Telstra (ASX:TLS) to write down Foxtel by $300M

Company News

by Katrina Bullock

Telstra (ASX:TLS) has signalled that it expects a $300 million impairment in its FY20 results due to its 35 per cent stake in Foxtel.

Foxtel’s offering is heavily focused on global sports coverage which has been hit hard by the pandemic.

This combined with the temporary closure of pubs and advertisers being forced to carefully reconsider their investments has left a big dent in Foxtel’s balance sheet.

The exact amount of the write down is subject to Board review and approval of the FY20 results.

However, at this point Telstra expects to write down the value of its share in Foxtel from $750 million to approximately $450 million.

This follows news this morning that News Corporation (ASX:NWS) has included non-cash impairment charges of $1.1 billion in its third quarter results, largely as a result of its holding in Foxtel.

Shares in Telstra (ASX:TLS) are trading 0.16 per cent lower at $3.06.