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UPDATE 1-Telia warns one-off items to hit Q2 earnings
July 14, 2017 / 7:50 AM / 5 months ago

UPDATE 1-Telia warns one-off items to hit Q2 earnings

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STOCKHOLM, July 14 (Reuters) - Telia Company is facing a 1.2 billion crown ($144 million) hit on second-quarter earnings due to capital losses and other one-off items, the Nordic telecom operator warned on Friday.

It faces a capital gain of 1.2 billion from the divestment of Sergel Group but a capital loss of 1.8 billion from the divestment of Turkcell shares and an impairment loss of 1.5 billion relating to its Uzbek operations, Telia said in a statement.

The firm plans to gradually abandon central Asian markets where it has been hit by years of investigations into alleged corruption and problems accessing cash.

It will instead focus on its Nordic and Baltic operations.

Telia said its best estimate of the risk-adjusted, debt-free value of Uzbek subsidiary Ucell had been reduced to 1.3 billion from 3.3 billion crowns as of June 30.

Telia said it had recognised writedowns of 600 million crowns from IT and network assets, 300 million from its holding in Kazakhstan’s TOO Rodnik, and a capital loss of 200 million from the divestment of Tcell in Tajikistan.

In total, it said it saw a negative impact of 2 billion crowns on net income within discontinued operations in the quarter.

Telia said the cash flow effect would amount to 6.3 billion crowns for continuing operations.

Telia will publish its second-quarter report on July 20.

$1 = 8.3536 Swedish crowns Reporting by Helena Soderpalm; editing by Jason Neely

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