Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) (BIST:TCELL):
- Please note that all financial data is
consolidated and comprises that of Turkcell Iletisim Hizmetleri
A.S. (the “Company”, or “Turkcell”) and its subsidiaries and
associates (together referred to as the “Group”), unless otherwise
stated.
- As previously announced, starting from
Q115, we now have three reporting segments:
- "Turkcell Turkey" which comprises all
of our telecom related businesses in Turkey (as used in our
previous releases, this term covered only mobile businesses). All
non-financial data presented in this press release is
unconsolidated and comprises Turkcell Turkey only figures, unless
otherwise stated. The terms "we", "us", and "our" in this press
release refer only to Turkcell Turkey, except in discussions of
financial data, where such terms refer to the Group, and except
where context otherwise requires.
- “Turkcell International” which
comprises all of our telecom related businesses outside of
Turkey.
- “Other subsidiaries” which is mainly
comprised of our information and entertainment services, call
center business revenues, financial services revenues and
inter-business eliminations. Call centers were previously included
in Turkcell Turkey but are, with effect from the fourth quarter of
2015, now included in “Other subsidiaries”. We have made this
change because we believe that our third party call center revenues
are not telecom related. All figures presented in this document for
prior periods have been restated to reflect this change.
- In this press release, a year-on-year
comparison of our key indicators is provided and figures in
parentheses following the operational and financial results for
June 30, 2016 refer to the same item as at June 30, 2015. For
further details, please refer to our consolidated financial
statements and notes as at and for June 30, 2016, which can be
accessed via our website in the investor relations section
(www.turkcell.com.tr).
- With effect from Q4 2015, our financial
statements are presented in TRY only, the currency in which we
recognize the majority of our revenues and expenses. We will no
longer present financial statements in US$. This change allows us
align our Turkish and US reporting.
- In the tables used in this press
release totals may not foot due to rounding differences. The same
applies for the calculations in the text.
- Year-on-year and quarter-on-quarter
percentage comparisons appearing in this press release reflect
mathematical calculation.
HALF YEAR SUMMARY
- All-time-high first half revenue and
EBITDA1, both at the Turkcell Turkey and Turkcell Group level
- Turkcell Turkey revenues and EBITDA up
8.9% and 5.5%, respectively with an EBITDA margin of 31.0%
- Group revenues and EBITDA up 8.4% and
5.7%, respectively with an EBITDA margin of 30.8%
- Group net income as per IFRS up 14.7%
to TRY979 million and proforma net income2 up 5.3% to TRY1,118
million
- Full year guidance3 maintained for
revenue growth and EBITDA margin; Turkcell Turkey and Group revenue
growth targeted at 8% - 10%, Group EBITDA margin targeted at 31% -
33%
- Capex over sales outlook revised to
~25% (previous ~20%), reflecting accelerated 4.5G investments3
SECOND QUARTER SUMMARY
- Turkcell Turkey’s revenues and EBITDA1
up 8.0% and 0.9%, respectively with an EBITDA margin of 30.7%; data
and services revenues, comprising 46% of Turkcell Turkey revenues,
up 39.3%
- Group revenues and EBITDA up 8.6% and
3.5%, respectively with an EBITDA margin of 30.7%
- Group net income as per IFRS at TRY416
million (TRY712 million). Group proforma net income2 at TRY542
million (TRY569 million)
- Turkcell International revenues at
TRY204 million (TRY205 million) with an EBITDA margin of 26.0%
- Close to a US$1 billion open credit
line utilization at favorable terms (LIBOR /EURIBOR +2.0%), to
further strengthen our liquidity In June
- Participating cross currency swap
transactions in June and July 2016 to hedge against approximately
EUR650 million of our loan portfolio to mitigate against any future
macroeconomic volatility
FINANCIAL HIGHLIGHTS
TRY million Q215 Q216
y/y % H115 H116 y/y
% Revenue 3,092.9 3,358.1 8.6%
6,071.1 6,583.5 8.4% Turkcell Turkey 2,786.3 3,008.2
8.0% 5,448.5 5,935.7 8.9% EBITDA1 994.8 1,029.3 3.5% 1,921.7
2,030.8 5.7% Turkcell Turkey 915.0 923.1 0.9% 1,743.2 1,839.2 5.5%
EBITDA Margin 32.2% 30.7% (1.5pp) 31.7% 30.8% (0.9pp) Net Income
712.0 416.1 (41.6%) 853.1 978.8 14.7% Proforma Net Income2
568.6 541.7 (4.7%) 1,061.6 1,118.1
5.3%
(1) EBITDA is a non-GAAP financial measure. See page 14 for the
reconciliation and the explanation of how we calculate Adjusted
EBITDA to net income.(2) We use "proforma net income" as a means of
presenting our net income net of certain non-operating items and
items that we believe are non-recurring. We define "proforma net
income" in this document as net Income excluding FX gain / (loss)
(including tax and minority impact), interest Income on time
deposits of Turkcell Iletisim Hizmetleri, interest expense on loans
& borrowings, share of profit of equity accounted investees
(Fintur), 4.5G license amortization and one-off items. Please note
that this is a non-GAAP measure and that we may in future
presentations change the scope of items that we deduct from net
income to arrive at "proforma net income."(3) Please note that this
paragraph contains forward looking statements based on our current
estimates and expectations regarding market conditions for each of
our different businesses. No assurance can be given that actual
results will be consistent with such estimates and expectations.
For a discussion of factors that may affect our results, see our
Annual Report on Form 20-F for 2015 filed with U.S. Securities and
Exchange Commission, and in particular, the risk factor section
therein.
For further details, please refer to our consolidated financial
statements and notes as at and for June 30, 2016 which can be
accessed via our web site in the investor relations section
(www.turkcell.com.tr).
COMMENTS BY KAAN TERZIOGLU, CEO
We believe in Turkey, and the increased demand of our
customers for 4.5G motivates us to boldly continue our
investments.
We registered all-time-high first half revenue and EBITDA, both
at the Turkcell Turkey and Turkcell Group level in the first half
of 2016. In the second quarter, Turkcell Group achieved the highest
level of growth of the past 3 years at 8.6% with a performance that
improved every quarter.
In the first half of the year, Turkcell Turkey, comprising 90%
of Group revenues, continued its growth at 8.9%, recording an
EBITDA margin of 31.0%. Group revenues rose 8.4% to TRY6.6 billion,
while EBITDA increased 5.7% to TRY2.0 billion, achieving a 30.8%
EBITDA margin. Proforma Group net income1 is at TRY1.1 billion,
while net income as per IFRS is at TRY979 million. With these
results, which are in line with our plans, we maintain our guidance
of 8%-10% revenue growth and a 31% - 33% EBITDA margin for
20162.
In the first half of 2016, we focused on investing in 4.5G,
which has reshaped the telecommunication market in Turkey. Given
the strong interest from our customers, we have accelerated our
4.5G investments and achieved a population coverage of around 82%
in 81 cities across Turkey. As of today, our 4.5G customers have
reached 16 million3, while 23% of total data traffic has derived
from our 4.5G network.
