MTG: Bulgarian Assets Incurred EUR 300 M of Losses

Business | December 18, 2009, Friday // 11:57
Bulgaria: MTG: Bulgarian Assets Incurred EUR 300 M of Losses MTG says a total of EUR 296 M of the one-off costs relate to the impairment of the goodwill arising from the Group’s acquisition of 100% of Nova Televizia in Bulgaria for EUR 620 M in 2008. Photo by Nova TV channel

Modern Times Group MTG AB, the international entertainment broadcasting group and owner of Bulgarian Nova TV channel, announced that it will recognise approximately SEK 3,361 million (nearly EUR 300 M) of one-off costs due to impairment of the Group’s Bulgarian broadcasting assets.

The impairment reflects the deterioration in the economic and financial climate and the challenging advertising market conditions, and follows the recent completion of the Group’s annual asset impairment test, a statement of the company says.

The one-off costs will be included in the Group’s results for the fourth quarter and twelve months ended 31 December 2009.

The costs will be reported as a separate line item above the operating profit (EBIT) line in the Group’s consolidated income statements, and as an adjustment to intangible assets on the Group’s consolidated balance sheets.

The broadcasting group says that EUR 296 M (approximately SEK 3,151 M) of the one-off costs relate to the impairment of the goodwill arising from the Group’s acquisition of 100% of Nova Televizia in Bulgaria for EUR 620 M in 2008.

“Our Bulgarian business has performed above expectations in terms of increasing its audience and market shares during the year. However, the adverse changes in the operating environment have delayed the anticipated development of the business, and we have now adjusted the value of our assets accordingly. The write-downs do not affect the Group’s financial strength,” Hans-Holger Albrecht, President and CEO of MTG, commented.

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Tags: MTG, Nova Televizia

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