Turkcell Iletisim Hizmetleri (NYSE:TKC) (BIST:TCELL):
- Please note that all financial data is
consolidated and comprises that of Turkcell Iletisim Hizmetleri
A.S., (the “Company”, or “Turkcell”) and its subsidiaries and
associates (together referred to as the “Group”). All non-financial
data is unconsolidated and comprises Turkcell Turkey only figures.
As previously announced, starting from Q115, "Turkcell Turkey"
comprises all of our telecom related businesses in Turkey (as used
in our previous releases, this term covered only mobile
businesses). The terms "we", "us", and "our" in this press release
refer only to Turkcell Turkey, except in discussions of financial
data, where such terms refer to the Group, and except where context
otherwise requires.
- In this press release, a year-on-year
comparison of our key indicators is provided and figures in
parentheses following the operational and financial results for
September 30, 2015 refer to the same item as at September 30, 2014.
For further details, please refer to our consolidated financial
statements and notes as at and for September 30, 2015, which can be
accessed via our website in the investor relations section
(www.turkcell.com.tr).
- Please note that selected financial
information presented in this press release for the third quarter
of 2014, and second and third quarters of 2015, both in TRY and
US$, is based on IFRS figures.
- In the tables used in this press
release totals may not foot due to rounding differences. The same
applies for the calculations in the text.
- Year-on-year and quarter-on-quarter
percentage comparisons appearing in this press release reflect
mathematical calculation.
HIGHLIGHTS OF THE THIRD QUARTER OF 2015
- Turkcell Turkey and Turkcell Group
registered all-time-high quarterly revenue and EBITDA.
- Turkcell Turkey revenues, comprising
91% of Group revenues, rose by 9.9% to TRY3,074 million (TRY2,797
million) with a 0.8pp higher EBITDA margin of 34.5% (33.7%). This
was driven by continued growth in mobile and fixed broadband
revenues along with mobile services.
- Turkcell Turkey’s outstanding financial
performance was backed by solid operational results.
- We gained 271 thousand customers, all
through postpaid net additions of 278 thousand.
- Smartphone penetration reached
49%.
- ARPU reached the highest level of the
recent periods in the mobile market, up by 9.7% to TRY26.1, through
a larger postpaid base (47.1%), higher data usage (1.6GB per user
per month), increased mobile service revenues and tariff
adjustments.
- Group revenues grew by 6.4% to TRY3,364
million (TRY3,162 million), mainly driven by growth in Turkcell
Turkey.
- Group EBITDA1 rose by 10.5% to TRY1,161
million (TRY1,050 million) leading to an increased EBITDA margin of
34.5% (33.2%), notably up by 1.3pp year-on-year. This marked one of
the highest EBITDA margin prints of recent years.
- Proforma net income (excluding
non-recurring items2), increased by 17.8% to TRY707 million (TRY600
million). Reported Group net income as per IFRS was TRY630 million
(TRY755 million).
- Turkcell International revenues,
constituting 7% of Group revenues, were at TRY235 million (TRY305
million), impacted by devaluation, while the EBITDA margin rose
5.3pp to 29.6% (24.3%).
- Reflecting our strategic priority of
improved balance sheet structure, we restructured the debt of
Astelit and BeST, eliminating the foreign exchange exposure risk on
the debt of these operations.
- Turkcell won 47% of the total 4.5G
spectrum tender. As of April 1, 2016, we will be the only operator
to provide the fastest speed of 375 Mbps that this technology
enables.
- Turkcell became the only Turkish
company with an investment grade rating from three agencies.
- We raised close to USD2.9 billion in
funds, including US$500 million Eurobond, within a short period of
2 months for infrastructure investments, restructuring of existing
debt, and possible new investment opportunities.
- We completed US$500 million Eurobond
issuance on October 15, 2015. Oversubscribed by almost 4 times,
this Eurobond was the first and only issuance made in 2015 by a
Turkish company from the non-financial services sector.
- Given our first nine months'
performance, and on the basis of current market conditions, we are
upgrading our EBITDA target for the full year*. Thus, we are
targeting an EBITDA margin of 32.0%-32.5%, up from the 31%-32%
range. Further, we have revised our revenue growth forecast to 10%
for Turkcell Turkey and 6% for the Group from the previous 6%-9%
range.
(1)EBITDA is a non-GAAP financial measure. See page 14 for the
reconciliation of an explanation of how we calculate Adjusted
EBITDA to net income.(2)Net Income excluding FX Gain/(Loss)
(including tax and minority impact), monetary Gain (inflation
impact), interest Income on time deposit, one -off items.(*) Please
note that this paragraph contains forward looking statements based
on our current estimates and expectations regarding market
conditions for each of our different businesses. No assurance can
be given that actual results will be consistent with such estimates
and expectations. For a discussion of factors that may affect our
results, see our Annual Report on Form 20-F for 2014 filed with
U.S. Securities and Exchange Commission, and in particular, the
risk factor section therein.(*)For further details, please refer to
our consolidated financial statements and notes as at and for
September 30, 2015 which can be accessed via our web site in the
investor relations section (www.turkcell.com.tr).
COMMENTS FROM CEO, KAAN TERZIOGLU
“Encouraged by double record, we have raised our EBITDA
target
Third quarter is marked with our bold steps, crowned by solid
financial and operational results. In this period, we, once again,
earned the confidence of the financial markets in Turkey and
Turkcell. Therefore, we are glad to present an outstanding
performance, recorded in a tough macroeconomic environment, and one
that reflects the harmony between the Board of Directors, senior
management and our team.
Turkcell Turkey and Turkcell Group generated their
all-time-highest revenue and EBITDA. Turkcell Turkey’s revenues,
accounting for 91% of total Group revenues, increased 9.9%,
generating an EBITDA margin of 34.5%. Group revenues reached
TRY3,364 million on 6.4% growth, while EBITDA rose 10.5% to
TRY1,161 million. The EBITDA margin rose 1.3 percentage points to
34.5%. Proforma Group net income (excluding non-recurring items1),
reached TRY707 million on 17.8% growth, while the reported net
income as per IFRS was TRY630 million.
Based on our nine months' Group performance of 5.5% revenue
growth with an EBITDA margin of 32.7%, we expect to exceed our full
year EBITDA target*. In this regard, we have upgraded our full year
EBITDA margin guidance range to 32%-32.5% from 31%-32%, and revised
our revenue growth forecast to 10% for Turkcell Turkey and 6% for
the Group from the previous 6%-9% range.
Our postpaid customer base has continued to grow; total
customers has exceeded 34 million
While our total customer base grew by 271 thousand, blended
mobile ARPU increased by 9.7% year-on-year to TRY26.1, the highest
level in the mobile sector for the quarter. This achievement came
on the back of a 278 thousand quarterly increase of postpaid
customer base, which has exceed 16 million, increased mobile
services and data usage, and tariff adjustments. With 74 thousand
net additions, our fixed broadband customer base exceeded 1.4
million, while residential fixed ARPU reached TRY49.1.
