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”). All non-financial data is unconsolidated and comprises
Turkcell only figures. The terms "we", "us", and "our" in this press
release refer only to the Company, except in discussions of financial
data, where such terms refer to the Group, and where context otherwise
requires.
-
In this press release, a year-on-year comparison of our key indicators
is provided and figures in parentheses following the operational and
financial results for June 30, 2014 refer to the same item as at June
30, 2013. For further details, please refer to our consolidated
financial statements and notes as at and for June 30, 2014, which can
be accessed on our website in the investor relations section (www.turkcell.com.tr).
-
Please note that selected financial information presented in this
press release for the second quarter of 2013, and the first and second
quarters of 2014, both in TRY and US$, is based on IFRS figures.
-
In the tables used in this press release totals may not foot due to
rounding differences. The same applies for the calculations in the
text.
HIGHLIGHTS OF THE SECOND QUARTER OF 2014
-
Group revenues grew by 2.4% to TRY2,923 million (TRY2,855 million).
This was impacted by regulatory changes in the Turkish mobile market
such as mobile termination rate (MTR) and SMS maximum price cuts
compared to a year ago, the lower contribution from our Ukrainian
business due to devaluation, and a one-off item of TRY26 million.
-
Group EBITDA1 rose by 4% to TRY907 million (TRY869
million), while the EBITDA margin increased to 31.0% (30.4%).
-
Group net income declined to TRY492 million (TRY556 million),
adversely impacted by devaluation of the UAH against the US$ in
Ukraine and one-off items totaling TRY119 million.
-
Mobile business revenues in Turkey were TRY2,296 million (TRY2,318
million) with a 30.9% (30.1%) EBITDA margin.
-
Mobile broadband revenues rose by 28% to TRY434 million (TRY340
million).
-
Voice revenues2 declined by 3% to TRY1,607 million
(TRY1,664 million), due to the continued impact of regulatory
decisions.
-
Revenues of subsidiaries3 grew by 17% to TRY627 million
(TRY537 million), while EBITDA increased by 16% to TRY198 million
(TRY171 million).
Excluding the impact of MTR cuts effective as of July 1, 20134
and one-off impacts5:
-
Turkcell Group revenues would be TRY3,055 million on 7% growth.
-
Mobile business revenues in Turkey would be TRY2,428 million on 5%
growth, with a 4% rise in voice revenues.
-
Group EBITDA would be TRY934 million on 7% growth.
-
Net income would be TRY612 million.
-
In Q214, one-off items with a total impact of TRY119 million
included:
-
The reimbursement decision of the ICTA with a revenue and
EBITDA impact of TRY26 million, and net income impact of TRY21
million after tax
-
An administrative fine imposed by the Ministry of Industry and
Trade in relation to service subscriptions and content sales,
having a net income impact of TRY68 million
-
An administrative fine imposed by the Competition Board
regarding vehicle tracking systems, having a net income impact
of TRY30 million
(1) EBITDA is a non-GAAP financial measure. See page 12 for the
reconciliation of EBITDA to net cash from operating activities.
(2)
Voice revenues include outgoing, incoming, roaming and other (comprising
almost 1% of Turkcell Turkey) revenues.
(3) Including eliminations.
(4)
The adjusted figures are non-IFRS measures.
(5) See page 7 for the
reconciliation of one-off items.
(*)For further details, please
refer to our consolidated financial statements and notes as at and for
June 30, 2014 which can be accessed on our web site in the investor
relations section (www.turkcell.com.tr).
COMMENTS FROM CEO, SUREYYA CILIV
“In the second quarter of 2014, Turkcell Group revenues rose 2.4% to
TRY2.9 billion and EBITDA grew by 4% to TRY907 million. Meanwhile, EBIT
increased by 4% to TRY521 million, with net income of TRY492 million.
In
this quarter, several factors adversely impacted our financials. These
included regulatory decisions, devaluation in Ukraine and one-offs. Yet
our growth continued with the contribution of mobile broadband revenues,
up 28%, and Turkcell Superonline, which posted 39% growth year-on-year.
Overall, the Group posted 4% growth in the first half. For the second
half of 2014, we are targeting higher growth rates and maintaining our
guidance for the year-end.
We continue to ease and enrich our
customers’ lives through sustained investments in technology and
innovation. In line with this vision, we introduced the “T50,” Turkey’s
first 4G smartphone. Furthermore, the T-Fit, our first wearable smart
wrist-band, will shortly be on sale. With this device our customers will
be able to track a range of information for a healthier lifestyle. As
Turkcell, we will continue to differentiate ourselves in the market
through our focus on quality and innovative products and services.
We
thank all of our customers, employees, business partners, board of
directors, and shareholders, who have enabled us to become Turkey’s
largest private corporate taxpayer, and contribute further to the
economy”
OVERVIEW OF TURKCELL TURKEY
In the second quarter, competition in the Turkish mobile market
accelerated. All operators consecutively launched offers at lower prices
compared to the previous quarter, while increasing incentives.
Competition remained particularly focused on offering further data
incentives as part of bundled offers. This, together with seasonally
higher minutes of usage, led to a further decrease in unit prices,
pressuring overall market profitability. Further, we observed the
continued impact of last year’s minimum on-net voice and SMS price
decision, as well as MTR and SMS maximum price cuts on overall market
growth and competitive dynamics.
As Turkcell Turkey, we remained focused on maintaining our valuable
customer base. Accordingly, our postpaid subscriber base expanded by 404
thousand additions to 14.5 million. Reaching a 41.9% share in total
subscriber base, 2.1pp higher year-on-year, our postpaid subscribers
generated 69% of mobile revenues in Turkey. Overall, our subscriber base
declined 157 thousand to 34.6 million during the quarter, driven by
losses mainly from the more price-sensitive prepaid segment.
We continued to differentiate ourselves through innovative services and
technological solutions. With the recent launch of our “Connected Car
Platform”, a first for Turkey, Turkcell strengthened its position as
Turkey’s leading M2M solutions provider. Furthermore, our
Turkcell-branded application portfolio expanded with the addition of
“Super SmallBiz” targeting small businesses and “Turkcell My Child and
Me” for parents. While enriching our customers’ lives, these products
contribute to our mobile broadband revenues through higher smartphone
usage.
On the terminal front, smartphones on our network reached 10.9 million
with 676 thousand quarterly additions, indicating 35% penetration.
Supporting our strategy of increasing smartphone penetration in Turkey
through affordable devices, we recently introduced the seventh T-Series
smartphone, the T50, which is compatible with LTE and Dual carrier
technologies. We believe the accelerated demand for the T50 confirms the
success of our own-branded smartphone strategy. And supplementary to our
smart device portfolio we launched T-Fit, a smart wristband.
