Fourth quarter and full year 2022 financial results impacted by non-cash impairments
- 2023-01-20 10:30 UTC
After conducting the review of the carrying value of Telia Company’s assets and reflecting the changed macro-economic landscape and increase in the company's Weighted Average Cost of Capital (WACC) from increased market interest rates, there is a need to perform non-cash impairments of goodwill in a number of Telia Company’s business units. Specifically, non-cash impairment charges of SEK 9.5 billion relating to Finland, SEK 8.5 billion relating to Norway, and a total of SEK 1.1 billion relating to Denmark and Latvia will be recorded.
In addition, there will be a SEK 0.3 billion non-cash impairment related to the C More brand following the decision to consolidate the C More business under TV4 in Sweden and MTV in Finland during the coming years. Finally, the decision to fully dismantle the copper network in Sweden by 2026 resulted in a non-cash impairment of network assets of SEK 0.4 billion.
The total impairment of SEK 19.8 billion relating to Finland, Norway, Denmark, Latvia as well as the C More brand and Swedish copper network will negatively impact the operating income for the fourth quarter and full-year 2022.
Until the audit of the full year 2022 financial results is completed, all financial references for 2022 are preliminary.