Verizon to take $5.8 billion hit in fourth quarter from unit write down

(Reuters) -U.S. telecom company Verizon (NYSE:) said on Wednesday it will take a $5.8 billion write-down in the fourth quarter, as it cut the value of its declining wireline business.

The company cut its financial projections for its Business unit, which caters to businesses and government clients after a five-year review, Verizon said. That business accounts for more than a fifth of the company’s revenue.

The wireline business, which includes legacy voice and data services, has been under pressure due to strong competition, an uncertain economy and a broader shift to wireless services.

After the charge, the goodwill balance of the unit was $1.7 billion as of Dec. 31, Verizon said. Its shares were down more than 1%.

In the third quarter, Verizon Business saw a 4% decline in revenue due to lower wireline and wireless equipment revenue.

Verizon will report its fourth-quarter results on Jan. 23.