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Teleste issues profit warning after subsidiary hit by criminal activity

Cable and broadband technology outfit Teleste has issued a profit warning after reporting criminal activity targeting an unnamed subsidiary.

Teleste said that, as it is currently unable to estimate the total amount of potential insurance compensation and recovered losses, the company will at this stage record in full a non-recurring cost of approximately €7 million, which will be reported in other operating expenses in the first quarter of the current year.

Teleste said that suspected perpetrators have induced a subsidiary o make unwarranted payments to third parties in an amount totalling approximately €7 million as a result of identity theft and other possibly illegal actions.

The company said it was examining the conditions under which it could claim insurance compensation for the theft. Teleste said that any potential losses would be extraordinary costs, which do not affect its ability to generate operating profit or endanger its solvency.

Teleste said that a police investigation is ongoing.

Tags: Teleste