BiP becomes global; demand for Turkcell TV sustains its
momentum
We continued to create value for our customers through our
services and solutions which we serve through our superior network.
Turkcell TV’s customer base, reaching 342 thousand with a 131
thousand quarterly increase, has emboldened us in our targets in
this arena.
The number of downloads of BiP, which has recently begun to
offer video and audio calling features, has reached 1.4 million.
Shortly, we will launch BiP, which is already in use in Germany and
Northern Cyprus besides Turkey, in Ukraine and Belarus. Meanwhile,
Turkey’s most widely-used consumer cloud service, Turkcell Smart
Storage’s active user base exceeded 1.3 million users and the
number of downloads of Turkcell Music was almost 1.6 million in the
first nine months of 2015.
We have once again confirmed our global credibility as
Turkey, and as Turkcell in the international financial
markets
Our new vision and the strategic steps we have taken towards
achieving this vision were reflected in the financial markets. We
have become the only Turkish company with an “investment grade”
rating from all three major rating agencies. We raised close to
US$2.9 billion in funds within a short period of 2 months for
infrastructure investments, restructuring of existing debt, and
possible new investment opportunities.
In this regard, first, we signed a long-term loan agreement with
five banks for US$500 million and EUR445 million, unsecured and at
favorable terms.
We issued a Eurobond in the amount of US$500 million. Our
Eurobond issue, at a yield of 5.95 percent, was almost four times
oversubscribed, and is the first and only Eurobond sale to be held
in the international markets by a Turkish company from the
non-financial sector in 2015.
Next, we signed a loan agreement package with China Development
Bank for up to EUR500 million with a 2 year availability period,
and for up to EUR750 million with a 3 year availability period.
These achievements, once again confirm our global credibility as
Turkey, and as Turkcell.
(1)Net Income excluding FX Gain/(Loss) (including tax and
minority impact), monetary Gain (inflation impact), interest Income
on time deposit, one -off items
We invest in our future, while registering great
accomplishments
This quarter, we have continued to invest in new technologies to
strengthen our position as an integrated communication and
technology services company, one of our strategic priorities. In
this regard, we have acquired 47% of the frequency for EUR1.6
billion at the 4.5G tender, which we believe to be a significant
milestone for the industry. Having paid the first installment of
EUR706 million, including VAT, today, October 27, we received the
authorization license at the signing ceremony. With the acquired
frequencies and carrier aggregation, we will be the only operator
in Turkey with the capability to provide the fastest 4.5G speed of
375 Mbps. Our 4.5G infrastructure, where we expect to offer mobile
TV services, will have the technology to support 1Gbps speed with
the availability of supporting terminals.
We have taken significant steps towards improving our balance
sheet, thereby creating value for our shareholders. We have
launched the process of establishing a consumer financing company
to further facilitate the financing of the technology demand of our
customers. Following the debt restructuring of our international
subsidiary Astelit, the debt of BeST, our subsidiary in Belarus,
has also been restructured, eliminating the foreign exchange risk
arising from the debt of our international subsidiaries.
We are more confident about the future
Going forward, our key priorities will be to strengthen our
position in the Turkish telecommunication market as an integrated
player, to invest in our superior network infrastructure and to
consider global expansion opportunities for further growth.
We would like to congratulate the Turkcell team and all of our
stakeholders for their contribution to our success, and to thank
our Board of Directors for their continued support.”
(*) Please note that this paragraph contains forward looking
statements based on our current estimates and expectations
regarding market conditions for each of our different businesses.
No assurance can be given that actual results will be consistent
with such estimates and expectations. For a discussion of factors
that may affect our results, see our Annual Report on Form 20-F for
2014 filed with U.S. Securities and Exchange Commission, and in
particular, the risk factor section therein.
FINANCIAL AND OPERATIONAL REVIEW OF THE THIRD QUARTER
2015
The following discussion focuses principally on the developments
and trends in our business in the third quarter of 2015 in TRY
terms. Selected financial information presented in this press
release for the third quarter of 2014, and the second and third
quarters of 2015, both in TRY and US$ is based on IFRS figures.
Selected financial information presented in this press release
for the third quarter of 2014, and the second and third quarters of
2015, both in TRY and in US$ prepared in accordance with IFRS, and
in TRY prepared in accordance with Turkish Accounting standards, is
also included at the end of this press release.
Financial Review of Turkcell Group
Profit & Loss Statement (million TRY) Q314
Q215 Q315 y/y %
q/q % Total Revenue 3,162.2
3,092.9 3,363.8 6.4%
8.8% Direct cost of revenues1 (1,880.2) (1,898.3) (1,987.8)
5.7% 4.7%
Direct cost of revenues1/revenues
(59.5%) (61.4%) (59.1%) 0.4pp
2.3pp Depreciation and amortization (402.9) (409.5) (426.9)
6.0% 4.2%
Gross Margin 40.5% 38.6%
40.9% 0.4pp 2.3pp Administrative expenses
(138.0) (150.4) (168.2) 21.9% 11.8%
Administrative
expenses/revenues (4.4%) (4.9%) (5.0%)
(0.6pp) (0.1pp) Selling and marketing expenses
(496.5) (458.9) (474.1) (4.5%) 3.3%
Selling and marketing
expenses/revenues (15.7%) (14.8%) (14.1%)
1.6pp 0.7pp EBITDA2 1,050.4
994.8 1,160.6 10.5% 16.7% EBITDA
Margin 33.2% 32.2% 34.5% 1.3pp
2.3pp EBIT3 647.5 585.3
733.7 13.3% 25.4% Net finance income /
(expense) 142.0 397.1 30.4 (78.6%) (92.3%) Finance expense (83.7)
221.9 (144.7) 72.9% (165.2%) Finance income 225.7 175.2 175.1
(22.4%) (0.1%) Share of profit of associates 66.8 94.0 80.1 19.9%
(14.8%) Other income / (expense) 17.8 (123.4) (18.4) (203.4%)
(85.1%) Monetary gains / (losses) 48.3 - - - - Non-controlling
interests 49.0 (100.5) (12.2) (124.9%) (87.9%) Income tax expense
(216.4) (140.5) (183.2) (15.3%) 30.4%
Net Income
755.0 712.0 630.4
(16.5%) (11.5%)
(1) Including depreciation and amortization expenses.(2) EBITDA
is a non-GAAP financial measure. See page 14 for the reconciliation
of an explanation of how we calculate Adjusted EBITDA to net
income.(3) EBIT is a non-GAAP financial measure and is equal to
EBITDA minus depreciation and amortization expenses.
Revenue of the Group grew by 6.4% year-on-year to
TRY3,364 million (TRY3,162 million).
