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Third Quarter 2014 Results
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HIGHLIGHTS
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COMMENTS FROM THE CEO, SUREYYA CILIV
|
3
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FINANCIAL AND OPERATIONAL REVIEW OF THE THIRD QUARTER 2014
|
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FINANCIAL REVIEW OF TURKCELL GROUP
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5
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OPERATIONAL REVIEW IN TURKEY
|
8
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OTHER DOMESTIC AND INTERNATIONAL OPERATIONS
|
|
ASTELIT
|
9
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TURKCELL SUPERONLINE
|
9
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FINTUR
|
10
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TURKCELL GROUP SUBSCRIBERS
|
10
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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 September 30, 2014 refer to the same item as at September 30, 2013. For further details, please refer to our consolidated financial statements and notes as at and for September 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 third quarter of 2013, and the second and third 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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Third Quarter 2014 Results
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·
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Group revenues grew by 6% to TRY3,162 million (TRY2,981 million), driven by higher growth in mobile broadband and fiber broadband revenues.
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·
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Group EBITDA1 rose by 3% to TRY1,050 million (TRY1,016 million), while the EBITDA margin declined by 0.9pp to 33.2% (34.1%). This resulted mainly from increased sales and marketing expenses due to intense competition in the Turkish mobile market, the higher interconnect and network costs of Turkcell Turkey and increased operational expenses of certain subsidiaries.
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·
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Group net income rose by 8% to TRY755 million (TRY699 million).
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·
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Turkcell’s mobile business in Turkey recorded revenue growth of 5% to TRY2,477 million (TRY2,365 million) with a 33.5% (34.5%) EBITDA margin.
|
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-
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Mobile broadband revenues rose by 38% to TRY530 million (TRY385 million).
|
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-
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Voice revenues2 increased by 0.7% to TRY 1,676 million (TRY1,664 million).
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·
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Revenues of subsidiaries3 increased by 11% to TRY685 million (TRY616 million), while EBITDA rose by 11% to TRY222 million (TRY199 million), despite a lower contribution from our Ukrainian business due to further currency devaluation.
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Third Quarter 2014 Results
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Third Quarter 2014 Results
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Profit & Loss Statement (million TRY)
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
Total Revenue
|
2,980.7
|
2,923.0
|
3,162.2
|
6.1%
|
8.2%
|
Direct cost of revenues1
|
(1,754.0)
|
(1,789.2)
|
(1,880.2)
|
7.2%
|
5.1%
|
Direct cost of revenues1/revenues
|
(58.8%)
|
(61.2%)
|
(59.5%)
|
(0.7pp)
|
1.7pp
|
Depreciation and amortization
|
(385.6)
|
(386.2)
|
(402.9)
|
4.5%
|
4.3%
|
Gross Margin
|
41.2%
|
38.8%
|
40.5%
|
(0.7pp)
|
1.7pp
|
Administrative expenses
|
(140.4)
|
(135.8)
|
(138.0)
|
(1.7%)
|
1.6%
|
Administrative expenses/revenues
|
(4.7%)
|
(4.6%)
|
(4.4%)
|
0.3pp
|
0.2pp
|
Selling and marketing expenses
|
(455.7)
|
(477.2)
|
(496.5)
|
9.0%
|
4.0%
|
Selling and marketing expenses/revenues
|
(15.3%)
|
(16.3%)
|
(15.7%)
|
(0.4pp)
|
0.6pp
|
EBITDA2
|
1,016.2
|
907.0
|
1,050.4
|
3.4%
|
15.8%
|
EBITDA Margin
|
34.1%
|
31.0%
|
33.2%
|
(0.9pp)
|
2.2pp
|
EBIT3
|
630.6
|
520.8
|
647.5
|
2.7%
|
24.3%
|
Net finance income / (expense)
|
137.5
|
46.6
|
142.0
|
3.3%
|
204.7%
|
Finance expense
|
(46.9)
|
(211.3)
|
(83.7)
|
78.5%
|
(60.4%)
|
Finance income
|
184.4
|
257.9
|
225.7
|
22.4%
|
(12.5%)
|
Share of profit of associates
|
92.9
|
73.8
|
66.8
|
(28.1%)
|
(9.5%)
|
Other income / (expense)
|
(2.2)
|
(92.0)
|
17.8
|
(909.1%)
|
(119.3%)
|
Monetary gains / (losses)
|
30.6
|
60.0
|
48.3
|
57.8%
|
(19.5%)
|
Non-controlling interests
|
(1.4)
|
49.6
|
49.0
|
n.m.
|
(1.2%)
|
Income tax expense
|
(188.9)
|
(166.5)
|
(216.4)
|
14.6%
|
30.0%
|
Net Income
|
699.1
|
492.3
|
755.0
|
8.0%
|
53.4%
|
|
·
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14.3% increase in mobile broadband and services revenues in Turkey to TRY800.8 million (TRY700.8 million), comprising 32.3% (29.6%) of mobile business revenues in Turkey.
