TPG does not expect the writedown to impact its full-year earnings forecast. It is slated to report its Q1 earnings on March 19.
Following a ban on the usage of equipment from Huawei Technologies Co Ltd, Australia’s TPG Telecom Ltd stated it would writedown $163 million (A$228 million) from its first quarter results; TPG has halted its mobile network rollout due to a equipment ban.
In January 2019, the Australian government banned the usage of Huawei equipment for 5G on national security grounds.
TPG, which is awaiting regulatory approval for a proposed merger with the Australian arm of Britain’s Vodafone Group PLC, said it will reduce the value of its spectrum licenses by A$92 million. It will also reduce the value of its mobile network assets by A$76 million, and take other writedowns to the value of A$60 million.
The writedown move however will not affect its 2019 full-year earnings before interest, tax, depreciation and amortization forecast on a business as usual basis, which it put at A$800 million to A$820 million last September.
TPG is slated to report its first-quarter results on March 19.
China’s Huawei, the world’s biggest telecoms equipment maker, has come under increased scrutiny over the security of its telecom devices with intelligence agencies from many countries saying they are a front for Chinese intelligence.