MTG writes down €360m on Bulgaria
January 4, 2012
Modern Times Group is to recognise around SEK3.2 billion (€360 million) of write downs mainly on its Bulgarian operation and the shutdown of broadcasting in Slovenia.
The move made followed an annual ‘asset impairment test’.The write-offs will be included in the group’s financial results for the fourth quarter and full year 2011.
Hans-Holger Albrecht, president and CEO of MTG, said: “These write-downs are mainly non-cash and primarily reflect the operating environment in Bulgaria, where the TV advertising market has not yet returned to growth and the wider Eurozone issues continue to impact. This has delayed the anticipated development of our Bulgarian business and we have therefore taken the conservative approach of fully adjusting the value of these assets on our balance sheet. This does not affect our commitment to the market, or our belief in the longer term potential of our Bulgarian operations.”