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-
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37.8% growth in mobile broadband revenues to TRY530.1 million (TRY384.8 million) with increased smartphone penetration, mobile broadband users and usage amount
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-
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26.8% decrease in SMS revenues, which continued to be negatively impacted by the industry-wide declining trend in demand, as well as the 20% decreased SMS maximum price following the related ICTA decision in January 2014
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-
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6.5% rise in mobile services revenues, which is a promising growth business for Turkcell where we are committed to further growth through innovative products
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Third Quarter 2014 Results
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-
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Starting from Q314, bulk SMS and one-time password (OTP) revenues, which were recorded under mobile services revenues, have been reclassified under SMS revenues. Furthermore, IFRS adjustments on mobile broadband and services revenues, previously netted-off from mobile services revenues for presentation purposes, will be treated separately going forward. Total mobile broadband and services revenues figures did not change after this reclassification and the change of presentation. The table below presents the breakdown for SMS and mobile services revenues retrospectively, after these changes.
|
Million TRY
|
Q113
|
Q213
|
Q313
|
Q413
|
Q114
|
Q214
|
Q314
|
SMS revenues
|
206
|
213
|
216
|
203
|
172
|
164
|
158
|
Mobile services revenues
|
96
|
106
|
104
|
102
|
96
|
100
|
111
|
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·
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11.3% growth in revenues of subsidiaries to TRY685.2 million (TRY615.6 million), constituting 21.7% (20.7%) of the Group top line.
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-
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38.2% growth in Turkcell Superonline revenues to TRY327.6 million (TRY237.1 million)
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|
-
|
20.9% decline in Astelit revenues to TRY193.9 million (TRY245.0 million)
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Million TRY
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
Interconnect revenues
|
266.7
|
281.2
|
300.3
|
12.6%
|
6.8%
|
as a % of revenues
|
11.3%
|
12.2%
|
12.1%
|
0.8pp
|
(0.1pp)
|
Interconnect costs
|
(249.4)
|
(262.7)
|
(278.5)
|
11.7%
|
6.0%
|
as a % of revenues
|
(10.5%)
|
(11.4%)
|
(11.2%)
|
(0.7pp)
|
0.2pp
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Third Quarter 2014 Results
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Million TRY
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
Current Tax expense
|
(195.5)
|
(165.6)
|
(199.5)
|
2.0%
|
20.5%
|
Deferred Tax Income/expense
|
6.6
|
(0.9)
|
(16.9)
|
(356.1%)
|
n.m.
|
Income Tax expense
|
(188.9)
|
(166.5)
|
(216.4)
|
14.6%
|
30.0%
|
Consolidated Cash Flow (million TRY)
|
Q313
|
Q214
|
Q314
|
EBITDA1
|
1,016.2
|
907.0
|
1,050.4
|
LESS:
|
|||
Capex and License
|
(449.0)
|
(314.0)
|
(555.1)
|
Turkcell
|
(232.4)
|