We registered an operational capex to sales ratio of 23% for the
first half of the year with our accelerated investment in 4.5G. We
will continue to invest at full speed in the second half of the
year. Accordingly, we are revising our Group operational capex to
sales ratio target to 25% for 2016 from the previously announced
20%2.
We have marked a milestone in the telecommunication sector,
which also serves Turkey’s broader 2023 targets. With a view to
utilizing and further improving existing communication
infrastructures, and for an efficient use of our resources while
establishing a fair and competitive environment, we have taken
significant steps towards forming an infrastructure company
together with Vodafone, Turksat and TELKODER4 members.
With these investments, we serve our part in Turkey’s objective
of becoming a “country that produces technology, rather than just
consuming”, once again declaring our belief in our country.
Turkcell Turkey: Continued growth
Turkcell continued to gain postpaid, fiber and digital service
subscribers in the quarter. Postpaid customers rose by 956 thousand
year-on-year to 52% of our subscriber base. Fiber subscribers rose
by 148 thousand year-on-year to 965 thousand, with total fixed
subscribers exceeding 1.6 million.
The notable demand for digital services has continued in this
quarter. The number of customers who downloaded BiP, Turkcell TV+,
Smart Storage, Goals on Your Mobile, fizy, My Account, Digital
Media and Turkcell Academy applications has reached 31 million from
12.5 million a year ago. Those to have accepted our services have
reached 16.7 million from 5.6 million.
In accordance with our convergence strategy, the mobile triple
play ratio, which includes voice, data and service users reached
20%5, increasing by 3 percentage points in a quarter, while
multiplay with TV service users increased by 3 percentage points to
33% in the fixed segment.
Turkcell Consumer Finance Company reached approximately one
million customers
Turkcell Consumer Finance Company, which commenced operations in
March, has contributed to the smartphone penetration increase by
providing over TRY1.2 billion loans to approximately one million
customers for the financing of smartphones. Smartphone penetration
on our network rose to 60% year-on-year. Also with the increase in
the number of smartphones, our data revenue grew 36.2% and our
service revenue grew 56.1% year-on-year.
In this quarter, interest in our payment platform, Paycell has
increased, where we have launched numerous campaigns and signed
collaborations with brands including Shell, Zubizu and Google. Over
11 million transactions with a value of TRY375 million passed
through this platform in the first six months of this year. In the
upcoming periods, more institutions will be able to offer a
seamless mobile payment experience to their customers via
Paycell.
We inaugurated Turkey's largest data center
In June, we inaugurated Turkey's largest data center in Gebze on
a total area of 33 thousand square meters. We are determined to
become one of the strongest data storage companies in our region.
We plan to open new data centers in Izmir and Ankara, and with
their opening, we will have a total data center area of 107
thousand square meters.
We will move forward in line with our plans
The recent events in our country have yet again demonstrated the
importance of uninterrupted communication. During this challenging
period, we have remained committed to providing accurate
information on a timely basis by maintaining our infrastructure
intact and fully operational.
We wholeheartedly believe that the future is bright, both for
Turkey and our industry. We trust that the markets will remain
strong, despite short-term volatility. As Turkcell, we have entered
this period with previously taken precautionary measures. Having
funds for investment and expansion that we believe are adequate for
the next 3 years, having already taken various actions against
currency risk and operating our business on the basis of
disciplined financial policies at all times, we are able to perform
soundly during this period. Furthermore, we so far observe no
negative impact on demand for our services. Turkey’s swift recovery
from the terrorist attacks staged by a group of terrorists in
collaboration with certain elements within the Turkish Armed Forces
strongly encourages us regarding the stability of Turkey. In this
context, we continue to move firmly towards our targets.
We would like to take this opportunity to once again thank our
Board of Directors and the Turkcell team for their outstanding
performance, dedication and compassion during this difficult
period, which fully embodies the Turkcell spirit.
(1) We use "proforma net income" as a means of presenting our
net income net of certain non-operating items and items that we
believe are non-recurring. We define "proforma net income" in this
document as net Income excluding FX gain / (loss) (including tax
and minority impact), interest Income on time deposits of Turkcell
Iletisim Hizmetleri, interest expense on loans & borrowings,
share of profit of equity accounted investees (Fintur), 4.5G
license amortization and one-off items. Please note that this is a
non-GAAP measure and that we may in future presentations change the
scope of items that we deduct from net income to arrive at
"proforma net income."(2) Please note that this paragraph contains
forward looking statements based on our current estimates and
expectations regarding market conditions for each of our different
businesses. No assurance can be given that actual results will be
consistent with such estimates and expectations. For a discussion
of factors that may affect our results, see our Annual Report on
Form 20-F for 2015 filed with U.S. Securities and Exchange
Commission, and in particular, the risk factor section therein.(3)
Customers registered to 4.5G services through SMS confirmation(4)
Turkish Competitive Telco Operators Association(5) Multiplay
customers with TV: Internet + TV users & internet + TV + voice
users
FINANCIAL AND OPERATIONAL REVIEW OF THE SECOND QUARTER
2016
The following discussion focuses principally on the developments
and trends in our business in the second quarter of 2016 in TRY
terms. Selected financial information presented in this press
release for the second quarter and half year 2015 and 2016 is based
on IFRS figures.
Selected financial information for the second quarter of 2015,
for the first and second quarters of 2016, half year 2015 and 2016
prepared in accordance with IFRS and Turkish Accounting standards,
is also included at the end of this press release.
Financial Review of Turkcell Group
Profit & Loss
Statement(million TRY)
Quarter Half Year Q215
Q216 y/y % H115
H116 y/y % Total Revenue 3,092.9
3,358.1 8.6% 6,071.1 6,583.5
8.4% Direct cost of revenues1 (1,898.3) (2,236.9) 17.8%
(3,726.9) (4,255.7) 14.2%
Direct cost of
revenues1/revenues (61.4%) (66.6%)
(5.2pp) (61.4%) (64.6%) (3.2pp)
Depreciation and amortization (409.5) (567.1) 38.5% (803.9)
(1,021.9) 27.1%
Gross Margin 38.6% 33.4%
(5.2pp) 38.6% 35.4% (3.2pp)
Administrative expenses (150.4) (175.8) 16.9% (291.2) (354.5) 21.7%
Administrative expenses/revenues (4.9%) (5.2%)
(0.3pp) (4.8%) (5.4%) (0.6pp) Selling
and marketing expenses (458.9) (483.2) 5.3% (935.2) (964.4) 3.1%
Selling and marketing expenses/revenues (14.8%)
(14.4%) 0.4pp (15.4%) (14.6%)
0.8pp EBITDA2 994.8 1,029.3
3.5% 1,921.7 2,030.8 5.7% EBITDA
Margin 32.2% 30.7% (1.5pp) 31.7%
30.8% (0.9pp) EBIT3 585.3
462.2 (21.0%) 1,117.8 1,008.9
(9.7%) Net finance income / (expense) 397.1 21.8 (94.5%)
(86.3) 188.0 n.m. Finance expense 221.9 (140.7) (163.4%) (513.8)
(195.7) (61.9%) Finance income 175.2 162.5 (7.2%) 427.5 383.7
(10.2%) Share of profit of associates 94.0 (7.9) (108.4%) 188.8 7.3
(96.1%) Other income / (expense) (123.4) 13.8 n.m. (176.4) 2.7 n.m.
