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TeliaSonera to take SEK 2.5 bln in charges in Q4
2014-01-16 09:08:00| Telecompaper Headlines
(Telecompaper) TeliaSonera announced it will take one-time charges totaling SEK 2.524 billion for the fourth quarter of 2013. This includes SEK 2.331 billion in non-cash write-downs, primarily of goodwill and obsolete IT platforms. The goodwill writedown comes mainly at its Danish and Lithuanian activities, where charges total SEK 1.168 million. Another SEK 598 million impairment charge relates to the operations acquired in Kazakhstan in January 2013, which are expected to take longer to employ due to the lack of a 4G licence. The IT charges are a result of the new operating structure announced by the company in December. Combined with a general IT structure review, obsolete systems and platforms with a total book value of SEK 565 million will be scrapped or written down. The company also noted that annual costs for redundancies will be slightly less than previously forecast at just over SEK 1.2 billion, while the gain from selling towers in Spain will also be less than expected. TeliaSonera's Spanish subsidiary Yoigo has sold fewer towers than expected to Abertis Telecom, reducing the sale proceeds to around EUR 40-50 million (circa SEK 350-440 million). The transaction was partly finalized in the fourth quarter of 2013 with a positive cash flow impact of SEK 230 million and net gain of SEK 179 million. Finally, due to four major storms in Sweden at the end of 2013, extra maintenance costs for fault handling will impact the Broadband Services Sweden unit in the fourth quarter of 2013 by SEK 143 million.
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Category:Telecommunications