|
|
Note
|
|
|
31 March 2016
|
|
|
31 December 2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
8
|
|
|
|
7,073,495
|
|
|
|
6,821,494
|
|
Intangible assets
|
|
|
9
|
|
|
|
8,150,841
|
|
|
|
8,232,637
|
|
GSM and other telecommunication operating licenses
|
|
|
|
|
|
|
2,425,071
|
|
|
|
2,520,785
|
|
4.5G license not yet available for use
|
|
|
|
|
|
|
4,018,270
|
|
|
|
3,984,954
|
|
Computer software
|
|
|
|
|
|
|
1,526,039
|
|
|
|
1,570,346
|
|
Other intangible assets
|
|
|
|
|
|
|
181,461
|
|
|
|
156,552
|
|
Investment properties
|
|
|
|
|
|
|
47,451
|
|
|
|
49,572
|
|
Investments in equity accounted investees
|
|
|
10
|
|
|
|
974,390
|
|
|
|
981,939
|
|
Other non-current assets
|
|
|
|
|
|
|
371,054
|
|
|
|
441,940
|
|
Trade receivables
|
|
|
11
|
|
|
|
750,938
|
|
|
|
836,256
|
|
Receivables from financial services
|
|
|
|
|
|
|
129,339
|
|
|
|
-
|
|
Deferred tax assets
|
|
|
|
|
|
|
32,487
|
|
|
|
48,615
|
|
Total non-current assets
|
|
|
|
|
|
|
17,529,995
|
|
|
|
17,412,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
|
|
|
|
82,862
|
|
|
|
75,471
|
|
Due from related parties
|
|
|
19
|
|
|
|
10,529
|
|
|
|
11,760
|
|
Trade receivables and accrued income
|
|
|
11
|
|
|
|
4,071,300
|
|
|
|
4,098,928
|
|
Receivables from financial services
|
|
|
|
|
|
|
139,864
|
|
|
|
-
|
|
Other current assets
|
|
|
12
|
|
|
|
1,818,200
|
|
|
|
1,689,902
|
|
Cash and cash equivalents
|
|
|
13
|
|
|
|
2,522,412
|
|
|
|
2,918,796
|
|
Total current assets
|
|
|
|
|
|
|
8,645,167
|
|
|
|
8,794,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
26,175,162
|
|
|
|
26,207,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
|
|
|
2,200,000
|
|
|
|
2,200,000
|
|
Share premium
|
|
|
|
|
|
|
269
|
|
|
|
269
|
|
Capital contributions
|
|
|
|
|
|
|
35,026
|
|
|
|
35,026
|
|
Reserves
|
|
|
|
|
|
|
781,915
|
|
|
|
861,111
|
|
Retained earnings
|
|
|
|
|
|
|
11,818,533
|
|
|
|
11,258,411
|
|
Total equity attributable to equity holders of
Turkcell Iletisim Hizmetleri AS
|
|
|
|
|
|
|
14,835,743
|
|
|
|
14,354,817
|
|
Non-controlling interests
|
|
|
|
|
|
|
66,014
|
|
|
|
64,085
|
|
Total equity
|
|
|
|
|
|
|
14,901,757
|
|
|
|
14,418,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and borrowings
|
|
|
15
|
|
|
|
3,373,229
|
|
|
|
3,487,786
|
|
Employee benefits
|
|
|
|
|
|
|
122,628
|
|
|
|
114,869
|
|
Provisions
|
|
|
|
|
|
|
124,942
|
|
|
|
130,619
|
|
Other non-current liabilities
|
|
|
|
|
|
|
372,202
|
|
|
|
366,670
|
|
Trade and other payables
|
|
|
|
|
|
|
1,291,143
|
|
|
|
1,270,610
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
230,318
|
|
|
|
113,437
|
|
Total non-current liabilities
|
|
|
|
|
|
|
5,514,462
|
|
|
|
5,483,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and borrowings
|
|
|
15
|
|
|
|
658,155
|
|
|
|
728,744
|
|
Income taxes payable
|
|
|
7
|
|
|
|
18,748
|
|
|
|
12,855
|
|
Trade and other payables
|
|
|
|
|
|
|
4,901,959
|
|
|
|
5,283,070
|
|
Due to related parties
|
|
|
19
|
|
|
|
4,632
|
|
|
|
6,555
|
|
Deferred income
|
|
|
|
|
|
|
115,226
|
|
|
|
121,078
|
|
Provisions
|
|
|
|
|
|
|
60,223
|
|
|
|
152,115
|
|
Total current liabilities
|
|
|
|
|
|
|
5,758,943
|
|
|
|
6,304,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
11,273,405
|
|
|
|
11,788,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and liabilities
|
|
|
|
|
|
|
26,175,162
|
|
|
|
26,207,310
|
|
The accompanying notes on page 7 to 38 are an integral part of these condensed interim consolidated financial statements.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
|
|
|
|
|
Three months ended
|
|
|
|
Note
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
3,223,035
|
|
|
|
2,978,163
|
|
Direct costs of revenue
|
|
|
|
|
|
(2,018,426
|
)
|
|
|
(1,828,551
|
)
|
Gross profit from business operations
|
|
|
|
|
|
1,204,609
|
|
|
|
1,149,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from financial services
|
|
|
|
|
|
2,347
|
|
|
|
-
|
|
Direct cost of revenue from financial services
|
|
|
|
|
|
(344
|
)
|
|
|
-
|
|
Gross profit from financial operations
|
|
|
|
|
|
2,003
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
1,206,612
|
|
|
|
1,149,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
|
|
|
6,005
|
|
|
|
16,345
|
|
Selling and marketing expenses
|
|
|
|
|
|
(481,248
|
)
|
|
|
(476,267
|
)
|
Administrative expenses
|
|
|
|
|
|
(178,672
|
)
|
|
|
(140,796
|
)
|
Other expenses
|
|
|
|
|
|
(17,109
|
)
|
|
|
(69,380
|
)
|
Results from operating activities
|
|
|
|
|
|
535,588
|
|
|
|
479,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income
|
|
|
6
|
|
|
|
221,247
|
|
|
|
252,261
|
|
Finance costs
|
|
|
6
|
|
|
|
(55,000
|
)
|
|
|
(735,690
|
)
|
Net finance (costs) / income
|
|
|
|
|
|
|
166,247
|
|
|
|
(483,429
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit of equity accounted investees
|
|
|
10
|
|
|
|
15,180
|
|
|
|
94,830
|
|
Profit before income tax
|
|
|
|
|
|
|
717,015
|
|
|
|
90,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
7
|
|
|
|
(143,434
|
)
|
|
|
(234,205
|
)
|
Profit for the year
|
|
|
|
|
|
|
573,581
|
|
|
|
(143,290
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit / (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of Turkcell Iletisim Hizmetleri AS
|
|
|
|
|
|
|
562,718
|
|
|
|
141,117
|
|
Non-controlling interests
|
|
|
|
|
|
|
10,863
|
|
|
|
(284,407
|
)
|
Profit / (Loss) for the period
|
|
|
|
|
|
|
573,581
|
|
|
|
(143,290
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share
|
|
|
|
|
|
|
0.26
|
|
|
|
0.06
|
|
(in full TL)
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes on page 7 to 38 are an integral part of these condensed interim consolidated financial statements.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
|
|
Three months ended 31 March
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Profit / (Loss) for the period
|
|
|
573,581
|
|
|
|
(143,290
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income / (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to profit or loss:
|
|
|
|
|
|
|
|
|
Actuarial (loss) / gain arising from employee benefits
|
|
|
(887
|
)
|
|
|
(992
|
)
|
Tax effect of actuarial gain / (loss) from employee benefits
|
|
|
183
|
|
|
|
157
|
|
|
|
|
(704
|
)
|
|
|
(835
|
)
|
Items that will or may be reclassified subsequently
to profit or loss:
|
|
|
|
|
|
|
|
|
Change in cash flow hedge reserve
|
|
|
-
|
|
|
|
459
|
|
Foreign currency translation differences
|
|
|
(54,781
|
)
|
|
|
438,686
|
|
Share of foreign currency translation differences of the equity accounted investees
|
|
|
(11,871
|
)
|
|
|
(387,392
|
)
|
Tax effect of foreign currency translation differences
|
|
|
(1,600
|
)
|
|
|
7,892
|
|
|
|
|
(68,252
|
)
|
|
|
59,645
|
|
Other comprehensive (expense) / income for the year, net of income tax
|
|
|
(68,956
|
)
|
|
|
58,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
504,625
|
|
|
|
(84,480
|
)
|
|
|
|
|
|
|
|
|
|
Total comprehensive income attributable to:
|
|
|
|
|
|
|
|
|
Owners of Turkcell Iletisim Hizmetleri AS
|
|
|
492,170
|
|
|
|
59,257
|
|
Non-controlling interests
|
|
|
12,455
|
|
|
|
(143,737
|
)
|
Total comprehensive income for the year
|
|
|
504,625
|
|
|
|
(84,480
|
)
|
The accompanying notes on page 7 to 38 are an integral part of these condensed interim consolidated financial statements.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the three months ended 31 March 2016
(Amounts expressed in thousands of US Dollars unless otherwise indicated except share amounts)
|
|
Attributable to equity holders of the Company
|
|
|
|
|
|
|
|
|
Share Capital
|
|
|
Capital Contribution
|
|
|
Share Premium
|
|
|
Legal Reserves
|
|
|
Cash Flow Hedge Reserves
|
|
|
Reserve for Non-Controlling Interest Put Option
|
|
|
Translation Reserve
|
|
|
Retained
Earnings
|
|
|
Total
|
|
|
Non-Controlling Interest
|
|
|
Total
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2015
|
|
|
2,200,000
|
|
|
|
35,026
|
|
|
|
269
|
|
|
|
839,284
|
|
|
|
(719
|
)
|
|
|
(758,432
|
)
|
|
|
350,254
|
|
|
|
14,427,741
|
|
|
|
17,093,423
|
|
|
|
(382,778
|
)
|
|
|
16,710,645
|
|
Total comprehensive income/(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
141,117
|
|
|
|
141,117
|
|
|
|
(284,407
|
)
|
|
|
(143,290
|
)
|
Other comprehensive income/(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation differences, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(113,399
|
)
|
|
|
31,915
|
|
|
|
|
|
|
|
(81,484
|
)
|
|
|
140,670
|
|
|
|
59,186
|
|
Defined benefit plan actuarial losses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(835
|
)
|
|
|
(835
|
)
|
|
|
-
|
|
|
|
(835
|
)
|
Change in cash flow hedge reserve
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
459
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
459
|
|
|
|
-
|
|
|
|
459
|
|
Total other comprehensive income/(expense)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
459
|
|
|
|
(113,399
|
)
|
|
|
31,915
|
|
|
|
(835
|
)
|
|
|
(81,860
|
)
|
|
|
140,670
|
|
|
|
58,810
|
|
Total comprehensive income/(expense)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
459
|
|
|
|
(113,399
|
)
|
|
|
31,915
|
|
|
|
140,282
|
|
|
|
59,257
|
|
|
|
(143,737
|
)
|
|
|
(84,480
|
)
|
Increase in legal reserves
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
337,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(337,500
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Dividend paid
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,925,000
|
)
|
|
|
(3,925,000
|
)
|
|
|
(3,313
|
)
|
|
|
(3,928,313
|
)
|
Change in fair value of minority put option
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
229,548
|
|
|
|
-
|
|
|
|
-
|
|
|
|
229,548
|
|
|
|
-
|
|
|
|
229,548
|
|
Change in non-controlling interests
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Balance at 31 March 2015
|
|
|
2,200,000
|
|
|
|
35,026
|
|
|
|
269
|
|
|
|
1,176,784
|
|
|
|
(260
|
)
|
|
|
(642,283
|
)
|
|
|
382,169
|
|
|
|
10,305,523
|
|
|
|
13,457,228
|
|
|
|
(529,828
|
)
|
|
|
12,927,400
|
|
Total comprehensive income/(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit / (loss) for the period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,926,537
|
|
|
|
1,926,537
|
|
|
|
120,304
|
|
|
|
2,046,841
|
|
Other comprehensive income/(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation differences, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(115,774
|
)
|
|
|
(243,345
|
)
|
|
|
-
|
|
|
|
(359,119
|
)
|
|
|
(90,282
|
)
|
|
|
(449,401
|
)
|
Defined benefit plan actuarial losses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(10,068
|
)
|
|
|
(10,068
|
)
|
|
|
-
|
|
|
|
(10,068
|
)
|
Change in cash flow hedge reserve
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
260
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
260
|
|
|
|
-
|
|
|
|
260
|
|
Total other comprehensive income/(expense), net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
260
|
|
|
|
(115,774
|
)
|
|
|
(243,345
|
)
|
|
|
(10,068
|
)
|
|
|
(368,927
|
)
|
|
|
(90,282
|
)
|
|
|
(459,209
|
)
|
Total comprehensive income/(expense)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
260
|
|
|
|
(115,774
|
)
|
|
|
(243,345
|
)
|
|
|
1,916,469
|
|
|
|
1,557,610
|
|
|
|
30,022
|
|
|
|
1,587,632
|
|
Increase in legal reserves
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
34,568
