Nordic Entertainment writes down value of studio assets

Nordic streamer and free and pay TV broadcaster Nordic Entertainment (NENT Group) is to write down the value of its studio operations, now in the process of being sold, to the tune of SEK900 million.

NENT Group’s Q4 2020 results will include a non-cash impairment charge that it says reflects the impact of the COVID-19 pandemic and the postponement of productions during 2020, and mainly comprises goodwill arising from the original acquisition of the companies.

Approximately SEK 620 million of the charges, related to non-scripted production, branded entertainment and events businesses, will be reported within income from discontinued operations, and approximately SEK 280 million, related to the NENT Studios UK distribution business, will be reported within continuing operations as items affecting comparability.

NENT Group announced in January 2020 that it was disposing of its non-scripted production, branded entertainment and events businesses and then, in December, that its NENT Studios UK distribution business, formerly known as DRG, would be sold.

Anders Jensen, NENT Group president & CEO, said: “The disposal of the majority of our Studios businesses is an important step in optimising our portfolio to support our group strategy to focus on the expansion of our Viaplay streaming service. This non-cash impairment reflects our prudent approach to the goodwill value that we have carried in our balance sheet for several years and the recent impact of the Coronavirus pandemic on these businesses. The disposal processes are progressing well, and we have received healthy levels of interest from potential buyers that are in line with our expectations.”