Non-controlling interests (100.5) (11.6) (88.5%) 183.9 (22.5)
(112.2%) Income tax expense (140.5) (62.2) (55.7%) (374.7) (205.6)
(45.1%)
Net Income 712.0 416.1 (41.6%)
853.1 978.8 14.7% Proforma Net
Income4 568.6 541.7
(4.7%) 1,061.6 1,118.1
5.3%
(1) Including depreciation and amortization expenses.(2) EBITDA
is a non-GAAP financial measure. See page 14 for the reconciliation
and an explanation of how we calculate Adjusted EBITDA to net
income.(3) EBIT is a non-GAAP financial measure and is equal to
EBITDA minus depreciation and amortization expenses.(4) We use
"proforma net income" as a means of presenting our net income net
of certain non-operating items and items that we believe are
non-recurring. We define "proforma net income" in this document as
net Income excluding FX gain / (loss) (including tax and minority
impact), interest Income on time deposits of Turkcell Iletisim
Hizmetleri, interest expense on loans & borrowings, share of
profit of equity accounted investees (Fintur), 4.5G license
amortization and one-off items. Please note that this is a non-GAAP
measure and that we may in future presentations change the scope of
items that we deduct from net income to arrive at "proforma net
income."
Revenues of the Group grew by 8.6% year-on-year in
Q216.
Turkcell Turkey revenues, constituting 90% of Group revenues,
rose by 8.0% to TRY3,008 million (TRY2,786 million). This was
driven by 8% growth, both in consumer and corporate segment
revenues to TRY2,385 million (TRY2,208 million) and to TRY540
million (TRY501 million), respectively. Our data, services and
solutions revenues, comprising 46% of Turkcell Turkey revenues,
have been the key growth driver, up by 39.3% to TRY1,389 million
(TRY997 million).
On April 1, 2016, we began to offer 4.5G technology to our
subscribers, launching a new era in Turkey’s telecommunications
sector. The launch of 4.5G has precipitated a shift in market
dynamics in Turkey. Today’s consumer consumption trend is in favor
of data, while traditional voice and SMS services have a lesser
impact on consumer decision making. Our investments mirror this
trend. Duly, as of Q216, our revenue discussion of Turkey business
focuses on data and services.
Our subscribers have enjoyed the 4.5G experience with the new
high quota data packages we have launched, while we doubled the
data quota of their existing packages for three months.
Accordingly, in Q216 21% of our data traffic (23% as of July),
which quarterly rose by 33%, was through our 4.5G network. Our 4.5G
subscribers consumed 2.4 times more data per month as compared to a
non 4.5G user. Coupled with higher smartphone penetration of 60%
and more data users overall, data revenues rose by 36.2% to
TRY1,141 million (TRY838 million), while services and solutions
revenues grew by 56.1% driven mainly by increased usage of Turkcell
TV+, fizy, Smart Storage and other mobile services.
Meanwhile, wholesale revenues grew by 11.2% to TRY102 million
(TRY92 million) with the increase in carrier traffic.
Turkcell International revenues, comprising 6% of Group
revenues, were at TRY204 million (TRY205 million) driven by
currency devaluation in Ukraine and Belarus as lifecell and BeST
grew by 7.1% and 25.1%, respectively in local currency terms.
Other subsidiaries' revenues, at 4% of Group revenues, which
includes information and entertainment services, call center
revenues and revenues from financial services rose by 43.3% to
TRY146 million (TRY102 million). This was mainly driven by the
contribution of revenues of our Consumer Finance Company, which
commenced operations nationwide in March 2016.
Direct cost of revenues rose to 66.6% (61.4%) as a
percentage of revenues in Q216, mainly due to the rise in
depreciation and amortization expenses (3.6pp) reflecting the 4.5G
license and investments and various other cost items mainly related
with our network (1.6pp).
Administrative expenses rose to 5.2% (4.9%) as a
percentage of revenues in Q216.
Selling and marketing expenses declined to 14.4% (14.8%)
as a percentage of revenues in Q216, driven by the decline in
selling expenses (0.8pp) with our value focused customer
acquisition strategy and fall in various other cost items (0.5pp),
more than offsetting the rise in marketing expenses (0.9pp) related
to the 4.5G launch.
EBITDA*rose by 3.5% year-on-year in Q216 with an
EBITDA margin at 30.7% (32.2%). Direct cost of revenues (excluding
depreciation and amortization) increased by 1.6pp and
administrative expenses rose by 0.3pp, while selling and marketing
expenses declined by 0.4pp.
- Turkcell Turkey’s EBITDA grew by 0.9%
to TRY923 million (TRY915 million), while the EBITDA margin was at
30.7% (32.8%).
- Turkcell International EBITDA was at
TRY53 million (TRY56 million) adversely impacted by the
year-on-year devaluation in Ukraine and Belarus while the EBITDA
margin was at 26.0% (27.2%).
- The EBITDA of other subsidiaries rose
by 120% to TRY53 million (TRY24 million) with the contribution of
the financial services business.
(*)EBITDA is a non-GAAP financial measure. See page 14 for the
reconciliation and an explanation of how we calculate Adjusted
EBITDA to net income.
Net finance income of TRY22 million (TRY397 million) was
recorded in Q216. In contrast to the translation loss of TRY24
million in Q216, in Q215 a translation gain of TRY261 million was
registered with positive currency movements in Ukraine. Moreover,
the decline in interest income from time deposits due to a lower
cash balance, the rise in interest expenses in relation to loans
and 4.5G payables led to a lower net finance income in Q216. Please
see Appendix A for translation gain and loss details.
Income tax expense declined 55.7% year-on-year in Q216.
Please see Appendix A for details.
Net income of the Group as per IFRS declined to TRY416
million (TRY712 million) in Q216. This was mainly due to a
translation loss in Q216 in contrast to a translation gain in Q215,
the negative contribution of Fintur, lower interest income from
time deposits due to a lower cash balance, increased interest
expense on loans and 4.5G payables and a higher amortization
expense due to the 4.5G license. Proforma net income1 was at TRY542
million (TRY569 million) in Q216.
The net income of Turkcell Turkey as per IFRS declined to TRY413
million (TRY586 million) in Q216 mainly due to the reasons
explained above for Group net income decline. Proforma net income1
was at TRY513 million (TRY567 million) in Q216.
