Bulgaria's Mtel Brought EUR 400 M Loss to Telekom Austria
Assets of Telekom Austria into Mobiltel, considered to be Bulgaria's largest telecom, were re-evaluated and written down by EUR 400 M, according to the Austrian company.
Telekom Austria, which owns Mtel, cited losses at the Bulgarian company as a reason for the step.
Rising capital costs for the Austrian company and Bulgaria's dwindling telecom market are causing the situation to deteriorate, the Austrian venture found out after conducting regular sensitivity analyses which shows the potential impact of variables on the economic output.
The situation in Ukraine also played a negative role in Bulgaria's performance, the company's experts believe.
They also say Brussels' constant push to lower prices of telecom services is also leading to a downtrend.
All of the three major Bulgarian telecoms pointed the same reasons to explain the slowed-down pace of growth in their annual reports, according to wesbite money.bg.
However, Telekom Austria assured the EUR 0.05 dividend per Mtel asset is to remain unaltered.
Mtel's assets amounted to BGN 2.4 M (EUR 1.2 M) in 2013.
But a spokesman for Telekom Austria said book value of its Bulgarian subsidiary would be EUR 680 M after the move.
- » Bulgaria’s Business Climate Improves in June
- » Bulgaria’s Gross Foreign Debt Reaches EUR 35.4 B at End-April 2016
- » Bulgarian Energy Regulator Endorses Proposed 9.97% Cut in Gas Price for Q3 2016
- » 340 Danube Cruises to Pass Through Bulgaria's Ruse This Tourist Season
- » Bulgaria, US to Hold Joint Anti-Drug, Counter-Terrorism Training
- » Gazprom Ready for Turkish Stream Talks after Turkish Apology