![]() |
Second Quarter 2014 Results
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HIGHLIGHTS
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COMMENTS FROM THE CEO, SUREYYA CILIV
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4
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FINANCIAL AND OPERATIONAL REVIEW OF THE SECOND QUARTER 2014
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FINANCIAL REVIEW OF TURKCELL GROUP
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5
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OPERATIONAL REVIEW IN TURKEY
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8
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OTHER DOMESTIC AND INTERNATIONAL OPERATIONS
|
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ASTELIT
|
9
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TURKCELL SUPERONLINE
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9
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FINTUR
|
10
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TURKCELL GROUP SUBSCRIBERS
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11
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OVERVIEW OF THE MACROECONOMIC ENVIRONMENT
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11
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RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS
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12
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·
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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.
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·
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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).
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·
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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$, is based on IFRS figures.
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·
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In the tables used in this press release totals may not foot due to rounding differences. The same applies for the calculations in the text.
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Second Quarter 2014 Results
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·
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Group revenues grew by 2.4% to TRY2,923 million (TRY2,855 million). This was impacted by regulatory changes in the Turkish mobile market such as mobile termination rate (MTR) and SMS maximum price cuts compared to a year ago, the lower contribution from our Ukrainian business due to devaluation, and a one-off item of TRY26 million.
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·
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Group EBITDA1 rose by 4% to TRY907 million (TRY869 million), while the EBITDA margin increased to 31.0% (30.4%).
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·
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Group net income declined to TRY492 million (TRY556 million), adversely impacted by devaluation of the UAH against the US$ in Ukraine and one-off items totaling TRY119 million.
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·
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Mobile business revenues in Turkey were TRY2,296 million (TRY2,318 million) with a 30.9% (30.1%) EBITDA margin.
|
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-
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Mobile broadband revenues rose by 28% to TRY434 million (TRY340 million).
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-
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Voice revenues2 declined by 3% to TRY1,607 million (TRY1,664 million), due to the continued impact of regulatory decisions.
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·
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Revenues of subsidiaries3 grew by 17% to TRY627 million (TRY537 million), while EBITDA increased by 16% to TRY198 million (TRY171 million).
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·
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Turkcell Group revenues would be TRY3,055 million on 7% growth.
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·
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Mobile business revenues in Turkey would be TRY2,428 million on 5% growth, with a 4% rise in voice revenues.
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·
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Group EBITDA would be TRY934 million on 7% growth.
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·
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Net income would be TRY612 million.
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|
o
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In Q214, one-off items with a total impact of TRY119 million included:
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|
-
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The reimbursement decision of the ICTA with a revenue and EBITDA impact of TRY26 million, and net income impact of TRY21 million after tax
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-
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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
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-