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(34,568
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Dividend paid
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(97,202
|
)
|
|
|
(97,202
|
)
|
Change in fair value of minority put option
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
268,992
|
|
|
|
-
|
|
|
|
-
|
|
|
|
268,992
|
|
|
|
-
|
|
|
|
268,992
|
|
Change in non-controlling interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Acquisition of non-controlling interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(929,013
|
)
|
|
|
(929,013
|
)
|
|
|
661,093
|
|
|
|
(267,920
|
)
|
Balance at 31 December 2015
|
|
|
2,200,000
|
|
|
|
35,026
|
|
|
|
269
|
|
|
|
1,211,352
|
|
|
|
-
|
|
|
|
(489,065
|
)
|
|
|
138,824
|
|
|
|
11,258,411
|
|
|
|
14,354,817
|
|
|
|
64,085
|
|
|
|
14,418,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2016
|
|
|
2,200,000
|
|
|
|
35,026
|
|
|
|
269
|
|
|
|
1,211,352
|
|
|
|
-
|
|
|
|
(489,065
|
)
|
|
|
138,824
|
|
|
|
11,258,411
|
|
|
|
14,354,817
|
|
|
|
64,085
|
|
|
|
14,418,902
|
|
Total comprehensive income/(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
562,718
|
|
|
|
562,718
|
|
|
|
10,863
|
|
|
|
573,581
|
|
Other comprehensive income/(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation differences, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
16,163
|
|
|
|
(86,007
|
)
|
|
|
-
|
|
|
|
(69,844
|
)
|
|
|
1,592
|
|
|
|
(68,252
|
)
|
Defined benefit plan actuarial losses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(704
|
)
|
|
|
(704
|
)
|
|
|
-
|
|
|
|
(704
|
)
|
Total other comprehensive income/(expense)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
16,163
|
|
|
|
(86,007
|
)
|
|
|
(704
|
)
|
|
|
(70,548
|
)
|
|
|
1,592
|
|
|
|
(68,956
|
)
|
Total comprehensive income/(expense)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
16,163
|
|
|
|
(86,007
|
)
|
|
|
562,014
|
|
|
|
492,170
|
|
|
|
12,455
|
|
|
|
504,625
|
|
Transfer to legal reserves
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,892
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,892
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net change in fair value of minority put option
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(11,244
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(11,244
|
)
|
|
|
-
|
|
|
|
(11,244
|
)
|
Change in non-controlling interests
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(10,526
|
)
|
|
|
(10,526
|
)
|
Balance at 31 March 2016
|
|
|
2,200,000
|
|
|
|
35,026
|
|
|
|
269
|
|
|
|
1,213,244
|
|
|
|
-
|
|
|
|
(484,146
|
)
|
|
|
52,817
|
|
|
|
11,818,533
|
|
|
|
14,835,743
|
|
|
|
66,014
|
|
|
|
14,901,757
|
|
The accompanying notes on page 7 to 38 are an integral part of these condensed interim consolidated financial statements.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
For the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
|
|
|
|
|
Three months ended 31 March
|
|
|
|
Note
|
|
|
2016
|
|
|
2015
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
573,581
|
|
|
|
(143,290
|
)
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and impairment of fixed assets and investment property
|
|
|
8
|
|
|
|
289,193
|
|
|
|
269,155
|
|
Amortization of intangible assets
|
|
|
9
|
|
|
|
165,622
|
|
|
|
125,144
|
|
Net finance (income)
|
|
|
6
|
|
|
|
(102,358
|
)
|
|
|
(214,135
|
)
|
Income tax expense
|
|
|
7
|
|
|
|
143,434
|
|
|
|
234,205
|
|
Share of profit of equity accounted investees
|
|
|
10
|
|
|
|
(15,180
|
)
|
|
|
(94,830
|
)
|
(Gain)/loss on sale of property, plant and equipment
|
|
|
|
|
|
|
(3,862
|
)
|
|
|
(2,090
|
)
|
Unrealized foreign exchange and monetary (loss)/ gain on operating assets
|
|
|
|
|
|
|
(148,540
|
)
|
|
|
571,240
|
|
Allowance for trade receivables and due from related parties
|
|
|
11,19
|
|
|
|
52,941
|
|
|
|
95,246
|
|
Deferred income
|
|
|
|
|
|
|
(1,065
|
)
|
|
|
928
|
|
|
|
|
|
|
|
|
953,766
|
|
|
|
841,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in trade receivables
|
|
|
11
|
|
|
|
67,788
|
|
|
|
(408,805
|
)
|
Change in due from related parties
|
|
|
19
|
|
|
|
974
|
|
|
|
(15,293
|
)
|
Change in receivables from financial operations
|
|
|
|
|
|
|
(269,203
|
)
|
|
|
-
|
|
Change in inventories
|
|
|
|
|
|
|
(7,474
|
)
|
|
|
125
|
|
Change in other current assets
|
|
|
12
|
|
|
|
(308,382
|
)
|
|
|
(436,569
|
)
|
Change in other non-current assets
|
|
|
|
|
|
|
69,039
|
|
|
|
95,862
|
|
Change in due to related parties
|
|
|
19
|
|
|
|
(1,904
|
)
|
|
|
(3,934
|
)
|
Change in trade and other payables
|
|
|
|
|
|
|
(371,529
|
)
|
|
|
(356,613
|
)
|
Change in other non-current liabilities
|
|
|
|
|
|
|
3,411
|
|
|
|
2,571
|
|
Change in employee benefits
|
|
|
|
|
|
|
6,872
|
|
|
|
5,607
|
|
Change in provisions
|
|
|
|
|
|
|
(90,549
|
)
|
|
|
(82,658
|
)
|
|
|
|
|
|
|
|
52,809
|
|
|
|
(358,134
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
|
|
|
|
|
(10,399
|
)
|
|
|
(13,536
|
)
|
Income tax paid
|
|
|
|
|
|
|
(13,223
|
)
|
|
|
(181,294
|
)
|
Net cash generated by operating activities
|
|
|
|
|
|
|
29,187
|
|
|
|
(552,964
|
)
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property, plant and equipment
|
|
|
8
|
|
|
|
(585,740
|
)
|
|
|
(284,682
|
)
|
Acquisition of intangible assets
|
|
|
9
|
|
|
|
(109,790
|
)
|
|
|
(464,851
|
)
|
Proceeds from sale of property, plant and equipment
|
|
|
|
|
|
|
12,914
|
|
|
|
3,410
|
|
Proceeds from currency option contracts
|
|
|
|
|
|
|
1,144
|
|
|
|
596
|
|
Proceeds from sale of financial asset
|
|
|
|
|
|
|
-
|
|
|
|
12,620
|
|
Change in property, plant and equipment advances
|
|
|
|
|
|
|
1,718
|
|
|
|
(21,664
|
)
|
Interest received
|
|
|
|
|
|
|
171,683
|
|
|
|
240,727
|
|
Net cash provided/(used in) investing activities
|
|
|
|
|
|
|
(508,071
|
)
|
|
|
(513,844
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of loans and borrowings
|
|
|
|
|
|
|
117,721
|
|
|
|
1,571,427
|
|
Repayment of borrowings
|
|
|
|
|
|
|
(262,938
|
)
|
|
|
(1,525,095
|
)
|
Dividends paid
|
|
|
|
|
|
|
-
|
|
|
|
(3,313
|
)
|
Decrease/(increase) in cash collateral related to loans
|
|
|
|
|
|
|
160,722
|
|
|
|
(130,510
|
)
|
Net cash generated (used in) by financing activities
|
|
|
|
|
|
|
15,505
|
|
|
|
(87,491
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/ (decrease) in cash and cash equivalents
|
|
|
|
|
|
|
(463,379
|
)
|
|
|
(1,154,299
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at 1 January
|
|
|
|
|
|
|
2,918,796
|
|
|
|
9,031,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects of foreign exchange rate fluctuations on cash and cash equivalents
|
|
|
|
|
|
|
66,883
|
|
|
|
296,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at 31 March
|
|
|
13
|
|
|
|
2,522,300
|
|
|
|
8,173,833
|
|
The accompanying notes on page 7 to 38 are an integral part of these condensed interim consolidated financial statements.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
Notes to the consolidated financial statements
|
Page
|
1. Reporting entity
|
7
|
2. Basis of preparation
|
7
|
3. Significant accounting policies
|
8
|
4. Operating segments
|
11
|
5 .Seasonality of operations
|
15
|
6. Finance income and costs
|
16
|
7. Income tax expense
|
16
|
8. Property, plant and equipment
|
17
|
9. Intangible assets
|
19
|
10. Investments in equity accounted investees
|
22
|
11. Trade receivables and accrued income
|
22
|
12. Other current assets
|
23
|
13. Cash and cash equivalents
|
24
|
14. Dividends
|
24
|
15. Loans and borrowings
|
25
|
16. Financial instruments
|
28
|
17. Guarantees and purchase obligations
|
32
|
18. Commitments and contingencies
|
32
|
19. Related parties
|
34
|
20. Subsidiaries
|
38
|
21. Subsequent events
|
38
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
Turkcell Iletisim Hizmetleri Anonim Sirketi (the “Company”) was incorporated in Turkey on
5 October 1993 and commenced its operations in 1994. The address of the Company’s registered office is Maltepe Aydinevler Mahallesi Inonu Caddesi No: 20, Kucukyali Ofispark / Istanbul. It is engaged in establishing and operating a Global System for Mobile Communications (“GSM”) network in Turkey and regional states.
The condensed interim consolidated financial statements of the Company as at and for the three months ended 31 March 2016 comprise the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interest in one associate.
The consolidated financial statements of the Company as at and for the year ended 31 December 2015 are available upon request from the Company’s registered office at
Maltepe Aydinevler Mahallesi Inonu Caddesi No: 20, Kucukyali Ofispark / Istanbul
or at
www.turkcell.com.tr
.
The same accounting policies, presentation and methods of computation have been followed in these condensed interim consolidated financial statements as were applied in the preparation of the Group’s consolidated financial statements as at and for the year ended 31 December 2015 other than the adoption of the following new standards or amendments to the standards which are effective for the annual periods on or after 1 January 2016 and accounting policies for new transactions (Note 3a).
The effects of the new standards or amendments to the standards adopted are explained in Note 3c.
The condensed interim consolidated financial statements are presented in Turkish Lira (“TL”), rounded to the nearest thousand. Moreover, all financial information expressed in US Dollars (“USD” or “$”), Euro (“EUR”) and Ukranian Hryvnia (“UAH”) and Belarusian Ruble (“BYR”) has been rounded to the nearest thousand. The functional currency of the Company and its consolidated subsidiaries located in Turkey and Turkish Republic of Northern Cyprus is TL. The functional currency of Euroasia Telecommunications Holding BV (“Euroasia”) and Financell BV (“Financell”) is USD. The functional currency of Eastasian Consortium BV (“Eastasia”), Beltur Coöperatief UA, and Turkcell Europe is EUR. The functional currency of lifecell LLC (“lifecell”), LLC Global Bilgi (“Global LLC”) and UkrTower LLC (“UkrTower”) is UAH. The functional currency of Belarusian Telecommunication Network (“Belarusian Telecom”) and LLC Lifetech is BYR. The functional currency of Azerinteltek QSC (“Azerinteltek”) is Azerbaijan Manat (“AZN”).
The condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and in accordance with International Accounting Standard (“IAS”) 34
“Interim Financial Reporting”.
They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2015.
The Group’s condensed interim consolidated financial statements as at and for the period ended
31 March 2016 were approved by the Board of Directors on 28 April 2016.
The Company selected the presentation form of “function of expense” for the statement of comprehensive income in accordance with IAS 1 “
Presentation of Financial Statements
”.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
3.
|
Significant accounting policies
|
|
a)
|
Receivables and revenue from financial services
|
Receivables from financial operations comprise of contracted receivables from subscribers, related to consumer financing activities of Turkcell Finansman A.S (“TFS”). These receivables are measured at amortized cost, using effective interest rate method.
Revenue from financial operations comprise of interest income generated from consumer financing activities.