For the second half of the year, we expect similar competitive and macro
conditions in our markets of operation. Meanwhile, negative impact of
MTR cuts on our growth rate will not exist as MTR rates will be
comparable on a year on year basis. In this environment we target higher
growth in the second half. Accordingly, we maintain our revenue and
EBITDA guidance for the year-end as TRY12,000 million – TRY12,200
million and TRY3,700 million – TRY3,800 million, respectively*.
(*)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 2013 filed with U.S. Securities
and Exchange Commission, and in particular, the risk factor section
therein.
FINANCIAL AND OPERATIONAL REVIEW OF THE SECOND QUARTER 2014
The following discussion focuses principally on the developments and
trends in our business in the second quarter of 2014 in TRY terms.
Selected financial information presented in this press release for the
second quarter of 2013, and the first and second quarters of 2014, both
in TRY and US$, is based on IFRS figures.
Selected financial information for the second quarter of 2013, and the
first and second quarters of 2014, both in TRY and in US$ prepared in
accordance with IFRS, and in TRY prepared in accordance with the Capital
Markets Board of Turkey’s standards, are also included at the end of
this press release.
Financial Review of Turkcell Group
|
Profit & Loss Statement (million TRY)
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
Total Revenue
|
|
2,855.2
|
|
2,855.2
|
|
2,923.0
|
|
2.4%
|
|
2.4%
|
|
Direct cost of revenues1
|
|
(1,771.3)
|
|
(1,742.3)
|
|
(1,789.2)
|
|
1.0%
|
|
2.7%
|
|
Direct cost of revenues1/revenues
|
|
(62.0%)
|
|
(61.0%)
|
|
(61.2%)
|
|
0.8pp
|
|
(0.2pp)
|
|
Depreciation and amortization
|
|
(366.8)
|
|
(399.6)
|
|
(386.2)
|
|
5.3%
|
|
(3.4%)
|
|
Gross Margin
|
|
38.0%
|
|
39.0%
|
|
38.8%
|
|
0.8pp
|
|
(0.2pp)
|
|
Administrative expenses
|
|
(129.0)
|
|
(142.1)
|
|
(135.8)
|
|
5.3%
|
|
(4.4%)
|
|
Administrative expenses/revenues
|
|
(4.5%)
|
|
(5.0%)
|
|
(4.6%)
|
|
(0.1pp)
|
|
0.4pp
|
|
Selling and marketing expenses
|
|
(452.5)
|
|
(483.1)
|
|
(477.2)
|
|
5.5%
|
|
(1.2%)
|
|
Selling and marketing expenses/revenues
|
|
(15.8%)
|
|
(16.9%)
|
|
(16.3%)
|
|
(0.5pp)
|
|
0.6pp
|
|
EBITDA2
|
|
869.2
|
|
887.3
|
|
907.0
|
|
4.3%
|
|
2.2%
|
|
EBITDA Margin
|
|
30.4%
|
|
31.1%
|
|
31.0%
|
|
0.6pp
|
|
(0.1pp)
|
|
EBIT3
|
|
502.4
|
|
487.7
|
|
520.8
|
|
3.7%
|
|
6.8%
|
|
Net finance income / (expense)
|
|
138.8
|
|
(303.3)
|
|
46.6
|
|
(66.4%)
|
|
(115.4%)
|
|
Finance expense
|
|
(30.6)
|
|
(551.9)
|
|
(211.3)
|
|
590.5%
|
|
(61.7%)
|
|
Finance income
|
|
169.4
|
|
248.6
|
|
257.9
|
|
52.2%
|
|
3.7%
|
|
Share of profit of associates
|
|
60.0
|
|
73.6
|
|
73.8
|
|
23.0%
|
|
0.3%
|
|
Other income / (expense)
|
|
(20.8)
|
|
(3.5)
|
|
(92.0)
|
|
342.3%
|
|
n.m.
|
|
Monetary gains / (losses)
|
|
20.3
|
|
64.5
|
|
60.0
|
|
195.6%
|
|
(7.0%)
|
|
Non-controlling interests
|
|
1.5
|
|
200.7
|
|
49.6
|
|
n.m.
|
|
(75.3%)
|
|
Income tax expense
|
|
(145.9)
|
|
(160.2)
|
|
(166.5)
|
|
14.1%
|
|
3.9%
|
|
Net Income
|
|
556.3
|
|
359.5
|
|
492.3
|
|
(11.5%)
|
|
36.9%
|
(1) Including depreciation and amortization expenses.
(2) EBITDA is
a non-GAAP financial measure. See page 12 for the reconciliation of
EBITDA to net cash from operating activities.
(3) EBIT is a
non-GAAP financial measure and is equal to EBITDA minus depreciation and
amortization expenses.
Revenue increased to TRY2,923.0 million (TRY2,855.2 million) on
2.4% growth, driven mainly by:
-
5.5% growth in mobile broadband and services revenues in Turkey to
TRY689.3 million (TRY653.3 million), comprising 30.0% (28.2%) of
mobile business revenues in Turkey
-
27.7% increase in mobile broadband revenues to TRY433.5 million
(TRY339.5 million), despite increased competition in the market
with data bundled offers at lower prices compared to a quarter ago
-
18.5% decline in SMS and mobile service revenues. The decline in
SMS revenues was mainly due to falling demand for SMS, parallel to
industry trends, coupled with the impact of the ICTA decision to
decrease the maximum SMS price by 20%. Mobile services, meanwhile,
were negatively impacted by the regulatory decisions impacting
various consumer segment mobile services, the regulation regarding
mobile POS machines, the SMS MTR cut affecting bulk SMS service
revenues and reimbursement decision of the ICTA.
-
16.7% growth in revenues of subsidiaries to TRY627.2 million (TRY537.5
million) at an increasing contribution to the topline by 21.5% (18.8%)
-
38.9% rise in Turkcell Superonline revenues to TRY309.4 million
(TRY222.7 million)
Group revenues were negatively impacted by a one-off reimbursement in
the amount of TRY26.4 million in relation to the ICTA regulation on
limited usage services*. Furthermore, continued devaluation in Ukraine,
as well as lower MTR rates and decreased SMS maximum price in the
Turkish mobile market compared to a year ago also limited topline growth
in this quarter.
Direct cost of revenues grew by 1.0% to TRY1,789.2 million
(TRY1,771.3 million), while as a percentage of revenues declined to
61.2% (62.0%). This was mainly due to lower interconnect costs as a
result of MTR cuts as opposed to the increase in other cost items as a
percentage of revenues.