Please see Appendix A for a reconciliation of Group and Turkcell
Turkey proforma net income to net income per IFRS.
Total debt as of June 30, 2016 rose to TRY7,307 million
from TRY4,028 million as of March 31, 2016, as we utilized the club
loan line for EUR445 million and US$500 million (c. US$1
billion).
- Turkcell Turkey’s debt balance was
TRY6,499 million, of which TRY3,063 million (US$1,059 million) was
denominated in US$, TRY3,061 (EUR955 million) in EUR and the
remaining TRY375 million in TRY.
- The debt balance of lifecell was TRY336
million, denominated in UAH.
- Consumer Finance Company had a debt
balance of TRY467 million denominated in TRY.
TRY4,648 million of our consolidated debt is set at a floating
rate, while TRY1,098 million will mature within less than a year.
(Please note that the figures in parentheses refer to US$ or EUR
equivalents).
In order to hedge against approximately EUR650 million of our
loan portfolio, we have engaged in participating cross currency
swap transactions:
- In June, EUR500 million China
Development Bank loan with 10 years final maturity and EURIBOR
+2.2% annual interest rate has been swapped to TRY denominated
liability.
- Recently in July, US$150 million of
Club Loan with 4 years final maturity and LIBOR + 2.0% annual
interest rate has been swapped to TRY denominated liability.
- Foreign currency call and put options
are embedded in the transactions mentioned above.
(1) We use "proforma net income" as a means of presenting our
net income net of certain non-operating items and items that we
believe are non-recurring. We define "proforma net income" in this
document as net Income excluding FX gain / (loss) (including tax
and minority impact), interest Income on time deposits of Turkcell
Iletisim Hizmetleri, interest expense on loans & borrowings,
share of profit of equity accounted investees (Fintur), 4.5G
license amortization and one-off items. Please note that this is a
non-GAAP measure and that we may in future presentations change the
scope of items that we deduct from net income to arrive at
"proforma net income."
Cash flow analysis: Capital expenditures, including
non-operational items amounted to TRY879.6 million in Q216. The net
change in debt mainly relates to an approximately US$1 billion
equivalent club loan utilization. The cash flow item noted as
“other” included the payment of the second installment of the 4.5G
license (TRY1,323 million), advance payments for fixed asset
purchases (TRY915 million) and the negative impact of the change in
other working capital (TRY2 million).
Capital expenditures, including non-operational items amounted
to TRY1,618.0 million in H116. The cash flow item noted as “other”
includes the payment of the second installment of the 4.5G license
(TRY1,323 million), advance payments for fixed asset purchases
(TRY915 million), regulatory fee payments (TRY491 million) and the
negative impact of the change in other working capital (TRY197
million).
In Q216 and H116, operational capital expenditures* at the Group
level were at 25% and 23% of total revenues, respectively.
Consolidated Cash Flow (million TRY) Quarter
Half Year Q215 Q216
H115 H116 EBITDA1 994.8
1,029.3 1,921.7 2,030.8 LESS: Capex and
License (957.4) (879.6) (1,712.9) (1,618.0) Turkcell Turkey (683.3)
(801.6) (1,027.2) (1,477.0) Turkcell International2 (263.8) (71.0)
(672.2) (132.7) Other Subsidiaries2 (10.3) (7.0) (13.5) (8.3) Net
interest Income/ (expense) 136.0 45.9 350.9 217.4 Other 114.6
(2,240.1) (1,176.0) (2,925.9) Net Change in Debt (239.0) 3,291.5
(192.7) 3,146.3
Cash generated / (used) 49.0
1,247.0 (809.0) 850.6 Cash balance before
dividend payment 8,222.8 3,769.4 8,222.8
3,769.4 Dividend paid (3,925.0)
- (3,925.0)
- Cash balance after dividend payment
4,297.8 3,769.4 4,297.8
3,769.4
(1) EBITDA is a non-GAAP financial measure. See page 14 for the
reconciliation and an explanation of how we calculate Adjusted
EBITDA to net income.(2) The impact from the movement of reporting
currency (TRY) against local currencies of subsidiaries in other
countries is included in these lines.(*) Excluding license fees
Operational Review in Turkey
Summary of Operational data Q215
Q216 y/y % Number of subscribers
35.5 34.5 (2.8%) Mobile Postpaid (million)
15.9 16.8 5.7% Mobile M2M (million) 1.7 2.0 17.6% Mobile Prepaid
(million) 18.1 15.8 (12.7%) Fiber (thousand) 817.6 965.4 18.1% ADSL
(thousand) 528.0 675.2 27.9% IPTV (thousand) 139.0 303.0 118.0%
Churn (%) Mobile Churn (%) 8.0% 8.0% - Fixed churn (%) 4.2%
5.1% 0.9%
ARPU (Average Monthly Revenue per User) Mobile
ARPU, blended (TRY) 24.0 25.7 7.1% Postpaid 38.0 37.7 (0.8%)
Postpaid (excluding M2M) 42.1 42.3 0.5% Prepaid 12.2 13.3 9.0%
Fixed Residential ARPU, blended (TRY) 47.9 51.3 7.1%
Mobile MOU
(Avg. Monthly Minutes of usage per subs) blended
302.0 323.5 7.1%
In Q216, we continued to focus our efforts on expanding the
value generating customer base and enriching user experience
through the upsell and cross-sell of our products and services.
On the mobile front, our postpaid customer base grew by 122
thousand quarterly and 956 thousand annual additions to 16.8
million, amounting to 51.6% (46.7%) of the total. Meanwhile, lower
value generating customers mainly from the more price sensitive
prepaid segment declined in parallel to our expectations, which led
the overall mobile customer base to fall by 763 thousand to 32.6
million.
The fixed customer base has exceeded 1.6 million with 59
thousand quarterly net additions, of which 30 thousand were fiber
and 29 thousand were ADSL subscribers. On an annual basis, we
recorded 295 thousand fixed customers; 148 thousand were fiber and
147 thousand were ADSL customers. IPTV customers reached 303
thousand on 35 thousand quarterly net additions. Annually IPTV
customers increased by 164 thousand. In total, mobile TV has been
downloaded by 1.8 million users to date.
Mobile churn remained at 8.0% (8.0%) year-on-year, while fixed
churn was slightly higher at 5.1% (4.2%).
Mobile blended ARPU rose by 7.1% with our upsell strategy, focus
on high value customer groups, as well as increased package
penetration. Triple play ratio, which includes voice, data and
services users, reached 20%1 and contributed to the ARPU uplift.
Meanwhile, consumer segment ARPU rose by 11% reflecting our value
focused customer acquisitions and inflationary pricing
strategy.
Fixed ARPU rose 7.1% on increased multiplay customers with TV2
to 33% of total residential fiber customers in addition to
implementation of inflationary pricing strategy.
Mobile MoU rose by 7.1% driven by our increased postpaid base
and upsell efforts.