Interest income is recognized as it accrues, using the effective interest method.
|
b)
|
Comparative Information and Revision of Prior Period Financial Statements
|
The condensed interim consolidated financial statements of the Group have been prepared with the prior periods on a comparable basis in order to give consistent information about the financial position and performance. If the presentation or classification of the financial statements is changed, in order to maintain consistency, the financial statements of the prior periods are also reclassified in line with the related changes.
|
(c)
|
New standards and interpretations
|
|
(i)
|
Amendments to IFRSs affecting amounts reported and/or disclosures in the consolidated financial statements
|
|
(ii)
|
Standards, amendments
and interpretations applicable as at 31 March 2016
|
|
-
|
Amendment to IFRS 11, “Joint arrangements” on acquisition of an interest in a joint operation is effective from annual periods beginning on or after 1 January 2016. This amendment adds new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business. The amendments specify the appropriate accounting treatment for such acquisitions.
|
|
-
|
Amendments to IAS 16, “Property, plant and equipment”, and IAS 41, “Agriculture”, regarding bearer plants are effective from annual periods beginning on or after 1 January 2016. These amendments change the financial reporting for bearer plants, such as grape vines, rubber trees and oil palms. It has been decided that bearer plants should be accounted for in the same way as property, plant and equipment because their operation is similar to that of manufacturing. Consequently, the amendments include them within the scope of IAS 16, instead of IAS 41. The produce growing on bearer plants will remain within the scope of IAS 41.
|
|
-
|
Amendment to IAS 16, “Property, plant and equipment” and IAS 38, “Intangible assets”, on depreciation and amortization are effective from annual periods beginning on or after 1 January 2016. In this amendment, it has clarified that the use of revenue based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset. It is also clarified that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset.
|
|
-
|
IFRS 14 “Regulatory deferral accounts” is effective from annual periods beginning on or after
1 January 2016. IFRS 14, “Regulatory deferral accounts” permits first–time adopters to continue to recognise amounts related to rate regulation in accordance with their previous GAAP requirements when they adopt IFRS. However, to enhance comparability with entities that already apply IFRS and do not recognise such amounts, the standard requires that the effect of rate regulation must be presented separately from other items.
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
3.
|
Significant accounting policies (continued)
|
|
(ii)
|
Standards, amendments
and interpretations applicable as at 31 March 2016 (continued)
|
|
-
|
Amendments to IAS 27, “Separate financial statements” on the equity method is effective from annual periods beginning on or after 1 January 2016. These amendments allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements.
|
|
-
|
Amendments to IFRS 10, “Consolidated financial statements” and IAS 28, “Investments in associates and joint ventures” are effective from annual periods beginning on or after 1 January 2016. These amendments address an inconsistency between the requirements in IFRS 10 and those in IAS 28 in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognised when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.
|
|
-
|
Annual improvements 2014 are effective from annual periods beginning on or after 1 January 2016. These set of amendments impacts 4 standards:
|
• IFRS 5, “Non-current assets held for sale and discontinued operations” regarding methods of disposal.
• IFRS 7, “Financial instruments: Disclosures”, (with consequential amendments to IFRS 1) regarding servicing contracts.
• IAS 19, “Employee benefits” regarding discount rates.
• IAS 34, “Interim financial reporting” regarding disclosure of information.
|
-
|
Amendment to IAS 1, “Presentation of financial statements” on the disclosure initiative is effective from annual periods beginning on or after 1 January 2016, these amendments are as part of the IASB initiative to improve presentation and disclosure in financial reports
|
|
-
|
Amendment to IFRS 10 “Consolidated financial statements” and IAS 28, “Investments in associates and joint ventures” are effective from annual periods beginning on or after 1 January 2016. These amendments clarify the application of the consolidation exception for investment entities and their subsidiaries.
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
3.
|
Significant accounting policies (continued)
|
|
(iii)
|
Standards, amendments and interpretations effective after 31 March 2016:
|
|
-
|
IAS 7 “Statement of Cash flows” is effective from annual periods beginning on or after 1 January 2017. The improvements are part of the Board’s Disclosure Initiative. The amendments require companies to provide information about changes in their financing liabilities and come as a response to requests from investors for information that helps them better understand changes in a company’s debt. The amendments will help to evaluate changes in liabilities arising from financing activities, including changes from cash flows and non-cash changes (such as foreign exchange gains or losses).
|
|
-
|
IAS 12 “Income Taxes” is effective from annual periods beginning on or after 1 January 2017. The amendments clarify the accounting for deferred tax where an asset is measured at fair value and that fair value is below the asset’s tax base. It also clarify certain other aspects of accounting for deferred tax assets.
|
|
-
|
IFRS 15 “Revenue from contracts with customers” is effective from annual periods beginning on or after 1 January 2018. IFRS 15, “Revenue from contracts with customers” is a converged standard from the IASB and FASB on revenue recognition. The standard will improve the financial reporting of revenue and improve comparability of the top line in financial statements globally.
|
|
-
|
IFRS 9 “Financial instruments” is effective from annual periods beginning on or after 1 January 2018. This standard replaces the guidance in IAS 39. It includes requirements on the classification and measurement of financial assets and liabilities; it also includes an expected credit losses model that replaces the current incurred loss impairment model.
|
|
-
|
IFRS 16 “Leases” is effective from annual periods beginning on or after 1 January 2019, with earlier application permitted if IFRS 15, “Revenue from Contracts with Customers”, is also applied. New standard requires lessees to recognise a lease liability reflecting future lease payments and a ‘right-of-use asset’ for virtually all lease contracts. The IASB has included an optional exemption for certain short-term leases and leases of low-value assets; however, this exemption can only be applied by lessees. For lessors, the accounting stays almost the same.
|
The Group is evaluating the effects of these standards on the condensed interim consolidated financial statements.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
The Group has two main reportable segments in accordance with its integrated communication and technology services strategy as Turkcell Turkey and Turkcell International. Some of these strategic segments offer the same types of services, however they are managed separately because they operate in different geographical locations and are affected by different economic conditions.
Turkcell Turkey reportable segment includes the operations of
Turkcell, Superonline İletisim Hizmetleri A.S. (
“Turkcell Superonline”), Turkcell Satis ve Dagitim Hizmetleri A.S. (“Turkcell Satis”), group call center operations of Global Bilgi Pazarlama Danisma ve Cagri Servisi Hizmetleri A.S. (“Turkcell Global Bilgi”), Turktell Bilisim Servisleri A.S. (“Turktell”), Turkcell Teknoloji Arastirma ve Gelistirme A.S. (“Turkcell Teknoloji”), Turkcell Interaktif Dijital Platform ve Icerik Hizmetleri A.S. (“Turktell Interaktif”), Kule Hizmet ve Isletmecilik A.S. (“Global Tower”), Rehberlik Hizmetleri Servisi A.S. (“Rehberlik”), Turkcell Odeme Hizmetleri A.S. (“Turkcell Odeme”), Turkcell Gayrimenkul Hizmetleri A.S. (“Turkcell Gayrimenkul”). Turkcell International reportable segment includes the operations of Kibris Mobile Telekomunikasyon Limited Sirketi (“Kibris Telekom”), Eastasia, Euroasia, lifecell, Beltur, Beltel, Belarusian Telecom, UkrTower, Global LLC, Turkcell Europe, Lifetech LLC and Fintur Holdings B.V. (“Fintur”). The operations of these legal entities aggregated into one reportable segment as the nature of services are similar and most of them share similar economic characteristics. Other reportable segment mainly comprises the information and entertainment services in Turkey and Azerbaijan, non-group call center operations of Turkcell Global Bilgi and Turkcell Finansman AS (“TFS”).
In first, second and third quarter of the year 2015, the operations of Turkcell Global Bilgi were included in Turkcell Turkey reportable segment. Since the Group changed its reportable segments which are the dominant source of information to evaluate the performance and to allocate resources in the fourth quarter of 2015, group call center operations of Global Bilgi were included in Turkcell Turkey reportable segment whereas non-group call center operations of Global Bilgi were included in other reportable segment. Corresponding information for prior years have been also restated in the current period according to the new reportable segments. Since the assets and liabilities of Turkcell Global Bilgi could not be allocated to group and non-group operations and are mainly related to group operations, total assets and liabilities of Turkcell Global Bilgi are reported under Turkcell Turkey reportable segment except trade receivables.
Information regarding the operations of each reportable segment is included below. Adjusted EBITDA is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Adjusted EBITDA definition includes revenue, direct cost of revenues excluding depreciation and amortization, selling and marketing expenses and administrative expenses.
Adjusted EBITDA is not a financial measure defined by IFRS as a measurement of financial performance and may not be comparable to other similarly-titled indicators used by other companies. Reconciliation of Adjusted EBITDA to consolidated profit before income tax and profit for the period in the accompanying notes.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
4.
|
Operating segments (continued)
|
|
|
Three months ended 31 March
|
|
|
|
Turkcell Turkey
|
|
|
Turkcell International
|
|
|
Other
|
|
|
Intersegment Eliminations
|
|
|
Consolidated
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer segment revenue
|
|
|
2,337,864
|
|
|
|
2,124,452
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,337,864
|
|
|
|
2,124,452
|
|
Corporate segment revenue
|
|
|
524,534
|
|
|
|
482,661
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
524,534
|
|
|
|
482,661
|
|
Other Turkcell Turkey revenue
|
|
|
65,117
|
|
|
|
55,081
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
65,117
|
|
|
|
55,081
|
|
Turkcell International revenue
|
|
|
-
|
|
|
|
-
|
|
|
|
196,897
|
|
|
|
192,873
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
196,897
|
|
|
|
192,873
|
|
Other revenue
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
107,085
|
|
|
|
129,155
|
|
|
|
-
|
|
|
|
-
|
|
|
|
107,085
|
|
|
|
129,155
|
|
Eliminations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6,115
|
)
|
|
|
(6,059
|
)
|
|
|
(6,115
|
)
|
|
|
(6,059
|
)
|
Total Revenue
|
|
|
2,927,515
|
|
|
|
2,662,194
|
|
|
|
196,897
|
|
|
|
192,873
|
|
|
|
107,085
|
|
|
|
129,155
|
|
|
|
(6,115
|
)
|
|
|
(6,059
|
)
|
|
|
3,225,382
|
|
|
|
2,978,163
|
|
Contribution to consolidated revenue*
|
|
|
2,924,468
|
|
|
|
2,658,585
|
|
|
|
193,833
|
|
|
|
190,428
|
|
|
|
107,081
|
|
|
|
129,150
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,225,382
|
|
|
|
2,978,163
|
|
Reportable segment adjusted EBITDA
|
|
|
916,096
|
|
|
|
828,192
|
|
|
|
53,555
|
|
|
|
53,078
|
|
|
|
31,305
|
|
|
|
45,485
|
|
|
|
551
|
|
|
|
93
|
|
|
|
1,001,507
|
|
|
|
926,848
|
|
Finance income
|
|
|
207,332
|
|
|
|
250,815
|
|
|
|
3,633
|
|
|
|
5,077
|
|
|
|
10,282
|
|
|
|
35,432
|
|
|
|
-
|
|
|
|
(39,063
|
)
|
|
|
221,247
|
|
|
|
252,261
|
|
Finance cost
|
|
|
(40,362
|
)
|
|
|
294,074
|
|
|
|
(15,960
|
)
|
|
|
(1,069,678
|
)
|
|
|
44
|
|
|
|
(15,057
|
)
|
|
|
1,278
|
|
|
|
54,971
|
|
|
|
(55,000
|
)
|
|
|
(735,690
|
)
|
Depreciation and amortization
|
|
|
(407,350
|
)
|
|
|
(350,186
|
)
|
|
|
(44,356
|
)
|
|
|
(41,841
|
)
|
|
|
(3,152
|
)
|
|
|
(2,327
|
)
|
|
|
43
|
|
|
|
55
|
|
|
|
(454,815
|
)
|
|
|
(394,299
|
)
|
Share of profit of equity accounted investees
|
|
|
-
|
|
|
|
-
|
|
|
|
15,180
|
|
|
|
94,830
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,180
|
|
|
|
94,830
|
|
Capital expenditure
|
|
|
675,393
|
|
|
|
343,895
|
|
|
|
61,712
|
|
|
|
408,442
|
|
|
|
1,298
|
|
|
|
3,167
|
|
|
|
-
|
|
|
|
(33
|
)
|
|
|
738,403
|
|
|
|
755,471
|
|
Bad debt expense
|
|
|
(51,052
|
)
|
|
|
(44,728
|
)
|
|
|
(1,937
|
)
|
|
|
(2,478
|
)
|
|
|
48
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(52,941
|
)
|
|
|
(47,206
|
)
|
(*)
|
“Contribution to the consolidated revenue” represents operating segments’ revenues from companies other than those included in the consolidated financial statements. Group management monitors financial performance of the segments based on their separate financial statements. Contribution of operating segments on the Group’s revenue is presented to give additional information to the reader of the financial statements.