In the third quarter, competitive dynamics in Turkish telecoms
market prevailed similar to previous quarters; yet, the quarter was
seasonally favorable in terms of customer demand and usage.
Meanwhile, higher data incentives in bundle offers led unit prices
in the mobile market to decline further. Similarly, in the fixed
broadband market, competition revolved around aggressively priced
triple play offers. Converged offerings remain at an initial stage
with no significant presence.
In this environment, Turkcell Turkey revenues rose by 9.9% to
TRY3,074 million (TRY2,797 million) on 10.9% growth in consumer
segment revenues to TRY2,402 million (TRY2,167 million) and a 6.5%
increase in corporate segment revenues to TRY560 million (TRY525
million). The performance of key revenue drivers was as
follows:
- Consumer and Corporate revenues in
total grew by 10.0% to TRY2,962 million (TRY2,692 million).
- Voice revenues declined by 2.0% to
TRY1,539 million (TRY1,570 million). The declining trend slowed
down in Q315 mainly through increased consumption.
- Data revenues increased by 34.2% to
TRY975 million (TRY726 million) driven by growth of 37.2% in mobile
broadband and 26.0% in fixed broadband revenues with higher
smartphone penetration, a larger number of data users and the
continued rise in data consumption.
- Services and solutions revenues rose by
11.3% to TRY316 million (TRY284 million) with the 40.3% growth in
services revenues, despite the continued decline in SMS revenues of
11.7%, reflecting the industry trend.
- Other revenues, including mainly our
retail and call center revenues, grew by 18.5% to TRY133 million
(TRY112 million).
- Wholesale revenues grew by 8.5% to
TRY130 million (TRY120 million).
Turkcell International revenues fell by 22.9% to TRY235 million
(TRY305 million), mainly due to year-on-year currency devaluation
in Ukraine and Belarus.
Other subsidiaries'1 revenues, mainly comprised of our
information and entertainment service revenues, contracted by 10.0%
to TRY55 million (TRY61 million).
Operational expenses:
Decreased sales and marketing expenses along with lower direct
cost of revenues led to improved operational expenses as a
percentage of revenues, despite higher general administrative
expenses.
Direct cost of revenues as a percentage of revenues declined to
59.1% (59.5%), mainly due to the decrease in interconnect costs
(0.7pp), despite the increase in network related expenses (0.2pp)
and other cost items (0.1pp) as a percentage of revenues.
Meanwhile, selling and marketing expenses fell by 1.6pp with the
decline in selling expenses (1.3pp) on the back of value focused
customer acquisition, lower marketing expenses (0.2pp) and other
cost items (0.1pp).
EBITDA*grew by 10.5% to TRY1,161 million (TRY1,050
million) year-on-year, while the EBITDA margin reached 34.5%
(33.2%) on 1.3pp growth driven by efficiency measures and a focus
on higher value generating customers. The decline in selling and
marketing expenses of 1.6pp and direct cost of revenues (excluding
depreciation and amortization) of 0.3pp more than offset the rise
in administrative expenses of 0.6pp.
The EBITDA of Turkcell International declined by 6.0% to TRY70
million (TRY74 million), impacted by the yearly currency
devaluation in Ukraine and Belarus. Meanwhile, the EBITDA margin
increased 5.3pp to 29.6% (24.3%) with strict operational expense
management and the increased share of mobile broadband in the
revenue mix of Astelit. The EBITDA of other subsidiaries1 declined
by 13.0% to TRY29 million (TRY34 million).
Net finance income of TRY30 million (TRY142 million) was
recorded in Q315. This was mainly driven by higher translation
losses of TRY97 million (TRY55 million) along with the decline in
interest earned on time deposits to TRY54 million (TRY152 million)
on lower cash balance following the dividend distribution. Higher
net finance income in Q215 was driven by increased translation
gains due to positive quarterly currency movement impact from
Ukraine and Turkey operations.
(*)EBITDA is a non-GAAP financial measure. See page 14 for the
reconciliation of an explanation of how we calculate Adjusted
EBITDA to net income.
(1)Other subsidiaries mainly comprise our information and
entertainment services business and interbusiness eliminations.
Table: Translation gain and loss details
Million TRY Q314 Q215
Q315 Turkcell Turkey 135.0 96.6 (48.6)
Turkcell International (189.7) 164.3 (50.6) Other Subsidiaries 0.2
0.2 1.9
Turkcell Group (54.5)
261.1 (97.3)
Income tax expense details in Q315 are presented in the
table below:
Million TRY Q314 Q215
Q315 y/y % q/q % Current Tax
expense (199.5) (145.2) (147.9) (25.9%)
1.9% Deferred Tax income/expense (16.9) 4.7 (35.3) 108.9%
(851.1%)
Income Tax expense (216.4)
(140.5) (183.2) (15.3%)
30.4%
Net income, excluding non-recurring items, increased by
17.8% to TRY707 million (TRY600 million). Reported net income was
TRY630 million (TRY755 million) on a 16.5% decline year-on-year,
mainly due to higher translation losses and lower interest income
earned on time deposits with the lower cash balance despite higher
EBITDA registered. Further, no monetary gain was recorded in Q315
as inflationary accounting in Belarus was discontinued in Q115.
Other expenses in Q215 were higher compared to Q315 since we
performed payments in relation to commercial agreement
terminations. Further, non-controlling interests figure declined in
Q315 on a quarter-on-quarter basis as we completed the acquisition
of Astelit’s remaining shares in this quarter.
Total debt as of September 30, 2015 had decreased to
TRY3,466.6 million (US$1,139.1 million) from TRY4,014.2 million
(US$1,494.3 million) as of June 30, 2015 in consolidated terms. The
decline in debt balance was mainly driven by the payments made to
financial institutions in relation to Astelit’s debt restructuring.
Turkcell Turkey’s debt balance was TRY817.0 million (US$268.5
million), of which TRY198.1 million (US$65.1 million) was
denominated in US$. The debt balance of Astelit was TRY515.1
million (US$169.3 million), all denominated in local currency.
Meanwhile, BeST had a debt balance of TRY7.9 million (US$2.6
million) and the whole amount was denominated in local currency.
Remaining debt balance of TRY2,127.0 million (US$698.9 million)
following the debt restructuring of Astelit and BeST, all of which
is denominated in US$, is planned to be repaid to banks in October
2015 (US$689 million) and December 2015 (US$10 million).
TRY2,295.0 million (US$754.1 million) of our consolidated debt
is set at a floating rate, while TRY2,884.3 million (US$947.8
million) will mature within less than a year. (Please note that the
figures in parentheses refer to US$ equivalents).
This quarter, we have raised US$2.9 billion equivalent funding
to be utilized on a needs basis, mainly to pay the license fee,
infrastructure investments, refinancing of subsidiary debt and any
other potential investments. The details of new funds are as
follows:
- Turkcell issued a Eurobond with an
aggregate principal amount of US$500 million, 10-year maturity,
redemption date of October 15, 2025 and a coupon rate of 5.75%
based on a 5.95% reoffer yield.
