MTG takes $23m Ukraine write-off
June 9, 2014
Swedish broadcaster MTG will take a 160 million Crown ($23 million) write down on costs in its fiscal second quarter, mainly due to an uncertain outlook in Ukraine and the devaluation of the country’s currency.
MTG will write down 100 per cent of the intangible assets from its 85 per cent stake in Viastrong Holding, which operates in Ukraine. The operation, included in the Group’s pay-TV Emerging Markets business, accounted for less than 1 percent of group sales last year.
CEO Jorgen Madsen Lindemann said the company remained committed to its Ukraine operations, and there was “substantial long-term potential” for the business.
Apart from 160 million crowns of charges related to Ukraine, MTG said it would take 70 million crowns in other costs, including restructuring costs. As announced on May 21st, MTG has also completed the sale of its 80 per cent stake in Zitius Service Delivery AB to TeliaSonera AB. The transaction is expected to generate a net gain of approximately SEK 76 million. Zitius has been deconsolidated from May 31st 2014, prior to which its results were reported within the ‘Central Operations, eliminations & others’ line within the Viasat Broadcasting business area, in the Group’s segmental reporting matrix. The net gain will be reported separately as a non-recurring item as described above.