MTG to recognise SEK3.2 billion costs

Broadcaster Modern Times Group has been forced to recognise approximately SEK3.2 billion (€360 million) one off costs in its next set of results.

The announcement was made following an annual ‘asset impairment test’. The majority of the costs relate to the company’s Bulgarian operation, although MTG’s decision to terminate its loss-making free-to-air business in Slovenia has also contributed. The one-off costs will be included in the group’s financial results for the fourth quarter and full year 2011

Hans-Holger Albrecht, president and CEO of MTG, said: “These write-downs are mainly non-cash and primarily reflect the operating environment in Bulgaria, where the TV advertising market has not yet returned to growth and the wider Eurozone issues continue to impact. This has delayed the anticipated development of our Bulgarian business and we have therefore taken the conservative approach of fully adjusting the value of these assets on our balance sheet. This does not affect our commitment to the market, or our belief in the longer term potential of our Bulgarian operations.”