- Turkcell signed a loan agreement with
China Development Bank for amounts of up to EUR500 and EUR750
million, with availability periods of 2 years and 3 years,
respectively. The total loan package will have 10 years final
maturity with a 3 year grace period and an annual interest rate of
EURIBOR + 2.2%.
- Turkcell signed a loan agreement with
BNP Paribas, Citibank, HSBC, ING and Intesa Sanpaolo SpA for an
amount of US$500 million and EUR445 million with an availability
period until June 30, 2016. The unsecured loan has a 2 year grace
period, a 5 year maturity and an annual interest rate of 3 month
LIBOR/EURIBOR+ 2.00%.
Cash flow analysis: Capital expenditures, including
non-operational items, amounted to TRY634 million in Q315, of which
TRY506 million was related to Turkcell Turkey, and TRY126 million
to Turkcell International. Net change in debt mainly relates to
Astelit’s debt restructuring as explained in the total debt
section. The cash flow item noted as “other” includes cash inflows
in relation to foreign currency valuation impacts (TRY222 million),
a decrease in advances given for fixed assets (TRY66 million), and
cash outflows in relation to the corporate tax payment of Turkcell
Iletisim (TRY110 million), the acquisition of Astelit’s remaining
shares (TRY268 million) and other working capital (TRY4
million).
In the first nine months of the year, operational capital
expenditures at the Group level amounted to TRY1,719 million and
stood at 18% of Group revenues.
We opted to make the 4.5G license payment in four installments,
and accordingly on October 26 we paid the first installment of
EUR706 million, including VAT.
Consolidated Cash Flow (million TRY) Q314
Q215 Q315 EBITDA1
1,050.4 994.8 1,160.6 LESS:
Capex and License (555.1) (957.4) (634.4) Turkcell Turkey (502.7)
(683.3) (506.4) Turkcell International2 (51.3) (263.8) (126.0)
Other Subsidiaries3 (1.1) (10.3) (2.0) Net interest Income/
(expense) 196.5 136.0 127.8 Other4 219.4 114.6 (94.0) Net Change in
Debt (136.1) (239.0) (955.2)
Cash generated 775.1
49.0 (395.3) Cash balance before dividend
payment 8,692.0 8,222.8 3,902.5
Dividend paid - (3,925.0)
- Cash balance
after dividend payment 8,692.0
4,297.8 3,902.5
(1)EBITDA is a non-GAAP financial measure. See page 14 for the
reconciliation of an explanation of how we calculate Adjusted
EBITDA to net income.(2)The impact from the movement of reporting
currency (TRY) against US$ is included in this line.(3) Other
subsidiaries comprise our information and entertainment services
business and interbusiness eliminations.(4)Other item in Q314
included cash inflows in relation to effects of foreign currency
valuation on cash and cash equivalents (TRY164 million), decrease
in advance payments for fixed asset purchases (TRY155 million),
dividends received from Fintur (TRY92 million) and cash outflows in
relation to corporate tax payment of Turkcell Iletisim (TRY121
million) and net working capital (TRY71 million).Other item in Q215
included cash inflows of TRY333 million mainly relating to net
working capital and cash outflow of TRY218 million comprised of
corporate tax payment of Turkcell Iletisim.
Operational Review in Turkey
Summary of Operational data Q314
Q215 Q315 y/y % q/q
% Number of mobile subscribers (million)
34.7 34.0 34.2
(1.4%) 0.6% Postpaid 14.8 15.9 16.1 8.8% 1.3%
Prepaid 19.9 18.1 18.1 (9.0%) -
Mobile ARPU (Average Monthly
Revenue per User), blended (TRY) 23.8 24.0
26.1 9.7% 8.8% Postpaid 39.4 38.0 40.4 2.5%
6.3% Prepaid 12.4 12.2 13.5 8.9% 10.7%
Mobile ARPU (Average
Monthly Revenue per User), blended (US$) 11.1 9.1
9.2 (17.1%) 1.1% Postpaid 18.3 14.3 14.2
(22.4%) (0.7%) Prepaid 5.8 4.6 4.8 (17.2%) 4.3%
Mobile Churn
(%) 8.2% 8.0% 6.9% (1.3pp)
(1.1pp) Mobile MOU (Average Monthly Minutes of usage per
subs)blended 288.0 302.0 309.6 7.5%
2.5% Number of fixed subscribers (thousand)
1,100.8 1,345.5 1,419.2 28.9%
5.5% Quarterly net additions 69.2 74.0 73.7 6.5% (0.4%)
Fiber 685.5 817.6 851.6 24.2% 4.2% ADSL 415.3 528.0 567.6 36.7%
7.5%
Fixed Residential ARPU, blended (TRY)
47.3 47.9 49.1
3.8% 2.5%
Mobile business KPIs:
Mobile customers in Turkey increased by 271 thousand net
quarterly additions, reaching 34.2 million in total, driven by our
attractive value propositions and improving customer churn in the
prepaid segment. We gained 278 thousand postpaid net additions and
accordingly, the share of postpaid customers reached 47.1%
(42.6%).
Improvement in the churn rate by 1.3pp yearly reflects our focus
on value-generating customers and targeted retention actions.
ARPU rose by 9.7% to TRY26.1 (TRY23.8) in Q315 with the
continued favorable change in subscriber mix, our upsell strategy,
increased mobile broadband usage, mobile services revenue growth
and our focus on high value customer groups.
MoU rose by 7.5% to 309.6 minutes (288.0 minutes) driven by our
increased postpaid base and upsell strategy.
Smartphone penetration on our network reached 49%, supporting
higher data usage. Registering 1.4 million* quarterly additions,
there were 15.2 million smartphones on our network as at the end of
the quarter where one third are already 4G enabled.
Fixed business KPIs:
Turkcell Turkey's fixed business continued to grow, exceeding
1.4 million customers on the back of our expanding fiber network,
strong sales force and customer care efforts. We gained 74 thousand
net additions where 34 thousand are fiber and 40 thousand are ADSL
subscribers. The Turkcell TV platform continued its growth momentum
as penetration reached 171 thousand on 32 thousand net additions.
Including mobile TV and web TV users, Turkcell TV users reached 342
thousand.
Fixed Residential ARPU improved by 3.8% to TRY49.1 (TRY47.3)
positively impacted by the growth in triple play customers,
comprising 19% of total fiber residential customers.
* Approximately 700 thousand of these smartphone net additions
were due to an adjustment in relation to devices which were not
previously classified as smartphones.
TURKCELL INTERNATIONAL
Astelit revenues grew by 3.3% in local currency terms.