(173.9)
|
(363.8)
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Turkcell Superonline
|
(94.7)
|
(103.3)
|
(125.3)
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Ukraine2
|
(56.6)
|
(12.0)
|
(36.6)
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Investment & Marketable Securities
|
(8.4)
|
51.9
|
(6.4)
|
Net interest Income/ (expense)
|
165.3
|
211.2
|
196.5
|
Other
|
45.2
|
(967.2)
|
225.8
|
Net Change in Debt
|
(69.0)
|
38.9
|
(136.1)
|
Cash generated
|
700.3
|
(72.2)
|
775.1
|
Cash balance
|
7,703.3
|
7,916.9
|
8,692.0
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Third Quarter 2014 Results
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Summary of Operational data
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
Number of total subscribers (million)
|
35.0
|
34.6
|
34.7
|
(0.9%)
|
0.3%
|
Postpaid
|
13.8
|
14.5
|
14.8
|
7.2%
|
2.1%
|
Prepaid
|
21.2
|
20.1
|
19.9
|
(6.1%)
|
(1.0%)
|
ARPU, blended (TRY)
|
22.7
|
22.1
|
23.8
|
4.8%
|
7.7%
|
Postpaid
|
38.5
|
36.8
|
39.4
|
2.3%
|
7.1%
|
Prepaid
|
12.3
|
11.8
|
12.4
|
0.8%
|
5.1%
|
ARPU (Average Monthly Revenue per User), blended (US$)
|
11.5
|
10.4
|
11.1
|
(3.5%)
|
6.7%
|
Postpaid
|
19.5
|
17.3
|
18.3
|
(6.2%)
|
5.8%
|
Prepaid
|
6.2
|
5.6
|
5.8
|
(6.5%)
|
3.6%
|
Churn (%)
|
6.9%
|
8.1%
|
8.2%
|
1.3pp
|
0.1pp
|
MoU (Average Monthly Minutes of usage per subscriber), blended
|
271.6
|
279.5
|
288.0
|
6.0%
|
3.0%
|
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Third Quarter 2014 Results
|
Astelit*
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
Number of subscribers (million)1
|
12.2
|
12.7
|
13.6
|
11.5%
|
7.1%
|
Active (3 months)2
|
9.4
|
9.5
|
10.6
|
12.8%
|
11.6%
|
MoU (minutes) (12 months)
|
174.0
|
168.8
|
168.1
|
(3.4%)
|
(0.4%)
|
ARPU (Average Monthly Revenue per User), blended (US$)
|
3.5
|
2.2
|
2.3
|
(34.3%)
|
4.5%
|
Active (3 months) (US$)
|
4.6
|
3.0
|
3.0
|
(34.8%)
|
-
|
Active (3 months) (UAH)
|
36.4
|
34.1
|
37.9
|
4.1%
|
11.1%
|
Revenue (million UAH)
|
991.0
|
961.0
|
1,144.6
|
15.5%
|
19.1%
|
Revenue (million TRY)
|
245.0
|
176.9
|
193.9
|
(20.9%)
|
9.6%
|
Revenue (million US$)
|
124.0
|
83.4
|
90.3
|
(27.2%)
|
8.3%
|
EBITDA (million UAH)
|
305.2
|
277.5
|
361.7
|
18.5%
|
30.3%
|
EBITDA (million TRY)
|
75.4
|
51.1
|
61.2
|
(18.8%)
|
19.8%
|
EBITDA (million US$)3
|
38.2
|
24.1
|
28.5
|
(25.4%)
|
18.3%
|
EBITDA margin
|
30.8%
|
28.9%
|
31.6%
|
0.8pp
|
2.7pp
|
Net loss (million UAH)
|
(47.6)
|
(677.8)
|
(831.7)
|
n.m.
|
22.7%
|
Net loss (million TRY)
|
(11.9)
|
(126.6)
|
(139.0)
|
n.m.
|
9.8%
|
Net loss (million US$)
|
(6.0)
|
(59.4)
|
(66.8)
|
n.m.
|
12.5%
|
Capex (million UAH)
|
216.4
|
75.4
|
211.0
|
(2.5%)
|
179.8%
|
Capex (million TRY)
|
56.6
|
12.0
|
36.6
|
(35.3%)
|
205.0%
|
Capex (million US$)
|
27.1
|
5.9
|
15.2
|
(43.9%)
|
157.6%
|
![]() |
Third Quarter 2014 Results
|
Turkcell Superonline (million TRY)*
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
Revenue
|
237.1
|
309.4
|
327.6
|
38.2%
|
5.9%
|
Residential
|
84.8
|
120.6
|
131.2
|
54.7%
|
8.8%
|
% of revenues
|
35.8%
|
39.0%
|
40.0%
|
4.2pp
|
1.0pp
|
Corporate
|
64.8
|
82.5
|
85.8
|
32.4%
|
4.0%
|
% of revenues
|
27.3%
|
26.7%
|
26.2%
|
(1.1pp)
|
(0.5pp)
|
Wholesale
|
87.4
|
106.3
|
110.7
|
26.7%
|
4.1%
|
% of revenues
|
36.9%
|
34.4%
|
33.8%
|
(3.1pp)
|
(0.6pp)
|
EBITDA 3
|
60.1
|
75.5
|
91.0
|
51.4%
|
20.5%
|
EBITDA Margin
|
25.3%