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
4.
|
Operating segments (continued)
|
|
|
As at 31 March 2016 and 31 December 2015
|
|
|
|
Turkcell Turkey
|
|
|
Turkcell International
|
|
|
Other
|
|
|
Intersegment Eliminations
|
|
|
Total
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Reportable segment assets
|
|
|
20,892,188
|
|
|
|
20,701,617
|
|
|
|
1,364,750
|
|
|
|
1,460,983
|
|
|
|
364,534
|
|
|
|
85,884
|
|
|
|
(13,652
|
)
|
|
|
(10,921
|
)
|
|
|
22,607,820
|
|
|
|
22,237,563
|
|
Investment in associates
|
|
|
-
|
|
|
|
-
|
|
|
|
974,390
|
|
|
|
981,939
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
974,390
|
|
|
|
981,939
|
|
Reportable segment liabilities
|
|
|
6,325,114
|
|
|
|
6,868,877
|
|
|
|
477,493
|
|
|
|
481,338
|
|
|
|
203,580
|
|
|
|
105,460
|
|
|
|
(13,235
|
)
|
|
|
(10,089
|
)
|
|
|
6,992,952
|
|
|
|
7,445,586
|
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
4.
|
Operating segments (continued)
|
|
|
Three months ended 31 March
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Turkcell Turkey adjusted EBITDA
|
|
|
916,096
|
|
|
|
828,192
|
|
Turkcell International adjusted EBITDA
|
|
|
53,555
|
|
|
|
53,078
|
|
Other
|
|
|
31,305
|
|
|
|
45,485
|
|
Intersegment eliminations
|
|
|
551
|
|
|
|
93
|
|
Consolidated adjusted EBITDA
|
|
|
1,001,507
|
|
|
|
926,848
|
|
Finance income
|
|
|
221,247
|
|
|
|
252,261
|
|
Finance costs
|
|
|
(55,000
|
)
|
|
|
(735,690
|
)
|
Other income
|
|
|
6,005
|
|
|
|
16,345
|
|
Other expenses
|
|
|
(17,109
|
)
|
|
|
(69,380
|
)
|
Share of profit of equity accounted investees
|
|
|
15,180
|
|
|
|
94,830
|
|
Depreciation and amortization
|
|
|
(454,815
|
)
|
|
|
(394,299
|
)
|
Consolidated profit before income tax
|
|
|
717,015
|
|
|
|
90,915
|
|
Income tax expense
|
|
|
(143,434
|
)
|
|
|
(234,205
|
)
|
Profit for the period
|
|
|
573,581
|
|
|
|
(
143,290
|
)
|
|
|
|
|
|
|
|
|
|
Assets
|
|
31 March
2015
|
|
|
31 December
2015
|
|
Total assets for reportable segments
|
|
|
22,256,938
|
|
|
|
22,162,600
|
|
Other assets
|
|
|
364,534
|
|
|
|
85,884
|
|
Intersegment eliminations
|
|
|
(13,652
|
)
|
|
|
(10,921
|
)
|
Investments in equity accounted investees
|
|
|
974,390
|
|
|
|
981,939
|
|
Other unallocated assets
|
|
|
2,592,952
|
|
|
|
2,987,808
|
|
Consolidated total assets
|
|
|
26,175,162
|
|
|
|
26,207,310
|
|
Liabilities
|
|
31 March
2016
|
|
|
31 December 2015
|
|
Total liabilities for reportable segments
|
|
|
6,802,607
|
|
|
|
7,350,215
|
|
Other liabilities
|
|
|
203,580
|
|
|
|
105,460
|
|
Intersegment eliminations
|
|
|
(13,235
|
)
|
|
|
(10,089
|
)
|
Other unallocated liabilities
|
|
|
4,280,453
|
|
|
|
4,342,822
|
|
Consolidated total liabilities
|
|
|
11,273,405
|
|
|
|
11,788,408
|
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
4.
|
Operating segments (continued)
|
Geographical information
In presenting the information on the basis of geographical segments, segment revenue is based on the geographical location of operations and segment assets are based on the geographical location of the assets.
|
|
Three months ended 31 March
|
|
|
|
2016
|
|
|
2015
|
|
Revenues
|
|
|
|
|
|
|
Turkey
|
|
|
3,012,481
|
|
|
|
2,743,540
|
|
Ukraine
|
|
|
129,475
|
|
|
|
127,099
|
|
Belarus
|
|
|
32,695
|
|
|
|
29,909
|
|
Turkish Republic of Northern Cyprus
|
|
|
30,941
|
|
|
|
30,398
|
|
Azerbaijan
|
|
|
19,068
|
|
|
|
44,195
|
|
Germany
|
|
|
722
|
|
|
|
3,022
|
|
|
|
|
3,225,382
|
|
|
|
2,978,163
|
|
Non-current assets
|
|
31 March
2016
|
|
|
31 December 2015
|
|
Turkey
|
|
|
15,171,463
|
|
|
|
15,032,659
|
|
Ukraine
|
|
|
918,863
|
|
|
|
993,546
|
|
Belarus
|
|
|
303,901
|
|
|
|
224,784
|
|
Turkish Republic of Northern Cyprus
|
|
|
114,556
|
|
|
|
116,127
|
|
Azerbaijan
|
|
|
14,630
|
|
|
|
14,727
|
|
Unallocated non-current assets
|
|
|
1,006,582
|
|
|
|
1,030,610
|
|
|
|
|
17,529,995
|
|
|
|
17,412,453
|
|
5.
|
Seasonality of operations
|
The Turkish mobile communications market is affected by seasonal peaks and troughs. Historically, the effects of seasonality on mobile communications usage had positively influenced the Company’s results in the second and third quarters of the fiscal year and negatively influenced the results in the first and fourth quarters of the fiscal year. Recently, however, due to changing market dynamics, such as the Information Technologies and Communications Authority
(
“ICTA”)’s intervention in tariffs and increasing competition in the Turkish telecommunications market, the effects of seasonality on the Company’s subscribers’ mobile communications usage has decreased. Local and religious holidays in Turkey also affect the Company’s operational results.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
6.
|
Finance income and costs
|
Net finance income or expense amounts to TL 166,247 and TL (483,429) for the three months ended
31 March 2016 and 2015, respectively.
The foreign exchange income amounting to TL 9,863 and TL 349,546 have been presented on net basis with foreign exchange losses for the three months ended 31 March 2016 and 2015, respectively.
Net finance income for the three months ended 31 March 2016 is mainly attributable to interest income from contracted handset sales.
Net finance expense for the three months ended 31 March 2016 is mainly attributable to financing cost of loans and borrowings and payable for 4.5G license.
Net foreign exchange loss for the three months ended 31 March 2015 is mainly attributable to the foreign exchange losses in Belarusian Telecom operating in Belarus amounting to TL 337,768 and foreign exchange loss in lifecell operating in Ukraine amounting to TL 654,081. Foreign exchange losses from Belarusian Telecom and lifecell exclude foreign exchange losses 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 in accordance with accounting policy for net investment in foreign operations.
Effective tax rates are 20% and 258% for the three months ended 31 March 2016 and 2015, respectively.
Since it is not probable that taxable profit will be available against which the unused tax losses or unused tax credits of lifecell and Belarusian Telecom can be utilized, no deferred tax asset is recognized on any loss incurred as a result of Ukraine and Belarus.
When the effects of unused tax losses of lifecell and Belarusian Telecom are excluded, the effective tax rate is 20% for the three months ended 31 March 2015.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
8.
|
Property, plant and equipment
|
Cost or deemed cost
|
|
Balance as at 1
January
2016
|
|
|
Additions
|
|
|
Disposals
|
|
|
Transfers
|
|
|
Impairment expenses/ (reversals)
|
|
|
Effects of movements in exchange rates
|
|
|
Balance as at
31
March 2016
|
|
Network infrastructure (All operational)
|
|
|
11,302,326
|
|
|
|
87,046
|
|
|
|
(11,789
|
)
|
|
|
364,540
|
|
|
|
-
|
|
|
|
(194,596
|
)
|
|
|
11,547,527
|
|
Land and buildings
|
|
|
389,366
|
|
|
|
3,349
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,810
|
)
|
|
|
390,905
|
|
Equipment, fixtures and fittings
|
|
|
586,463
|
|
|
|
3,383
|
|
|
|
(1,080
|
)
|
|
|
69
|
|
|
|
-
|
|
|
|
(2,505
|
)
|
|
|
586,330
|
|
Motor vehicles
|
|
|
33,676
|
|
|
|
234
|
|
|
|
(252
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(421
|
)
|
|
|
33,237
|
|
Leasehold improvements
|
|
|
306,176
|
|
|
|
1,895
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(378
|
)
|
|
|
307,693
|
|
Construction in progress
|
|
|
1,005,358
|
|
|
|
500,797
|
|
|
|
-
|
|
|
|
(365,100
|
)
|
|
|
(467
|
)
|
|
|
(9,792
|
)
|
|
|
1,130,796
|
|
Total
|
|
|
13,623,365
|
|
|
|
596,704
|
|
|
|
(13,121
|
)
|
|
|
(491
|
)
|
|
|
(467
|
)
|
|
|
(209,502
|
)
|
|
|
13,996,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Network infrastructure (All operational)
|
|
|
5,976,699
|
|
|
|
256,246
|
|
|
|
(3,375
|
)
|
|
|
186
|
|
|
|
8,157
|
|
|
|
(157,526
|
)
|
|
|
6,080,387
|
|
Land and buildings
|
|
|
140,627
|
|
|
|
3,250
|
|
|
|
-
|
|
|
|
-
|
|
|
|
122
|
|
|
|
(593
|
)
|
|
|
143,406
|
|
Equipment, fixtures and fittings
|
|
|
462,618
|
|
|
|
11,276
|
|
|
|
(776
|
)
|
|
|
-
|
|
|
|
11
|
|
|
|
(2,221
|
)
|
|
|
470,908
|
|
Motor vehicles
|
|
|
29,704
|
|
|
|
590
|
|
|
|
(246
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(453
|
)
|
|
|
29,595
|
|
Leasehold improvements
|
|
|
192,223
|
|
|
|
6,952
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(478
|
)
|
|
|
198,697
|
|
Total
|
|
|
6,801,871
|
|
|
|
278,314
|
|
|
|
(4,397
|
)
|
|
|
186
|
|
|
|
8,290
|
|
|
|
(161,271
|
)
|
|
|
6,922,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total property, plant and equipment
|
|
|
6,821,494
|
|
|
|
318,390
|
|
|
|
(8,724
|
)
|
|
|
(677
|
)
|
|
|
(8,757
|
)
|
|
|
(48,231
|
)
|
|
|
7,073,495
|
|
Depreciation expenses for the periods ended 31 March 2016 and 2015 are TL 287,071 and TL 269,330 respectively including impairment losses and recognized in direct costs of revenues.
The impairment losses on property, plant and equipment for the years ended 31 March 2016 and 2015 are TL 8,757 and TL 1,759 respectively and recognized in depreciation expense.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
8.
