TeliaSonera to Take Impairment Charge of $440 Million in Norway and Lithuania
Published on: 12th Jul 2012
Note -- this news article is more than a year old.
After recent impairment tests, TeliaSonera has decided to make non cash write down of the value of its assets in Norway related to NetCom and Lithuania related to Omnitel.
The total goodwill impairment charge of SEK 3.07 billion (USD440 million) will be reported in TeliaSonera's second quarter consolidated financial statements, and classified as non-recurring items, with no effect on cash flow.
For NetCom, the impairment charge will be SEK 2.75 billion (USD394 million). The charge primarily relates to the substantial goodwill amount created at the acquisition of the company in 2000, and the current assessment of the achievable long-term return on investment.
The goodwill impairment charge in Omnitel of SEK 318 million (US$45.6 million) is based on a decrease of the total value of the Lithuanian mobile market related to competition and price pressure.
The company added that the goodwill charges are based on long-term assessments, and not specifically related to the short-term performance of the respective business unit.