The table below presents the interconnect
revenues and costs of Turkcell Turkey:
|
Million TRY
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
Interconnect revenues
|
|
345.8
|
|
253.7
|
|
281.2
|
|
(18.7%)
|
|
10.8%
|
|
as a % of revenues
|
|
14.9%
|
|
11.5%
|
|
12.2%
|
|
(2.7pp)
|
|
0.7pp
|
|
Interconnect costs
|
|
(330.9)
|
|
(241.4)
|
|
(262.7)
|
|
(20.6%)
|
|
8.8%
|
|
as a % of revenues
|
|
(14.3%)
|
|
(11.0%)
|
|
(11.4%)
|
|
2.9pp
|
|
(0.4pp)
|
Administrative expenses as a percentage of revenues rose by 0.1pp
to 4.6% (4.5%) year-on-year in Q214.
Selling and marketing expenses as a percentage of revenues grew
by 0.5pp to 16.3% (15.8%) year-on-year in Q214 due to increased prepaid
frequency usage fee expense (0.2p), wages and salaries (0.2pp) and other
cost items (0.1pp).
EBITDA** increased by 4.3% to TRY907.0 million (TRY869.2 million)
year-on-year, while the EBITDA margin rose to 31.0% (30.4%). This was
driven by the decrease in direct cost of revenues (excluding
depreciation and amortization) by 1.2pp as opposed to the increase in
selling and marketing expenses by 0.5pp and the rise in administrative
expenses by 0.1pp as a percentage of revenues. Meanwhile, the one-off
item of TRY26.4 million discussed in the revenue section reduced EBITDA
this quarter.
The EBITDA of subsidiaries improved by 15.8% to TRY197.9 million
(TRY170.9 million) driven mainly by the increased EBITDA of Turkcell
Superonline.
Net finance income declined by 66.4% to TRY46.6 million
(TRY138.8 million), due to the TRY164.7 million translation loss
recorded in Q214 as opposed to the translation gain of TRY11.8 million
in Q213, despite the rise in interest income recorded on time deposits.
In
Q214, Astelit recorded a translation loss of TRY107.2 million, stemming
from the continued devaluation of the UAH against the US$ during the
quarter. Meanwhile, BeST recorded a TRY40.9 million translation loss,
while Turkcell Superonline recorded a TRY11.6 million and other group
companies recorded a TRY3.0 million translation gain. Turkcell Turkey
recorded a translation loss of TRY31.2 million. In total, Turkcell Group
recorded a TRY164.7 million translation loss.
Share of profit of equity accounted investees comprising our
share in the net income of unconsolidated investees Fintur and A-Tel,
rose by 23.0% year-on-year to TRY73.8 million (TRY60.0 million).
(*)For details, please refer to our consolidated financial statements
and notes as at and for June 30, 2014 under note 21 which can be
accessed on our website.
(**)EBITDA is a non-GAAP financial
measure. See page 12 for the reconciliation of EBITDA to net cash from
operating activities.
Income tax expense details in Q214 are presented in the table
below:
|
Million TRY
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
Current Tax expense
|
|
(149.6)
|
|
(174.0)
|
|
(165.6)
|
|
10.7%
|
|
(4.8%)
|
|
Deferred Tax Income/expense
|
|
3.7
|
|
13.8
|
|
(0.9)
|
|
(124.3%)
|
|
(106.5%)
|
|
Income Tax expense
|
|
(145.9)
|
|
(160.2)
|
|
(166.5)
|
|
14.1%
|
|
3.9%
|
Net income declined by 11.5% to TRY492.3 million (TRY556.3
million) in Q214, mainly due to translation losses recorded during the
quarter, despite higher EBITDA. Both in Q213 and Q214, net income was
impacted by several one-off items. Excluding one-off items, net income
in Q214 would be TRY612.2 million (TRY572.6 million).
In Q214, one-off items included administrative fines imposed by the
Ministry of Industry and Trade in relation to service subscriptions and
content sales, and by the Competition Board regarding vehicle tracking
systems, as well as the reimbursement in relation to the ICTA regulation
on limited usage services.
|
Net income impacts (million TRY)
|
|
Q213
|
|
Net income impacts (million TRY)
|
|
Q214
|
|
|
|
|
|
|
|
|
|
Net income excluding one-offs*
|
|
573
|
|
Net income excluding one-offs*
|
|
612
|
|
Impairment on Aks TV and T Medya**
|
|
(25)
|
|
Ministry of Industry and Trade fine***
|
|
(68)
|
|
Legal provisions**
|
|
9
|
|
Competition Board fine ***
|
|
(30)
|
|
|
|
|
|
ICTA limited usage service reimbursement***
|
|
(21)
|
|
|
|
|
|
MTR impact (net of tax) above EBITDA
|
|
(1)
|
|
Net income reported
|
|
556
|
|
Net income reported
|
|
492
|
(*) Net income excluding one-off impacts is a presentation of our net
income, adjusted to exclude certain items that we consider to be
exceptional. However, it should not be relied upon as comparable to
reported net income prepared in accordance with the IFRS that we apply.
Although we expect the specific items represented in this adjustment to
be non-recurring, no assurance can be given that this will be the case
and that we will not be affected by similar items in the future.
(**)
For details, please refer to our consolidated financial statements and
notes as at, and for June 30, 2013 under note 21, which can be accessed
on our website.
(***) For details, please refer to our consolidated
financial statements and notes as at, and for June 30, 2014 under note
21, which can be accessed on our website.
Total debt as of June 30, 2014 was at TRY3,459.9 million
(US$1,629.4 million) which was at TRY3,515.5 million (US$1,605.4
million) as of March 31, 2014 in consolidated terms. The debt balance of
Ukraine (including intra-group debt) was TRY1,418.2 million (US$667.9
million), while that of Belarus was TRY1,329.0 million (US$625.9
million), and of Turkcell Superonline was TRY787.1 million (US$370.7
million).
TRY2,752.3 million (US$1,296.2 million) of our
consolidated debt is at a floating rate, while TRY2,348.3 million
(US$1,105.9 million) will mature within less than a year. (Please
note that the figures in parentheses refer to US$ equivalents).