The growth rate was impacted by the absence of Crimean operations
on a yearly comparison basis. Eliminating this impact, Astelit
would have recorded 8.7% revenue growth.Astelit recorded a solid
3.3pp improvement in EBITDA margin to 34.9% (31.6%), driven by
effective cost management and an increased share of mobile
broadband revenues on the back of 3G+ services. Astelit continued
its 3G network roll-out, offering the fastest 3G network with
triple carrier technology. Three-month active 3G data users on its
network reached around 1.7 million, while smartphone users were 45%
of the total. Mobile broadband has become the key growth driver for
Astelit.Although some easing in the macroeconomic environment was
observed with a more stable currency rate, Astelit’s financials in
Turkish Lira terms continued to be impacted by year-on-year
devaluation of the local currency. Accordingly, Astelit’s revenues
declined by 18.6% to TRY158 million (TRY194 million), while EBITDA
fell by 10.1% to TRY55 million (TRY61 million). On the other hand,
having completed the debt restructuring of Astelit, the foreign
exchange exposure risk on this debt at the Group level was
eliminated.Astelit’s three-month active subscriber base reached
10.8 million (10.6 million) with 167 thousand quarterly net
additions. Blended ARPU (3-month active) contracted by 3.2% to
UAH36.7 (UAH37.9), mainly due to the lower frequency and duration
of international calls. MoU (12-month active) fell by 13.5% to
145.4 minutes (168.1 minutes) due to changing consumer
behavior.
Astelit* Q314 Q215
Q315 y/y % q/q % Number of
subscribers (million)1 13.6
14.0 13.8 1.5%
(1.4%) Active (3 months)2 10.6 10.6 10.8 1.9% 1.9%
MoU
(minutes) (12 months) 168.1 152.8 145.4
(13.5%) (4.8%) ARPU (Average Monthly Revenue per
User), blended (US$) 2.3 1.2 1.3
(43.5%) 8.3% Active (3 months) (US$) 3.0 1.6 1.7
(43.3%) 6.3% Active (3 months) (UAH) 37.9 34.5 36.7 (3.2%) 6.4%
Revenue (million UAH) 1,144.6 1,075.6
1,182.9 3.3% 10.0% Revenue (million TRY) 193.9
133.5 157.9 (18.6%) 18.3%
Revenue (million US$) 90.3
50.2 55.4 (38.6%) 10.4% EBITDA (million
UAH) 361.7 324.3 412.5 14.0% 27.2%
EBITDA (million TRY)
61.2 40.3 55.0 (10.1%) 36.5%
EBITDA(million US$) 28.5 15.2 19.3 (32.3%) 27.0%
EBITDA margin
(UAH) 31.6% 30.2% 34.9% 3.3pp
4.7pp EBITDA margin (TRY) 31.6% 30.2% 34.8% 3.2pp 4.6pp
EBITDA margin (US$) 31.6% 30.2% 34.9%
3.3pp 4.7pp Net income / loss (million UAH)** (831.7)
1,776.7 (455.2) (45.3%) (125.6%)
Net income / loss
(million TRY)** (139.0) 209.6 (58.9)
(57.6%) (128.1%) Net income / loss (million US$)**
(66.8) 79.5 (21.4) (68.0%) (126.9%)
Capex (million UAH)
211.0 1,530.1 317.0 50.2%
(79.3%) Capex (million TRY) 36.6 255.3 114.6 213.1% (55.1%)
Capex (million US$) 15.2 90.7
8.9 (41.4%) (90.2%)
(1) We may occasionally offer campaigns and tariff schemes that
have an active subscriber life differing from the one that we
normally use to deactivate subscribers and calculate churn.(2)
Active subscribers are those who in the past three months made a
revenue generating activity.(*) Since July 10, 2015, we hold a 100%
stake in Astelit.(**)During 3rd quarter of 2015, foreign exchange
gains and losses arising from receivable from or payable to a
foreign operation, the settlement of which is neither planned nor
likely occur in the foreseeable future, have been considered to
form part of a net investment in a foreign operation and are
recognized directly in equity in the foreign currency translation
differences in the consolidated financial statements. Exchange
differences arising in the foreign operations’ individual financial
statements which have been recognized directly in equity in the
foreign currency translation differences in the consolidated
financial statements have been eliminated from the individual
financial statements above for reporting purposes.
BeST’s financial performance continued to be impacted by
the macroeconomic environment in Belarus. The local currency
further depreciated by 15% against the US$ during the quarter.
In TRY terms, BeST’s revenues remained nearly flat at TRY39
million (TRY40 million) with an improved EBITDA margin of 2.1%
(2.0%). In local currency terms, however, revenues rose by 16.7%
with the expanding three-month active subscriber base reaching 1.1
million along with increased voice and mobile broadband usage.
As disclosed, Best’s total existing intragroup loans were
converted into a EUR$610 million subordinated loan, directly from
Turkcell. Accordingly, the foreign currency exposure risk in
relation to the debt of Belarusian operations has been eliminated
from our Group financials.
BeST* Q314 Q215
Q315 y/y % q/q % Number of
subscribers (million) 1.3 1.4
1.4 7.7% - Active (3
months) 1.0 1.1 1.1 10.0% -
Revenue (billion BYR)
194.1 190.3 226.6 16.7% 19.1%
Revenue (million TRY) 40.2 34.1 39.3 (2.2%) 15.2%
Revenue
(million US$) 18.7 12.9 13.8
(26.2%) 7.0% EBITDA (billion BYR) 3.8 4.2 4.8 26.3%
14.3%
EBITDA (million TRY) 0.8 0.8 0.8
- - EBITDA(million US$) 0.4 0.3 0.3 (25.0%) -
EBITDA margin (BYR) 2.0% 2.2% 2.1%
0.1pp (0.1pp) EBITDA margin (TRY) 2.0% 2.2% 2.1%
0.1pp (0.1pp)
EBITDA margin (US$) 2.0% 2.2%
2.1% 0.1pp (0.1pp) Net loss (billion BYR)
(369.0) (643.4) (104.7) (71.6%) (83.7%)
Net loss (million
TRY) (81.5) (115.0) (17.6) (78.4%)
(84.7%) Net loss (million US$) (33.6) (43.0) (6.2) (81.5%)
(85.6%)
Capex (billion BYR) 41.9 22.3
20.6 (50.8%) (7.6%) Capex (million TRY) 9.4
3.9 3.4 (63.8%) (12.8%)
Capex (million US$)
3.8 1.4 0.8
(78.9%) (42.9%)
(*)BeST, in which we hold an 80% stake, has operated in Belarus
since July 2008. As inflation accounting is ended starting from
Q1’15, Q2’14 figures presented in the table are not inflation
adjusted for comparative purposes.(**)During 3rd quarter of 2015,
foreign exchange gains and losses arising from receivable from or
payable to a foreign operation, the settlement of which is neither
planned nor likely occur in the foreseeable future, have been
considered to form part of a net investment in a foreign operation
and are recognized directly in equity in the foreign currency
translation differences in the consolidated financial statements.