|
24.4%
|
27.8%
|
2.5pp
|
3.4pp
|
Capex
|
94.7
|
103.3
|
125.3
|
32.3%
|
21.3%
|
FTTH subscribers
|
520.6
|
652.5
|
685.5
|
31.7%
|
5.1%
|
Fintur
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
Subscribers (million)
|
21.5
|
20.1
|
20.7
|
(3.7%)
|
3.0%
|
Kazakhstan
|
14.3
|
12.9
|
13.0
|
(9.1%)
|
0.8%
|
Azerbaijan
|
4.4
|
4.3
|
4.5
|
2.3%
|
4.7%
|
Moldova
|
1.0
|
1.0
|
1.1
|
10.0%
|
10.0%
|
Georgia
|
1.8
|
1.9
|
2.0
|
11.1%
|
5.3%
|
Revenue (million US$)
|
527
|
468
|
479
|
(9.1%)
|
2.4%
|
Kazakhstan
|
319
|
274
|
271
|
(15.0%)
|
(1.1%)
|
Azerbaijan
|
149
|
144
|
154
|
3.4%
|
6.9%
|
Moldova
|
21
|
18
|
19
|
(9.5%)
|
5.6%
|
Georgia
|
38
|
32
|
34
|
(10.5%)
|
6.3%
|
Fintur’s contribution to Group’s net income
|
48
|
35
|
30
|
(37.5%)
|
(14.3%)
|
![]() |
Third Quarter 2014 Results
|
Turkcell Group Subscribers (million)
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
Turkcell
|
35.0
|
34.6
|
34.7
|
(0.9%)
|
0.3%
|
Ukraine
|
12.2
|
12.7
|
13.6
|
11.5%
|
7.1%
|
Fintur
|
21.5
|
20.1
|
20.7
|
(3.7%)
|
3.0%
|
Northern Cyprus
|
0.4
|
0.4
|
0.4
|
-
|
-
|
Belarus
|
1.2
|
1.3
|
1.3
|
8.3%
|
-
|
Turkcell Europe
|
0.4
|
0.4
|
0.4
|
-
|
-
|
TURKCELL GROUP
|
70.7
|
69.5
|
71.1
|
0.6%
|
2.3%
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
|
US$ / TRY rate
|
|||||
Closing Rate
|
2.0342
|
2.1234
|
2.2789
|
12.0%
|
7.3%
|
Average Rate
|
1.9782
|
2.1221
|
2.1505
|
8.7%
|
1.3%
|
Consumer Price Index (Turkey)
|
1.0%
|
2.1%
|
0.7%
|
(0.3pp)
|
(1.4pp)
|
GDP Growth (Turkey)
|
4.2%
|
2.1%
|
-
|
-
|
-
|
US$ / UAH rate
|
|||||
Closing Rate
|
7.99
|
11.82
|
12.95
|
62.1%
|
9.6%
|
Average Rate
|
7.99
|
11.52
|
12.70
|
58.9%
|
10.2%
|
US$ / BYR rate
|
|||||
Closing Rate
|
9,080
|
10,200
|
10,580
|
16.5%
|
3.7%
|
Average Rate
|
8,935
|
10,035
|
10,377
|
16.1%
|
3.4%
|
![]() |
Third Quarter 2014 Results
|
Turkcell (million US$)
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
EBITDA
|
514.0
|
427.8
|
489.1
|
(4.8%)
|
14.3%
|
Income tax expense
|
(95.4)
|
(78.5)
|
(100.5)
|
5.3%
|
28.0%
|
Other operating income / (expense)
|
(12.1)
|
(45.1)
|
8.2
|
(167.8%)
|
(118.2%)
|
Financial income / (expense)
|
250.9
|
28.4
|
1.7
|
(99.3%)
|
(94.0%)
|
Net increase / (decrease) in assets and liabilities
|
(226.8)
|
(169.2)
|
(25.3)
|
(88.8%)
|
(85.0%)
|
Net cash from operating activities
|
430.6
|
163.4
|
373.2
|
(13.3%)
|
128.4%
|
Turkcell Superonline (million TRY)
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
EBITDA
|
60.1
|
75.5
|
91.0
|
51.4%
|
20.5%
|
Income tax expense
|
0.9
|
(7.9)
|
(1.0)
|
(211.1%)
|
(87.3%)
|
Other operating income / (expense)
|
(2.9)
|
1.7
|
0.1
|
(103.4%)
|
(94.1%)
|
Financial income / (expense)
|
(18.9)
|
5.0
|
(6.8)
|
(64.0%)
|
(236.0%)
|
Net increase / (decrease) in assets and liabilities
|
17.9
|
15.7
|
12.7
|
(29.1%)
|
(19.1%)
|
Net cash from operating activities
|
57.1
|
90.0
|
96.0
|
68.1%
|
6.7%
|
Euroasia (million US$)
|
Q313
|
Q214
|
Q314
|
y/y %
|
q/q %
|
EBITDA
|
38.2
|
24.1
|
28.5
|
(25.4%)
|
18.3%
|
Other operating income / (expense)
|
0.2
|
(0.5)
|
0.2
|
-
|
(140.0%)
|
Financial income / (expense)
|
(12.6)
|
(13.8)
|
(14.0)
|
11.1%
|
1.4%
|
Net increase / (decrease) in assets and liabilities
|
17.7
|
7.7
|
(4.5)
|
(125.4%)
|
(158.4%)
|
Net cash from operating activities
|
43.5
|
17.5
|
10.2
|
(76.6%)
|
(41.7%)
|
![]() |
Third 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.