Cash flow analysis: Capital expenditures, including
non-operational items, amounted to TRY314.0 million in Q214, of which
TRY173.9 million was related to Turkcell Turkey, TRY103.3 million to
Turkcell Superonline, TRY12.0 million to Astelit and TRY3.3 million to
BeST. The major cash outflow items in this quarter were capex and
other items including corporate tax payment, payments of the fine
imposed by the Competition Board and Ministry of Industry and Trade,
advance payments for capex and the change in net working capital.
|
Consolidated Cash Flow (million TRY)
|
|
Q213
|
|
Q114
|
|
Q214
|
|
EBITDA1
|
|
869.2
|
|
887.3
|
|
907.0
|
|
LESS:
|
|
|
|
|
|
|
|
Capex and License
|
|
(355.3)
|
|
(340.4)
|
|
(314.0)
|
|
Turkcell
|
|
(208.0)
|
|
(230.2)
|
|
(173.9)
|
|
Turkcell Superonline
|
|
(73.1)
|
|
(69.7)
|
|
(103.3)
|
|
Ukraine2
|
|
(20.6)
|
|
(15.0)
|
|
(12.0)
|
|
Investment & Marketable Securities
|
|
(8.1)
|
|
(22.7)
|
|
51.9
|
|
Net interest Income/ (expense)
|
|
127.0
|
|
205.4
|
|
211.2
|
|
Other
|
|
(157.4)
|
|
(973.2)
|
|
(967.2)
|
|
Net Change in Debt
|
|
(83.3)
|
|
103.8
|
|
38.9
|
|
Cash generated
|
|
392.1
|
|
(139.8)
|
|
(72.2)
|
|
Cash balance
|
|
7,003.0
|
|
7,989.1
|
|
7,916.9
|
(1) EBITDA is a non-GAAP financial measurement. See page 12 for the
reconciliation of EBITDA to net cash from operating activities.
(2)
The impact from the movement of reporting currency (TRY) against US$ is
included in this line.
Operational Review in Turkey
|
Summary of Operational data
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
Number of total subscribers (million)
|
|
34.7
|
|
34.8
|
|
34.6
|
|
(0.3%)
|
|
(0.6%)
|
|
Postpaid
|
|
13.8
|
|
14.1
|
|
14.5
|
|
5.1%
|
|
2.8%
|
|
Prepaid
|
|
20.9
|
|
20.7
|
|
20.1
|
|
(3.8%)
|
|
(2.9%)
|
|
ARPU, blended (TRY)
|
|
22.3
|
|
21.0
|
|
22.1
|
|
(0.9%)
|
|
5.2%
|
|
Postpaid
|
|
37.9
|
|
36.3
|
|
36.8
|
|
(2.9%)
|
|
1.4%
|
|
Prepaid
|
|
12.2
|
|
10.8
|
|
11.8
|
|
(3.3%)
|
|
9.3%
|
|
ARPU (Average Monthly Revenue per User), blended (US$)
|
|
12.1
|
|
9.5
|
|
10.4
|
|
(14.0%)
|
|
9.5%
|
|
Postpaid
|
|
20.6
|
|
16.3
|
|
17.3
|
|
(16.0%)
|
|
6.1%
|
|
Prepaid
|
|
6.6
|
|
4.8
|
|
5.6
|
|
(15.2%)
|
|
16.7%
|
|
Churn (%)
|
|
8.6%
|
|
7.8%
|
|
8.1%
|
|
(0.5pp)
|
|
0.3pp
|
|
MoU (Average Monthly Minutes of usage per subscriber), blended
|
|
269.3
|
|
254.6
|
|
279.5
|
|
3.8%
|
|
9.8%
|
Subscribers of our mobile business in Turkey fell by 157 thousand
in Q214 driven by losses in the prepaid segment in the continued
aggressive competitive environment. Our postpaid subscriber base
expanded by 404 thousand this quarter, mainly through switches and on
the back of services that increase customer satisfaction. Accordingly,
the share of our postpaid subscribers in the total subscriber base
increased to 41.9% (39.8%).
Churn Rate refers to voluntarily and involuntarily disconnected
subscribers. In Q214, our churn rate decreased to 8.1% (8.6%). Churn
rate in Q213 was impacted by the ICTA decision enabling users of mobile
lines without a subscription to register those lines under their names.
Each subscription line registered due to this decision had to be
recorded as a churn and also as an acquisition in operators’ records.
Excluding the impact of this decision, the churn rate would have been
8.1% in Q213. Churn rate increased 0.3pp quarter-on-quarter due to
seasonality.
ARPU declined by 0.9% to TRY22.1 (TRY22.3), impacted by the MTR
cut. Excluding this impact, blended ARPU would have increased by 3.6% to
TRY23.1 on the back of an increased postpaid subscriber base, increased
mobile broadband revenues, and upsell to our customers.
MoU increased 3.8% year-on-year to 279.5 minutes (269.3 minutes)
due to higher incentives and greater package utilization.
OTHER DOMESTIC AND INTERNATIONAL OPERATIONS
Astelit’s financial performance has been negatively impacted by
the ongoing tough macroeconomic environment, which has led to
year-on-year devaluation of 44% on average UAH/US$ rate. These
conditions have led to a 25.9% decline in Astelit’s revenues to US$83.4
million (US$112.5 million), despite 6.9% growth in local currency terms
year-on-year. EBITDA fell by 32.7% to US$24.1 million (US$35.8 million),
while operational profitability declined by 2.9pp to 28.9% (31.8%). The
EBITDA decline was also due to currency devaluation and increased radio
frequency usage fees by approximately 1.6 times.
Yet, on the operational front, Astelit managed to record 220 thousand
net additions during the quarter, reaching a 9.5 million three-month
active subscriber base. Blended ARPU (3-month active) in dollar terms
fell by 33.3% to US$3.0 (US$4.5) primarily due to the currency
devaluation. Meanwhile, MoU declined by 8.5% to 168.8 minutes (184.4
minutes), mainly resulting from the change in consumer behavior as a
consequence of the prevailing macroeconomic environment.
|
Astelit*
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
Number of subscribers (million)1
|
|
11.5
|
|
12.5
|
|
12.7
|
|
10.4%
|
|
1.6%
|
|
Active (3 months)2
|
|
8.6
|
|
9.3
|
|
9.5
|
|
10.5%
|
|
2.2%
|
|
MoU (minutes)
|
|
184.4
|
|
167.1
|
|
168.8
|
|
(8.5%)
|
|
1.0%
|
|
ARPU (Average Monthly Revenue per User), blended (US$)
|
|
3.3
|
|
2.6
|
|
2.2
|
|
(33.3%)
|
|
(15.4%)
|
|
Active (3 months)
|
|
4.5
|
|
3.6
|
|
3.0
|
|
(33.3%)
|
|
(16.7%)
|
|
Revenue (million UAH)
|
|
898.9
|
|
899.5
|
|
961.0
|
|
6.9%
|
|
6.8%
|
|
Revenue (million US$)
|
|
112.5
|
|
99.0
|
|
83.4
|
|
(25.9%)
|
|
(15.8%)
|
|
EBITDA (million US$)3
|
|
35.8
|
|
31.5
|
|
24.1
|
|
(32.7%)
|
|
(23.5%)
|
|
EBITDA margin
|
|
31.8%
|
|
31.9%
|
|
28.9%
|
|
(2.9pp)
|
|
(3.0pp)
|
|
Net loss (million US$)
|
|
(9.5)
|
|
(213.1)
|
|
(59.4)
|
|
525.3%
|
|
(72.1%)
|
|
Capex (million US$)
|
|
10.6
|
|
6.9
|
|
5.9
|
|
(44.3%)
|
|
(14.5%)
|
(*) Astelit, in which we hold a 55% stake through Euroasia, has operated
in Ukraine since February 2005.
