TeliaSonera makes USD440m goodwill impairment charges in Norway and Lithuania

12 Jul 2012

Swedish telecoms group TeliaSonera has decided to make non-cash goodwill impairment charges related to its subsidiaries in Norway (NetCom) and Lithuania (Omnitel), following recent impairment tests. For NetCom, the impairment charge will be SEK2.752 billion (USD394 million), primarily relating to ‘the substantial goodwill amount created at the acquisition of the company in 2000, and the current assessment of the achievable long-term return on investment.’ The goodwill impairment charge in Omnitel of SEK318 million is based on a decrease of the total value of the Lithuanian mobile market related to competition and price pressure. The total impairment charge of SEK3.070 billion will be reported in TeliaSonera’s second quarter financial statements, and classified as non-recurring items, with no effect on cash flow. The group adds that the goodwill charges are based on long-term assessments, and not specifically related to the short-term performance of the respective business unit.

Lithuania, Norway, Omnitel, Telia Company, Telia Norge