Smartphone penetration on our network reached 60% with 904
thousand quarterly net additions. Accordingly, there were 17.5
million smartphones on our network at quarter end, with 46% being
4.5G enabled.
(1) Breakdown among mobile voice users which excludes
subscribers who do not use their line in the last 3 months(2)
Multiplay customers with TV: Internet + TV users & internet +
TV + voice users
TURKCELL INTERNATIONAL
lifecell* Financial Data Quarter
Half Year Q215 Q216 y/y%
H115 H116 y/y% Revenue
(million UAH) 1,075.6 1,152.2
7.1% 2,134.7 2,284.8
7.0% EBITDA (million UAH) 324.3 304.1 (6.2%) 651.8 660.2
1.3%
EBITDA margin (UAH) 30.2% 26.4%
(3.8pp) 30.5% 28.9% (1.6pp) Net income
/ loss (million UAH) 1,776.7 1,178.3 (33.7%) (3,853.3) 1,110.7 n.m.
Capex (million UAH) 1,530.1
562.5 (63.2%) 5,151.7
1,019.4 (80.2%) Revenue (million TRY) 133.5
131.0 (1.9%) 259.5 259.5 -
EBITDA (million TRY)
40.3 34.5 (14.4%) 79.3 74.9
(5.5%) EBITDA margin (TRY) 30.2% 26.4% (3.8pp) 30.6% 28.9%
(1.7pp)
Net income / loss (million TRY) 209.6
128.6 (38.6%) (465.6)
120.2 n.m.
(*) Since July 10, 2015, we hold a 100% stake in lifecell.
lifecell revenues grew by 7.1% in local currency terms,
almost doubling mobile broadband revenues on the back of 3G+
services. As a new revenue line, lifecell has started to offer its
subscribers a portfolio of terminals that includes data packages.
lifecell’s EBITDA fell 6.2% in local currency terms with an EBITDA
margin of 26.4% (30.2%), due to higher network related costs of the
3G+ roll-out and operational leasing expense post the tower related
sale and leaseback transaction in April 2016, and higher marketing
expenses driven by rebranding activities.
Although UAH appreciated during the quarter, devaluation on a
year-on-year basis led to a 1.9% year-on-year decline in lifecell’s
revenues in TRY terms, while EBITDA declined by 14.4%.
lifecell has continued its 3G+ network roll-out, leading the
market by the number of districts covered. By providing the fastest
3G speed of 63.3 Mbps in Ukraine with 3-carrier technology,
lifecell subscribers’ 3G+ adoption has continued, reaching 2.7
million (three-month active). Further, with 52% smartphone
penetration, data usage per subscriber has more than doubled post
introduction of 3G+.
lifecell* Operational Data Q215
Q216 y/y% Number of subscribers
(million)1 14.0 12.9
(7.9%) Active (3 months)2 10.6 9.7 (8.5%)
MOU (minutes)
(12 months) 152.8 138.9 (9.1%)
ARPU (Average Monthly Revenue per
User), blended (UAH)
26.0 29.3 12.7% Active (3 months) (UAH)
34.5 38.2 10.7%
(1) We may occasionally offer campaigns and tariff schemes that
have an active subscriber life differing from the one that we
normally use to deactivate subscribers and calculate churn.(2)
Active subscribers are those who in the past three months made a
revenue generating activity.(*) Since July 10, 2015, we hold a 100%
stake in lifecell.
In Q216, lifecell’s three-month active subscriber base declined
to 9.7 million on 678 thousand quarterly net losses. This was
mainly due to decreasing multiple SIM card usage.
Blended ARPU (3-month active) rose by 10.7% driven by increased
mobile broadband usage. MoU (12-month active) fell by 9.1% due to
changing consumer behavior.
BeST* Quarter Half Year
Q215 Q216 y/y%
H115 H116 y/y% Number of
subscribers (million)1 1.4 1.6
14.3% 1.4 1.6 14.3% Active (3 months)
1.1 1.1 - 1.1 1.1 -
Revenue (billion BYR) 190.3 238.1 25.1%
366.8 469.0 27.9% EBITDA (billion BYR) 4.2 7.6
81.0% 4.6 11.4 147.8%
EBITDA margin (BYR) 2.2%
3.2% 1.0pp 1.3% 2.4% 1.1pp Net
loss (billion BYR) (643.4) (127.5) n.m. (2,806.9) (224.7) n.m.
Capex (billion BYR) 22.3 17.3
(22.4%) 42.5 51.2
20.5% Revenue (million TRY) 34.1 34.8 2.1% 64.1 67.5 5.3%
EBITDA (million TRY) 0.8 1.1 37.5%
0.8 1.7 112.5% EBITDA margin (TRY) 2.2% 3.2%
1.0pp 1.3% 2.5% 1.2pp
Net loss (million TRY) (115.0)
(18.6) n.m. (493.4) (32.3) n.m.
Capex (million TRY) 3.9 2.6 (33.3%) 7.5
7.4 (1.3%)
(1) Starting from Q116, subscriber figure for BeST includes
suspended subscriptions whose contracts are still in place. All
figures presented in this document for prior periods have been
restated to reflect this change.(*)BeST, in which we hold an 80%
stake, has operated in Belarus since July 2008.
BeST registered solid year-on-year revenue growth of
25.1% in Q216 in local currency terms mainly with increased voice
revenues and terminal revenues on the back of higher smartphone
sales. The EBITDA margin improved by 1.0pp to 3.2% (2.2%), mainly
driven by top-line growth and better operational expense
management.
In TRY terms, performance remained impacted by yearly local
currency devaluation. Revenues rose by 2.1% to TRY35 million (TRY34
million), while EBITDA improved to TRY1.1 million (TRY0.8
million).
KKTCELL (million TRY)* Quarter Half
Year Q215 Q216 y/y%
H115 H116 y/y% Number of
subscribers (million)1 0.5 0.5 -
0.5 0.5 - Revenue 32.8 33.7 2.7% 64.2 66.1
3.0%
EBITDA 13.0 12.8 (1.5%)
25.3 24.1 (4.7%) EBITDA margin 39.8% 38.0%
(1.8pp) 39.4% 36.4% (3.0pp)
Net income 7.9
10.9 38.0% 14.7 17.0 15.6% Capex
5.5 4.4 (20.0%) 6.7 7.3
9.0%
(1) Starting from Q116, subscriber figure for KKTCELL includes
M2M subscriptions as well. All figures presented in this document
for prior periods have been restated to reflect this change.(*)
KKTCELL, in which we hold a 100% stake, has operated in Northern
Cyprus since 1999.
KKTCELL’s revenues grew by 2.7% year-on-year reflecting
strong mobile broadband growth driven by higher data demand. EBITDA
declined 1.5% leading to an EBITDA margin of 38.0% (39.8%). This
was mainly due to regulatory amendment regarding the termination
rates and additional frequency fees.
Fintur’s consolidated revenues declined by 43.4% in Q216.