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An administrative fine imposed by the Competition Board regarding vehicle tracking systems, having a net income impact of TRY30 million
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Second Quarter 2014 Results
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Second Quarter 2014 Results
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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%
|
|
·
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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
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-
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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
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-
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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.
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Second Quarter 2014 Results
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·
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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%)
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-
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38.9% rise in Turkcell Superonline revenues to TRY309.4 million (TRY222.7 million)
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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)
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![]() |
Second Quarter 2014 Results
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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 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
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Competition Board fine ***
|
(30)
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ICTA limited usage service reimbursement***
|
(21)
|
|||
MTR impact (net of tax) above EBITDA
|
(1)
|
|||
Net income reported
|
556
|
Net income reported
|
492
|
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Second Quarter 2014 Results
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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
|
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$)
|
12.1
|
9.5
|
10.4
|
(14.0%)
|
9.5%
|
Postpaid
|
20.6
|
16.3
|
17.3
|
(16.0%)
|
6.1%
|
Prepaid
|
6.6
|
4.8
|
5.6
|
(15.2%)
|
16.7%
|
Churn (%)
|
8.6%
|
7.8%
|
8.1%
|
(0.5pp)
|
0.3pp
|
MoU (Average Monthly Minutes of usage per subscriber), blended
|
269.3
|
254.6
|
279.5
|
3.8%
|
9.8%
|
![]() |
Second Quarter 2014 Results
|
Astelit*
|
Q213
|
Q114
|
Q214
|
y/y %
|
q/q %
|
Number of subscribers (million)1
|
11.5
|
12.5
|
12.7
|
10.4%
|
1.6%
|
Active (3 months)2
|
8.6
|
9.3
|
9.5
|
10.5%
|
2.2%
|
MoU (minutes)
|
184.4
|
167.1
|
168.8
|
(8.5%)
|
1.0%
|
ARPU (Average Monthly Revenue per User), blended (US$)
|
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%)
|
![]() |
Second Quarter 2014 Results
|
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%
|
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$)
|
508
|
432
|
468
|
(7.9%)
|
8.3%
|
Kazakhstan
|
306
|
259
|
274
|
(10.5%)
|
5.8%
|
Azerbaijan
|
149
|
124
|
144
|
(3.4%)
|
16.1%
|
Moldova
|
20
|
17
|
18
|
(10.0%)
|
5.9%
|
Georgia
|
34
|
31
|
32
|
(5.9%)
|
3.2%
|
Fintur’s contribution to Group’s net income
|
33
|
33
|
35
|
6.1%
|
6.1%
|
![]() |
Second Quarter 2014 Results
|
Turkcell Group Subscribers (million)
|
Q213
|
Q114
|
Q214
|
y/y %
|
q/q %
|
Turkcell
|
34.7
|
34.8
|
34.6
|
(0.3%)
|
(0.6%)
|
Ukraine
|
11.5
|
12.5
|
12.7
|
10.4%
|
1.6%
|
Fintur
|
21.5
|
20.7
|
20.1
|
(6.5%)
|
(2.9%)
|
Northern Cyprus
|
0.4
|
0.4
|
0.4
|
-
|
-
|
Belarus
|
1.0
|
1.3
|
1.3
|
30.0%
|
-
|
Turkcell Europe
|
0.4
|
0.4
|
0.4
|
-
|
-
|
TURKCELL GROUP
|
69.5
|
70.1
|
69.5
|
-
|
(0.9%)
|
Q213
|
Q114
|
Q214
|
y/y %
|
q/q %
|
|
US$ / 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%
|
![]() |
Second Quarter 2014 Results
|
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%
|
![]() |
Second Quarter 2014 Results
|
Investor Relations
Tel: + 90 212 313 1888
investor.relations@turkcell.com.tr
|
Corporate Communications:
Tel: + 90 212 313 2321
Turkcell-Kurumsal-Iletisim@turkcell.com.tr
|
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.
|
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.
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 AS AND ITS SUBSIDIARIES
|
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2014
|
(Amounts expressed in thousands of US Dollars unless otherwise indicated except share amounts)
|
(The Group’s audited consolidated financial statements prepared as at and for the year ended 31 December 2010, 2011, 2012 and 2013 were approved by the Audit Committee and the Board of Directors (Board Resolution dated 23 February 2011 and numbered 797, dated 22 February 2012 and numbered 908, dated 21 February 2013 and numbered 1019 and dated 19 February 2014 and numbered 1106, respectively). However, consolidated financial statements prepared as at and for the year ended 31 December 2010 were not approved by the General Assemblies on 21 April 2011, 11 August 2011 and 12 October 2011. The General Assemblies on 29 June 2012, 22 May 2013, 24 June 2013 and 29 May 2014 could not convene since the quorum required had not been reached and the consolidated financial statements prepared as at and for the year ended 31 December 2010, 2011, 2012 and 2013 could not be presented for approval.)
