Brief: Enea Implements Cost Reduction Measures

Enea AB

03/07/2023 14:56

July 3 (Reuters) - Enea AB  ENEA.ST :
    * IMPLEMENTS EFFICIENCY, COST REDUCTION MEASURES IN
PROFESSIONAL
SERVICES AND PRODUCT DEVELOPMENT
    * STREAMLINING MEANS AN IMPROVED CASH FLOW OF ABOUT SEK 60
MLN PER
YEAR
    * STREAMLINING FULL EFFECT TO BE SEEN FROM 2024, OF WHICH
ABOUT
SEK 50 MLN CONSISTS OF REDUCED INVESTMENTS IN PROPRIETARY
PRODUCT DEVELOPMENT
    * REVIEW OF TELECOM OPS SHOWED THAT DUE TO DELAYS IN THE 5G
MARKET, DETERIORATING MACROECONOMIC OUTLOOK AND INCREASED RETURN
REQUIREMENTS (WACC), THE COMPANY NEEDS TO MAKE A REVALUATION OF
FUTURE CASH FLOWS AND BOOK VALUE OF ASSETS
    * THIS RESULTS IN AN IMPAIRMENT OF INTANGIBLE ASSETS BY A
TOTAL OF
SEK 520 MLN, ATTRIBUTABLE TO GOODWILL AND CAPITALIZED
DEVELOPMENT COSTS
    * ALSO, PROVISIONS OF SEK 66 MLN ARE MADE FOR DOUBTFUL
RECEIVABLES
AND UNRECEIVED INCOME, ATTRIBUTABLE TO A HALTED NDL PROJECT AND
TO CURRENCY RESTRICTIONS IN EGYPT
    * PROVISIONS AND REVALUATION OF INTANGIBLE ASSETS WILL BE
CHARGED
TO Q2 BUT DO NOT AFFECT CASH FLOW 
    * NUMBER OF STAFF FOR DELIVERY AND CUSTOMER-SPECIFIC TESTING
IN
THE TELECOM PORTFOLIO WILL BE REDUCED, INCLUDING IN GERMANY
    * MEASURES TO AFFECT ABOUT 70 EMPLOYEES AND EXTERNAL
CONSULTANTS
IN EUROPE, INDIA AND NORTH AMERICA
    * RESTRUCTURING COSTS IN 2023 SEEN AT SEK 30 MLN, OF
WHICH SEK 20 MLN IN Q2

        
 Source text for Eikon:  urn:newsml:reuters.com:*:nMFN62ZYQP  urn:newsml:reuters.com:*:nMFN3BzbWz 
 Further company coverage:  ENEA.ST 

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