(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.
(3) EBITDA is
a non-GAAP financial measurement. See page 12 for the reconciliation of
Euroasia’s EBITDA to net cash from operating activities. Euroasia holds
a 100% stake in Astelit.
Turkcell Superonline sustained its solid financial performance
registering 38.9% revenue growth along with a 30.2% EBITDA rise. The
EBITDA margin was at 24.4% (26.1%). This quarter, Turkcell Superonline
incurred some initial operational costs related to new long-term
projects set to generate revenues in the upcoming quarters.
Turkcell Superonline’s total subscriber base (including ADSL
subscribers) has exceeded the 1 million milestone with 90 thousand net
additions in the quarter. FTTH subscriber base1 reached 653
thousand with 39 thousand net rise during Q2 2014.
Residential segment revenues grew by 54%, while corporate segment
revenues rose by 37% with further synergies at the group level
year-on-year. Accordingly, the share of residential and corporate
segment revenues in total revenues reached 66% (62%). Meanwhile, the
share of non-group revenues reached 78% (75%).
Turkcell Superonline has continued to invest in its fiber network and
has increased home pass2 figure to 1.9 million.
|
Turkcell Superonline (million TRY)*
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
Revenue
|
|
222.7
|
|
279.7
|
|
309.4
|
|
38.9%
|
|
10.6%
|
|
Residential
|
|
78.3
|
|
109.0
|
|
120.6
|
|
54.0%
|
|
10.6%
|
|
% of revenues
|
|
35.2%
|
|
39.0%
|
|
39.0%
|
|
3.8pp
|
|
-
|
|
Corporate
|
|
60.2
|
|
72.9
|
|
82.5
|
|
37.0%
|
|
13.2%
|
|
% of revenues
|
|
27.0%
|
|
26.1%
|
|
26.7%
|
|
(0.3pp)
|
|
0.6pp
|
|
Wholesale
|
|
84.2
|
|
97.8
|
|
106.3
|
|
26.2%
|
|
8.7%
|
|
% of revenues
|
|
37.8%
|
|
35.0%
|
|
34.4%
|
|
(3.4pp)
|
|
(0.6pp)
|
|
EBITDA 3
|
|
58.0
|
|
74.6
|
|
75.5
|
|
30.2%
|
|
1.2%
|
|
EBITDA Margin
|
|
26.1%
|
|
26.7%
|
|
24.4%
|
|
(1.7pp)
|
|
(2.3pp)
|
|
Capex
|
|
73.1
|
|
69.7
|
|
103.3
|
|
41.3%
|
|
48.2%
|
|
FTTH subscribers
|
|
498.8
|
|
614.0
|
|
652.5
|
|
30.8%
|
|
6.3%
|
(*)Turkcell Superonline is our wholly-owned subsidiary, providing fiber
broadband.
(1) FTTH subscriber base refers to residential,
corporate and wholesale fiber subscribers.
(2) Home passes figure
refers to the total of home passes and office passes figures.
(3)
EBITDA is a non-GAAP financial measure. See page 12 for the
reconciliation of EBITDA to net cash from operating activities.
Fintur’s subscriber base decreased by 0.6 million during the
quarter, resulting from KCell’s subscriber decline of 609 thousand,
mainly due to a clean-up of 762 thousand subscribers. Fintur’s
consolidated revenues declined by 7.9% mostly in light of the decline in
KCell’s revenues on devaluation of the Kazakhstani Tenge (KZT) against
the US$. Meanwhile, Fintur’s contribution to net income increased by
6.1% to US$35 million (US$33 million) year-on-year.
|
Fintur
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
Subscribers (million)
|
|
21.5
|
|
20.7
|
|
20.1
|
|
(6.5%)
|
|
(2.9%)
|
|
Kazakhstan
|
|
14.1
|
|
13.5
|
|
12.9
|
|
(8.5%)
|
|
(4.4%)
|
|
Azerbaijan
|
|
4.4
|
|
4.3
|
|
4.3
|
|
(2.3%)
|
|
-
|
|
Moldova
|
|
1.2
|
|
1.0
|
|
1.0
|
|
(16.7%)
|
|
-
|
|
Georgia
|
|
1.8
|
|
1.8
|
|
1.9
|
|
5.6%
|
|
5.6%
|
|
Revenue (million US$)
|
|
508
|
|
432
|
|
468
|
|
(7.9%)
|
|
8.3%
|
|
Kazakhstan
|
|
306
|
|
259
|
|
274
|
|
(10.5%)
|
|
5.8%
|
|
Azerbaijan
|
|
149
|
|
124
|
|
144
|
|
(3.4%)
|
|
16.1%
|
|
Moldova
|
|
20
|
|
17
|
|
18
|
|
(10.0%)
|
|
5.9%
|
|
Georgia
|
|
34
|
|
31
|
|
32
|
|
(5.9%)
|
|
3.2%
|
|
Fintur’s contribution to Group’s net income
|
|
33
|
|
33
|
|
35
|
|
6.1%
|
|
6.1%
|
(*) We hold a 41.45% stake In Fintur, which has interests in Kazakhstan,
Azerbaijan, Moldova and Georgia.
Turkcell Group Subscribers amounted to approximately 69.5
million as of June 30, 2014. This figure is calculated by taking the
number of subscribers of Turkcell and each of our subsidiaries and
unconsolidated investees. It includes the total number of mobile
subscribers of Turkcell Turkey, Astelit and BeST, as well as of our
operations in the Turkish Republic of Northern Cyprus (“Northern
Cyprus”), Fintur and Turkcell Europe. Turkcell Group subscribers
declined by 0.6 million during the quarter.
|
Turkcell Group Subscribers (million)
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
Turkcell
|
|
34.7
|
|
34.8
|
|
34.6
|
|
(0.3%)
|
|
(0.6%)
|
|
Ukraine
|
|
11.5
|
|
12.5
|
|
12.7
|
|
10.4%
|
|
1.6%
|
|
Fintur
|
|
21.5
|
|
20.7
|
|
20.1
|
|
(6.5%)
|
|
(2.9%)
|
|
Northern Cyprus
|
|
0.4
|
|
0.4
|
|
0.4
|
|
-
|
|
-
|
|
Belarus
|
|
1.0
|
|
1.3
|
|
1.3
|
|
30.0%
|
|
-
|
|
Turkcell Europe
|
|
0.4
|
|
0.4
|
|
0.4
|
|
-
|
|
-
|
|
TURKCELL GROUP
|
|
69.5
|
|
70.1
|
|
69.5
|
|
-
|
|
(0.9%)
|
OVERVIEW OF THE MACROECONOMIC ENVIRONMENT
The foreign exchange rates used in our financial reporting, along with
certain macroeconomic indicators, are set out below.
