REG-TeliaSonera AB TeliaSonera to report Region Eurasia as discontinued operations in Year-end Report 2015 - results to be impacted by impairment charges <Origin Href="QuoteRef">TLSN.ST</Origin>

Telia ABAnnouncement

14/01/2016 09:00

      TeliaSonera to report Region Eurasia as discontinued operations in       Year-end Report 2015 - results to be impacted by impairment charges    
      As previously announced, TeliaSonera has initiated a process to reduce       its presence and over time fully leave Region Eurasia. This process is       progressing and therefore Region Eurasia will be reported as held for       sale and discontinued operations in the Year-end Report 2015. As a       result, operating income in the fourth quarter 2015 will be impacted by       a non-cash impairment charge of SEK 5.3 billion related to the       operations in Uzbekistan. Further, a non-cash impairment charge of SEK       1.9 billion related to the 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, says Johan Dennelind, President and       CEO.    
      The valuation method of the operations in Region Eurasia is changed       according to IFRS. The new method is based on market values reflecting       estimated sales proceeds (fair value less cost to sell), while in prior       periods valuation has been based on discounted cash flows from       continuing operations (value in use). This results in a non-cash       impairment charge of SEK 5.3 billion related to goodwill and other fixed       assets in Uzbekistan. The valuation is based on an overall assessment of       the input from the sales process and the risk in the country.    
      As a result of an impairment review of the groups operations,       TeliaSonera will also record a SEK 1.9 billion non-cash impairment       charge related to goodwill in Denmark. The 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.    
      Region Eurasia will be reported as discontinued operations on separate       lines both in the consolidated income statement and consolidated       statements of financial position for the fourth quarter and full year       2015. Historical pro forma figures for the period first quarter 2014 to       third quarter 2015 will be available at www.teliasonera.com/ir       on January 19, 2016.    
      TeliaSoneras Year-end Report 2015 will be released on Friday, January       29, 2016, at around 7:00 AM (CET).    
      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 08:00 a.m.       CET on Jan 14, 2016.    
      For more information, please contact the TeliaSonera press office +46       771 77 58 30, press@teliasonera.com       , visit our Newsroom or follow us on Twitter @TeliaSoneraAB .    
      Forward-Looking Statements    
      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.    
      TeliaSonera provides network access and telecommunication services in       the Nordic and Baltic countries, the emerging markets of Eurasia,       including Russia and Turkey, and in Spain. TeliaSonera helps people and       companies communicate in an easy, efficient and environmentally friendly       way. Our ambition is to be number one or two in all our markets,       providing the best customer experience, high quality networks and cost       efficient operations. TeliaSonera is also a leading wholesale provider       who owns and operates one of the worlds most extensive fiber backbones.       In 2014, net sales amounted to SEK 101.1 billion, EBITDA to SEK 35.2       billion and earnings per share to SEK 3.35. The TeliaSonera share is       listed on Nasdaq Stockholm and Nasdaq Helsinki. Read more at www.teliasonera.com.    
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