|
Property, plant and equipment (continued)
|
Cost or deemed cost
|
|
Balance as at 1
January
2015
|
|
|
Additions
|
|
|
Disposals
|
|
|
Transfers
|
|
|
Impairment expenses/ (reversals)
|
|
|
Transfers to Investment Property
|
|
|
Effects of movements in exchange rates
|
|
|
Balance as at
31
December 2015
|
|
Network infrastructure (All operational)
|
|
|
10,918,769
|
|
|
|
358,297
|
|
|
|
(652,051
|
)
|
|
|
1,061,692
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(384,381
|
)
|
|
|
11,302,326
|
|
Land and buildings
|
|
|
516,724
|
|
|
|
20,167
|
|
|
|
-
|
|
|
|
310
|
|
|
|
-
|
|
|
|
(144,268
|
)
|
|
|
(3,567
|
)
|
|
|
389,366
|
|
Equipment, fixtures and fittings
|
|
|
564,429
|
|
|
|
57,204
|
|
|
|
(30,632
|
)
|
|
|
1,467
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6,005
|
)
|
|
|
586,463
|
|
Motor vehicles
|
|
|
35,807
|
|
|
|
883
|
|
|
|
(1,609
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,405
|
)
|
|
|
33,676
|
|
Leasehold improvements
|
|
|
228,530
|
|
|
|
30,008
|
|
|
|
(23,575
|
)
|
|
|
72,460
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,247
|
)
|
|
|
306,176
|
|
Construction in progress
|
|
|
444,200
|
|
|
|
1,715,044
|
|
|
|
(877
|
)
|
|
|
(1,136,521
|
)
|
|
|
(2,523
|
)
|
|
|
-
|
|
|
|
(13,965
|
)
|
|
|
1,005,358
|
|
Total
|
|
|
12,708,459
|
|
|
|
2,181,603
|
|
|
|
(708,744
|
)
|
|
|
(592
|
)
|
|
|
(2,523
|
)
|
|
|
(144,268
|
)
|
|
|
(410,570
|
)
|
|
|
13,623,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Network infrastructure (All operational)
|
|
|
5,900,269
|
|
|
|
1,016,762
|
|
|
|
(647,280
|
)
|
|
|
-
|
|
|
|
17,990
|
|
|
|
-
|
|
|
|
(311,042
|
)
|
|
|
5,976,699
|
|
Land and buildings
|
|
|
231,044
|
|
|
|
15,950
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,851
|
)
|
|
|
(101,634
|
)
|
|
|
(1,882
|
)
|
|
|
140,627
|
|
Equipment, fixtures and fittings
|
|
|
456,100
|
|
|
|
42,062
|
|
|
|
(29,998
|
)
|
|
|
-
|
|
|
|
9
|
|
|
|
-
|
|
|
|
(5,555
|
)
|
|
|
462,618
|
|
Motor vehicles
|
|
|
29,615
|
|
|
|
2,872
|
|
|
|
(1,474
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,309
|
)
|
|
|
29,704
|
|
Leasehold improvements
|
|
|
197,835
|
|
|
|
15,826
|
|
|
|
(20,610
|
)
|
|
|
-
|
|
|
|
896
|
|
|
|
-
|
|
|
|
(1,724
|
)
|
|
|
192,223
|
|
Total
|
|
|
6,814,863
|
|
|
|
1,093,472
|
|
|
|
(699,362
|
)
|
|
|
-
|
|
|
|
16,044
|
|
|
|
(101,634
|
)
|
|
|
(321,512
|
)
|
|
|
6,801,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total property, plant and equipment
|
|
|
5,893,596
|
|
|
|
1,088,131
|
|
|
|
(9,382
|
)
|
|
|
(592
|
)
|
|
|
(18,567
|
)
|
|
|
(42,634
|
)
|
|
|
(89,058
|
)
|
|
|
6,821,494
|
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
Cost
|
|
Balance at 1 January 2016
|
|
|
Additions
|
|
|
Disposals
|
|
|
Transfers
|
|
|
Impairment
|
|
|
Effects of movements in exchange rates
|
|
|
Balance at
31 March 2016
|
|
GSM and other telecommunication operating licenses
|
|
|
3,950,729
|
|
|
|
785
|
|
|
|
(3
|
)
|
|
|
2,352
|
|
|
|
-
|
|
|
|
(50,962
|
)
|
|
|
3,902,901
|
|
Computer software
|
|
|
5,342,056
|
|
|
|
13,928
|
|
|
|
(863
|
)
|
|
|
57,715
|
|
|
|
-
|
|
|
|
(20,035
|
)
|
|
|
5,392,801
|
|
Transmission lines
|
|
|
71,506
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
71,506
|
|
Central betting system operating right
|
|
|
11,907
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,907
|
|
Indefeasible right of usage
|
|
|
42,132
|
|
|
|
3,885
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
46,017
|
|
Brand name
|
|
|
7,040
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,040
|
|
Customer base
|
|
|
15,512
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,512
|
|
Goodwill
|
|
|
32,834
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
32,834
|
|
Other
|
|
|
29,713
|
|
|
|
78
|
|
|
|
(4
|
)
|
|
|
1,534
|
|
|
|
-
|
|
|
|
-
|
|
|
|
31,321
|
|
4.5G license not yet available for use
|
|
|
3,984,954
|
|
|
|
33,316
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,018,270
|
|
Construction in progress
|
|
|
52,597
|
|
|
|
91,114
|
|
|
|
-
|
|
|
|
(61,110
|
)
|
|
|
-
|
|
|
|
(5,633
|
)
|
|
|
76,968
|
|
Total
|
|
|
13,540,980
|
|
|
|
143,106
|
|
|
|
(870
|
)
|
|
|
491
|
|
|
|
-
|
|
|
|
(76,630
|
)
|
|
|
13,607,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GSM and other telecommunication operating licenses
|
|
|
1,429,944
|
|
|
|
52,701
|
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,812
|
)
|
|
|
1,477,830
|
|
Computer software
|
|
|
3,771,710
|
|
|
|
108,027
|
|
|
|
(522
|
)
|
|
|
(251
|
)
|
|
|
-
|
|
|
|
(12,202
|
)
|
|
|
3,866,762
|
|
Transmission lines
|
|
|
52,058
|
|
|
|
939
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
52,997
|
|
Central betting system operating right
|
|
|
9,663
|
|
|
|
243
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,906
|
|
Indefeasible right of usage
|
|
|
15,446
|
|
|
|
804
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
16,250
|
|
Brand name
|
|
|
5,104
|
|
|
|
176
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,280
|
|
Customer base
|
|
|
10,111
|
|
|
|
137
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,248
|
|
Other
|
|
|
14,307
|
|
|
|
1,944
|
|
|
|
(4
|
)
|
|
|
65
|
|
|
|
651
|
|
|
|
-
|
|
|
|
16,963
|
|
Total
|
|
|
5,308,343
|
|
|
|
164,971
|
|
|
|
(529
|
)
|
|
|
(186
|
)
|
|
|
651
|
|
|
|
(17,014
|
)
|
|
|
5,456,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets
|
|
|
8,232,637
|
|
|
|
(21,865
|
)
|
|
|
(341
|
)
|
|
|
677
|
|
|
|
(651
|
)
|
|
|
(59,616
|
)
|
|
|
8,150,841
|
|
Amortization expenses on intangible assets other than goodwill for the three months ended 31 March 2016 and 2015 are TL 165,622 and TL 125,290 respectively including impairment losses and recognized in direct cost of revenues.
The impairment losses on intangible assets for the three months ended 31 March 2016 and 2015 are TL 651 and nil respectively and recognized in depreciation expense.
Computer software includes internally generated capitalized software development costs that meet the definition of an intangible asset. The amount of internally generated capitalized cost is TL 31,890 for the three months ended 31 March 2016 (31 March 2015: TL 28,378).
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
9.
|
Intangible assets (continued)
|
Cost
|
|
Balance at 1 January 2015
|
|
|
Additions
|
|
|
Disposals
|
|
|
Transfers
|
|
|
Effects of movements in exchange rates
|
|
|
Balance at
31 December 2015
|
|
GSM and other telecommunication operating licenses
|
|
|
2,334,822
|
|
|
|
9,092
|
|
|
|
(31,263
|
)
|
|
|
1,653,536
|
|
|
|
(15,458
|
)
|
|
|
3,950,729
|
|
Computer software
|
|
|
4,730,454
|
|
|
|
377,853
|
|
|
|
(4,155
|
)
|
|
|
279,213
|
|
|
|
(41,309
|
)
|
|
|
5,342,056
|
|
Transmission lines
|
|
|
62,789
|
|
|
|
8,717
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
71,506
|
|
Central betting system operating right
|
|
|
11,758
|
|
|
|
149
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,907
|
|
Indefeasible right of usage
|
|
|
42,132
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
42,132
|
|
Brand name
|
|
|
7,040
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,040
|
|
Customer base
|
|
|
15,512
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,512
|
|
Goodwill
|
|
|
32,834
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
32,834
|
|
Other
|
|
|
22,370
|
|
|
|
7,111
|
|
|
|
-
|
|
|
|
232
|
|
|
|
-
|
|
|
|
29,713
|
|
4.5G license not yet available for use
|
|
|
-
|
|
|
|
5,230,471
|
|
|
|
-
|
|
|
|
(1,245,517
|
)
|
|
|
-
|
|
|
|
3,984,954
|
|
Construction in progress
|
|
|
3,414
|
|
|
|
736,817
|
|
|
|
-
|
|
|
|
(686,872
|
)
|
|
|
(762
|
)
|
|
|
52,597
|
|
Total
|
|
|
7,263,125
|
|
|
|
6,370,210
|
|
|
|
(35,418
|
)
|
|
|
592
|
|
|
|
(57,529
|
)
|
|
|
13,540,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GSM and other telecommunication operating licenses
|
|
|
1,332,732
|
|
|
|
125,258
|
|
|
|
(31,263
|
)
|
|
|
-
|
|
|
|
3,217
|
|
|
|
1,429,944
|
|
Computer software
|
|
|
3,393,650
|
|
|
|
406,652
|
|
|
|
(2,297
|
)
|
|
|
-
|
|
|
|
(26,295
|
)
|
|
|
3,771,710
|
|
Transmission lines
|
|
|
48,530
|
|
|
|
3,528
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
52,058
|
|
Central betting system operating right
|
|
|
8,786
|
|
|
|
877
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,663
|
|
Indefeasible right of usage
|
|
|
12,552
|
|
|
|
2,894
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,446
|
|
Brand name
|
|
|
4,400
|
|
|
|
704
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,104
|
|
Customer base
|
|
|
8,690
|
|
|
|
1,421
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,111
|
|
Other
|
|
|
6,390
|
|
|
|
7,917
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14,307
|
|
Total
|
|
|
4,815,730
|
|
|
|
549,251
|
|
|
|
(33,560
|
)
|
|
|
-
|
|
|
|
(23,078
|
)
|
|
|
5,308,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets
|
|
|
2,447,395
|
|
|
|
5,820,959
|
|
|
|
(1,858
|
)
|
|
|
592
|
|
|
|
(34,451
|
)
|
|
|
8,232,637
|
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
9.
|
Intangible assets (continued)
|
On 26 August 2015, “Authorization Tender on IMT Services and Infrastructure” publicly known as 4.5G, license tender, was held by the Information Technologies and Communication Authority. The Company has been awarded for 13 years with; 172.4 MHz frequency band for EUR 1,623,460 (equivalent to TL 5,208,222 as at 31 March 2016) (excluding VAT).
IMT authorization period expires on 30 April 2029 and operators will be able to commence service delivery starting from 1 April 2016. 2x1.4 MHz frequency band in 900MHz spectrum and 2 units of 2x5 MHz frequency band in 2100 MHz spectrum are in operation as at 1 December 2015 and have been recorded as GSM and other telecommunication operating licenses. Remaining packages amounting to EUR 1,235,520 (equivalent to TL 3,963,672 as at 31 March 2016) will be ready to use on 1 April 2016 and have been recorded as 4.5G license not yet available for use. As at 31 March 2016, the carrying amount of 4.5G License is TL 5,232,649 (31 December 2015: TL 5,222,687).
Tender price amounting to EUR 1,623,460 (equivalent to TL 5,208,222 as at 31 March 2016) (excluding VAT of 18%) will be paid semi-annually by four equal installments total of which are amounting to EUR 1,655,290 (equivalent to TL 5,310,336 as at 31 March 2016) including interest and excluding VAT of 18%. On 26 October 2015, the Company made the payment amounting to TL 1,321,873 for the original amount of EUR 413,823 as first installment and total VAT amounting to TL 933,447 for the original amount of EUR 292,223 in cash. Second installment payment was made on
25 April 2016 amounting to EUR 413,823 (equivalent to TL 1,327,586 as at 31 March 2016). Last installment will be paid on 27 April 2017.
lifecell 3G License
3G License tender in Ukraine was held on 23 February 2015. lifecell submitted a bid of UAH 3,355,400 (equivalent to TL 362,620 as at 31 March 2016) and was awarded the first lot for 15 years, which is the 1920-1935 / 2110-2125 MHz frequency band. The license payment was made on 19 March 2015. The cost of 3G license has been presented in GSM and other telecommunication operating licenses as at 31 March 2016.
In May 2015, lifecell made the payment amounting to UAH 357,568 (equivalent to TL 38,643 as at 31 March 2016) for the first installment of conversion of spectrum from military use and committed approximately UAH 428,427 (equivalent to TL 46,300 as of 31 March 2016) for the remaining installments of the conversion. Committed amount will be subject to change according to the inflation rates at the date of the payments.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
10.
|
Investments in equity accounted investees
|
The Group’s share of profit in its equity accounted investees for the three months ended31 March 2016 and 2015 are TL 15,180 and TL 94,830, respectively.
The Company’s investment in Fintur Holdings BV (“Fintur”) amounts to TL 974,390 as at
31 March 2016 (31 December 2015: TL 981,939).
As of 26 February 2016, the Company has submitted a binding offer to acquire TeliaSonera’s 58.55% stake in Fintur and its 24% direct stake in Kcell JSC (Kazakhstan).
11.
|
Trade receivables and accrued income
|
|
|
31 March
2016
|
|
|
31 December
2015
|
|
Undue assigned contracted receivables
|
|
|
2,178,877
|
|
|
|
2,216,010
|
|
Receivables from subscribers
|
|
|
1,222,656
|
|
|
|
1,218,126
|
|
Accrued income
|
|
|
411,164
|
|
|
|
393,049
|
|
Accounts and checks receivable
|
|
|
258,603
|
|
|
|
271,743
|
|
|
|
|
4,071,300
|
|
|
|
4,098,928
|
|
Trade receivables are shown net of allowance for doubtful debts amounting to TL 867,384 as at 31 March 2016 (31 December 2015: TL 816,071). The change in allowance for trade receivables and due from related parties is disclosed in Note 16.
The undue assigned contracted receivables are the remaining portion of the assigned receivables from the distributors related to the handset campaigns which will be collected from subscribers in instalments by the Company. When monthly instalment is invoiced to the subscriber, related portion is transferred to “receivables from subscribers”. The Company measures the undue assigned contracted receivables at amortized cost, bears the credit risk and recognizes interest income throughout the contract period.
The accrued income represents revenue accrued for subscriber calls (air-time) which have not been billed and will be billed within one year. Due to the volume of subscribers, there are different billing cycles; accordingly, an accrual is made at each period end to accrue revenue for rendered but not yet billed. Contracted receivables related to handset campaigns, which will be invoiced after one year is presented under non-current trade receivables amounting to TL 749,402 (31 December 2015:
TL 834,833).
The Group’s exposure to currency risks and impairment losses related to trade receivables are disclosed in Note 16.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
|
|
31 March
2016
|
|
|
31 December
2015
|
|
Prepaid expenses
|
|
|
770,093
|
|
|
|
290,063
|
|
VAT receivable
|
|
|
565,581
|
|
|
|
763,844
|
|
Restricted cash
|
|
|
183,710
|
|
|
|
349,243
|
|
Prepayment for subscriber acquisition cost
|
|
|
97,441
|
|
|
|
98,656
|
|
Advances to suppliers
|
|
|
40,591
|
|
|
|
34,554
|
|
Special communication tax to be collected from subscribers
|
|
|
32,800
|
|
|
|
32,755
|
|
Currency swap contracts(*)
|
|
|
117
|
|
|
|
-
|
|
Currency forward contracts (*)
|
|
|
-
|
|
|
|
216
|
|
Other
|
|
|
127,867
|
|
|
|
120,571
|
|
|
|
|
1,818,200
|
|
|
|
1,689,902
|
|
Prepaid expenses mainly comprises prepaid rent expenses and frequency usage fees.
