Fri, 26th Sep 2014 11:17
TeliaSonera AB (OSE:TEL) (STO:TLSN) (HEX:TLS1V) (LSE:TEE)
TeliaSonera has settled its obligations regarding existing lease agreements in Farsta, Stockholm. This is a result of the move to new premises in Solna in 2016. TeliaSonera will pay a total compensation of SEK 247 million divided into three payments during 2014, 2015 and 2016 respectively. The full amount will be reported as a non-recurring cost in the third quarter of 2014.
As a consequence of management’s focus to improve control of the Eurasian operations as reported in the interim report for the second quarter, TeliaSonera before summer commissioned an independent external advisor to assess part of the balance sheet, primarily the value of assets under construction and inventory in all its Eurasian business units. The external assessment has now been finalized and as a result TeliaSonera reports non-recurring costs in Eurasia of approximately SEK 600 million in the third quarter of 2014. The write-down has no cash impact.
In the interim report for the second quarter, TeliaSonera reported costs in Eurasia of SEK 412 million as non-recurring items. As stated before it cannot be excluded that the focus to improve control and to address the new strategy of supporting high data growth may lead to non-cash impacts of accelerated depreciation or impairment of part of the operational assets.
TeliaSonera AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The information was submitted for publication at 12:00 p.m. CET on September 26, 2014.
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of TeliaSonera.
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Copyright Business Wire 2014