Exchange differences arising in the foreign operations’ individual
financial statements which have been recognized directly in equity
in the foreign currency translation differences in the consolidated
financial statements have been eliminated from the individual
financial statements above for reporting purposes.
KKTCELL’s revenues decreased by 6.7% to TRY33 million
(TRY36 million) and EBITDA declined by 10.6% to TRY13 million
(TRY14 million) leading to an EBITDA margin of 38.0% (39.8%). This
was driven by regulatory amendment regarding the maximum price
ceiling, termination rates and additional frequency fees.
KKTCELL Q314 Q215
Q315 y/y % q/q % Number of
subscribers (million) 0.4 0.4
0.5 25.0% 25.0% Revenue
(million TRY) 35.7 32.8 33.3 (6.7%) 1.5%
EBITDA (million
TRY) 14.2 13.0 12.7 (10.6%)
(2.3%) EBITDA margin (TRY) 39.8% 39.8% 38.0% (1.8pp) (1.8pp)
Net income (million TRY) 8.3 7.9 7.5
(9.6%) (5.1%) Capex (million TRY) 6.1
5.5 8.8 44.3% 60.0%
(*) KKTCELL, in which we hold a 100% stake, has operated in
Northern Cyprus since 1999.
Fintur’s subscribers increased by 75 thousand net
additions during the quarter mainly driven by increase in Geocell
subscribers. Its revenues fell by 27.7% year-on-year, mainly due to
the decrease in both Kcell and Azercell revenues. While Kcell
revenues were impacted by a continued price war and devaluation of
the Kazakhstani Tenge against the US$, the decline in Azercell
revenues was due to decreased voice and SMS revenues. The
contribution of Fintur to Group net income decreased to
US$28million (US$30 million) year-on-year.
Fintur* Q314 Q215
Q315 y/y % q/q % Subscribers
(million) 1 18.6 17.8
17.9 (3.8%) 0.6% Kazakhstan 11.7
10.8 10.8 (7.7%) - Azerbaijan 4.2 4.2 4.2 - - Moldova 0.9 0.9 0.9 -
- Georgia 1.9 2.0 2.0 5.3% -
Revenue (million US$)
479 373 346 (27.7%) (7.2%)
Kazakhstan 271 231 201 (25.8%) (13.0%) Azerbaijan 154 101 105
(31.8%) 4.0% Moldova 19 18 16 (15.8%) (11.1%) Georgia 34 23 25
(26.5%) 8.7%
Fintur’s contribution to Group’s net income
30 35 28
(6.7%) (20.0%)
(1) TeliaSonera disclosed a change to the definition of prepaid
mobile subscription for all countries of operations in its Q115
results announcement on April 21, 2015. Prepaid subscriptions are
counted if the subscriber has been active during the last three
months. In line with Telia Sonera’s reporting, we disclose Fintur
operations’ subscriber numbers as three-month active. Prior periods
are restated accordingly.(*) We hold a 41.45% stake In Fintur,
which has interests in Kazakhstan, Azerbaijan, Moldova and
Georgia.
Turkcell Group Subscribers
Turkcell Group mobile subscribers amounted to approximately 68.1
million as of September 30, 2015. This figure is calculated by
taking the number of subscribers of Turkcell and each of our
subsidiaries and unconsolidated investees. It includes the total
number of mobile subscribers of Turkcell Turkey, Astelit and BeST,
as well as of our operations in the Turkish Republic of Northern
Cyprus (“Northern Cyprus”), and Fintur.
Turkcell Group Subscribers Q314
Q215 Q315 y/y % q/q
% Turkcell 34.7 34.0 34.2 (1.4%)
0.6% Ukraine 13.6 14.0 13.8 1.5% (1.4%) Fintur1 18.6 17.8
17.9 (3.8%) 0.6% Northern Cyprus 0.4 0.4 0.5 25.0% 25.0% Belarus
1.3 1.4 1.4 7.7% - Turkcell Europe2 0.4 0.3 0.3 (25.0%) -
Turkcell Group Mobile Subscribers* (million) 69.0
67.9 68.1 (1.3%) 0.3%
Turkcell Group Fixed Subscribers (thousand)
1,100.8 1,345.5 1,419.2
28.9% 5.5%
(*) Turkcell Group mobile subscribers figure includes the
subscriber figures of our non-consolidated
subsidiaries.(1)TeliaSonera disclosed a change to the definition of
prepaid mobile subscription for all countries of operations in its
Q115 results announcement on April 21, 2015. Prepaid subscriptions
are counted if the subscriber has been active during the last three
months. In line with TeliaSonera’s reporting, we disclose Fintur
operations’ subscriber numbers as three-month active. Prior periods
are restated accordingly.(2) The “wholesale traffic purchase”
agreement, signed between Turkcell Europe GmbH operating in Germany
and Deutsche Telekom for five years in 2010, had been modified to
reflect the shift in business model to a “marketing partnership”.
The new agreement between Turkcell and a subsidiary of Deutsche
Telekom was signed on August 27, 2014. The transfer of Turkcell
Europe operations to Deutsche Telekom’s subsidiary was completed on
January 15, 2015. Subscribers are still included in the Turkcell
Group Subscriber figure.
OVERVIEW OF THE MACROECONOMIC ENVIRONMENT
The foreign exchange rates used in our financial reporting,
along with certain macroeconomic indicators, are set out below.
Q314 Q215 Q315
y/y % q/q % US$ / TRY rate
Closing Rate 2.2789 2.6863
3.0433 33.5% 13.3% Average Rate 2.1505 2.6571 2.8513 32.6% 7.3%
Consumer Price Index (Turkey) 0.7% 1.7%
1.4% 0.7pp (0.3pp) GDP Growth (Turkey)
1.8% 3.8% n.a n.a n.a US$ /
UAH rate Closing Rate 12.95 21.02 21.53 66.3% 2.4% Average Rate
12.70 21.44 21.36 68.2% (0.4%)
US$ / BYR rate Closing Rate
10,580 15,346 17,703 67.3% 15.4% Average Rate 10,377
14,801 16,428 58.3% 11.0%
RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We believe
Adjusted EBITDA, among other measures, facilitates performance
comparisons from period to period and management decision making.
It also facilitates performance comparisons from company to
company. Adjusted EBITDA as a performance measure eliminates
potential differences caused by variations in capital structures
(affecting interest expense), tax positions (such as the impact of
changes in effective tax rates on periods or companies) and the age
and book depreciation of tangible assets (affecting relative
depreciation expense). We also present Adjusted EBITDA because we
believe it is frequently used by securities analysts, investors and
other interested parties in evaluating the performance of other
mobile operators in the telecommunications industry in Europe, many
of which present Adjusted EBITDA when reporting their results.
