| | The Management Board of Agora S.A. with its registered seat in Warsaw (“Company”, “Agora”) hereby informs that the Agora Group ("the Group") is in the process of conducting asset impairment tests in accordance with the International Financial Reporting Standards, inter alia on the basis of an analysis of long-term financial forecasts for all of the business segments of the Group.
The above mentioned analysis which is now being conducted by the Management Board, shows the possibility of necessity to incur impairment loss of fixed assets in the Print segment, impairment loss of the monthly “Cztery Kąty” and the impairment loss of goodwill of Trader.com. (Polska) Sp. z o.o. The total impact of the above mentioned impairment losses on the Agora Group’s financial results in the fourth quarter of 2017 may range from ca PLN 70.0 million to ca PLN 90.0 million on the basis of the analysis possible to execute as at the 4th of January, 2018.
What is more, the Company reviewed the useful lives of selected fixed assets of the Group, which shall result in higher amortization charges. This, in turn, will negatively influence the operating result of the Group by ca PLN 5.0 million in the fourth quarter of 2017.
All the above data are preliminary, non-audited estimates and may change during the finalization of work on financial statements for the fiscal year 2017. In case of significant verification in the value of the above estimates, the Company will inform about it in a separate current report.
At the same time, the Company informs that the aforementioned impairment losses are non-cash and accounting, and do not affect the liquidity of the Company and of the Group or its investment intentions.
Legal basis: Article 17, paragraph 1 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission directive 2003/124/EC, 2003/125/EC and 2004/72/EC.
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