Service Stream tendering for more NBN work

Service Stream tendering for more NBN work

Infrastructure industries services provider Service Stream Service Stream is tendering for further design and construction work on the NBN project, according to managing director Graeme Sumner.

The company has already designed the NBN's first release sites in Armidale and Minnamurra, and participated in NBN Co's request for capability statement, Sumner told investors at the company's AGM.

Service Stream's communications business will also earn an estimated $250 million in FY11 from an expanded network design, construction and maintenance services contract with Telstra, he added.

Under the revised contract, now extended until June 2012, the unit will provide over 60% of Telstra's outsourced installation, maintenance and construction services.

As part of the revised agreement, Service Stream's maintenance contract for Telstra payphones has also been extended until June 2011.

The pipeline of opportunities for the communications division has led the company to take an “optimistic view” going forward, Sumner said.

“The development of national broadband capacity [and] projected increases in mobile network construction...suggest that we could be entering a significant growth phase,” he said.

Service Stream swung to a $2.5 million loss in FY10 from an $11.1 million profit the year before. Revenue shrank 7.2% to $517.7 million.

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Tags NBNinfrastructureService Streambusiness dealsGraeme SumnerASX:SSM

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