“PROFITABLE GROWTH ON STRONG OPERATIONAL
PERFORMANCE”
Turkcell Iletisim Hizmetleri (NYSE:TKC) (BIST:TCELL):
- Please note that all financial data is consolidated and
comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company”,
or “Turkcell”) and its subsidiaries and associates (together
referred to as the “Group”), unless otherwise stated.
- We have three reporting segments:
- "Turkcell Turkey" which comprises all of our telecom related
businesses in Turkey (as used in our previous releases in periods
prior to Q115, this term covered only the mobile businesses). All
non-financial data presented in this press release is
unconsolidated and comprises Turkcell Turkey only figures, unless
otherwise stated. The terms "we", "us", and "our" in this press
release refer only to Turkcell Turkey, except in discussions of
financial data, where such terms refer to the Group, and except
where context otherwise requires.
- “Turkcell International” which comprises all of our telecom
related businesses outside of Turkey.
- “Other subsidiaries” which is mainly comprised of our
information and entertainment services, call center business
revenues, financial services revenues and inter-business
eliminations. Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş.,
our subsidiary responsible for payment services, was previously
reported under Turkcell Turkey but with effect from the first
quarter of 2019 is now included in “Other Subsidiaries”. We made
this change due to the fact that its non-group revenues, which are
not telco related, and consumer finance business related revenues
now comprise the majority of its total revenues. All figures
presented in this document for prior periods have been restated to
reflect this change.
- In this press release, a year-on-year comparison of our key
indicators is provided and figures in parentheses following the
operational and financial results for September 30, 2019 refer to
the same item as at September 30, 2018. For further details, please
refer to our consolidated financial statements and notes as at and
for September 30, 2019, which can be accessed via our website in
the investor relations section (www.turkcell.com.tr).
- Selected financial information presented in this press release
for the third quarter and nine months of 2018 and 2019 is based on
IFRS figures in TRY terms unless otherwise stated.
- In accordance with our strategic approach and IFRS
requirements, Fintur is classified as ‘held for sale’ and reported
as discontinued operations as of October 2016. On December 12,
2018, Turkcell signed a binding agreement and on April 2, 2019
completed the transfer of its shares in Fintur to Sonera Holding
B.V., the majority shareholder of Fintur.
- In the tables used in this press release totals may not foot
due to rounding differences. The same applies to the calculations
in the text.
- Year-on-year and quarter-on-quarter percentage comparisons
appearing in this press release reflect mathematical
calculation.
FINANCIAL HIGHLIGHTS
TRY million
Q318
Q319
y/y%
9M18
9M19
y/y%
Revenue
5,799
6,587
13.6%
15,666
18,453
17.8%
EBITDA1
2,393
2,839
18.6%
6,549
7,673
17.2%
EBITDA Margin (%)
41.3%
43.1%
1.8pp
41.8%
41.6%
(0.2pp)
EBIT2
1,418
1,641
15.7%
3,548
4,031
13.6%
EBIT Margin (%)
24.4%
24.9%
0.5pp
22.6%
21.8%
(0.8pp)
Net Income
241
801
231.9%
1,157
2,491
115.3%
THIRD QUARTER HIGHLIGHTS
- Solid set of financial results delivered:
- Revenues of TRY6,587 million, up 14% year-on-year and 43% on
two-year cumulative basis
- Turkcell Turkey revenues up 15% to TRY5,652 million
- EBITDA of TRY2,839 million, up 19% leading to an EBITDA margin
of 43.1%
- EBIT of TRY1,641 million, with a strong EBIT margin of
24.9%
- Net income more than tripled to TRY801 million on the back of
strong operational profitability
- Leverage at 1.0x on 0.8x year-on-year improvement
- Strong operational momentum continued:
- Mobile subscriber quarterly net additions of 526 thousand on
503 thousand postpaid net additions
- Mobile ARPU3 growth of 17.6% year-on-year, like-for-like ARPU4
growth of 20.1%
- Superbox5 subscribers at 217 thousand, on 88 thousand quarterly
net additions
- All time high residential fiber ARPU growth of 19.8%
year-on-year
- Multiplay with TV subscriber ratio6 at 52.2% on 4.7pp
year-on-year rise
- 4.5G users’ data usage at 10GB in Q319
- 19.6 million 4.5G compatible smartphones on our network, up 0.7
million quarter-on-quarter
- TRY1,010 million of dividends to be distributed on October
31
- 2019 Group guidance7 reiterated; revenue growth target of
17%-19%, EBITDA margin target of 39%-41% and operational capex over
sales ratio8 of 16%-18%
(1) EBITDA is a non-GAAP financial measure. See page 13 for the
explanation of how we calculate Adjusted EBITDA and its
reconciliation to net income. (2) EBIT is a non-GAAP financial
measure and is equal to EBITDA minus depreciation and amortization
expenses. (3) Excluding M2M (4) The ARPU of customers who have
stayed with Turkcell for at least 14 months (5) Superbox
subscribers are included in mobile subscribers (6) Multiplay
subscribers with TV: Fiber internet + IPTV users & fiber
internet + IPTV + fixed voice users (7) 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 2018 filed with U.S. Securities and
Exchange Commission, and in particular, the risk factor section
therein. (8) Excluding license fee
For further details, please refer to our consolidated financial
statements and notes as at and for September 30, 2019 which can be
accessed via our website in the investor relations section
(www.turkcell.com.tr).