VAT receivable mainly results from 4.5G license VAT payment made as at
26 October 2015 amounting to TL 933,447.
As at 31 March 2016, restricted cash amounting to TL 183,710 represents the time deposits at a local bank as guarantees in connection with the loans utilized by lifecell (Note 15)
(31 December 2015: 349,243).
Subscriber acquisition costs are subsidies paid to dealers for engaging a fixed term contract with the subscriber that require a minimum consideration.
(*) Details of currency swap contracts as at and for the period ended 31 March 2016 and details of currency forward contracts as at and for the period ended 31 December 2015 are given below:
|
|
Currency Swap Contracts
|
|
|
|
|
|
|
|
Buy
|
|
Sell
|
|
|
|
|
|
Exchange Rate
|
|
Foreign currency
|
|
Notional Amount
|
|
Foreign currency
|
|
Notional Amount
|
|
|
Fair value
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.8294
|
|
USD
|
|
|
8,500
|
|
TL
|
|
|
24,050
|
|
|
|
62
|
|
5 April 2016
|
2.8289
|
|
USD
|
|
|
12,129
|
|
TL
|
|
|
34,312
|
|
|
|
55
|
|
1 April 2016
|
|
|
|
|
|
20,629
|
|
|
|
|
58,362
|
|
|
|
117
|
|
|
|
|
Currency Forward Contracts
|
|
|
|
|
|
|
|
Buy
|
|
|
|
|
|
Exchange Rate
(TL)
|
|
Foreign currency
|
|
Notional Amount
|
|
|
Fair value
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
2.9144
|
|
USD
|
|
|
57,732
|
|
|
|
216
|
|
4 January 2016
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
13.
|
Cash and cash equivalents
|
|
|
31 March
2016
|
|
|
31 December
2015
|
|
Cash in hand
|
|
|
249
|
|
|
|
453
|
|
Cheques received
|
|
|
3
|
|
|
|
3
|
|
Banks
|
|
|
2,518,976
|
|
|
|
2,912,741
|
|
- Demand deposits
|
|
|
626,538
|
|
|
|
572,895
|
|
- Time deposits
|
|
|
1,892,438
|
|
|
|
2,339,846
|
|
Investment funds, bonds and bills
|
|
|
3,184
|
|
|
|
5,599
|
|
Cash and cash equivalents
|
|
|
2,522,412
|
|
|
|
2,918,796
|
|
Bank overdrafts
|
|
|
(112
|
)
|
|
|
-
|
|
Cash and cash equivalents in the statement of cash flows
|
|
|
2,522,300
|
|
|
|
2,918,796
|
|
As at 31 March 2016, the average maturity of time deposits is 25 days (31 December 2014: 27 days).
The Group’s exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are
disclosed in Note 16.
Turkcell:
On 25 March 2015, the Company’s Board of Directors has proposed a dividend distribution for the year ended 31 December 2010, 2011, 2012, 2013 and 2014 amounting to TL 3,925,000 (equivalent to $1,535,903 as at 26 March 2015, date of Ordinary General Assembly Meeting), which represented 42.5% of distributable income. This represents a net cash dividend of full TL 1.784091 (equivalent to full $0.70 as at 26 March 2015, date of Ordinary General Assembly Meeting) per share. This dividend proposal was discussed and approved at the Ordinary General Assembly of Shareholders held on
26 March 2015.
The dividend was paid in three installments on 6 April, 8 April and 13 April 2015 to the shareholders.
Due to the seizure on all receivables of Cukurova Holding AS. including its dividend receivables dividend payables to Çukurova Holdings AS. was paid to SDIF.
On 23 March 2016, the Company’s Board of Directors has proposed a dividend distribution for the year ended 31 December 2015 amounting to TL 1,200,000 (equivalent to $423,519 as at 31 March 2016), which represented approximately 58% of distributable income. This represents a net cash dividend of full TL 0.5454545 (equivalent to full $0.19 as at 31 March 2016) per share. This dividend proposal was discussed and rejected at the Ordinary General Assembly of Shareholders held on
29 March 2016.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings, which are measured at amortized cost. For more information about the Group’s exposure to foreign currency for interest bearing loans, see Note 16.
|
|
|
31 March
2016
|
|
|
31 December
2015
|
|
Non-current liabilities
|
|
|
|
|
|
|
Unsecured bank loans
|
|
|
1,988,542
|
|
|
|
2,086,871
|
|
Secured bank loans
|
|
|
3,500
|
|
|
|
4,262
|
|
Finance lease liabilities
|
|
|
35,921
|
|
|
|
36,449
|
|
Debt securities issued
|
|
|
1,345,266
|
|
|
|
1,360,204
|
|
|
|
|
3,373,229
|
|
|
|
3,487,786
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Unsecured bank facility
|
|
|
226,209
|
|
|
|
130,109
|
|
Secured bank facility
|
|
|
166,746
|
|
|
|
311,682
|
|
Current portion of unsecured bank loans
|
|
|
175,504
|
|
|
|
196,385
|
|
Current portion of secured bank loans
|
|
|
1,706
|
|
|
|
1,930
|
|
Current portion of finance lease liabilities
|
|
|
4,832
|
|
|
|
5,389
|
|
Debt securities issued
|
|
|
80,070
|
|
|
|
80,959
|
|
Currency swap contracts
|
|
|
3,062
|
|
|
|
2,290
|
|
Currency forward contracts
|
|
|
26
|
|
|
|
-
|
|
|
|
|
658,155
|
|
|
|
728,744
|
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
15.
|
Loans and borrowings (continued)
|
Terms and conditions of outstanding loans are as follows:
|
|
|
|
|
|
|
31 March 2016
|
|
|
31 December 2015
|
|
|
Currency
|
|
Interest rate type
|
|
|
Nominal interest rate
|
|
|
Year of maturity
|
|
|
Carrying amount
|
|
|
Nominal interest
rate
|
|
|
Year of maturity
|
|
|
Carrying amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured bank loans
|
USD
|
|
Floating
|
|
|
Libor+2.6%
|
|
|
2017
|
|
|
|
184,732
|
|
|
Libor+2.6%
|
|
|
|
2017
|
|
|
|
189,542
|
|
Unsecured bank loans
|
EUR
|
|
Floating
|
|
|
Euribor+2.2%
|
|
|
|
2019-2025
|
|
|
|
1,610,493
|
|
|
Euribor+2.2%
|
|
|
|
2019-2025
|
|
|
|
1,585,939
|
|
Unsecured bank loans
|
TL
|
|
Fixed
|
|
|
10.4%-10.9%
|
|
|
|
2017
|
|
|
|
368,821
|
|
|
8.3%-10.9%
|
|
|
|
2016-2017
|
|
|
|
507,775
|
|
Unsecured bank loans*
|
TL
|
|
|
-
|
|
|
-
|
|
|
|
2016
|
|
|
|
112
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Unsecured bank loans
|
UAH
|
|
Fixed
|
|
|
18.3%-20%
|
|
|
|
2016
|
|
|
|
226,097
|
|
|
20%
|
|
|
|
2016
|
|
|
|
130,109
|
|
Secured bank loans**
|
UAH
|
|
Fixed
|
|
|
19%
|
|
|
|
2016
|
|
|
|
166,746
|
|
|
25%
|
|
|
|
2016
|
|
|
|
311,682
|
|
Secured bank loans***
|
BYR
|
|
Fixed
|
|
|
12%-16%
|
|
|
|
2016-2020
|
|
|
|
5,206
|
|
|
12%-16%
|
|
|
|
2016-2020
|
|
|
|
6,192
|
|
Debt securities issued
|
USD
|
|
Fixed
|
|
|
5.8%
|
|
|
|
2025
|
|
|
|
1,425,336
|
|
|
5.8%
|
|
|
|
2025
|
|
|
|
1,441,163
|
|
Finance lease liabilities
|
EUR
|
|
Fixed
|
|
|
3.4%
|
|
|
|
2017-2024
|
|
|
|
40,679
|
|
|
3.4%
|
|
|
|
2016-2024
|
|
|
|
41,750
|
|
Finance lease liabilities
|
USD
|
|
Fixed
|
|
|
18%-28%
|
|
|
|
2016-2018
|
|
|
|
74
|
|
|
18%-28%
|
|
|
|
2016-2018
|
|
|
|
88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,028,296
|
|
|
|
|
|
|
|
|
|
|
4,214,240
|
|
(*)
|
Interest free spot loan utilized by Superonline.
|
(**)
|
Secured by the blocked time deposits at a local bank amounting to USD 64,837 (equivalent to TL 183,710), in connection with the loans utilized by lifecell.
|
(***)
|
Secured by the Government of the Republic of Belarus.
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
15.
|
Loans and borrowings (continued)
|
|
|
Currency Swap Contracts
|
|
|
|
|
|
|
|
Buy
|
|
Sell
|
|
|
|
|
|
Exchange Rate
|
|
Foreign currency
|
|
Notional Amount
|
|
Foreign currency
|
|
Notional Amount
|
|
|
Fair value
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.2110
|
|
EUR
|
|
|
50,000
|
|
TL
|
|
|
160,551
|
|
|
|
(145
|
)
|
|
1 April 2016
|
3.2111
|
|
EUR
|
|
|
50,000
|
|
TL
|
|
|
160,553
|
|
|
|
(148
|
)
|
|
1 April 2016
|
3.2116
|
|
EUR
|
|
|
93,458
|
|
TL
|
|
|
300,147
|
|
|
|
(324
|
)
|
|
1 April 2016
|
3.2124
|
|
EUR
|
|
|
30,000
|
|
TL
|
|
|
96,371
|
|
|
|
(128
|
)
|
|
1 April 2016
|
3.2125
|
|
EUR
|
|
|
27,400
|
|
TL
|
|
|
88,023
|
|
|
|
(121
|
)
|
|
1 April 2016
|
1.1371
|
|
EUR
|
|
|
161,000
|
|
USD
|
|
|
183,075
|
|
|
|
(2,196
|
)
|
|
1 April 2016
|
|
|
|
|
|
411,858
|
|
|
|
|
988,720
|
|
|
|
(3,062
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Swap Contracts
|
|
|
|
|
|
|
|
Buy
|
|
Sell
|
|
|
|
|
|
Exchange Rate
|
|
Foreign currency
|
|
Notional Amount
|
|
Foreign currency
|
|
Notional Amount
|
|
|
Fair value
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.0942
|
|
EUR
|
|
|
180,000
|
|
USD
|
|
|
196,961
|
|
|
|
(769
|
)
|
4 January 2016
|
1.0947
|
|
EUR
|
|
|
277,000
|
|
USD
|
|
|
303,218
|
|
|
|
(1,521
|
)
|
4 January 2016
|
|
|
|
|
|
457,000
|
|
|
|
|
500,179
|
|
|
|
(2,290
|
)
|
|
|
|
|
Currency Forward Contracts
|
|
|
|
|
|
|
|
Buy
|
|
|
|
|
|
Exchange Rate
(TL)
|
|
Foreign currency
|
|
Notional Amount
|
|
|
Fair value
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
3.2100
|
|
EUR
|
|
|
15,000
|
|
|
|
(29
|
)
|
1 April 2016
|
3.2080
|
|
EUR
|
|
|
25,000
|
|
|
|
3
|
|
1 April 2016
|
|
|
|
|
|
40,000
|
|
|
|
(26
|
)
|
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
16.
|
Financial instruments
|
Credit risk
Impairment losses
The change in allowance for trade receivables and due from related parties as at 31 March 2016 and
31 December 2015 is as follows:
|
|
31 March 2016
|
|
|
31 December 2015
|
|
Opening balance
|
|
|
816,373
|
|
|
|
727,732
|
|
Impairment loss recognized
|
|
|
52,941
|
|
|
|
196,588
|
|
Effect of change in foreign exchange rate
|
|
|
(1,473
|
)
|
|
|
(2,563
|
)
|
Amounts written-off
|
|
|
(132
|
)
|
|
|
(105,384
|
)
|
Closing balance
|
|
|
867,709
|
|
|
|
816,373
|
|
The impairment loss recognized of TL 52,941 for the three months ended 31 March 2016 relates to its estimate of incurred losses in respect of trade receivables and due from related parties
(31
March
2015: TL 47,206).