CMB SELECTED FINANCIALS (TRY Million)
|
||||||||||||||||||||
Quarter Ended
|
Quarter Ended
|
Quarter Ended
|
Nine Months Ended
|
Nine Months Ended
|
||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
||||||||||||||||
2013
|
2014
|
2014
|
2013
|
2014
|
||||||||||||||||
Consolidated Statement of Operations Data
|
||||||||||||||||||||
Revenues
|
||||||||||||||||||||
Communication fees
|
2,681.8 | 2,551.8 | 2,757.5 | 7,697.5 | 7,805.3 | |||||||||||||||
Commission fees on betting business
|
52.1 | 67.1 | 69.1 | 157.3 | 212.4 | |||||||||||||||
Monthly fixed fees
|
18.2 | 14.4 | 10.0 | 57.7 | 41.1 | |||||||||||||||
Simcard sales
|
8.9 | 7.0 | 11.9 | 22.6 | 25.4 | |||||||||||||||
Call center revenues and other revenues
|
219.7 | 282.7 | 313.7 | 589.2 | 856.2 | |||||||||||||||
Total revenues
|
2,980.7 | 2,923.0 | 3,162.2 | 8,524.3 | 8,940.4 | |||||||||||||||
Direct cost of revenues
|
-1,754.5 | -1,788.7 | -1,879.0 | -5,210.0 | -5,408.6 | |||||||||||||||
Gross profit
|
1,226.2 | 1,134.3 | 1,283.2 | 3,314.3 | 3,531.8 | |||||||||||||||
Administrative expenses
|
-140.4 | -135.8 | -138.0 | -398.3 | -415.9 | |||||||||||||||
Selling & marketing expenses
|
-455.7 | -477.2 | -496.5 | -1,333.2 | -1,456.8 | |||||||||||||||
Other Operating Income / (Expense)
|
262.5 | 104.3 | 424.0 | 872.6 | 784.2 | |||||||||||||||
Operating profit before financing and investing costs
|
892.6 | 625.6 | 1,072.7 | 2,455.4 | 2,443.3 | |||||||||||||||
Income from investing activities
|
6.1 | 8.0 | 1.7 | 21.3 | 14.6 | |||||||||||||||
Expense from investing activities
|
-10.2 | -5.1 | -10.2 | -42.8 | -26.1 | |||||||||||||||
Share of profit of equity accounted investees
|
92.9 | 73.8 | 66.8 | 221.5 | 214.2 | |||||||||||||||
Income before financing costs
|
981.4 | 702.3 | 1,131.0 | 2,655.4 | 2,646.0 | |||||||||||||||
Finance expense
|
-123.1 | -152.8 | -255.6 | -468.3 | -965.1 | |||||||||||||||
Monetary gain/(loss)
|
30.6 | 60.0 | 48.3 | 104.4 | 172.8 | |||||||||||||||
Income before tax and non-controlling interest
|
888.9 | 609.5 | 923.7 | 2,291.5 | 1,853.7 | |||||||||||||||
Income tax expense
|
-188.9 | -166.4 | -217.0 | -472.4 | -544.0 | |||||||||||||||
Income before non-controlling interest
|
700.0 | 443.1 | 706.7 | 1,819.1 | 1,309.7 | |||||||||||||||
Non-controlling interest
|
-1.4 | 49.6 | 49.0 | 4.5 | 299.3 | |||||||||||||||
Net income
|
698.6 | 492.7 | 755.7 | 1,823.6 | 1,609.0 | |||||||||||||||
Net income per share
|
0.32 | 0.22 | 0.34 | 0.83 | 0.73 | |||||||||||||||
Other Financial Data
|
||||||||||||||||||||
Gross margin
|
41.1 | % | 38.8 | % | 40.6 | % | 38.9 | % | 39.5 | % | ||||||||||
EBITDA(*)
|
1,016.2 | 907.0 | 1,050.4 | 2,693.0 | 2,844.7 | |||||||||||||||
Capital expenditures
|
449.0 | 314.0 | 555.1 | 1,003.8 | 1,209.5 | |||||||||||||||
Consolidated Balance Sheet Data (at period end)
|
||||||||||||||||||||
Cash and cash equivalents
|
7,703.3 | 7,916.9 | 8,692.0 | 7,703.3 | 8,692.0 | |||||||||||||||
Total assets
|
20,433.4 | 21,740.1 | 22,673.4 | 20,433.4 | 22,673.4 | |||||||||||||||
Long term debt
|
1,437.5 | 1,111.6 | 1,101.3 | 1,437.5 | 1,101.3 | |||||||||||||||
Total debt
|
3,205.4 | 3,459.9 | 3,545.0 | 3,205.4 | 3,545.0 | |||||||||||||||
Total liabilities
|
6,028.5 | 6,217.6 | 6,472.5 | 6,028.5 | 6,472.5 | |||||||||||||||
Total shareholders’ equity / Net Assets
|
14,404.9 | 15,522.5 | 16,200.9 | 14,404.9 | 16,200.9 |
** For further details, please refer to our consolidated financial statements and notes as at 30 September 2014 on our web site.
|
TURKCELL ILETISIM HIZMETLERI A.S.
