The Kordia Group achieved revenue from continuing operations of $ 122.9 million for the fiscal year ended June 30, 2021, slightly improved from $ 119.5 million in 2020. Group EBITDA audience was also stable at $ 31.8 million, up slightly from $ 31.7 million.
The company, which sold its Australian telecommunications outsourcing business after the closing date, said that under the status quo the group would have achieved revenue of $ 271 million for the fiscal year ended. June 30, 2021, with an EBITDA of $ 34 million.
Kordia made a one-time non-cash write-off of $ 55 million from this sale. Net income after tax from continuing operations of $ 9.5 million is down from $ 13.7 million in 2020.
“The Australian telecommunications contract industry has undergone significant changes in recent years, with market conditions becoming increasingly volatile and difficult, especially for smaller players in the boutique,” said Kordia Chairman. , Sheridan Broadbent.
Kordia was faced with a difficult decision to grow at a significant cost to compete with larger players or to exit the market. The sale is designed to put Kordia in a stronger position to invest in and deepen its core proposition – the management of critical networks and managed security services for customers.
“This will allow us to focus on high growth business areas including cybersecurity and network services such as cloud, modern business solutions and connectivity,” said Broadbent. “These two areas are experiencing unprecedented demand and growth. “
Kordia has made a series of acquisitions in key ICT services and security markets over the past few years.
With many companies accelerating the cloud migration and digital transformation in the wake of COVID-19, customer demand for reliable connectivity and the ability to work remotely and collaboratively has grown rapidly.
“Kordia’s decision to acquire cloud migration experts, EMRGE, in early 2020 has driven our transition to cloud transformation solutions for our customers,” said Broadbent. “There is a strong demand for a managed digital transformation implemented with risk management in mind.
With the rise of cyber attacks, Kordia’s security division has also experienced strong growth.
“Demand for Kordia’s managed security services increased 58% year-over-year, and our independent cybersecurity consultancy, Aura Information Security, also experienced unprecedented demand, particularly at the following numerous ransomware attacks against leading New Zealand organizations. Broadbent said.
The Kordia Group strengthened its managed security capabilities with the strategic acquisition of SecOps in June and, in addition, the vendor’s network construction and management team continued to deliver its products.
While COVID-19 restrictions saw a lot of work put on hold in 2020, the past year saw the completion of several important projects, including the City Rail Link, the installation of a new satellite at Warkworth and a solution to 5G coverage in the building. at commercial bay.
The team also played a critical role in ensuring that customers’ “mission critical networks” remain operational during the pandemic.
“This was especially important for those responsible for providing essential lifeline services and ensuring the safety of life at sea,” said Broadbent.
Kordia, which was founded as a broadcast infrastructure company, said the traditional media and broadcast market continues to experience significant disruption. However, the organization has remained committed to supporting its clients in their response to changes in the industry.
The company also ended the year on a note of caution. The loss of CEO Scott Bartlett to cancer this year and the impact of COVID-19 prompted the company to pause and reflect on its purpose and vision, Broadbent added.
“As we look to the future, competently led by our new CEO Shaun Rendell, we do so with the firm belief that the direction we are taking is more sustainable, more defensible and will result in enhanced value creation for our customers,” our company, our employees and our shareholders, ”she said.
“Our New Zealand business unit is performing exceptionally well. The Board of Directors is confident that our enhanced focus on the New Zealand market and high growth areas of the business will continue to generate positive growth and ultimately better long-term shareholder results. . “
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Tags NetworkingManaged ServicesbroadcastingManaged Security ServicesKordia Grouptransformation