Ongoing competitive pressure in Kazakhstan led to decreased Kcell
revenues. Year-on-year currency devaluation also impacted Kcell and
Azercell revenues negatively. Fintur subscribers declined by 100
thousand during Q216 to 16.7 million mainly due to Kcell subscriber
decline. Fintur had a negative contribution of US$3 million (US$35
million positive contribution) to Group net income in Q216. This
was mainly due to the year-on-year devaluation impact on reported
figures, revenue pressure in Kazakhstan and Azerbaijan and higher
operational tax costs in the region.
Fintur* Quarter Half Year
Q215 Q216 y/y%
H115 H116 y/y% Subscribers
(million)1 17.8 16.7 (6.2%)
17.8 16.7 (6.2%) Kazakhstan 10.8 9.7 (10.2%)
10.8 9.7 (10.2%) Azerbaijan 4.2 4.1 (2.4%) 4.2 4.1 (2.4%) Moldova
0.9 0.9 - 0.9 0.9 - Georgia 2.0 1.9 (5.0%) 2.0 1.9 (5.0%)
Revenue (million US$) 373 211 (43.4%)
760 404 (46.8%) Kazakhstan 231 109 (52.8%) 464
209 (55.0%) Azerbaijan 101 64 (36.6%) 214 123 (42.5%) Moldova 18 15
(16.7%) 33 28 (15.2%) Georgia 23 23 - 48 44 (8.3%)
Fintur’s contribution to Group’s
net income
35 (3) (108.6%)
74 3 (95.9%)
(1) Telia Company disclosed a change to the definition of
prepaid mobile subscription for all countries of operations in its
Q115 results announcement on April 21, 2015. Prepaid subscriptions
are counted if the subscriber has been active during the last three
months. In line with Telia Company’s reporting, we disclose Fintur
operations’ subscriber numbers as three-month active. Prior periods
are restated accordingly.(*) We hold a 41.45% stake In Fintur,
which has interests in Kazakhstan, Azerbaijan, Moldova and
Georgia.
Turkcell Group Subscribers
Turkcell Group subscribers amounted to approximately 66.5
million as of June 30, 2016. This figure is calculated by taking
the number of subscribers of Turkcell Turkey and each of our
subsidiaries and unconsolidated investees. It includes the total
number of mobile, fiber, ADSL and IPTV subscribers of Turkcell
Turkey, the mobile subscribers of lifecell and BeST, as well as
KKTCELL, Turkcell Europe and Fintur.
Turkcell Group Subscribers Q215
Q216 y/y % Mobile Postpaid (million) 15.9 16.8
5.7% Mobile Prepaid (million) 18.1 15.8 (12.7%) Fiber (thousand)
817.6 965.4 18.1% ADSL (thousand) 528.0 675.2 27.9% IPTV (thousand)
139.0 303.0 118.0%
Turkcell Turkey subscribers
(million)1 35.5 34.5 (2.8%) Ukraine
14.0 12.9 (7.9%) Belarus2 1.5 1.6 6.7% KKTCELL3 0.5 0.5 - Turkcell
Europe4 0.3 0.3 -
Consolidated Subscribers (million)
51.7 49.8 (3.7%) Fintur5 17.8 16.7 (6.2%)
Turkcell Group Subscribers* (million) 69.5
66.5 (4.3%)
(*) Turkcell Group subscribers figure includes the subscriber
figures of our non-consolidated subsidiaries.(1) Subscribers to
more than one service are counted separately for each service.(2)
Starting from Q116, subscriber figure for BeST includes suspended
subscriptions whose contracts are still in place. All figures
presented in this document for prior periods have been restated to
reflect this change.(3) Starting from Q116, subscriber figure for
KKTCELL includes M2M subscriptions as well. All figures presented
in this document for prior periods have been restated to reflect
this change.(4) The “wholesale traffic purchase” agreement, signed
between Turkcell Europe GmbH operating in Germany and Deutsche
Telekom for five years in 2010, had been modified to reflect the
shift in business model to a “marketing partnership”. The new
agreement between Turkcell and a subsidiary of Deutsche Telekom was
signed on August 27, 2014. The transfer of Turkcell Europe
operations to Deutsche Telekom’s subsidiary was completed on
January 15, 2015. Subscribers are still included in the Turkcell
Group Subscriber figure.(5)Telia Company disclosed a change to the
definition of prepaid mobile subscription for all countries of
operations in its Q115 results announcement on April 21, 2015.
Prepaid subscriptions are counted if the subscriber has been active
during the last three months. In line with Telia Company’s
reporting, we disclose Fintur operations’ subscriber numbers as
three-month active. Prior periods are restated accordingly.
OVERVIEW OF THE MACROECONOMIC ENVIRONMENT
The foreign exchange rates used in our financial reporting,
along with certain macroeconomic indicators, are set out below.
Quarter Half Year Q215
Q116 Q216 y/y%
q/q% H115 H116
y/y% US$ / TRY rate Closing Rate 2.6863 2.8334 2.8936
7.7% 2.1% 2.6863 2.8936 7.7% Average Rate 2.6571 2.9202 2.8736 8.1%
(1.6%) 2.5602 2.8969 13.2%
EUR / TRY rate Closing Rate
2.9822 3.2081 3.2044 7.5% (0.1%) 2.9822 3.2044 7.5% Average Rate
2.9171 3.2172 3.2292 10.7% 0.4% 2.8553 3.2232 12.9%
Consumer
Price Index (Turkey) 1.7% 1.8% 1.8%
0.1pp - 4.8% 3.6% (1.2pp) GDP
Growth (Turkey) 3.7% 4.8% n.a n.a
n.a 3.1% n.a n.a US$ / UAH rate
Closing Rate 21.02 26.22 24.85 18.2% (5.2%) 21.02 24.85 18.2%
Average Rate 21.44 25.77 25.30 18.0% (1.8%) 21.31 25.53 19.8%
US$ / BYR rate Closing Rate 15,346 20,133 20,053 30.7%
(0.4%) 15,346 20,053 30.7% Average Rate 14,801 20,552
19,698 33.1% (4.2%) 14,665
20,125 37.2%
RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We
believe Adjusted EBITDA, among other measures, facilitates
performance comparisons from period to period and management
decision making. It also facilitates performance comparisons from
company to company. Adjusted EBITDA as a performance measure
eliminates potential differences caused by variations in capital
structures (affecting interest expense), tax positions (such as the
impact of changes in effective tax rates on periods or companies)
and the age and book depreciation of tangible assets (affecting
relative depreciation expense). We also present Adjusted EBITDA
because we believe it is frequently used by securities analysts,
investors and other interested parties in evaluating the
performance of other mobile operators in the telecommunications
industry in Europe, many of which present Adjusted EBITDA when
reporting their results.
Our Adjusted EBITDA definition includes Revenue, Direct Cost of
Revenue excluding depreciation and amortization, Selling and
Marketing expenses and Administrative expenses, but excludes
translation gain/(loss), finance income, share of profit of equity
accounted investees, gain on sale of investments, income/(loss)
from related parties, minority interest and other
income/(expense).