IFRS SELECTED FINANCIALS (TRY Million)
|
||||||||||||||||||||
Quarter Ended
|
Quarter Ended
|
Quarter Ended
|
Nine Months Ended
|
Nine Months Ended
|
||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
||||||||||||||||
2013
|
2014
|
2014
|
2013
|
2014
|
||||||||||||||||
Consolidated Statement of Operations Data
|
||||||||||||||||||||
Revenues
|
||||||||||||||||||||
Communication fees
|
2,681.8 | 2,551.8 | 2,757.5 | 7,697.5 | 7,805.3 | |||||||||||||||
Commission fees on betting business
|
52.1 | 67.1 | 69.1 | 157.3 | 212.4 | |||||||||||||||
Monthly fixed fees
|
18.2 | 14.4 | 10.0 | 57.7 | 41.1 | |||||||||||||||
Simcard sales
|
8.9 | 7.0 | 11.9 | 22.6 | 25.4 | |||||||||||||||
Call center revenues and other revenues
|
219.7 | 282.7 | 313.7 | 589.2 | 856.2 | |||||||||||||||
Total revenues
|
2,980.7 | 2,923.0 | 3,162.2 | 8,524.3 | 8,940.4 | |||||||||||||||
Direct cost of revenues
|
-1,754.0 | -1,789.2 | -1,880.2 | -5,212.6 | -5,411.7 | |||||||||||||||
Gross profit
|
1,226.7 | 1,133.8 | 1,282.0 | 3,311.7 | 3,528.7 | |||||||||||||||
Administrative expenses
|
-140.4 | -135.8 | -138.0 | -398.3 | -415.9 | |||||||||||||||
Selling & marketing expenses
|
-455.7 | -477.2 | -496.5 | -1,333.2 | -1,456.8 | |||||||||||||||
Other Operating Income / (Expense)
|
-2.2 | -92.0 | 17.8 | -23.3 | -77.7 | |||||||||||||||
Operating profit before financing costs
|
628.4 | 428.8 | 665.3 | 1,556.9 | 1,578.3 | |||||||||||||||
Finance costs
|
-46.9 | -211.3 | -83.7 | -114.9 | -846.9 | |||||||||||||||
Finance income
|
184.4 | 257.9 | 225.7 | 520.5 | 732.2 | |||||||||||||||
Monetary gain/(loss)
|
30.6 | 60.0 | 48.3 | 104.4 | 172.8 | |||||||||||||||
Share of profit of equity accounted investees
|
92.9 | 73.8 | 66.8 | 221.5 | 214.2 | |||||||||||||||
Income before taxes and minority interest
|
889.4 | 609.2 | 922.4 | 2,288.4 | 1,850.6 | |||||||||||||||
Income tax expense
|
-188.9 | -166.5 | -216.4 | -471.9 | -543.1 | |||||||||||||||
Income before minority interest
|
700.5 | 442.7 | 706.0 | 1,816.5 | 1,307.5 | |||||||||||||||
Non-controlling interests
|
-1.4 | 49.6 | 49.0 | 4.5 | 299.3 | |||||||||||||||
Net income
|
699.1 | 492.3 | 755.0 | 1,821.0 | 1,606.8 | |||||||||||||||
Net income per share
|
0.32 | 0.22 | 0.34 | 0.83 | 0.73 | |||||||||||||||
Other Financial Data
|
||||||||||||||||||||
Gross margin
|
41.2 | % | 38.8 | % | 40.5 | % | 38.9 | % | 39.5 | % | ||||||||||
EBITDA(*)
|
1,016.2 | 907.0 | 1,050.4 | 2,693.0 | 2,844.7 | |||||||||||||||
Capital expenditures
|
449.0 | 314.0 | 555.1 | 1,003.8 | 1,209.5 | |||||||||||||||
Consolidated Balance Sheet Data (at period end)
|
||||||||||||||||||||
Cash and cash equivalents
|
7,703.3 | 7,916.9 | 8,692.0 | 7,703.3 | 8,692.0 | |||||||||||||||
Total assets
|
20,464.7 | 21,767.2 | 22,699.3 | 20,464.7 | 22,699.3 | |||||||||||||||
Long term debt
|
1,437.5 | 1,111.6 | 1,101.3 | 1,437.5 | 1,101.3 | |||||||||||||||
Total debt
|
3,205.4 | 3,459.9 | 3,545.0 | 3,205.4 | 3,545.0 | |||||||||||||||
Total liabilities
|
6,033.7 | 6,221.8 | 6,476.3 | 6,033.7 | 6,476.3 | |||||||||||||||
Total shareholders’ equity / Net Assets
|
14,431.0 | 15,545.4 | 16,223.0 | 14,431.0 | 16,223.0 |
** For further details, please refer to our consolidated financial statements and notes as at 30 September 2014 on our web site.
|
TURKCELL ILETISIM HIZMETLERI A.S.
