Jan. 25 (Bloomberg) -- Telekom Austria AG fell after the Alpine Republic’s former monopoly said late yesterday that 2011 net income would suffer a “significant negative impact” from hyperinflation in Belarus.
Telekom Austria dropped for a third day, falling 1.8 percent to 8.88 euros at the 5:30 p.m. close of trading in Vienna. The stock has declined 3.9 percent this year.
A 300 million-euro ($390 million) impairment was triggered after Telekom Austria changed its accounting rules to recognize hyperinflation in Belarus, the company said in a statement. Belarusian December consumer prices rose 108.7 percent from a year earlier, the state statistics committee reported earlier this month.
Telekom Austria, which operates in seven eastern European countries, cut its full-year targets in August after a drop in the value of the Belarusian ruble. The company was cut one level on Jan. 19 by Moody’s Investors Service after the company’s weak operating performance strained the network operator’s finances.
A planned 38-cent-per-share dividend for 2011 and 2012 won’t be affected, Telekom Austria said. Management reiterated it expects to announce full-year Ebitda of as much as 1.55 billion euros on revenue of around 4.5 billion euros when it announces earnings on Feb. 23.
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