TeliaSonera makes goodwill impairment charges in Norway and Lithuania
After recent impairment tests, TeliaSonera has decided to make non-cash goodwill impairment charges in in Norway related to NetCom and Lithuania related to Omnitel.
For NetCom, the impairment charge will be SEK 2,752 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 is based on a decrease of the total value of the Lithuanian mobile market related to competition and price pressure.
The total goodwill impairment charge of SEK 3,070 million will be reported in TeliaSonera’s second quarter consolidated financial statements, and classified as non-recurring items, with no effect on cash flow. The goodwill charges are based on long-term assessments, and not specifically related to the short-term performance of the respective business unit.
TeliaSonera AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The information was submitted for publication at 09.30 on July 12, 2012.
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of TeliaSonera.
TeliaSonera provides network access and telecommunication services in the Nordic and Baltic countries, the emerging markets of Eurasia, including Russia and Turkey, and in Spain. TeliaSonera helps people and companies communicate in an easy, efficient and environmentally friendly way. Our ambition is to be number one or two in all our markets, providing the best customer experience, high quality networks and cost efficient operations. TeliaSonera is also the leading European wholesale provider with a wholly-owned international carrier network. In 2011, net sales amounted to SEK 104 billion, EBITDA to SEK 36.9 billion and earnings per share to SEK 4.20. The TeliaSonera share is listed on NASDAQ OMX Stockholm and NASDAQ OMX Helsinki. Read more at www.teliasonera.com.