IFRS SELECTED FINANCIALS (US$ MILLION)
|
||||||||||||||||||||
Quarter Ended
|
Quarter Ended
|
Quarter Ended
|
Nine Months Ended
|
Nine Months Ended
|
||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
||||||||||||||||
2013
|
2014
|
2014
|
2013
|
2014
|
||||||||||||||||
Consolidated Statement of Operations Data
|
||||||||||||||||||||
Revenues
|
||||||||||||||||||||
Communication fees
|
1,355.2 | 1,203.5 | 1,280.6 | 4,117.0 | 3,606.6 | |||||||||||||||
Commission fees on betting business
|
26.2 | 31.5 | 32.1 | 84.4 | 97.9 | |||||||||||||||
Monthly fixed fees
|
9.2 | 6.8 | 4.6 | 31.0 | 18.9 | |||||||||||||||
Simcard sales
|
4.4 | 3.3 | 5.6 | 12.0 | 11.8 | |||||||||||||||
Call center revenues and other revenues
|
110.4 | 133.6 | 144.7 | 313.4 | 395.1 | |||||||||||||||
Total revenues
|
1,505.4 | 1,378.7 | 1,467.6 | 4,557.8 | 4,130.3 | |||||||||||||||
Direct cost of revenues
|
-884.2 | -843.9 | -870.4 | -2,787.7 | -2,497.9 | |||||||||||||||
Gross profit
|
621.2 | 534.8 | 597.2 | 1,770.1 | 1,632.4 | |||||||||||||||
Administrative expenses
|
-70.6 | -64.1 | -63.6 | -212.5 | -191.6 | |||||||||||||||
Selling & marketing expenses
|
-230.2 | -225.0 | -230.3 | -713.4 | -672.4 | |||||||||||||||
Other Operating Income / (Expense)
|
-1.2 | -43.3 | 8.7 | -12.3 | -36.1 | |||||||||||||||
Operating profit before financing costs
|
319.2 | 202.4 | 312.0 | 831.9 | 732.3 | |||||||||||||||
Finance costs
|
-20.2 | -99.7 | -37.6 | -56.4 | -383.9 | |||||||||||||||
Finance income
|
92.2 | 121.1 | 105.8 | 278.1 | 338.6 | |||||||||||||||
Monetary gain/(loss)
|
13.0 | 29.2 | 17.1 | 51.3 | 75.8 | |||||||||||||||
Share of profit of equity accounted investees
|
47.3 | 34.8 | 31.4 | 118.0 | 99.3 | |||||||||||||||
Income before taxes and minority interest
|
451.5 | 287.8 | 428.7 | 1,222.9 | 862.1 | |||||||||||||||
Income tax expense
|
-95.4 | -78.5 | -100.5 | -251.3 | -251.1 | |||||||||||||||
Income before minority interest
|
356.1 | 209.3 | 328.2 | 971.6 | 611.0 | |||||||||||||||
Non-controlling interests
|
-0.7 | 23.2 | 23.8 | 2.6 | 136.4 | |||||||||||||||
Net income
|
355.4 | 232.5 | 352.0 | 974.2 | 747.4 | |||||||||||||||
Net income per share
|
0.16 | 0.11 | 0.16 | 0.44 | 0.34 | |||||||||||||||
Other Financial Data
|
||||||||||||||||||||
Gross margin
|
41.3 | % | 38.8 | % | 40.7 | % | 38.8 | % | 39.5 | % | ||||||||||
EBITDA(*)
|
514.0 | 427.8 | 489.1 | 1,437.6 | 1,316.1 | |||||||||||||||
Capital expenditures
|
205.3 | 152.8 | 222.5 | 493.5 | 530.7 | |||||||||||||||
Consolidated Balance Sheet Data (at period end)
|
||||||||||||||||||||
Cash and cash equivalents
|
3,786.9 | 3,728.4 | 3,814.1 | 3,786.9 | 3,814.1 | |||||||||||||||
Total assets
|
10,060.3 | 10,251.1 | 9,960.6 | 10,060.3 | 9,960.6 | |||||||||||||||
Long term debt
|
706.7 | 523.5 | 483.3 | 706.7 | 483.3 | |||||||||||||||
Total debt
|
1,575.7 | 1,629.4 | 1,555.6 | 1,575.7 | 1,555.6 | |||||||||||||||
Total liabilities
|
2,966.1 | 2,930.1 | 2,841.8 | 2,966.1 | 2,841.8 | |||||||||||||||
Total equity
|
7,094.2 | 7,321.0 | 7,118.8 | 7,094.2 | 7,118.8 |
* Please refer to the notes on reconciliation of Non-GAAP Financial measures on page 11
|
** For further details, please refer to our consolidated financial statements and notes as at 30 September 2014 on our web site.
