Tele2 Reports Impairment Loss from Goodwill and Other Assets for Continued Operations
Tele2 has announced a write-down of SEK 943 million (US$133.8 million) on its networks in Austria and Switzerland - which will be reported in Q3 2008. The company said that the impairment loss will have no impact on its cash flow.
Of the total, SEK 829 million is attributable to goodwill and other surplus values on group level from the purchase of SEC and UTA. After the impairment loss of the Austrian operation, the net book value amounts to SEK 150 million excluding deferred tax assets. SEK 114 million is attributable to an impairment of Tele2's central IT-systems in Sweden as an effect of the current realignment process
In addition to the impairment loss, Tele2's Q3 2008 will include net positive one-off items of approximately SEK 1 billion in discontinued operations related to the previously announced divestments of operations in Luxemburg and Lichtenstein, as well as a goodwill impairment loss of the operation in Switzerland of SEK approximately 400 million.
After impairment and closing of announced divestments, the goodwill position of Tele2 will amount to SEK 10 billion.
Posted to the site on 10th October 2008