Our Adjusted EBITDA definition includes Revenue, Direct Cost of
Revenue excluding depreciation and amortization, Selling and
Marketing expenses and Administrative expenses, but excludes
translation gain/(loss), finance income, share of profit of equity
accounted investees, gain on sale of investments, income/(loss)
from related parties, minority interest and other
income/(expense).
Nevertheless, Adjusted EBITDA has limitations as an analytical
tool, and you should not consider it in isolation from, or as a
substitute for analysis of, our results of operations, as reported
under IFRS.
FORWARD-LOOKING STATEMENTS: This release includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act
of 1934 and the Safe Harbor provisions of the US Private Securities
Litigation Reform Act of 1995. This includes, in particular, our
targets for revenue, EBITDA and capex in 2015 and our 4G and 3G
development in Turkey and Ukraine, respectively. More generally,
all statements other than statements of historical facts included
in this press release, including, without limitation, certain
statements regarding our operations, financial position and
business strategy may constitute forward-looking statements. In
addition, forward-looking statements generally can be identified by
the use of forward-looking terminology such as, among others,
"will," "expect," "intend," "estimate," "believe", "continue" and
“guidance”.Although Turkcell believes that the expectations
reflected in such forward-looking statements are reasonable at this
time, it can give no assurance that such expectations will prove to
be correct. All subsequent written and oral forward-looking
statements attributable to us are expressly qualified in their
entirety by reference to these cautionary statements. For a
discussion of certain factors that may affect the outcome of such
forward looking statements, see our Annual Report on Form 20-F for
2014 filed with the U.S. Securities and Exchange Commission, and in
particular the risk factor section therein. We undertake no duty to
update or revise any forward looking statements, whether as a
result of new information, future events or otherwise.
ABOUT TURKCELL: Turkcell is an integrated communication
and technology services player in Turkey. Turkcell Group has
approximately 68.1 million mobile subscribers in nine countries and
over 1.4 million fixed subscribers in Turkey as of September 30,
2015. Turkcell was one of the first among the global operators to
have implemented HSPA+. It has announced two new HSPA+ Technologies
on its 3G network to meet rising data usage. Having successfully
integrated 3C-HSDPA and DC-HSUPA Technologies, it became the first
mobile operator in the world to enable peak speed of 63.3 Mbps
downlink while also enabled an 11.5 Mbps uplink on a 3G network.
Turkcell is the first telecom operator to offer households fiber
broadband connection at speeds of up to 1,000 Mbps in Turkey. As of
September 2015, Turkcell’s population coverage is at 99.81% in 2G
and 94.14% in 3G. Turkcell Group reported a TRY3.4 billion (US$1.2
billion) revenue with total assets of TRY20.6 billion (US$6.8
billion) as of September 30, 2015. It has been listed on the NYSE
and the BIST since July 2000, and is the only NYSE-listed company
in Turkey. Read more at www.turkcell.com.tr
This press release can also be viewed using the Turkcell
Investor Relation app, which can be downloaded
here for iOS,
and here for Android mobile
devices.
Appendix A –Mobile Interconnect Revenues and Costs
Table: Mobile interconnect revenues and costs of Turkcell
Turkey
Million TRY Q314 Q215 Q315 y/y %
q/q % Interconnect revenues 300.3 312.2 336.0 11.9% 7.6% as a % of
revenues
10.7% 11.0% 10.9% 0.2pp
(0.1pp) Interconnect costs (278.5) (291.0) (315.3) 13.2%
8.4% as a % of revenues
(10.0%) (10.3%)
(10.3%) (0.3pp) -
TURKCELL ILETISIM HIZMETLERI A.S.
TURKISH ACCOUNTING STANDARDS SELECTED
FINANCIALS (TRY Million)
Quarter Ended Quarter Ended Quarter
Ended Nine Months Ended Nine Months
Ended September 30, June 30, September 30,
September 30, September 30, 2014
2015 2015
2014 2015
Consolidated Statement of Operations Data
Turkcell Turkey 2,796.7 2,834.6 3,074.3 7,866.4 8,619.5 Consumer
2,166.8 2,205.8 2,402.5 6,104.7 6,730.5 Corporate 525.4 550.0 559.6
1,518.6 1,641.3 Other 104.5 78.8 112.2 243.1 247.7 Turkcell
International 304.6 204.7 234.7 883.6 632.4 Other 60.9 53.6 54.8
190.4 183.1 Total revenues 3,162.2 3,092.9 3,363.8 8,940.4 9,435.0
Direct cost of revenues (1,879.0) (1,897.2) (1,987.1)
(5,408.6) (5,712.3) Gross profit 1,283.2 1,195.7
1,376.7 3,531.8 3,722.7 Administrative expenses (138.0) (150.4)
(168.2) (415.9) (459.4) Selling & marketing expenses (496.5)
(458.9) (474.1) (1,456.8) (1,409.3) Other Operating Income /
(Expense) 424.0 153.0 218.0 784.2 940.8
Operating profit before financing and investing costs 1,072.7 739.4
952.4 2,443.3 2,794.8 Income from investing activities 1.7 2.1 3.0
14.6 8.7 Expense from investing activities (10.2) (4.5) (20.0)
(26.1) (46.8) Share of profit of equity accounted investees 66.8
94.0 80.1 214.2 268.9 Income before
financing costs 1,131.0 831.0 1,015.5 2,646.0 3,025.6 Finance
expense (255.6) 122.7 (188.8) (965.1) (1,153.7) Monetary
gain/(loss) 48.3 - - 172.8 - Income
before tax and non-controlling interest 923.7 953.7 826.7 1,853.7
1,871.9 Income tax expense (217.0) (140.8) (183.2)
(544.0) (558.3) Income before non-controlling
interest 706.7 812.9 643.5 1,309.7 1,313.6 Non-controlling interest
49.0 (100.4) (12.2) 299.3 171.7 Net
income 755.7 712.5 631.3 1,609.0 1,485.3 Net income per
share 0.34 0.33 0.29 0.73 0.68
Other Financial Data
Gross margin 40.6% 38.7% 40.9% 39.5% 39.5% EBITDA(*) 1,050.4
994.8 1,160.6 2,844.7 3,082.3 Capital expenditures 555.1 957.4
634.4 1,209.5 2,347.3
Consolidated Balance Sheet Data (at
period end) Cash and cash equivalents 8,692.0 4,297.8 3,902.5
8,692.0 3,902.5 Total assets 22,673.4 20,636.8 20,555.1 22,673.4
20,555.1 Long term debt 1,101.3 611.7 582.2 1,101.3 582.2 Total
debt 3,545.0 4,014.2 3,466.6 3,545.0 3,466.6 Total liabilities
6,472.5 7,159.4 6,777.8 6,472.5 6,777.8 Total shareholders’ equity
/ Net Assets 16,200.9 13,477.5 13,777.3 16,200.9 13,777.3
** For further details, please refer to our consolidated
financial statements and notes as at 30 September 2015 on our web
site
TURKCELL ILETISIM HIZMETLERI A.S.
