Verizon: impairment charge on Verizon Business

(CercleFinance.com) - Verizon announced Wednesday that its fourth-quarter results would include a $5.
8 billion impairment charge related to its troubled business services division.

During a strategic review of its activities, the U.S.-based group explained that financial forecasts for its business services business, Verizon Business, were lower than previously anticipated.

In a press release, Verizon points out that these businesses - which offer fixed-line communications services to business customers - are facing significant competitive and economic pressures.

This process will therefore lead to a downward revision of the estimated value of the division in relation to its 'fair' value, resulting in a negative revaluation of up to $5.8 billion, but with no impact on cash flow.

The shares of the telecommunications operator, a component of the Dow Jones, lost 0.5% in early trading on Wednesday morning on Wall Street. The stock is down nearly 4% over the past 12 months.

Copyright (c) 2024 CercleFinance.com. All rights reserved.