|
Note
|
30 June
2014
|
31 December
2013
|
||||||||||
Assets
|
||||||||||||
Property, plant and equipment
|
10 | 2,589,657 | 2,747,813 | |||||||||
Intangible assets
|
11 | 1,081,558 | 1,106,871 | |||||||||
GSM and other telecommunication operating licenses
|
498,602 | 522,065 | ||||||||||
Computer software
|
538,873 | 544,140 | ||||||||||
Other intangible assets
|
44,083 | 40,666 | ||||||||||
Investment properties
|
7,542 | 7,639 | ||||||||||
Investments in equity accounted investees
|
12 | 292,978 | 250,959 | |||||||||
Other investments
|
2,100 | 3,851 | ||||||||||
Other non-current assets
|
279,778 | 117,968 | ||||||||||
Trade receivables
|
13 | 291,684 | 247,823 | |||||||||
Deferred tax assets
|
33,045 | 34,333 | ||||||||||
Total non-current assets
|
4,578,342 | 4,517,257 | ||||||||||
Inventories
|
30,371 | 32,845 | ||||||||||
Other investments
|
13,401 | 27,028 | ||||||||||
Due from related parties
|
22 | 15,360 | 10,012 | |||||||||
Trade receivables and accrued income
|
13 | 1,436,602 | 1,294,636 | |||||||||
Other current assets
|
14 | 448,636 | 282,152 | |||||||||
Cash and cash equivalents
|
15 | 3,728,398 | 3,808,708 | |||||||||
Total current assets
|
5,672,768 | 5,455,381 | ||||||||||
Total assets
|
10,251,110 | 9,972,638 | ||||||||||
Equity
|
||||||||||||
Share capital
|
1,636,204 | 1,636,204 | ||||||||||
Share premium
|
434 | 434 | ||||||||||
Capital contributions
|
22,772 | 22,772 | ||||||||||
Reserves
|
(3,030,411 | ) | (3,105,434 | ) | ||||||||
Retained earnings
|
8,830,227 | 8,435,045 | ||||||||||
Total equity attributable to equity holders of
Turkcell Iletisim Hizmetleri AS
|
7,459,226 | 6,989,021 | ||||||||||
Non-controlling interests
|
(138,249 | ) | (85,055 | ) | ||||||||
Total equity
|
7,320,977 | 6,903,966 | ||||||||||
Liabilities
|
||||||||||||
Loans and borrowings
|
18 | 523,507 | 716,150 | |||||||||
Employee benefits
|
42,275 | 38,709 | ||||||||||
Provisions
|
133,999 | 135,524 | ||||||||||
Other non-current liabilities
|
138,224 | 127,669 | ||||||||||
Deferred tax liabilities
|
17,007 | 30,751 | ||||||||||
Total non-current liabilities
|
855,012 | 1,048,803 | ||||||||||
Bank overdraft
|
15 | 1,716 | 237 | |||||||||
Loans and borrowings
|
18 | 1,106,546 | 846,245 | |||||||||
Income taxes payable
|
73,383 | 65,074 | ||||||||||
Trade and other payables
|
740,605 | 891,515 | ||||||||||
Due to related parties
|
22 | 40,933 | 42,278 | |||||||||
Deferred income
|
75,163 | 92,221 | ||||||||||
Provisions
|
36,775 | 82,299 | ||||||||||
Total current liabilities
|
2,075,121 | 2,019,869 | ||||||||||
Total liabilities
|
2,930,133 | 3,068,672 | ||||||||||
Total equity and liabilities
|
10,251,110 | 9,972,638 |
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
|
CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the six months ended 30 June 2014
|
(Amounts expressed in thousands of US Dollars unless otherwise indicated except share amounts)
|
(The Group’s audited consolidated financial statements prepared as at and for the year ended 31 December 2010, 2011, 2012 and 2013 were approved by the Audit Committee and the Board of Directors (Board Resolution dated 23 February 2011 and numbered 797, dated 22 February 2012 and numbered 908, dated 21 February 2013 and numbered 1019 and dated 19 February 2014 and numbered 1106, respectively). However, consolidated financial statements prepared as at and for the year ended 31 December 2010 were not approved by the General Assemblies on 21 April 2011, 11 August 2011 and 12 October 2011. The General Assemblies on 29 June 2012, 22 May 2013, 24 June 2013 and 29 May 2014 could not convene since the quorum required had not been reached and the consolidated financial statements prepared as at and for the year ended 31 December 2010, 2011, 2012 and 2013 could not be presented for approval.)
|
Six months ended
|
Three months ended
|
|||||||||||||||||||
Note
|
30 June
2014
|
30 June
2013 |
30 June
2014 |
30 June
2013 |
||||||||||||||||
Revenue
|
2,662,658 | 3,052,359 | 1,378,637 | 1,547,834 | ||||||||||||||||
Direct costs of revenue
|
(1,627,510 | ) | (1,903,470 | ) | (843,954 | ) | (959,215 | ) | ||||||||||||
Gross profit
|
1,035,148 | 1,148,889 | 534,683 | 588,619 | ||||||||||||||||
Other income
|
7,251 | 8,132 | 3,360 | 4,024 | ||||||||||||||||
Selling and marketing expenses
|
(442,134 | ) | (483,235 | ) | (225,051 | ) | (245,531 | ) | ||||||||||||
Administrative expenses
|
(128,011 | ) | (141,900 | ) | (64,101 | ) | (69,759 | ) | ||||||||||||
Other expenses
|
(51,916 | ) | (19,219 | ) | (46,425 | ) | (14,970 | ) | ||||||||||||
Results from operating activities
|
420,338 | 512,667 | 202,466 | 262,383 | ||||||||||||||||
Finance income
|
7 |