TeliaSonera Has $390 Million Costs for Job Cuts, Writedowns
TeliaSonera AB (TLSN), Sweden’s biggest phone company, said fourth-quarter operating profit was hurt by 2.52 billion kronor ($390 million) of one-time costs stemming from job cuts and writedowns.
The company said today it wrote down the value of goodwill of its Denmark and Lithuania operations by 1.17 billion kronor. Job-cut expenses were 229 million kronor and the company also had costs for scrapping obsolete information-technology systems.
TeliaSonera, based in Stockholm, has expanded in Turkey, Russia and several former Soviet Union countries to offset slowing sales in its home market as competition and lower fees hurt prices. The company is also cutting jobs and focusing more on data revenue to boost profitability.
Analysts predict fourth-quarter earnings before interest and taxes of 6.7 billion kronor, the average of estimates compiled by Bloomberg. TeliaSonera is scheduled to report earnings for the three months through December on Jan. 30.
TeliaSonera fell 0.8 percent to 52.65 kronor at 9:01 a.m. in Stockholm. The stock added 22 percent last year.
To contact the reporter on this story: Ville Heiskanen in Helsinki at firstname.lastname@example.org