COMMENTS BY MURAT ERKAN, CEO
We have concluded a quarter of continued profitable growth on
strong operational performance. We are achieving the positive
results of our strategy, which we reviewed towards further customer
centricity. Accordingly, while gaining over half a million new
subscribers, the average revenue per user has also increased both
in mobile and fixed broadband.
Our consolidated revenues were TRY6.6 billion, while EBITDA1
reached TRY2.8 billion, delivering a 43.1% EBITDA margin. Net
income more than tripled that of last year’s, reaching TRY801
million. With these results, we generated TRY18.5 billion in
revenues on a 17.8% yearly increase and TRY7.7 billion in EBITDA on
17.2% growth in the first nine months. These results conform to our
plans and we reiterate our 2019 full year guidance2; revenue growth
target of 17%-19%, EBITDA margin target of 39%-41% and an
operational capex to sales ratio3 of 16%-18%.
Our postpaid subscriber base grew by over half a
million
We have set a new record in postpaid subscriber acquisition with
our innovative offers responding to customer needs. As a result,
our subscriber base increased by 526 net mobile subscriber
additions. Total postpaid subscribers reached 19.4 million, to 56%
of the total. Our strategy of satisfying customer hearts and minds
by delivering unique, artificial intelligence-backed offers has
underpinned this success.
Having one of the widest frequency bands and fastest mobile
networks in the world enables us to offer the latest technology
products such as Superbox4. Turkcell remains the first and only
operator in Turkey capable of providing an FWA product offering
fiber-like speed over a mobile network. Superbox subscribers
increased by 88 thousand this quarter at an accelerated pace,
reaching 217 thousand in total. Furthermore, our fixed broadband
subscribers reached 2.2 million with 29 thousand net fiber
subscriber additions. Multiplay with TV+ users5 rose to 52.2% of
fiber residential subscribers.
Upsell to higher tariffs on increasing data demand per user,
demand for digital services and increasing postpaid subscriber base
have all reflected to ARPU levels. Mobile ARPU6 rose 17.6% yearly
to TRY45.5, while fiber residential ARPU recorded all-time-high
growth of 19.8%, reaching TRY68.4.
We are taking firm steps in three key strategic focus
areas
We believe that achievements in three strategic areas defined in
early 2019 will be the drivers of meeting our long-term targets.
New services in corporate solutions, expansion of and partnerships
for Paycell services, the expansion of Financell’s target customer
segment and the advancement of digital services with
differentiating features confirm our leadership in these areas.
In digital business solutions, a key focus area, we serve the
digital transformation of both private and public sector companies
on our strong network and through our analytical capabilities. In
this regard, we have further invested in our data center business,
a major pillar of our infrastructure. We have planned the
inauguration of Turkey’s largest data center in Ankara for November
1st, 2019. This environmentally friendly green building on 12
thousand m2 white space will enhance our data center portfolio.
With rising data storage capacity, we aim to serve Turkey’s digital
transformation with our services.
The fifth city hospital, to which we provide integrated
information technologies infrastructure within the framework of our
digital business solutions, has commenced operations this quarter.
Located in Bursa, the hospital is built on advanced technological
infrastructure, enabling communication between medical devices. We
proudly deliver Turkcell quality to city hospitals’ digital
infrastructure, powered by our Hospital Information Management
Systems software.
This quarter, we have also launched a new business model that
enables our corporate customers to lease smartphones. Taking this
model one-step further, we now also offer financing for corporates
through Financell for their smart device and other technology
needs, advancing their “digital transformation”.
Our innovate service in tech-fin, Paycell, is now advanced with
new integrations. Meanwhile, our meal card investment, Paye Kart,
is now an accepted payment alternative across a wider network.
Welcome at over 7 thousand locations, Paye Kart also serves as a
travel card for İstanbul. Having accomplished the integration of
istanbulkart into Paycell, we have expanded the benefits of both
products.
Total financing provided by Financell for consumers purchasing
technological products on Turkcell sales channels has cumulatively
reached TRY14 billion. Accordingly, we have enabled some 5 million
individuals to satisfy their technology needs.