|
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
US$ / TRY rate
|
|
|
|
|
|
|
|
|
|
|
|
Closing Rate
|
|
1.9248
|
|
2.1898
|
|
2.1234
|
|
10.3%
|
|
(3.0%)
|
|
Average Rate
|
|
1.8427
|
|
2.2253
|
|
2.1221
|
|
15.2%
|
|
(4.6%)
|
|
Consumer Price Index (Turkey)
|
|
1.3%
|
|
3.6%
|
|
2.1%
|
|
0.8pp
|
|
(1.5pp)
|
|
GDP Growth (Turkey)
|
|
4.5%
|
|
4.3%
|
|
n.a.
|
|
n.a.
|
|
n.a.
|
|
US$ / UAH rate
|
|
|
|
|
|
|
|
|
|
|
|
Closing Rate
|
|
7.99
|
|
10.95
|
|
11.82
|
|
47.9%
|
|
7.9%
|
|
Average Rate
|
|
7.99
|
|
9.15
|
|
11.52
|
|
44.2%
|
|
25.9%
|
|
US$ / BYR rate
|
|
|
|
|
|
|
|
|
|
|
|
Closing Rate
|
|
8,790
|
|
9,870
|
|
10,200
|
|
16.0%
|
|
3.3%
|
|
Average Rate
|
|
8,687
|
|
9,697
|
|
10,035
|
|
15.5%
|
|
3.5%
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We believe
that EBITDA is a measurement commonly used by companies, analysts and
investors in the telecommunications industry that enhances the
understanding of our cash generation ability and liquidity position, and
assists in the evaluation of our capacity to meet our financial
obligations. We also use EBITDA as an internal measurement tool, and
accordingly, we believe that its presentation provides useful and
relevant information to analysts and investors. Our 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). EBITDA is not a measure of financial performance
under IFRS, and should not be construed as a substitute for net earnings
(loss) as a measure of performance, or cash flow from operations as a
measure of liquidity. The following table provides a reconciliation of
EBITDA, which is a non-GAAP financial measurement, to net cash from
operating activities, which we believe is the most directly comparable
financial measurement calculated and presented in accordance with IFRS.
|
Turkcell (million US$)
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
EBITDA
|
|
471.5
|
|
399.2
|
|
427.8
|
|
(9.3%)
|
|
7.2%
|
|
Income tax expense
|
|
(79.2)
|
|
(72.1)
|
|
(78.5)
|
|
(0.9%)
|
|
8.9%
|
|
Other operating income / (expense)
|
|
0.4
|
|
(2.1)
|
|
(45.1)
|
|
n.m.
|
|
n.m.
|
|
Financial income / (expense)
|
|
(12.9)
|
|
(16.2)
|
|
28.4
|
|
(320.2%)
|
|
(275.3%)
|
|
Net increase / (decrease) in assets and liabilities
|
|
(82.9)
|
|
(386.7)
|
|
(169.2)
|
|
104.1%
|
|
(56.2%)
|
|
Net cash from operating activities
|
|
296.9
|
|
(77.9)
|
|
163.4
|
|
(45.0%)
|
|
(309.8%)
|
|
Turkcell Superonline (million TRY)
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
EBITDA
|
|
58.0
|
|
74.6
|
|
75.5
|
|
30.2%
|
|
1.2%
|
|
Income tax expense
|
|
2.6
|
|
(1.6)
|
|
(7.9)
|
|
(403.8%)
|
|
393.8%
|
|
Other operating income / (expense)
|
|
0.3
|
|
0.4
|
|
1.7
|
|
466.7%
|
|
325.0%
|
|
Financial income / (expense)
|
|
(12.0)
|
|
(18.3)
|
|
5.0
|
|
(141.7%)
|
|
(127.3%)
|
|
Net increase / (decrease) in assets and liabilities
|
|
(54.3)
|
|
(63.1)
|
|
15.7
|
|
(128.9%)
|
|
(124.9%)
|
|
Net cash from operating activities
|
|
(5.4)
|
|
(8.0)
|
|
90.0
|
|
n.m.
|
|
n.m.
|
|
Euroasia (million US$)
|
|
Q213
|
|
Q114
|
|
Q214
|
|
y/y %
|
|
q/q %
|
|
EBITDA
|
|
35.8
|
|
31.5
|
|
24.1
|
|
(32.7%)
|
|
(23.5%)
|
|
Other operating income / (expense)
|
|
0.1
|
|
0.8
|
|
(0.5)
|
|
(600.0%)
|
|
(162.5%)
|
|
Financial income / (expense)
|
|
(15.1)
|
|
(14.5)
|
|
(13.8)
|
|
(8.6%)
|
|
(4.8%)
|
|
Net increase / (decrease) in assets and liabilities
|
|
12.2
|
|
(1.3)
|
|
7.7
|
|
(36.9%)
|
|
(692.3%)
|
|
Net cash from operating activities
|
|
33.0
|
|
16.5
|
|
17.5
|
|
(47.0%)
|
|
6.1%
|
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 2014. 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 2013 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 the leading communications and
technology company in Turkey, with 34.6 million subscribers as of June
30, 2014. Turkcell is a leading regional player with its approximately
69.5 million subscribers in nine countries as of June 30, 2014. It has
become one of the first among the global operators to have implemented
HSPA+. It has achieved up to 43.2 Mbps speed using the Dual Carrier
technology, and is continuously working to provide the latest technology
to its customers. Turkcell Superonline, a wholly owned subsidiary of
Turkcell, is the first telecom operator to offer households fiber
broadband connection at speeds of up to 1,000 Mbps in Turkey. As of
March 2014, Turkcell’s population coverage is at 99.49% in 2G and 86.37%
in 3G. Turkcell reported a TRY2.9 billion (US$1.4 billion)
revenue with total assets of TRY21.8 billion (US$10.3 billion) as of
June 30, 2014. 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
|
|
|
TURKCELL ILETISIM HIZMETLERI A.S.