Nevertheless, Adjusted EBITDA has limitations as an analytical
tool, and you should not consider it in isolation from, or as a
substitute for analysis of, our results of operations, as reported
under IFRS. The following table provides a reconciliation of
Adjusted EBITDA, as calculated using financial data prepared in
accordance with IFRS as issued by the IASB, to net profit, which we
believe is the most directly comparable financial measure
calculated and presented in accordance with IFRS as issued by the
IASB.
Turkcell Group (million TRY) Quarter
Half Year Q215 Q216 y/y%
H115 H116 y/y%
Adjusted EBITDA 994.8 1,029.3 3.5%
1,921.7 2,030.8 5.7% Finance income 175.2
162.5 (7.2%) 427.5 383.7 (10.2%) Finance costs 221.9 (140.7)
(163.4%) (513.8) (195.7) (61.9%) Other income / (expense) (123.4)
13.8 n.m. (176.4) 2.7 n.m. Share of profit of equity accounted
investees 94.0 (7.9) (108.4%) 188.8 7.3 (96.1%) Depreciation and
amortization (409.5) (567.1) 38.5% (803.9) (1,021.9) 27.1%
Consolidated profit before income tax
& minority interest
953.0 489.9 (48.6%) 1,043.9
1,206.9 15.6% Income tax expense (140.5) (62.2)
(55.7%) (374.7) (205.6) (45.1%)
Consolidated profit before
minority interest 812.5 427.7
(47.4%) 669.2 1,001.3
49.6%
FORWARD-LOOKING STATEMENTS: This release includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act
of 1934 and the Safe Harbor provisions of the US Private Securities
Litigation Reform Act of 1995. This includes, in particular, our
targets for revenue, EBITDA and capex in 2016 and our 4.5G
development in Turkey and our three year outlook regarding adequacy
of funding. More generally, all statements other than statements of
historical facts included in this press release, including, without
limitation, certain statements regarding our operations, financial
position and business strategy may constitute forward-looking
statements. In addition, forward-looking statements generally can
be identified by the use of forward-looking terminology such as,
among others, "will," "expect," "intend," "estimate," "believe",
"continue" and “guidance”.
Although Turkcell believes that the expectations reflected in
such forward-looking statements are reasonable at this time, it can
give no assurance that such expectations will prove to be correct.
All subsequent written and oral forward-looking statements
attributable to us are expressly qualified in their entirety by
reference to these cautionary statements. For a discussion of
certain factors that may affect the outcome of such forward looking
statements, see our Annual Report on Form 20-F for 2015 filed with
the U.S. Securities and Exchange Commission, and in particular the
risk factor section therein. We undertake no duty to update or
revise any forward looking statements, whether as a result of new
information, future events or otherwise.
ABOUT TURKCELL: Turkcell is a converged telecommunication
and technology services provider, founded and headquartered in
Turkey. It serves its customers with voice, data, TV and
value-added consumer and enterprise services on mobile and fixed
networks. Turkcell launched LTE services in its home country on
April 1st, 2016, employing LTE-Advanced and 3 carrier aggregation
technologies in 81 cities. In 2G and 3G, Turkcell’s population
coverage is at 99.80% and 95.14%, respectively, as of June 2016. It
offers up to 1 Gbps fiber internet speed with its FTTH services.
Turkcell Group companies serve 66.5 million subscribers in 9
countries – Turkey, Ukraine, Belarus, Northern Cyprus, Germany,
Azerbaijan, Kazakhstan, Georgia, Moldova – as of June 30, 2016.
Turkcell Group reported a TRY3.4 billion revenue with total assets
of TRY28.6 billion as of June 30, 2016. It has been listed on the
NYSE and the BIST since July 2000, and is the only NYSE-listed
company in Turkey. Read more at www.turkcell.com.tr
This press release can also be viewed using the Turkcell
Investor Relation app, which can be downloaded
here for iOS,
and here for Android mobile
devices.
Appendix A – Tables
Table: Translation gain and loss details
Million TRY Quarter Half Year
Q215 Q216 y/y %
H115 H116 y/y % Turkcell Turkey
96.6 (20.2) (120.9%) 404.8 (27.1) (106.7%) Turkcell International
164.3 (4.0) (102.4%) (843.9) (0.8) (99.9%) Other Subsidiaries 0.2
0.1 (50.0%) 1.9 (1.5) (178.9%)
Turkcell Group
261.1 (24.1) (109.2%)
(437.2) (29.4) (93.3%)
Table: Income tax expense details
Million TRY Quarter Half Year
Q215 Q216 y/y %
H115 H116 y/y % Current Tax
expense (145.2) (37.0) (74.5%) (397.1) (150.6) (62.1%) Deferred Tax
Income/expense 4.7 (25.2) (636.2%) 22.4 (55.0) (345.5%)
Income
Tax expense (140.5) (62.2)
(55.7%) (374.7) (205.6)
(45.1%)
Table: Reconciliation of proforma net income to net income
per IFRS
Group net income:
Net income impacts (million TRY)
Q215 Net income impacts (million TRY)
Q216 Proforma net income
569 Proforma net income 542 FX impact (net off
tax and minority interest) 132 FX impact (net off tax) (20)
Interest income (net off tax) 34 Interest income (net off tax) 6
Interest expense (net off tax) (22) Interest expense (net off tax)
(55)
One-off impacts (net off tax) One-off impacts
(net off tax) Commercial agreement terminations (112)
4.5G license depreciation (81) Fintur contribution 89 Fintur
contribution (7) Other impacts 22 Other impacts 31
Net income -
IFRS 712 Net income -IFRS
416 Net income impacts (million
TRY) H115 Net
income impacts (million TRY) H116
Proforma net income 1,062 Proforma net
income 1,118 FX impact (net off tax and minority
interest) (334) FX impact (net off tax) (24) Interest income (net
off tax) 141 Interest income (net off tax) 20 Interest expense (net
off tax) (43) Interest expense (net off tax) (88)
One-off
impacts (net off tax) One-off impacts (net off tax)
Commercial agreement terminations (112) 4.5G license
