Australian incumbent Telstra will write down the value of its Chinese mobile content division by AUD138m (US$138.6m) as an ‘impairment’ in its H2 2010 results.
Telstra has been reviewing its Octave businesses, which comprises consumer content supplier…
Australian incumbent Telstra will write down the value of its Chinese mobile content division by AUD138m (US$138.6m) as an ‘impairment’ in its H2 2010 results.
Telstra has been reviewing its Octave businesses, which comprises consumer content supplier ChinaM and technical services provider Sharp Point, since August following Chinese regulatory rulings that it expects will constrain the country’s WAP market.
‘The impact of the rulings has been clarified and consequently, Telstra has now updated the Octave business plan with the result it is expected to record an impairment charge against the carrying value of the Octave investments of approximately A$138m,’ the operator stated.
According to the statement, the Octave impairment will not affect guidance, which factored in allowances for such a move, and Telstra remains focused on investments in Asia.
In the year to June 2011, Telstra reportedly expects an EBITDA decline by high single digits.
The group, which could not be contacted before going to press, acquired a 67% stake in the Octave businesses in February 2009 for A$259m (US$260.1m).