CMB SELECTED FINANCIALS (TRY Million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Half Ended
|
|
Half Ended
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Operations Data
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Communication fees
|
|
2,585.1
|
|
2,496.0
|
|
2,551.8
|
|
5,015.7
|
|
5,047.8
|
|
Commission fees on betting business
|
|
50.9
|
|
76.2
|
|
67.1
|
|
105.2
|
|
143.3
|
|
Monthly fixed fees
|
|
19.3
|
|
16.7
|
|
14.4
|
|
39.5
|
|
31.1
|
|
Simcard sales
|
|
7.3
|
|
6.5
|
|
7.0
|
|
13.7
|
|
13.5
|
|
Call center revenues and other revenues
|
|
192.6
|
|
259.8
|
|
282.7
|
|
369.5
|
|
542.5
|
|
Total revenues
|
|
2,855.2
|
|
2,855.2
|
|
2,923.0
|
|
5,543.6
|
|
5,778.2
|
|
Direct cost of revenues
|
|
-1,769.8
|
|
-1,740.9
|
|
-1,788.7
|
|
-3,455.5
|
|
-3,529.6
|
|
Gross profit
|
|
1,085.4
|
|
1,114.3
|
|
1,134.3
|
|
2,088.1
|
|
2,248.6
|
|
Administrative expenses
|
|
-128.9
|
|
-142.1
|
|
-135.8
|
|
-257.9
|
|
-277.9
|
|
Selling & marketing expenses
|
|
-452.5
|
|
-483.1
|
|
-477.2
|
|
-877.5
|
|
-960.3
|
|
Other Operating Income / (Expense)
|
|
398.5
|
|
255.9
|
|
104.3
|
|
610.1
|
|
360.2
|
|
Operating profit before financing and investing costs
|
|
902.5
|
|
745.0
|
|
625.6
|
|
1,562.8
|
|
1,370.6
|
|
Income from investing activities
|
|
9.9
|
|
4.9
|
|
8.0
|
|
15.2
|
|
12.9
|
|
Expense from investing activities
|
|
-31.1
|
|
-10.8
|
|
-5.1
|
|
-32.6
|
|
-15.9
|
|
Share of profit of equity accounted investees
|
|
60.0
|
|
73.6
|
|
73.8
|
|
128.6
|
|
147.4
|
|
Income before financing costs
|
|
941.3
|
|
812.7
|
|
702.3
|
|
1,674.0
|
|
1,515.0
|
|
Finance income
|
|
|
|
|
|
0.0
|
|
|
|
|
|
Finance expense
|
|
-258.9
|
|
-556.7
|
|
-152.8
|
|
-345.2
|
|
-709.5
|
|
Monetary gain/(loss)
|
|
20.3
|
|
64.5
|
|
60.0
|
|
73.8
|
|
124.5
|
|
Income before tax and non-controlling interest
|
|
702.7
|
|
320.5
|
|
609.5
|
|
1,402.6
|
|
930.0
|
|
Income tax expense
|
|
-146.1
|
|
-160.6
|
|
-166.4
|
|
-283.5
|
|
-327.0
|
|
Income before non-controlling interest
|
|
556.6
|
|
159.9
|
|
443.1
|
|
1,119.1
|
|
603.0
|
|
Non-controlling interest
|
|
1.5
|
|
200.7
|
|
49.6
|
|
5.9
|
|
250.3
|
|
Net income
|
|
558.1
|
|
360.6
|
|
492.7
|
|
1,125.0
|
|
853.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
|
|
0.25
|
|
0.16
|
|
0.22
|
|
0.51
|
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
38.0%
|
|
39.0%
|
|
38.8%
|
|
37.7%
|
|
38.9%
|
|
EBITDA(*)
|
|
869.2
|
|
887.3
|
|
907.0
|
|
1,676.8
|
|
1,794.3
|
|
Capital expenditures
|
|
355.3
|
|
340.4
|
|
314.0
|
|
554.8
|
|
654.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheet Data (at period end)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
7,003.0
|
|
7,989.1
|
|
7,916.9
|
|
7,003.0
|
|
7,916.9
|
|
Total assets
|
|
19,522.9
|
|
21,480.5
|
|
21,740.1
|
|
19,522.9
|
|
21,740.1
|
|
Long term debt
|
|
1,500.9
|
|
1,363.5
|
|
1,111.6
|
|
1,500.9
|
|
1,111.6
|
|
Total debt
|
|
3,120.0
|
|
3,515.5
|
|
3,459.9
|
|
3,120.0
|
|
3,459.9
|
|
Total liabilities
|
|
5,771.3
|
|
6,478.1
|
|
6,217.6
|
|
5,771.3
|
|
6,217.6
|
|
Total shareholders’ equity / Net Assets
|
|
13,751.6
|
|
15,002.4
|
|
15,522.5
|
|
13,751.6
|
|
15,522.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** For further details, please refer to our consolidated financial
statements and notes as at 30 June 2014 on our web site.
|
|
|
|
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,
|
|
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Operations Data
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Communication fees
|
|
2,585.1
|
|
2,496.0
|
|
2,551.8
|
|
5,015.7
|
|
5,047.8
|
|
Commission fees on betting business
|
|
50.9
|
|
76.2
|
|
67.1
|
|
105.2
|
|
143.3
|
|
Monthly fixed fees
|
|
19.3
|
|
16.7
|
|
14.4
|
|
39.5
|
|
31.1
|
|
Simcard sales
|
|
7.3
|
|
6.5
|
|
7.0
|
|
13.7
|
|
13.5
|
|
Call center revenues and other revenues
|
|
192.6
|
|
259.8
|
|
282.7
|
|
369.5
|
|
542.5
|
|
Total revenues
|
|
2,855.2
|
|
2,855.2
|
|
2,923.0
|
|
5,543.6
|
|
5,778.2
|
|
Direct cost of revenues
|
|
-1,771.3
|
|
-1,742.3
|
|
-1,789.2
|
|
-3,458.6
|
|
-3,531.5
|
|
Gross profit
|
|
1,083.9
|
|
1,112.9
|
|
1,133.8
|
|
2,085.0
|
|
2,246.7
|
|
Administrative expenses
|
|
-129.0
|
|
-142.1
|
|
-135.8
|
|
-257.9
|
|
-277.9
|
|
Selling & marketing expenses
|
|
-452.5
|
|
-483.1
|
|
-477.2
|
|
-877.5
|
|
-960.3
|
|
Other Operating Income / (Expense)
|
|
-20.8
|
|
-3.5
|
|
-92.0
|
|
-21.1
|
|
-95.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit before financing costs
|
|
481.6
|
|
484.2
|
|
428.8
|
|
928.5
|
|
913.0
|
|
Finance costs
|
|
-30.6
|
|
-551.9
|
|
-211.3
|
|
-68.0
|
|
-763.2
|
|
Finance income
|
|
169.4
|
|
248.6
|
|
257.9
|
|
336.1
|
|
506.5
|
|
Monetary gain/(loss)
|
|
20.3
|
|
64.5
|
|
60.0
|
|
73.8
|
|
124.5
|
|