Trade receivables and due from related parties are reserved in an allowance account until the Group can determine that the amounts are no longer collectible. When this becomes probable the Group reverses the allowance and writes-off the receivable.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
16.
|
Financial instruments (continued)
|
Exposure to currency risk
The Group’s exposure to foreign currency risk based on notional amounts is as follows:
|
|
31 December 2015
|
|
|
|
USD
|
|
|
EUR
|
|
Foreign currency denominated assets
|
|
|
|
|
|
|
Other non-current assets
|
|
|
2,576
|
|
|
|
2,131
|
|
Due from related parties-current
|
|
|
3,553
|
|
|
|
207
|
|
Trade receivables and accrued income
|
|
|
21,536
|
|
|
|
29,947
|
|
Other current assets
|
|
|
141,385
|
|
|
|
6,200
|
|
Cash and cash equivalents
|
|
|
618,831
|
|
|
|
17,911
|
|
|
|
|
787,881
|
|
|
|
56,396
|
|
Foreign currency denominated liabilities
|
|
|
|
|
|
|
|
|
Loans and borrowings-non current
|
|
|
(63,152
|
)
|
|
|
(499,911
|
)
|
Debt securities issued-non- current
|
|
|
(467,810
|
)
|
|
|
-
|
|
Other non-current liabilities
|
|
|
(96,481
|
)
|
|
|
-
|
|
Loans and borrowings-current
|
|
|
(2,066
|
)
|
|
|
(12,328
|
)
|
Debt securities issued-current
|
|
|
(27,844
|
)
|
|
|
-
|
|
Trade and other payables-current
|
|
|
(264,091
|
)
|
|
|
(833,791
|
)
|
Trade and other payables-non-current
|
|
|
-
|
|
|
|
(399,865
|
)
|
Due to related parties
|
|
|
(312
|
)
|
|
|
(141
|
)
|
|
|
|
(921,756
|
)
|
|
|
(1,746,036
|
)
|
Exposure related to derivative instruments
|
|
|
|
|
|
|
|
|
Currency swap contracts
|
|
|
(500,179
|
)
|
|
|
457,000
|
|
Buy
|
|
|
-
|
|
|
|
457,000
|
|
Sell
|
|
|
(500,179
|
)
|
|
|
-
|
|
Currency forward contracts
|
|
|
57,732
|
|
|
|
-
|
|
Buy
|
|
|
57,732
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
(576,322
|
)
|
|
|
(1,232,640
|
)
|
|
|
31 March 2016
|
|
|
|
|
|
|
USD
|
|
|
EUR
|
|
Foreign currency denominated assets
|
|
|
|
|
|
|
Other non-current assets
|
|
|
2,679
|
|
|
|
2,131
|
|
Due from related parties-current
|
|
|
2,856
|
|
|
|
88
|
|
Trade receivables and accrued income
|
|
|
22,255
|
|
|
|
31,146
|
|
Other current assets
|
|
|
78,649
|
|
|
|
1,931
|
|
Cash and cash equivalents
|
|
|
410,918
|
|
|
|
8,628
|
|
|
|
|
517,357
|
|
|
|
43,924
|
|
Foreign currency denominated liabilities
|
|
|
|
|
|
|
|
|
Loans and borrowings-non current
|
|
|
(19,454
|
)
|
|
|
(502,485
|
)
|
Debt securities issued-non- current
|
|
|
(474,788
|
)
|
|
|
-
|
|
Other non-current liabilities
|
|
|
(99,295
|
)
|
|
|
-
|
|
Loans and borrowings-current
|
|
|
(45,771
|
)
|
|
|
(12,203
|
)
|
Debt securities issued-current
|
|
|
(28,259
|
)
|
|
|
-
|
|
Trade and other payables-current
|
|
|
(248,911
|
)
|
|
|
(837,969
|
)
|
Trade and other payables-non-current
|
|
|
-
|
|
|
|
(402,463
|
)
|
Due to related parties
|
|
|
(213
|
)
|
|
|
(256
|
)
|
|
|
|
(916,691
|
)
|
|
|
(1,755,376
|
)
|
|
|
|
|
|
|
|
|
|
Exposure related to derivative instruments
|
|
|
|
|
|
|
|
|
Currency swap contracts
|
|
|
(162,446
|
)
|
|
|
411,858
|
|
Buy
|
|
|
20,629
|
|
|
|
411,858
|
|
Sell
|
|
|
(183,075
|
)
|
|
|
-
|
|
Currency forward contracts
|
|
|
-
|
|
|
|
40,000
|
|
Buy
|
|
|
-
|
|
|
|
40,000
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
(561,780
|
)
|
|
|
(1,259,594
|
)
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
16.
|
Financial instruments (continued)
|
Exposure to currency risk (continued)
The following significant exchange rates are applied during the period:
|
|
Average Rate
|
|
|
Closing Rate
|
|
|
|
31 March
|
|
|
31 March
|
|
|
31 March
|
|
|
31 December
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD/TL
|
|
|
2.9202
|
|
|
|
2.4633
|
|
|
|
2.8334
|
|
|
|
2.9076
|
|
EUR/TL
|
|
|
3.2172
|
|
|
|
2.7934
|
|
|
|
3.2081
|
|
|
|
3.1776
|
|
USD/BYR
|
|
|
20,552
|
|
|
|
14,528
|
|
|
|
20,133
|
|
|
|
18,569
|
|
USD/UAH
|
|
|
25.7718
|
|
|
|
21.1755
|
|
|
|
26.2181
|
|
|
|
24.0007
|
|
Sensitivity analysis
The basis for the sensitivity analysis to measure foreign exchange risk is an aggregate corporate-level currency exposure. The aggregate foreign exchange exposure is composed of all assets and liabilities denominated in foreign currencies. The analysis excludes net foreign currency investments.
10% strengthening of the TL, UAH, BYR against the following currencies as at 31 March 2016 and
31 December 2015 would have increased / (decreased) profit or loss before by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.
|
|
Profit or loss
|
|
|
|
31 March
2016
|
|
|
31 December
2015
|
|
|
|
|
|
|
|
|
USD
|
|
|
159,175
|
|
|
|
167,572
|
|
EUR
|
|
|
404,090
|
|
|
|
391,683
|
|
10% weakening of the TL, UAH, BYR against the following currencies as at 31 March 2016 and
31 December 2015 would have increased / (decreased) profit or loss before tax by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.
|
|
Profit or loss
|
|
|
|
31 March 2016
|
|
|
31 December
2015
|
|
|
|
|
|
|
|
|
USD
|
|
|
(159,175
|
)
|
|
|
(167,572
|
)
|
EUR
|
|
|
(404,090
|
)
|
|
|
(391,683
|
)
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
16.
|
Financial instruments (continued)
|
Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis
Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation technique(s) and inputs used).
|
|
Fair values
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 March 2016
|
|
|
31 December 2015
|
|
Fair Value hierarchy
|
|
Valuation Techniques
|
|
|
|
|
|
|
|
|
|
|
Consideration payable in relation to acquisition of Belarusian Telecom
|
|
|
(237,306
|
)
|
|
|
(235,281
|
)
|
Level 3
|
|
Net present value (*)
|
Currency swap contracts
|
|
|
(2,945
|
)
|
|
|
(2,290
|
)
|
Level 3
|
|
Pricing models based on discounted cash flow analysis using the applicable yield curve
|
Currency forward contracts
|
|
|
(26
|
)
|
|
|
216
|
|
Level 3
|
|
Pricing models based on discounted cash flow analysis using the applicable yield curve
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no transfers between Level 2 and 3 in the period.
(*)
|
Discount rate of 4.5% was used for the present value calculation for the consideration payable in relation to acquisition of Belarusian Telecom as of 31 March 2016 (31 December 2015: 5.1%). Company management expects consideration payable to be paid during the first quarter of 2020 (31 December 2015: the first quarter of 2020).
|
Relationship of unobservable inputs to fair value is the higher the discount rate, the lower the fair value.
Consideration payable in relation to acquisition of Belarusian Telecom:
|
|
31 March
2016
|
|
|
31 December
2015
|
|
Opening balance
|
|
|
235,281
|
|
|
|
163,234
|
|
Total gains or losses:
in profit or loss
|
|
|
2,025
|
|
|
|
72,047
|
|
Closing balance
|
|
|
237,306
|
|
|
|
235,281
|
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
17.
|
Guarantees and purchase obligations
|
As at 31 March 2016, outstanding purchase commitments with respect to the acquisition of property, plant and equipment, inventory and purchase of sponsorship, rent and advertisement services amount to TL 2,326,346 (31 December 2015: TL 2,752,139). Payments for these commitments are going to be made in a 5 year period.
As at 31 March 2016, the Group is contingently liable in respect of bank letters of guarantee obtained from banks given to customs authorities, private companies and other public organizations, provided guarantees to private companies and financial guarantees to subsidiaries totaling to
TL 1,874,870 as at 31 March 2016 (31 December 2015: TL 2,058,810).
As at 31 March 2016, the amounts the Company has commitments regarding
lifecell
’s 3G license purchases amounted to
UAH 428,427 (equivalent to TL 46,300 as of 31 March 2016)
.
18.
|
Commitments and Contingencies
|
The following disclosures comprise of material legal lawsuits, investigations and in-depth investigations against the Company.
Universal Project, executed from 17 January 2013 by the Company, regarding setting up and operation of mobile communication infrastructure by the Ministry of Transport, Maritime Affairs and Communications in rural areas that are not in the coverage area, has ended as of 3
March
2016
.
18.2
|
Dispute on Treasury Share Amounts
|
The Company pays Treasury Share to Undersecretariat of Treasury calculated over its telecommunication revenues. Undersecretariat of Treasury time to time claimed that the Company underpaid Treasury Share in the past and requested additional payments. The Company objected to these claims and initiated legal processes which are still pending. The maximum loss, excluding accrued interest, of the company arising from several disputes could be TL 339
,
385
.
Based on the management opinion, the probability of an outflow of resources embodying economic benefits to settle the obligation is uncertain, thus, no provision is recognized in the consolidated financial statements as at and for the period ended 31 March 2016 (31 December 2015: None).
18.3
|
Dispute on Special Communication Tax
|
Large Tax Payers Office levied Special Communication Tax and tax penalty on Turkcell in the amount of TL 211,056 principal and TL 316,583 totaling to TL 527,639 based upon the claim, stated on Tax Investigation Reports prepared for the years 2008-2012, that Turkcell should pay Special Communication Tax over the prepaid card sales made by the distributors. Turkcell filed 60 lawsuits before the Tax Courts for the cancellation of each tax and tax penalty demand.
Respective Courts accepted 24 of the cases filed for the cancellation of the fined tax assessment prepared for the year 2008 and 2009. Large Taxpayer Office appealed the decisions. Turkcell replied this requests.
The Court partially accepted 12 of the cases filed for the cancellation of the fined tax assessment prepared for the year 2011. Turkcell appealed the decisions regarding the parts against Turkcell. The Large Tax Payers Office appealed the decisions regarding the parts against the Large Tax Payers Office. The Council of State rejected the stay of execution requests, made during the appeal process by Turkcell.
The Large Tax Payers Office has collected TL 80,355 (TL 77,480 and TL 2,875 overdue interest) calculated for the parts against Turkcell for the year 2011 by offsetting the receivables of Turkcell from Public Administrations.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
18.
|
Commitments and Contingencies (continued)
|
18.3
|
Dispute on Special Communication Tax (continued)
|
The Court partially accepted 12 of the cases filed for the cancellation of the fined tax assessment prepared for the year 2010 (TL 65,950). The Company appealed the decisions regarding the parts against Turkcell.
The Court rejected the other 12 cases filed for the cancellation of the fined tax assessment
(TL 122,802), related to the year 2012. Turkcell appealed the respective decisions.
In the case of payments, Turkcell shall pay the amounts subject to aforementioned lawsuits with their accrued interest. This interest would be calculated as a case by case basis. Accordingly, the interest that may be paid in some or all of the cases, could amount to a significant portion of the tax assessment.
Limited tax investigation has been performed for the year 2013, regarding the aforementioned case and any notification has been received regarding the result of the investigation by Turkcell.
Based on the management opinion, the probability of an outflow of resources embodying economic benefits to settle the obligation is uncertain, thus, no provision is recognized in the consolidated financial statements as at and for the period ended 31 March 2016 (31 December 2015: None).
18.4
|
Investigation initiated by ICTA on subscription numbers and radio utilization and usage fees
|
ICTA commenced in-depth investigations, against the GSM operators, on the accuracy of the subscriber numbers report for the terms, 2004-2009, 2010-2011 and 2012 which are the essential for the payment of radio utilization and usage fees. As result of the investigations, ICTA imposed 3 dividual administrative fine to the Company in the total amount of TL 8,251. The administrative fines were paid within 1 month following the notification of the decision of ICTA, with 25% discount. The Company filed lawsuits for the cancellation of aforementioned administrative fines and ICTA’s administrative acts implied on the Company for the collection of the radio utilization and usage fees which was claimed to have been paid deficiently. The cases are pending.
ICTA filed 4 lawsuits on 13 October 2014, 23 December 2014, 3 March 2015 and 11 April 2016 for the collection of the total amount of TL 196,383. The amount which was alleged that the Company paid deficiently by the ICTA decision took upon the investigation for the periods 2004 – 2009,
2010 – 2011, 2012 and July – December 2013
on the radio utilization and usage fees, with its accrued interest, which will be calculated. The Courts decided to take expert report for the cases dated 13 October 2014, 23 December 2014 and 3 March 2015. The Courts decided to consolidate the lawsuits filed by ICTA on 13 October 2014 and 23 December 2014. The cases are pending.