depreciation (99) Fintur contribution 179 Fintur contribution 7
Other impacts (40) Other impacts 45
Net income - IFRS
853 Net income - IFRS
979
Turkcell Turkey net income:
Net income impacts (million TRY)
Q215 Net income impacts (million TRY)
Q216 Proforma net income
567 Proforma net income 513 FX impact (net off
tax) 77 FX impact (net off tax) (16) Interest income (net off tax)
34 Interest income (net off tax) 6 Interest expense (net off tax)
(6) Interest expense (net off tax) (43)
One-off impacts
(net off tax) One-off impacts (net off tax)
Commercial agreement terminations (112) 4.5G license amortization
(81) Other impacts 26 Other impacts 34
Net income - IFRS
586 Net income
-IFRS 413 Net income impacts
(million TRY) H115
Net income impacts (million TRY)
H116 Proforma net income 1,058
Proforma net income 1,074 FX impact (net off tax) 324
FX impact (net off tax) (22) Interest income (net off tax) 141
Interest income (net off tax) 20 Interest expense (net off tax)
(15) Interest expense (net off tax) (66)
One-off impacts
(net off tax) One-off impacts (net off tax)
Commercial agreement terminations (112) 4.5G license amortization
(99) Other impacts (34) Other impacts 42
Net income - IFRS
1,362 Net income - IFRS
949
TURKCELL ILETISIM HIZMETLERI
A.S.IFRS SELECTED FINANCIALS (TRY Million)
Quarter Ended Quarter Ended Quarter
Ended Half Ended Half Ended June 30,
March 31, June 30, June 30, June 30,
2015
2016
2016
2015
2016
Consolidated Statement of Operations Data
Turkcell Turkey 2,786.3 2,927.5 3,008.2 5,448.5 5,935.7 Consumer
2,208.1 2,337.9 2,385.0 4,332.5 4,722.9 Corporate 501.2 524.5 539.5
983.9 1,064.0 Other 77.0 65.1 83.7 132.1 148.8 Turkcell
International 204.7 196.9 203.8 397.6 400.7 Other 101.9 101.0 146.1
225.0 247.1 Total revenues 3,092.9 3,225.4 3,358.1 6,071.1 6,583.5
Direct cost of revenues (1,898.3) (2,018.8) (2,236.9)
(3,726.9) (4,255.7) Gross profit 1,194.6 1,206.6
1,121.2 2,344.2 2,327.8 Administrative expenses (150.4) (178.7)
(175.8) (291.2) (354.5) Selling & marketing expenses (458.9)
(481.2) (483.2) (935.2) (964.4) Other Operating Income / (Expense)
(123.4) (11.1) 13.8 (176.4) 2.7
Operating profit before financing costs 461.9 535.6 476.0 941.4
1,011.6 Finance costs 221.9 (55.0) (140.7) (513.8) (195.7) Finance
income 175.2 221.2 162.5 427.5 383.7 Share of profit of equity
accounted investees 94.0 15.2 (7.9) 188.8
7.3 Income before taxes and minority interest 953.0 717.0
489.9 1,043.9 1,206.9 Income tax expense (140.5) (143.4)
(62.2) (374.7) (205.6) Income before minority
interest 812.5 573.6 427.7 669.2 1,001.3 Non-controlling interests
(100.5) (10.9) (11.6) 183.9 (22.5) Net
income 712.0 562.7 416.1 853.1 978.8
Net income per share 0.33 0.26 0.19 0.39 0.44
Other Financial Data Gross margin 38.6% 37.4% 33.4%
38.6% 35.4% EBITDA(*) 994.8 1,001.5 1,029.3 1,921.7 2,030.8 Capital
expenditures 957.4 738.4 879.6 1,712.9 1,618.0
Consolidated Balance Sheet Data (at period end) Cash and
cash equivalents 4,297.8 2,522.4 3,769.4 4,297.8 3,769.4 Total
assets 20,661.4 26,175.2 28,595.3 20,661.4 28,595.3 Long term debt
611.7 3,373.2 6,209.1 611.7 6,209.1 Total debt 4,014.2 4,028.3
7,307.2 4,014.2 7,307.2 Total liabilities 7,162.8 11,273.4 13,245.5
7,162.8 13,245.5 Total shareholders’ equity / Net Assets 13,498.6
14,901.8 15,349.8 13,498.6 15,349.8 (*) Please refer
to the notes on reconciliation of Non-GAAP Financial measures on
page 14
(**) For further details, please refer to
our consolidated financial statements and notes as at 30 June 2016
on our web site.
TURKCELL ILETISIM HIZMETLERI
A.S.TURKISH ACCOUNTING STANDARDS SELECTED FINANCIALS (TRY
Million)
Quarter Ended Quarter Ended Quarter
Ended Half Ended Half Ended June 30,
March 31, June 30, June 30, June 30,
2015
2016
2016
2015
2016
Consolidated Statement of Operations Data
Turkcell Turkey 2,786.3 2,927.5 3,008.2 5,448.5 5,935.7 Consumer
2,208.1 2,337.9 2,385.0 4,332.5 4,722.9 Corporate 501.2 524.5 539.5
983.9 1,064.0 Other 77.0 65.1 83.7 132.1 148.8 Turkcell
International 204.7 196.9 203.8 397.6 400.7 Other 101.9
101.0 146.1 225.0 247.1 Total revenues 3,092.9
3,225.4 3,358.1 6,071.1 6,583.5 Direct cost of revenues (1,897.2)
(2,018.3) (2,236.1) (3,725.2) (4,254.4)
Gross profit 1,195.7 1,207.1 1,122.0 2,345.9 2,329.1 Administrative
expenses (150.4) (178.7) (175.8) (291.2) (354.5) Selling &
marketing expenses (458.9) (481.2) (483.2) (935.2) (964.4) Other
Operating Income / (Expense) 153.0 220.4 145.2
722.9 365.7 Operating profit before financing and investing
costs 739.4 767.6 608.2 1,842.4 1,375.9 Income from investing
activities 2.1 9.3 (0.6) 5.7 8.6 Expense from investing activities
(4.5) (7.0) (6.1) (26.9) (13.1) Share of profit of equity accounted
investees 94.0 15.2 (7.9) 188.8 7.3
Income before financing costs 831.0 785.1 593.6 2,010.0 1,378.7
Finance expense 122.7 (67.6) (103.4) (964.8)
(171.0) Income before tax and non-controlling interest 953.7
717.5 490.2 1,045.2 1,207.7 Income tax expense (140.8)
(143.5) (62.4) (375.1) (205.9) Income before
non-controlling interest 812.9 574.0 427.8 670.1 1,001.8
Non-controlling interest (100.4) (10.9) (11.6)
184.0 (22.5) Net income 712.5 563.1 416.2 854.1 979.3
Net income per share 0.33 0.26 0.19 0.39 0.45
Other
Financial Data Gross margin 38.7% 37.4% 33.4% 38.6%
35.4% EBITDA(*) 994.8 1,001.5 1,029.3 1,921.7 2,030.8 Capital
expenditures 957.4 738.4 879.6 1,712.9 1,618.0
Consolidated Balance Sheet Data (at period end) Cash and
cash equivalents 4,297.8 2,522.4 3,769.4 4,297.8 3,769.4 Total
assets 20,636.8 26,152.6 28,572.9 20,636.8 28,572.9 Long term debt
611.7 3,373.2 6,209.1 611.7 6,209.1 Total debt 4,014.2 4,028.3
7,307.2 4,014.2 7,307.2 Total liabilities 7,159.4 11,270.1 13,242.2
7,159.4 13,242.2 Total shareholders’ equity / Net Assets 13,477.5
14,882.5 15,330.7 13,477.5 15,330.7
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