STOCKHOLM, June 9 Swedish broadcaster MTG
will take 154 million crowns ($23 million) in one-off
costs in its fiscal second quarter, mainly due to an uncertain
outlook in Ukraine and the devaluation of the country's
currency, it said on Monday.
MTG will write down 100 percent of the intangible assets
from its 85 percent stake in Viastrong Holding, which operates
in Ukraine. The operation, included in the Group's Pay-TV
Emerging Markets business, accounted for less than 1 percent of
group sales last year.
"The decision has been made due to the uncertain economic
outlook in Ukraine and the significant devaluation of the
Ukrainian Hryvnia currency", the company said in a statement.
Apart from 160 million crowns of charges related to Ukraine,
MTG said it would take 70 million crowns in other costs,
including restructuring costs, offset by a 76 million net gain
from the sale of Zitius in Sweden.
MTG said the restructuring would yield annual cost savings
of around 40 million crowns, of which parts would be reinvested
in new areas, such as business intelligence and data analysis.
CEO Jorgen Madsen Lindemann said the company remained
committed to its Ukraine operations, and there was "substantial
long-term potential" for the business.
Kinnevik owns 48 percent of votes and 20.3 of the
share capital in MTG.
MTG shares were down 0.2 percent at 0713 GMT, while the
broader Stockholm share index was up 0.8 percent.
($1 = 6.6296 Swedish Kronas)
(Reporting by Helena Soderpalm; Editing by Mark Potter)