TeliaSonera’s Year-end Report 2014 to include non-recurring items
TeliaSonera’s Year-end Report January-December 2014 will be released on January 29, 2015. In the fourth quarter of 2014, operating income will be impacted by non-recurring items of SEK -2,232 million, of which net SEK -1,973 million relate to non-cash items.
As a result of the annual impairment review, TeliaSonera will record a total SEK 1,465 million non-cash impairment charge related to goodwill and other fixed assets in Tajikistan, Georgia and Moldova. The economic uncertainty in these three countries have impacted our long term view on the value.
Further, TeliaSonera will record a non-cash impairment charge of SEK 381 million associated to the WiMax operation acquired in Kazakhstan in January 2013. TeliaSonera wrote down the value of frequencies related to this operation at the end of 2013. Goodwill and remaining fixed assets will be written down at the end of 2014 due to continued absence of a 4G license and to reflect the operational performance in the WiMax business.
TeliaSonera’s IT platform has been further adapted to support TeliaSonera’s convergence strategy. As a result, obsolete systems and platforms with a total book value of SEK 270 million will be scrapped or written down, reported as non-cash charges.
Finally, other non-recurring costs, mainly related to redundancies as well as network dismantling in Denmark, will amount to SEK 116 million.
Non-recurring items in Q4, 2014
|SEK million||Items recorded as non-recurring within EBITDA||Items recorded as non-recurring within depre-ciations and amortizations||Total Impact Operating Income|
|Non-cash write downs in Tajikistan, Georgia and Moldova||-1,465||-1,465|
|Non-cash write down relating to the WiMax operations in Kazakhstan||-381||-381|
|Non-cash IT scrapping and write down||-88||-182||-270|
|Other non-recurring items||-107||-9||-116|
TeliaSonera’s Year-end Report 2014 will be released on Thursday, January 29, 2015, at around 7:00 AM (CET).
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 1 p.m. CET on January 16, 2015.
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 a leading wholesale provider who owns and operates one of the world’s most extensive fiber backbones. In 2013, net sales amounted to SEK 101.7 billion, EBITDA to SEK 35.6 billion and earnings per share to SEK 3.46. The TeliaSonera share is listed on NASDAQ Stockholm and NASDAQ Helsinki. Read more at www.teliasonera.com.