AS Ekspress Grupp to terminate its activity in Ukraine 21.02
AS Ekspres Grupp has decided to terminate Delfi’s activity in Ukraine from 1st of March 2014. During a six year-period, AS Ekspress Grupp has invested approx. EUR 2 million in the development of Delfi Ukraine but this has not brought the expected success in online portals market. The Group does not see a positive outlook for the future development of Delfi Ukraine, which would justify continuing the business and therefore has decided to stop its activity in Ukraine. Currently, negotiations with the management of the company are being held, as the management has expressed its willingness to continue the activities of the portal and use Delfi’s trademark.
The termination of the activity in Ukraine will involve compensation to employees and premature termination of the contracts in total sum of approx. EUR 30 thousand. Allowance on trademark of Delfi Ukraine will result in a loss of approx. EUR 0.5 million, which is already reflected in the Group’s financial results for 2013.