Glentel Inc GLNIF

Earnings

[McRambus]

Well, they certainly blew it in Australia. Love how this management tries to cover up the terrible news by burying it at the bottom of the press release. The loss of the 45 store Virgin management contracts pretty much leaves them with only Vodafone in Australia. This pretty much explains the performance of the stock the past few months. Total disaster and more writedowns coming.


On April 7, 2014, AMT received 180-day notice from Optus of its intent to assume the management of its Virgin Mobile branded corporate stores, which are currently managed by AMT through its Australian Retail Management Services business. In Australia, Optus owns the Virgin Mobile brand rights and, as such, our understanding is that based on its corporate strategy, Optus decided to bring management of all Virgin Mobile corporate stores in-house. AMT will end its relationship managing 45 of Optus' Virgin Mobile corporate stores in the 4th quarter of 2014. Management is currently in the process of assessing the financial impact of the termination of its contract with Optus.  At this time, management has not concluded its analysis, including completing its evaluation of various strategic alternatives it is contemplating for its business in Australia.  Accordingly, while indicators of impairment exist for certain intangible assets and goodwill relating to AMT, given the termination of its contract with Optus, an estimate of any impairment cannot be made at this time.