Telekom Austria Group announces harmonisation of its branding strategy across the Group triggering an amortisation of local brand values
Sep 20, 2017
Vienna, 20 September 2017: Today, the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces that it has decided to harmonise its brands within the Group and to roll out the brand 'A1' throughout the Group in a gradual manner depending on local circumstances.
This will trigger an amortisation of local brand values which amount as of year-end 2016 to approximately EUR 350 mn in total. The companies will amortise the brand values until the phase-out of the old brands. This will impact Telekom Austria Group's net result in 2017, 2018 and 2019. More than half of the impact is to be expected in Q4 2017 and in Q1 2018. The amortisation is not cash-relevant.
Following the implementation of A1 in Slovenia as well as amidst founding the international ICT unit A1 digital, the group-wide rollout of A1 constitutes a further step in order to strengthen the brand profile of the Group. A1 has been established in the Austrian market for years and offers comprehensive communications services, with high quality of service as well as future-proof infrastructure and covers all convergent ICT topics.
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