IFRS SELECTED FINANCIALS (TRY
Million)
Quarter Ended Quarter Ended Quarter
Ended Nine Months Ended Nine Months
Ended September 30, June 30, September 30,
September 30, September 30, 2014
2015 2015
2014 2015
Consolidated Statement of Operations Data
Turkcell Turkey 2,796.7 2,834.6 3,074.3 7,866.4 8,619.5 Consumer
2,166.8 2,205.8 2,402.5 6,104.7 6,730.5 Corporate 525.4 550.0 559.6
1,518.6 1,641.3 Other 104.5 78.8 112.2 243.1 247.7 Turkcell
International 304.6 204.7 234.7 883.6 632.4 Other 60.9 53.6 54.8
190.4 183.1 Total revenues 3,162.2 3,092.9 3,363.8 8,940.4 9,435.0
Direct cost of revenues (1,880.2) (1,898.3) (1,987.8)
(5,411.7) (5,714.7) Gross profit 1,282.0 1,194.6
1,376.0 3,528.7 3,720.3 Administrative expenses (138.0) (150.4)
(168.2) (415.9) (459.4) Selling & marketing expenses (496.5)
(458.9) (474.1) (1,456.8) (1,409.3) Other Operating Income /
(Expense) 17.8 (123.4) (18.4) (77.7)
(194.9) 0 Operating profit before financing costs 665.3 461.9 715.3
1,578.3 1,656.7 Finance costs (83.7) 221.9 (144.7) (846.9) (658.5)
Finance income 225.7 175.2 175.1 732.2 602.6 Monetary gain/(loss)
48.3 - - 172.8 - Share of profit of equity accounted investees 66.8
94.0 80.1 214.2 268.9 Income before
taxes and minority interest 922.4 953.0 825.8 1,850.6 1,869.7
Income tax expense (216.4) (140.5) (183.2)
(543.1) (557.9) Income before minority interest 706.0 812.5
642.6 1,307.5 1,311.8 Non-controlling interests 49.0 (100.5)
(12.2) 299.3 171.7 Net income 755.0
712.0 630.4 1,606.8 1,483.5 Net income
per share 0.34 0.33 0.28 0.73 0.67
Other Financial
Data Gross margin 40.5% 38.6% 40.9% 39.5% 39.4%
EBITDA(*) 1,050.4 994.8 1,160.6 2,844.7 3,082.3 Capital
expenditures 555.1 957.4 634.4 1,209.5 2,347.3
Consolidated Balance Sheet Data (at period end) Cash and
cash equivalents 8,692.0 4,297.8 3,902.5 8,692.0 3,902.5 Total
assets 22,699.3 20,661.4 20,579.0 22,699.3 20,579.0 Long term debt
1,101.3 611.7 582.2 1,101.3 582.2 Total debt 3,545.0 4,014.2
3,466.6 3,545.0 3,466.6 Total liabilities 6,476.3 7,162.8 6,781.3
6,476.3 6,781.3 Total shareholders’ equity / Net Assets 16,223.0
13,498.6 13,797.7 16,223.0 13,797.7 ** For further
details, please refer to our consolidated financial statements and
notes as at 30 September 2015 on our web site
TURKCELL
ILETISIM HIZMETLERI A.S.
IFRS SELECTED FINANCIALS (US$
MILLION)
Quarter Ended Quarter Ended Quarter
Ended Nine Months Ended Nine Months
Ended September 30, June 30, September 30,
September 30, September 30, 2014
2015 2015
2014 2015
Consolidated Statement of Operations Data
Turkcell Turkey 1,301.2 1,066.7 1,079.5 3,637.3 3,247.4 Consumer
1,008.1 830.1 843.6 2,822.5 2,535.8 Corporate 244.5 207.0 196.5
702.1 619.5 Other 48.6 29.6 39.4 112.7 92.1 Turkcell International
138.1 77.0 82.4 405.1 237.8 Other 28.3 20.2 19.3 87.9 69.8 Total
revenues 1,467.6 1,163.9 1,181.2 4,130.3 3,555.0 Direct cost of
revenues (870.4) (714.4) (698.0) (2,497.9)
(2,155.4) Gross profit 597.2 449.5 483.2 1,632.4 1,399.6
Administrative expenses (63.6) (56.6) (59.0) (191.6) (172.8)
Selling & marketing expenses (230.3) (172.8) (166.6) (672.4)
(532.6) Other Operating Income / (Expense) 8.7 (46.3)
(6.2) (36.1) (73.7) Operating profit before
financing costs 312.0 173.8 251.4 732.3 620.5 Finance expense
(37.6) 84.4 (50.0) (383.9) (276.0) Finance income 105.8 65.9 61.5
338.6 230.0 Monetary gain/(loss) 17.1 - - 75.8 - Share of profit of
equity accounted investees 31.4 35.4 28.4 99.3
102.0 Income before taxes and minority interest 428.7 359.5
291.3 862.1 676.5 Income tax expense (100.5) (52.9)
(64.9) (251.1) (213.0) Income before minority
interest 328.2 306.6 226.4 611.0 463.5 Minority interest 23.8
(38.1) (4.2) 136.4 75.2 Net income
352.0 268.5 222.2 747.4 538.7
Net income per share 0.16 0.12 0.10 0.34 0.24
Other
Financial Data Gross margin 40.7% 38.6% 40.9% 39.5%
39.4% EBITDA(*) 489.1 374.3 407.6 1,316.1 1,158.5 Capital
expenditures 222.5 348.2 133.7 530.7 771.3
Consolidated
Balance Sheet Data (at period end) Cash and cash equivalents
3,814.1 1,599.9 1,282.3 3,814.1 1,282.3 Total assets 9,960.6
7,691.4 6,762.1 9,960.6 6,762.1 Long term debt 483.3 227.7 191.3
483.3 191.3 Total debt 1,555.6 1,494.3 1,139.1 1,555.6 1,139.1
Total liabilities 2,841.8 2,666.4 2,228.3 2,841.8 2,228.3 Total
equity 7,118.8 5,025.0 4,533.8 7,118.8 4,533.8 *
Please refer to the notes on reconciliation of Non-GAAP Financial
measures on page 14 ** For further details, please refer to our
consolidated financial statements and notes as at 30 September 2015
on our web site
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TurkcellNihat Narin, +90 212 313 1888Director, Turkcell
Investor RelationsorInvestor RelationsTel: + 90 212 313
1888investor.relations@turkcell.com.trorCorporate
Communications:Tel: + 90 212 313
2321Turkcell-Kurumsal-Iletisim@turkcell.com.tr
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