NBN Co renews Service Stream greenfields contract

NBN Co construction partner Service Stream has inked a contract renewal with the government-owned company charged with rolling out the National Broadband Network. The renewal for design and construction of fibre in greenfield estates is worth at least $70 million over two years.

An ASX statement by Service Stream said that the renewal is potentially worth more based on "additional revenue from other regions". In addition there are two one-year extension options worth up to $70 million.

In its half year results for the period ending 31 December, Service Stream reported an EBITDA loss of $3.2 million for its fixed communications division based on revenue of $42.7 million.

Service Stream and Lend Lease's troubled 50-50 venture Syntheo last year handed back NBN construction contracts to NBN Co.

The joint venture was blamed for a $19.5 million loss by Service Stream.


Copyright © 2014 IDG Communications, Inc.

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