Bloomberg News

Kinnevik Posts Loss as Value of Assets Decline

October 23, 2006

Kinnevik Investment AB, the Stenbeck family's holding company, posted a third-quarter loss as the value of its holdings in companies including Millicom International Cellular SA and Metro International SA fell.

The net loss was 1.34 billion Swedish kronor ($180 million), or 5.06 kronor a share, from a profit of 1.36 billion kronor, or 5.08 kronor a share, a year earlier, the Stockholm- based company said in a Hugin statement today. Revenue rose 61 percent to 1.83 billion kronor.

Kinnevik manages a portfolio of listed companies that also includes Tele2 AB and Modern Times Group AB. (MTGA) The change in the fair value of Kinnevik Investment's financial assets and dividends fell by 1.47 billion kronor, compared with an increase of 1.25 billion a year earlier, the company said.

Kinnevik's stake in Millicom, a mobile-phone operator with subscribers across Asia, Africa and the Americas, decreased in value by 1 billion kronor in the quarter. Its stake in Metro International, which publishes free newspapers from Santiago to Helsinki, fell in value by 558 million kronor.

Shares of Kinnevik dropped as much as 0.8 percent to 91.75 kronor and traded at 92 kronor as of 12:44 p.m. in Stockholm. The shares have gained 27 percent so far this year.

Kinnevik today reiterated its savings target of 150 million kronor from the integration of Froevi, which its Korsnaes AB unit bought last year. The company also said it will take reorganization costs related to the Froevi acquisition of 150 million kronor in the fourth quarter and the first half of next year.

To contact the reporter on this story: Niklas Magnusson in Stockholm at nmagnusson1@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Katherine Snyder at ksnyder@bloomberg.net


Toyota's Hydrogen Man
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus