Poland's Allegro books 2.3 bln zloty writedown on Mall Group and WE|DO

The Allegro logo is seen on the smartphone in this illustration taken October 12, 2020. REUTERS/Dado Ruvic/Illustration

GDANSK, Nov 28 (Reuters) - Polish e-commerce company Allegro (ALEP.WA) has booked a 2.29 billion zloty ($511.8 million) impairment on the value of Czech online retailer Mall Group and logistics company WE|DO, which it bought last year.

The non-monetary impairment will lower Allegro's third-quarter net profit but not affect its operational stability and business priorities, the company said.

"Looking back, the price (for the Czech companies) was set at the peak of a market cycle, and since then many publicly listed e-commerce companies have lost 50-70% of their market value," Allegro said in a market filing, adding that inflation and a cost-of-living crisis has meant Mall and WE|DO's results have been significantly worse than initially expected.

Shares in Allegro were down 4.5% at 1330 GMT.

($1 = 4.4743 zlotys)

Reporting by Maria Gieldon and Patrycja Zaras Writing by Karol Badohal Editing by David Goodman

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