MTG counts cost of Bulgaria

Modern Times Group’s realignment of its interests in Central & East Europe will cost the company around SEK3,191 million (€357.8 million). The company plans to close TV3 Slovenia in the next few months, though it is also building its presence in Bulgaria.

The SEK3,191 million will appear in its financial results for Q4 and full year 2011.
Around SEK2,979 million of the costs relate to the acquisition of 100% of Bulgaria’s Nova Televizija for €620 million in 2008 and are non-cash, with MTG having previously recognised a SEK3,151 million impairment of goodwill arising from the acquisition.
The remaining SEK212 million relate to the writing down of programming assets in Bulgaria and closure of the Slovenian station.
In a separate development, MTG is to start using the same accounting procedure for its Ukrainian DTH operation as for its others.
Relating to net subscriber connection fees, this will result in respective reductions of SEK29 million and SEK18 million in its revenue and EBIT in Q4 2011.