Netia can book PLN 150.7 mln impairments

WSE-listed telecom operator Netia can include PLN 150.7 mln asset impairment in its 2017 financial results, the company said in a market filing. According to the report, after conducting analyzes and consultations with the auditor, Netia's management decided that the application of the market share price is the most reliable method for determining the fair value of the company's assets. “Estimating the fair value of assets will take place using the value of Netia's market capitalization at end-2017 adjusted for the value of net debt and working capital,” the company wrote. The company said that the recoverable goodwill is determined based on the fair value calculation, which in turn was calculated in the previous year using projected cash flows. These forecasts were based on the assumptions of the company's budget for next year and the updated 10-year company business plan approved by the board. Back in December Cyfrowy Polsat acquired a 33 percent stake in Netia, and called the tender offer for remaining shares. “Effective execution of a call can have an impact on the company's strategy and operation,” Netia explained.