dividend of $1m.
Chair Sophie Haslem says the past 12 months have highlighted the value Kordia delivers for its customers.

“Our performance reflects surging demand for our services and solutions, as revenues lifted $14m year on year.”

“Softening economic conditions, higher interest rates and rising costs, coupled with spend directed towards unprecedented weather events and onboarding the Public Safety Network contract have impacted our profit margins in the current year, with net profit after tax down $2m year on year.”

Unprecedented weather events and Cyclone Gabrielle
Haslem says extreme weather and Cyclone Gabrielle in early 2023 tested the resiliency of Kordia’s network and infrastructure.

Kordia was the only telecommunication company functional in Gisborne as of Friday 17 February 2023, and supported other telecommunications companies to get back online by leveraging its Digital Mobile Radio (DMR) infrastructure. Although parts of the network were hampered by mains power outages and backhaul fibre faults, much of Kordia’s infrastructure remained operational throughout.

Both permanent and temporary generators were installed and activated to ensure communications remained operational for lifeline utilities. During the acute phases of the cyclone and the immediate aftermath, a total of twenty-three areas were under generator power, running for an unprecedented 1500+ hours.

“Our operations and field teams worked tirelessly to restore and maintain network services in affected areas – which was extremely challenging due to power outages and restricted road access. Kordia worked collaboratively with industry partners to get equipment and people into affected areas,” notes Haslem.

“Despite this, New Zealand Digital Television Transmission network availability was maintained at 99.99% for the year - testament to our reputation as a mission-critical provider,” says Haslem.

Public Safety Network
In November 2022, the New Zealand government announced the Tait-Kordia Joint Venture, a partnership between Kordia and Tait Communications, had been selected to deliver a key part of the transformational Public Safety Network – a secure digital radio communications network that will provide frontline emergency responders with a mission-critical and highly available communications system. The overall Public Safety Network is estimated to be worth NZ$1.4 billion to build and operate over 10 years.

Haslem says Kordia’s unique experience in building, designing, maintaining, and operating critical networks means the business is well versed in how to deliver solutions of this critical importance and magnitude.

“We’re thrilled to be able to apply our expertise to this nationally significant project, that will benefit the emergency services and all New Zealanders, now and in the future.”

Growth in Managed Security Services
Kordia continued to grow its Managed Service offering – particularly in the Cyber Security space where revenues were up 67% year on year, reflecting demand for robust solutions to mitigate the risk of cyber-attacks.

“Customers are increasingly looking to Kordia to help them monitor and respond to incoming threats. With eyes on glass 24/7, Kordia’s security analysts work around the clock to provide our customers with a level of assurance that frees them to focus on their operations.”

Steady Performance from Key Business Units
Mobile media supported a high volume of over 570 live events including the Women’s Rugby World Cup, All Blacks test matches and the national broadcast of the Matariki public holiday commemoration.
Maritime’s position as the primary source of operations and technology for marine safety services across Australian and New Zealand waters has been solidified, with the Australian Maritime Safety Authority (AMSA) and the Bureau of Meteorology (BOM) renewing their long-term contracts.

Kordia’s Solutions business, comprised of engineering and field services, had an active 12 months supporting its key customers install and maintain their critical communications infrastructure.

Conclusion and outlook
Haslem says Kordia is focused on delivering best in class mission-critical technology services and solutions to meet the demands of customers – which will see the business to continue to produce solid results over the next 12 months.

“Over 480 people make up the Kordia family, every one of them proud of what they do, and passionate about delivering exceptional service and support to our customers. This is reflected in our staff engagement score of 83% for the year and our NPS score of 53,” says Haslem.

“As the Public Safety Network project delivery ramps up, and we continue to capture demand into our strategic growth areas of Cyber, Cloud, and Connectivity, the group expects to see revenues grow.”