TAIT Partner in New Zealand Critical Communications Public Safety Network Reports Lower Profit on Increased Revenue

State-owned communications and ICT company Kordia Group has joined other significant industry players to report a lower profit for 2023.

“Our performance reflects surging demand for our services and solutions, as revenues lifted $14 million year on year," chair Sophie Haslem said. 

However, softening economic conditions, higher interest rates, rising costs, spending related to unprecedented weather events and the onboarding a major Public Safety Network contract drove net profit after tax down $2 million for the year ended 30 June. 

Kordia reported revenue of $145 million, earnings before interest, taxes, depreciation and amortisation (EBITDA) of $27 million, profit after tax of $7.3 million and a final dividend of $1 million. 

TAIT Communications and Kordia

In November 2022, the New Zealand government announced a joint venture between Kordia and Tait  Communications had been selected to deliver a key part of the transformational Public Safety Network.

This secure digital radio network, estimated to cost $1.4 billion to build and operate over 10 years, will provide frontline emergency responders with a mission-critical and highly available communications system. 

“Customers are increasingly looking to Kordia to help them monitor and respond to incoming threats," Haslem said. "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.” 

Kordia was the only telecommunication company functional after teh Cyclone Gabrielle hit Gisborne as of Friday 17 February 2023, and supported other telcos to get back online using its Digital Mobile Radio (DMR) radio network infrastructure. 

Although parts of the network were hampered by mains power outages and backhaul fibre faults, much of Kordia’s infrastructure remained operational. 

“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," Haslem said.

Other Financials

Kordia's accounts also reveal it paid $9.2 million for SecOps in 2021 of which $2.5 million was deferred to be paid in two instalments. The first instalment of $1.25 million was made during the 2023 financial year.

Increased cost pressures, especially for staff, have been a feature of the industry since the pandemic. Datacom, for instance, fell into the red in 2023.