Lend Lease has recorded a $17.8 million loss due to the embattled Syntheo joint venture between Lend Lease and Service Stream.
The loss has been incurred over the 12 months to 30 June, 2013. Lend Lease previously reported a $400,000 profit from the joint venture for the previous financial year.
Syntheo was responsible for passing 48,620 premises in SA, WA and the NT for the National Broadband Network (NBN) by June this year, but it has experienced numerous problems that have resulted in downgrades to construction targets for the network.
Following the downgrade of targets in February this year, work was handed back to NBN Co in the NT and Syntheo's contracts for the NBN will not be renewed.
Lend Lease is now controlling the completion of Syntheo’s obligations under contracts with NBN Co.
Service Stream previously announced it would record a $20 million EBITDA loss from the joint venture for the FY2013.
Mike Quigley, NBN Co chief executive, has said the changes to Syntheo is not expected to have an impact on the timeframe of the rollout of the NBN or the overall cost of the project.