|
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
|
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
As at 30 September 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 September
2014
|
31 December
2013
|
||||||||||
Assets
|
||||||||||||
Property, plant and equipment
|
10 | 2,486,137 | 2,747,813 | |||||||||
Intangible assets
|
11 | 1,002,392 | 1,106,871 | |||||||||
GSM and other telecommunication operating licenses
|
455,990 | 522,065 | ||||||||||
Computer software
|
503,870 | 544,140 | ||||||||||
Other intangible assets
|
42,532 | 40,666 | ||||||||||
Investment properties
|
6,976 | 7,639 | ||||||||||
Investments in equity accounted investees
|
12 | 249,879 | 250,959 | |||||||||
Other investments
|
- | 3,851 | ||||||||||
Other non-current assets
|
192,925 | 117,968 | ||||||||||
Trade receivables
|
13 | 297,024 | 247,823 | |||||||||
Deferred tax assets
|
30,791 | 34,333 | ||||||||||
Total non-current assets
|
4,266,124 | 4,517,257 | ||||||||||
Inventories
|
29,289 | 32,845 | ||||||||||
Other investments
|
16,857 | 27,028 | ||||||||||
Due from related parties
|
22 | 11,995 | 10,012 | |||||||||
Trade receivables and accrued income
|
13 | 1,466,910 | 1,294,636 | |||||||||
Other current assets
|
14 | 355,336 | 282,152 | |||||||||
Cash and cash equivalents
|
15 | 3,814,120 | 3,808,708 | |||||||||
Total current assets
|
5,694,507 | 5,455,381 | ||||||||||
Total assets
|
9,960,631 | 9,972,638 | ||||||||||
Equity
|
||||||||||||
Share capital
|
1,636,204 | 1,636,204 | ||||||||||
Share premium
|
434 | 434 | ||||||||||
Capital contributions
|
22,772 | 22,772 | ||||||||||
Reserves
|
(3,574,769 | ) | (3,105,434 | ) | ||||||||
Retained earnings
|
9,182,301 | 8,435,045 | ||||||||||
Total equity attributable to equity holders of
Turkcell Iletisim Hizmetleri AS
|
7,266,942 | 6,989,021 | ||||||||||
Non-controlling interests
|
(148,145 | ) | (85,055 | ) | ||||||||
Total equity
|
7,118,797 | 6,903,966 | ||||||||||
Liabilities
|
||||||||||||
Loans and borrowings
|
18 | 483,254 | 716,150 | |||||||||
Employee benefits
|
39,916 | 38,709 | ||||||||||
Provisions
|
125,766 | 135,524 | ||||||||||
Other non-current liabilities
|
139,527 | 127,669 | ||||||||||
Deferred tax liabilities
|
22,941 | 30,751 | ||||||||||
Total non-current liabilities
|
811,404 | 1,048,803 | ||||||||||
Bank overdraft
|
15 | - | 237 | |||||||||
Loans and borrowings
|
18 | 1,072,847 | 846,245 | |||||||||
Income taxes payable
|
82,187 | 65,074 | ||||||||||
Trade and other payables
|
735,527 | 891,515 | ||||||||||
Due to related parties
|
22 | 18,803 | 42,278 | |||||||||
Deferred income
|
76,400 | 92,221 | ||||||||||
Provisions
|
44,666 | 82,299 | ||||||||||
Total current liabilities
|
2,030,430 | 2,019,869 | ||||||||||
Total liabilities
|
2,841,834 | 3,068,672 | ||||||||||
Total equity and liabilities
|
9,960,631 | 9,972,638 |
TURKCELL ILETISIM HIZMETLERI AS AND ITS SUBSIDIARIES
|
CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS
|
For the nine months ended 30 September 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.)
|
Nine months ended
|
Three months ended
|
|||||||||||||||||||
Note
|
30
September 2014 |
30
September 2013 |
30
September 2014 |
30
September 2013 |
||||||||||||||||
Revenue
|
4,130,301 | 4,557,817 | 1,467,643 | 1,505,458 | ||||||||||||||||
Direct costs of revenue
|
(2,497,895 | ) | (2,787,691 | ) | (870,385 | ) | (884,221 | ) | ||||||||||||
Gross profit
|
1,632,406 | 1,770,126 | 597,258 | 621,237 | ||||||||||||||||
Other income
|
19,759 | 11,405 | 12,508 | 3,273 | ||||||||||||||||
Selling and marketing expenses
|
(672,366 | ) | (713,444 | ) | (230,232 | ) | (230,209 | ) | ||||||||||||
Administrative expenses
|
(191,620 | ) | (212,546 | ) | (63,609 | ) | (70,646 | ) | ||||||||||||
Other expenses
|
(55,906 | ) | (23,606 | ) | (3,990 | ) | (4,387 | ) | ||||||||||||
Results from operating activities
|
732,273 | 831,935 | 311,935 | 319,268 | ||||||||||||||||
Finance income
|
7 | 338,600 | 278,095 | 105,744 | 92,278 | |||||||||||||||
Finance costs
|
7 | (383,873 | ) | (56,373 | ) | (37,605 | ) | (20,197 | ) | |||||||||||
Net finance income / (expense)
|
(45,273 | ) | 221,722 | 68,139 | 72,081 | |||||||||||||||
Monetary gain
|
75,817 | 51,309 | 17,167 | 12,984 | ||||||||||||||||
Share of profit of equity accounted investees
|
12 | 99,304 | 117,965 | 31,443 | 47,234 | |||||||||||||||
Profit before income tax
|
862,121 | 1,222,931 | 428,684 | 451,567 | ||||||||||||||||