Telstra writes down $139m on China WAP business

Fiona Chau
telecomasia.net
Australian incumbent carrier Telstra expects to record an impairment charge of A$138 million ($138.3 million) against the carrying value of its Octave business in China.
 
The decision followed a review of its Asian assets.
 
Octave comprises ChinaM, a supplier of consumer mobile content, and Sharp Point, which provides technical services for China Mobile’s central mobile music platform. 
 
Telstra acquired a 67% stake in the businesses in February 2009 for A$259m.
 
The telco first highlighted a potential impact on the Octave business in August, following regulatory rulings that were expected to constrain the WAP market in China.
 
The impact of the regulatory rulings has been clarified and consequently led Telstra to update the Octave business plan, Telstra said in a statement released Thursday.
 
Telstra said the write-down won’t “affect guidance, which explicitly excluded asset impairments and proceeds from asset sales.”
 

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