Share of profit of equity accounted investees
|
|
60.0
|
|
73.6
|
|
73.8
|
|
128.6
|
|
147.4
|
|
Income before taxes and minority interest
|
|
700.7
|
|
319.0
|
|
609.2
|
|
1,399.0
|
|
928.2
|
|
Income tax expense
|
|
-145.9
|
|
-160.2
|
|
-166.5
|
|
-283.0
|
|
-326.7
|
|
Income before minority interest
|
|
554.8
|
|
158.8
|
|
442.7
|
|
1,116.0
|
|
601.5
|
|
Non-controlling interests
|
|
1.5
|
|
200.7
|
|
49.6
|
|
5.9
|
|
250.3
|
|
Net income
|
|
556.3
|
|
359.5
|
|
492.3
|
|
1,121.9
|
|
851.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
|
|
0.25
|
|
0.16
|
|
0.22
|
|
0.51
|
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
38.0%
|
|
39.0%
|
|
38.8%
|
|
37.6%
|
|
38.9%
|
|
EBITDA(*)
|
|
869.2
|
|
887.3
|
|
907.0
|
|
1,676.8
|
|
1,794.3
|
|
Capital expenditures
|
|
355.3
|
|
340.4
|
|
314.0
|
|
554.8
|
|
654.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheet Data (at period end)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
7,003.0
|
|
7,989.1
|
|
7,916.9
|
|
7,003.0
|
|
7,916.9
|
|
Total assets
|
|
19,553.7
|
|
21,508.1
|
|
21,767.2
|
|
19,553.7
|
|
21,767.2
|
|
Long term debt
|
|
1,500.9
|
|
1,363.5
|
|
1,111.6
|
|
1,500.9
|
|
1,111.6
|
|
Total debt
|
|
3,120.0
|
|
3,515.5
|
|
3,459.9
|
|
3,120.0
|
|
3,459.9
|
|
Total liabilities
|
|
5,776.4
|
|
6,482.4
|
|
6,221.8
|
|
5,776.4
|
|
6,221.8
|
|
Total shareholders’ equity / Net Assets
|
|
13,777.3
|
|
15,025.6
|
|
15,545.4
|
|
13,777.3
|
|
15,545.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** For further details, please refer to our consolidated financial
statements and notes as at 30 June 2014 on our web site.
|
|
|
|
TURKCELL ILETISIM HIZMETLERI A.S.
IFRS SELECTED FINANCIALS (US$ MILLION)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Half Ended
|
|
Half Ended
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Operations Data
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Communication fees
|
|
1,401.5
|
|
1,122.5
|
|
1,203.5
|
|
2,761.8
|
|
2,326.0
|
|
Commission fees on betting business
|
|
27.8
|
|
34.3
|
|
31.5
|
|
58.2
|
|
65.8
|
|
Monthly fixed fees
|
|
10.5
|
|
7.5
|
|
6.8
|
|
21.8
|
|
14.3
|
|
Simcard sales
|
|
4.0
|
|
2.9
|
|
3.3
|
|
7.6
|
|
6.2
|
|
Call center revenues and other revenues
|
|
104.1
|
|
116.8
|
|
133.6
|
|
203.0
|
|
250.4
|
|
Total revenues
|
|
1,547.9
|
|
1,284.0
|
|
1,378.7
|
|
3,052.4
|
|
2,662.7
|
|
Direct cost of revenues
|
|
-959.3
|
|
-783.6
|
|
-843.9
|
|
-1,903.5
|
|
-1,627.5
|
|
Gross profit
|
|
588.6
|
|
500.4
|
|
534.8
|
|
1,148.9
|
|
1,035.2
|
|
Administrative expenses
|
|
-69.8
|
|
-63.9
|
|
-64.1
|
|
-141.9
|
|
-128.0
|
|
Selling & marketing expenses
|
|
-245.5
|
|
-217.1
|
|
-225.0
|
|
-483.2
|
|
-442.1
|
|
Other Operating Income / (Expense)
|
|
-10.9
|
|
-1.5
|
|
-43.3
|
|
-11.1
|
|
-44.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit before financing costs
|
|
262.4
|
|
217.9
|
|
202.4
|
|
512.7
|
|
420.3
|
|
Finance costs
|
|
-15.4
|
|
-246.6
|
|
-99.7
|
|
-36.2
|
|
-346.3
|
|
Finance income
|
|
92.6
|
|
111.7
|
|
121.1
|
|
185.9
|
|
232.8
|
|
Monetary gain/(loss)
|
|
8.7
|
|
29.5
|
|
29.2
|
|
38.3
|
|
58.7
|
|
Share of profit of equity accounted investees
|
|
32.4
|
|
33.1
|
|
34.8
|
|
70.7
|
|
67.9
|
|
Income before taxes and minority interest
|
|
380.7
|
|
145.6
|
|
287.8
|
|
771.4
|
|
433.4
|
|
Income tax expense
|
|
-79.2
|
|
-72.1
|
|
-78.5
|
|
-155.9
|
|
-150.6
|
|
Income before minority interest
|
|
301.5
|
|
73.5
|
|
209.3
|
|
615.5
|
|
282.8
|
|
Non-controlling interests
|
|
0.8
|
|
89.4
|
|
23.2
|
|
3.3
|
|
112.6
|
|
Net income
|
|
302.3
|
|
162.9
|
|
232.5
|
|
618.8
|
|
395.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
|
|
0.14
|
|
0.07
|
|
0.11
|
|
0.28
|
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
38.0%
|
|
39.0%
|
|
38.8%
|
|
37.6%
|
|
38.9%
|
|
EBITDA(*)
|
|
471.5
|
|
399.2
|
|
427.8
|
|
923.6
|
|
827.0
|
|
Capital expenditures
|
|
177.9
|
|
155.4
|
|
152.8
|
|
288.2
|
|
308.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheet Data (at period end)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
3,638.3
|
|
3,648.3
|
|
3,728.4
|
|
3,638.3
|
|
3,728.4
|
|
Total assets
|
|
10,158.8
|
|
9,821.9
|
|
10,251.1
|
|
10,158.8
|
|
10,251.1
|
|
Long term debt
|
|
779.8
|
|
622.7
|
|
523.5
|
|
779.8
|
|
523.5
|
|
Total debt
|
|
1,620.9
|
|
1,605.4
|
|
1,629.4
|
|
1,620.9
|
|
1,629.4
|
|
Total liabilities
|
|
3,001.1
|
|
2,960.3
|
|
2,930.1
|
|
3,001.1
|
|
2,930.1
|
|
Total equity
|
|
7,157.8
|
|
6,861.6
|
|
7,321.0
|
|
7,157.8
|
|
7,321.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Please refer to the notes on reconciliation of Non-GAAP Financial
measures on page 12
|
|
** For further details, please refer to our consolidated financial
statements and notes as at 30 June 2014 on our web site.
|
Copyright Business Wire 2014