TeliaSonera has issued an update on its previously announced phased exit plan in its Eurasia regional operations. Eurasia will be reported as held for sale and discontinued operations in the year-end report for 2015. As a result, operating income in the fourth quarter of 2015 will be impacted by a non-cash impairment charge of SEK5.3 billion (USD621 million) related to operations in Uzbekistan. Further, a non-cash impairment charge of SEK1.9 billion related to operations in Denmark will also be recorded. ‘We are well on track shaping the new TeliaSonera and the process to reduce our presence in Eurasia continues. An important step was taken in December when we announced the divestment of Ncell in Nepal. As a consequence of this progress and current status in the overall divestment process, Region Eurasia will be reported as discontinued operations. When doing this we are obliged to change valuation method for these operations. This has resulted in an impairment charge relating to our operations in Uzbekistan,’ Johan Dennelind, CEO, stated.
The Uzbek valuation is based on ‘an overall assessment of the input from the sales process and the risk in the country’, while the Danish write-down is ‘a result of updated earnings projections following the previously announced decision to withdraw from the proposed joint venture with Telenor in Denmark.’