On the other hand, the related investigations on the same subjects for periods of 2013 and 2014 are currently pending and according to the inquiry of investigations which are notified to the Company, it is alleged that the amount of 21,315 TL have been paid deficiently. The inquiry of investigation for the period of 2013 was notified to the Company and the Company’s written defense was submitted to ICTA within due date. The inquiry of investigation for the period of 2014 was notified to the Company and Company’s written defense will be submitted to ICTA within due date.
Based on the management opinion, the probability of an outflow of resources embodying economic benefits is uncertain, thus, no provision is recognized in the consolidated financial statements as at and for the period ended 31 March 2016 (31 December 2015: None).
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
18.
|
Commitments and Contingencies (continued)
|
18.5
|
Other ongoing lawsuits
|
Within brief consolidated financial statements prepared as of 31March 2016, obligations which are related to following ongoing disputes have been evaluated.
In the consolidated financial statements regarding the probability of an outflow of resources embodying economic benefits to settle the obligation, provisions amounting to TL 3,517 TL was recognized.
Subject
|
|
Anticipated Maximum Risk
(excluding accrued interest)
|
|
|
Provision
|
|
Disputes related with Law on the Protection of Competition
|
|
|
204
,
026
|
|
|
|
-
|
|
Disputes related with ICTA
|
|
|
28
,
725
|
|
|
|
3
,
517
|
|
Other disputes
|
|
|
5
,
225
|
|
|
|
-
|
|
Transactions with key management personnel:
Key management personnel comprise the Group’s directors and key management executive officers.
As at 31 March 2016 and 31 December 2015, none of the Group’s directors and executive officers has outstanding personnel loans from the Group.
In addition to their salaries, the Group also provides non-cash benefits to directors and executive officers and contributes to a post-employment defined plan on their behalf. The Group is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits.
Total compensation provided to key management personnel is TL 11,906 and TL 25,853 for the three months ended 31 March 2016 and 2015, respectively.
The Company has agreements or protocols with several of its shareholders, consolidated subsidiaries and affiliates of the shareholders.
Due from related parties – short term
|
|
31 March
2016
|
|
|
31 December
2015
|
|
Vimpelcom OJSC (“Vimpelcom”)
|
|
|
4,207
|
|
|
|
5,223
|
|
Megafon OJSC (“Megafon”)
|
|
|
2,051
|
|
|
|
1,592
|
|
Krea Icerik Hizmetleri ve Produksiyon AS (“Krea”)
|
|
|
1,525
|
|
|
|
83
|
|
Azercell Telekom MMC (“Azercell”)
|
|
|
609
|
|
|
|
633
|
|
GSM Kazakhstan Ltd (“Kazakcell”)
|
|
|
331
|
|
|
|
1,662
|
|
Millenicom Telekomunikasyon AS (“Millenicom”)
|
|
|
-
|
|
|
|
784
|
|
Other
|
|
|
1,806
|
|
|
|
1,783
|
|
|
|
|
10,529
|
|
|
|
11,760
|
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
19.
|
Related parties (continued)
|
Due from related parties short term is shown net of allowance for doubtful debts amounting to TL 325 as at 31 March 2016 (31 December 2015: TL 302).
Due from Vimpelcom, Megafon, Azercell and Millenicom resulted from telecommunications services such as interconnection and roaming.
Due from Krea resulted from rental circuit system, corporate internet services and data center services.
Due from Kazakcell, mainly resulted from the software services and telecommunications services such as interconnection and roaming.
Millenicom shares held by Cukurova Group were acquired by EWE Turkey Holding on
21 January 2016.
Due to related parties – short term
|
|
31 March
2016
|
|
|
31 December
2015
|
|
Kyivstar GSM JSC (“Kyivstar”)
|
|
|
1,433
|
|
|
|
1,375
|
|
Hobim Bilgi Islem Hizmetleri AS (“Hobim”)
|
|
|
1,253
|
|
|
|
3,491
|
|
Other
|
|
|
1,946
|
|
|
|
1,689
|
|
|
|
|
4,632
|
|
|
|
6,555
|
|
Due to Kyivstar mainly resulted from rendering telecommunications services such as interconnection and roaming.
Due to Hobim resulted from invoice printing services and subscription documents services rendered by this company.
The Group’s exposure to currency risk related to due from / (due to) related parties is disclosed in Note
16.
Transactions with related parties
Intragroup transactions that have been eliminated are not recognized as related party transaction in the following table:
|
|
Three months ended 31 March
|
|
Revenues from related parties
|
|
2016
|
|
|
2015
|
|
Sales to Vimpelcom
|
|
|
|
|
|
|
Telecommunications services
|
|
|
7,471
|
|
|
|
5,123
|
|
Sales to
Kyivstar
|
|
|
|
|
|
|
|
|
Telecommunications services
|
|
|
6,423
|
|
|
|
11,993
|
|
Sales to Megafon
|
|
|
|
|
|
|
|
|
Telecommunications services
|
|
|
4,678
|
|
|
|
4,415
|
|
Sales to Teliasonera International
|
|
|
|
|
|
|
|
|
Telecommunications services
|
|
|
2,677
|
|
|
|
5,457
|
|
Sales to Krea
|
|
|
|
|
|
|
|
|
Call center, fixed line services, rent and interest charges
|
|
|
1,121
|
|
|
|
1,296
|
|
Sales to Millenicom Telekomunikasyon AS (“Millenicom”) (*)
|
|
|
|
|
|
|
|
|
Telecommunications services
|
|
|
997
|
|
|
|
1,919
|
|
Sales to KVK Teknoloji(**)
|
|
|
|
|
|
|
|
|
Simcard and prepaid card sales
|
|
|
-
|
|
|
|
96,108
|
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
19.
|
Related parties (continued)
|
|
|
Three months ended 31 March
|
|
Related party expenses
|
|
2016
|
|
|
2015
|
|
Charges from Kyivstar
|
|
|
|
|
|
|
Telecommunications services
|
|
|
9,790
|
|
|
|
14,446
|
|
Charges from Hobim
|
|
|
|
|
|
|
|
|
Invoicing and archiving services
|
|
|
6,547
|
|
|
|
7,224
|
|
Charges from Krea
|
|
|
|
|
|
|
|
|
Digital television broadcasting services
|
|
|
2,988
|
|
|
|
2,573
|
|
Charges from Teliasonera International
|
|
|
|
|
|
|
|
|
Telecommunications services
|
|
|
1,375
|
|
|
|
1,463
|
|
Charges from Megafon
|
|
|
|
|
|
|
|
|
Telecommunications services
|
|
|
623
|
|
|
|
1,457
|
|
Charges from Vimpelcom
|
|
|
|
|
|
|
|
|
Telecommunications services
|
|
|
540
|
|
|
|
1,952
|
|
Charges from Millenicom (*)
|
|
|
|
|
|
|
|
|
Telecommunications services
|
|
|
180
|
|
|
|
939
|
|
Charges from KVK Teknoloji (**)
|
|
|
|
|
|
|
|
|
Dealer activation fees and others
|
|
|
-
|
|
|
|
34,861
|
|
(*) Millenicom’s shares held by Cukurova Group have been acquired by EWE Turkey Holding on 21 January 2016. Millenicom income and expenses include the transactions until 21 January 2016.
(**) KVK Teknoloji’s shares held by Cukurova Group have been acquired by MV Holding on
6 July 2015. KVK Teknoloji expenses include the transactions until 6 July 2015.
The significant agreements are as follows:
Transactions with Vimpelcom:
Vimpelcom, a subsidiary of Alfa Group, is rendering and receiving telecommunications services such as interconnection and roaming.
Transactions with Kyivstar:
Alfa Group, one of the shareholders of the Company, holds the majority shares of Kyivstar. Kyivstar is rendering and receiving telecommunications services such as interconnection and roaming.
Transactions with Megafon:
Megafon, a subsidiary of Sonera Holding, is rendering and receiving telecommunications services such as interconnection and roaming.
Transactions with Teliasonera International:
Teliasonera International, one of the shareholders of the Company, is rendering and receiving telecommunications services such as interconnection and roaming.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
19.
|
Related parties (continued)
|
Transactions with Krea:
Krea, a direct-to-home digital television service company under the Digiturk brand name, is a subsidiary of one of the Company’s shareholders, Cukurova Group. SDIF took over the management of Krea in 2013.
There are no specific agreements between Turkcell and digital channels branded under Digiturk name. Every year, as in every other media channel, standard ad spaces are purchased on a spot basis. Also, Krea provides instant football content related to Spor Toto Super League to the Company to be delivered to mobile phones and tablets.
The Company has agreements for fixed telephone, leased line, corporate internet, and data center services provided by the Company’s subsidiary Turkcell Superonline.
The Company’s subsidiary Global Bilgi is also providing call center services for Krea.
Çukurova Holding has signed a share purchase agreement with BeIN Media Group related to the sale of their shares in Krea. Share transfer is not finalized as at 31 March 2016.
Transactions with Millenicom:
European Telecommunications Holding AG, a subsidiary of Cukurova Group, holds the majority shares of Millenicom. Millenicom is rendering and receiving telecommunications services such as interconnection and roaming.
Millenicom shares held by Cukurova Group were acquired by EWE Turkey Holding on
21 January 2016.
Transactions with Hobim:
Hobim, one of the leading data processing and application service provider companies in Turkey, is owned by Cukurova Group. The Company has entered into invoice printing and archiving agreements with Hobim under which Hobim provides the Company with monthly invoice printing services, manages archiving of invoices and subscription documents. Prices of the agreements are determined through alternative proposals’ evaluation.
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As at and for the three months ended 31 March 2016
(Amounts expressed in thousands of Turkish Liras unless otherwise indicated except share amounts)
The Group’s ultimate parent company is Turkcell. Subsidiaries of the Company as at 31 March 2016 and 31 December 2015 are as follows:
|
|
|
Effective Ownership Interest
|
|
|
|
|
|
Subsidiaries
|
Country of
|
|
31 March
|
31 December
|
Name
|
Incorporation
|
Business
|
2016 (%)
|
2015 (%)
|
Kibris Telekom
|
Turkish Republic of Northern Cyprus
|
Telecommunications
|
100
|
100
|
Global Bilgi
|
Turkey
|
Customer relations management
|
100
|
100
|
Turktell Bilisim
|
Turkey
|
Information technology, value
added GSM services investments
|
100
|
100
|
Turkcell Superonline
|
Turkey
|
Telecommunications
|
100
|
100
|
|
|
|
|
|
Turkcell Satis
|
Turkey
|
Telecommunications
|
100
|
100
|
Eastasia
|
Netherlands
|
Telecommunications investments
|
100
|
100
|
Turkcell Teknoloji
|
Turkey
|
Research and Development
|
100
|
100
|
Global Tower
|
Turkey
|
Telecommunications infrastructure
business
|
100
|
100
|
Turkcell Interaktif
|
Turkey
|
Radio and television broadcasting
|
100
|
100
|
Financell
|
Netherlands
|
Financing business
|
100
|
100
|
Rehberlik
|
Turkey
|
Telecommunications
|
100
|
100
|
Beltur
|
Netherlands
|
Telecommunications investments
|
100
|
100
|
Beltel
|
Turkey
|
Telecommunications investments
|
100
|
100
|
Turkcell Gayrimenkul
|
Turkey
|
Property investments
|
100
|
100
|
Global LLC
|
Ukraine
|
Customer relations management
|
100
|
100
|
UkrTower
|
Ukraine
|
Telecommunications infrastructure
business
|
100
|
100
|
Turkcell Europe
|
Germany
|
Telecommunications
|
100
|
100
|
Turkcell Odeme
|
Turkey
|
GSM services
|
100
|
100
|
Euroasia
|
Netherlands
|
Telecommunications
|
100
|
100
|
lifecell (*)
|
Ukraine
|
Telecommunications
|
100
|
100
|
Turkcell Finansman A.Ş (**)
|
Turkey
|
Consumer financing services
|
100
|
100
|
Belarusian Telecom
|
Republic of Belarus
|
Telecommunications
|
80
|
80
|
Lifetech LLC
|
Republic of Belarus
|
Research and Development
|
78
|
78
|
Inteltek
|
Turkey
|
Information and Entertainment Services
|
55
|
55
|
Azerinteltek
|
Azerbaijan
|
Information and Entertainment Services
|
28
|
28
|
(*)
|
The trade name of Astelit has changed as “lifecell LLC” as at 2 February 2016.
|
(**)
|
As at 22 October 2015, the consumer financing company is incorporated and has received official
authorization as at 21 January 2016.
|
|
According to resolution of Extraordinary General Assembly Meeting of Inteltek, the shareholders have resolved capital decrease amount of TL 20,000 on 24 March 2016 (Including inflation adjustment equivalent to TL 23,391).
The payment to the shareholders is planned to be executed subsequent to completion of capital decrease procedure.