Plus TV write-down hits DNA profit

Finnish service provider DNA’s profit for the quarter to September took a hit from the write-down of the company’s Plus TV brand as it migrated its TV services to the DNA Welho brand. 

DNA posted an operating loss of €2.6 million on a non-recurring charge of €23.3 million, €10.3 million of which was related to the write-down of Plus TV, with the remainder relating to write-downs in relation to renewals in information systems and a provision related to ongoing negotiations with a third party.

The acquisition of Plus TV did however contribute to a boost in cash flow after investment costs, up from negative €32.6 million to €17.8 million for the quarter.

DNA had 591,000 cable TV customers at the end of September, up just 1,000 year-on-year. the DNA Welho Matka TV cloud service passed the milestone of 100,000 customers during the quarter.

DNA said it expected a general decline in consumer confidence and purchasing power to have a negative impact on the demand for traditional TV services going forwards. However, it noted that consumers were spending more time watching TV overall.

DNA said its digital-terrestrial pay TV channels would migrate to the DVB-T2 technology by the end of 2016 ahead of the national deadline for switchover to DVB-T2 the following year.

DNA posted net sales of €216.3 million, up 13%, and EBITDA excluding non-recurring items of €61.4 million, up from €52.3 million, for the quarter.