(Adds details on outlook, new book value, writedown reasons)
VIENNA, June 25 Telekom Austria has
written down its Bulgarian unit by 400 million euros ($544
million) because of an increase in the cost of capital and lower
expectations for the economy, it said.
The impairment will be booked in the first half of 2014,
Telekom Austria said in a statement on Wednesday, pushing the
company to an almost-certain full-year net loss.
Analysts have been expecting a full-year net profit of about
130 million euros, according to Thomson Reuters data.
Telekom Austria, which is being taken over by Carlos Slim's
America Movil, reiterated its full-year outlook for a
group revenue decline of about 3 percent, capital expenditure of
about 700 million euros and a dividend of 0.05 euros per share.
A spokesman said the book value of Mobiltel Bulgaria,
Telekom Austria's biggest unit outside Austria, would fall to
680 million euros after the impairment.
He said the writedown was due to a combination of a poor
macroeconomic outlook for Bulgaria, where Mobiltel is already
losing mobile customers, and volatility in Telekom Austria's
share price that led to a higher cost of capital.
The reevaluation of the weighted cost of capital did not
lead to impairments in any of Telekom Austria's other markets,
the company said. Telekom Austria is active in seven central and
eastern European countries as well as Austria.
Telekom Austria shares closed down 0.2 percent at 7.09
euros, slightly below America Movil's offer price of 7.15 euros
for the outstanding shares, which closes on July 10.
($1 = 0.7355 Euros)
(Reporting by Georgina Prodhan; Editing by Michael Shields)