Press release Tele2 Group Oct 08 2007, 8:00 AM CET
Tele2 reports impairment loss from goodwill and other assets of approximately SEK 3.5 billion in Q3 2007
Stockholm - Tele2 AB, ("Tele2"), (Stockholm Stock Exchange: TEL2 A and TEL2 B), Europe's leading alternative telecom operator, today announced that it has conducted an evaluation of goodwill, mainly related to the purchase of SEC in 2000, and other assets, resulting in an impairment loss of approximately SEK 3.5 billion, which will be recorded in Q3 2007. The goodwill impairment loss will have no impact on Tele2's cash flow.
Of the above mentioned impairment loss of approximately SEK 3.5 billion to be recorded in Q3 2007,
- SEK 2.8 billion is attributable to goodwill in Central Europe, Southern Europe (of which SEK 1.3 billion to Italy and Spain) and Benelux (of which SEK 0.2 billion to Belgium);
- SEK 0.4 billion is attributable to other fixed assets in Germany; and
- SEK 0.3 billion is attributable to an impairment of Tele2's IT-systems as an effect of the current realignment process.
In addition to the impairment loss, Tele2's Q3 2007 EBIT will include net positive one-off items of approximately SEK 1.4 billion related to the previously announced divestments of operations in Denmark, Irkutsk (Russia), Portugal and the company 3C.
Consequently, the combined net effect of impairment losses and divestments on Tele2's EBIT for Q3 2007 amounts to approximately SEK -2.1 billion.
After impairment and closing of announced divestments, the goodwill position of Tele2 will amount to SEK 11.8 billion.
Further information can be obtained from:
Lars-Johan Jarnheimer, President and CEO Tele2 AB, Telephone: +46 8 5626 4000
Lars Nilsson, CFO, Telephone: +46 8 5626 4000
Lena Krauss, Investor Inquiries, Telephone: +46 8 5620 0045
Lars Torstensson, Investor Inquiries, Telephone: +46 702 73 48 79
Tele2 is Europe's leading alternative telecom operator Tele2's mission is to provide cheap and simple telecoms for everyone in Europe. Tele2 always strives to offer the market's best prices. We have 29 million customers in 18 countries. Tele2 offers fixed and mobile telephony, broadband, data network services and cable TV. Ever since Jan Stenbeck founded the company in 1993, it has been a tough challenger to the former government monopolies and other established providers. Tele2 has been listed on OMX Nordic Exchange since 1996. In 2006 we had operating revenue of SEK 50.3 billion and we reported an operating profit (EBITDA) of SEK 5.7 billion. Please visit us at www.tele2.com.