We continue our innovative digital services approach
Our communication and life platform BiP, so far downloaded 39.8
million times, is equipped with new feature that differentiate it
from the competition. With the latest advancement, BiP users can
make voice and video calls on alternative devices through the web
even when if their phones are unavailable.
Continued focus on a robust financial structure
Financial markets have been mild and rather positive amid the
macroeconomic rebalancing in the third quarter. In this
environment, we have continued to strengthen our balance sheet with
prudent financial management and cash generated through operations.
As at the end of September, the leverage ratio improved by 0.8x
year-on-year, down to 1.0x, widening the gap between ourselves and
the peer group.
We aim to implement our sustainability approach across our
entire business
Reflecting the sustainability focus of our business model, we
have registered another first for Turkey with the wider use of the
portable solar site. This environmentally friendly site is used for
quality communication in those regions of seasonal population that
lack a significant energy supply. With our investment in renewable
energy technologies, we now have a capacity of producing around 480
MWh of electricity per annum though alternative energy sources.
We will announce our 3-year plans in London
We plan to announce and discuss our three-year targets, which we
recently reviewed, as well as our strategic priorities on November
12, 2019 in London at the Turkcell Capital Markets Day.
We thank all our colleagues for the part they have played in our
success, along with our Board of Directors for their unyielding
trust and support. We also express our gratitude to our customers
and business partners, who have remained with us throughout our
success story.
(1) EBITDA is a non-GAAP financial measure. See page 13 for the
explanation of how we calculate Adjusted EBITDA and its
reconciliation to net income. (2) Please note that this paragraph
contains forward looking statements based on our current estimates
and expectations regarding market conditions for each of our
different businesses. No assurance can be given that actual results
will be consistent with such estimates and expectations. For a
discussion of factors that may affect our results, see our Annual
Report on Form 20-F for 2018 filed with U.S. Securities and
Exchange Commission, and in particular, the risk factor section
therein. (3) Excluding license fee (4) Superbox subscribers are
included in mobile subscribers (5) Multiplay subscribers with TV:
Fiber internet + IPTV users & fiber internet + IPTV + fixed
voice users (6) Excluding M2M
FINANCIAL AND OPERATIONAL REVIEW
Financial Review of Turkcell Group
Profit & Loss Statement (million
TRY)
Quarter
Nine Months
Q318
Q319
y/y%
9M18
9M19
y/y%
Revenue
5,799.2
6,586.9
13.6%
15,666.2
18,453.4
17.8%
Cost of revenue1
(2,769.9)
(3,081.8)
11.3%
(7,250.5)
(8,830.6)
21.8%
Cost of revenue1/Revenue
(47.8%)
(46.8%)
1.0pp
(46.3%)
(47.9%)
(1.6pp)
Gross Margin1
52.2%
53.2%
1.0pp
53.7%
52.1%
(1.6pp)
Administrative expenses
(162.1)
(186.8)
15.2%
(475.2)
(562.3)
18.3%
Administrative expenses/Revenue
(2.8%)
(2.8%)
-
(3.0%)
(3.0%)
-
Selling and marketing expenses
(365.2)
(353.8)
(3.1%)
(1,126.1)
(1,170.3)
3.9%
Selling and marketing
expenses/Revenue
(6.3%)
(5.4%)
0.9pp
(7.2%)
(6.3%)
0.9pp
Net impairment losses on financial and
contract assets
(109.3)
(125.7)
15.0%
(265.4)
(217.5)
(18.0%)
EBITDA2
2,392.8
2,838.7
18.6%
6,549.0
7,672.6
17.2%
EBITDA Margin
41.3%
43.1%
1.8pp
41.8%
41.6%
(0.2pp)
Depreciation and amortization
(975.1)
(1,197.7)
22.8%
(3,001.0)
(3,641.7)
21.3%
EBIT3
1,417.7
1,640.9
15.7%
3,548.0
4,030.9
13.6%
EBIT Margin
24.4%
24.9%
0.5pp
22.6%
21.8%
(0.8pp)
Net finance income / (costs)
(868.7)
(521.2)
(40.0%)
(1,668.5)
(1,513.3)
(9.3%)
Finance income4
2,113.2
(82.2)
(103.9%)
3,038.1
252.6
(91.7%)
Finance costs4
(2,981.8)
(439.1)
(85.3%)
(4,706.6)
(1,765.9)
(62.5%)
Other income / (expense)
(123.0)
(92.8)
(24.6%)
(186.6)
(218.4)
17.0%
Non-controlling interests
(39.9)
1.9
n.m
(78.5)
(32.2)
(59.0%)
Share of profit of equity accounted
investees
(0.4)
1.6
n.m.
(0.4)
3.4
n.m.
Income tax expense
(144.4)
(229.2)
58.7%
(456.7)
(551.9)
20.8%
Discontinued operations
-
-
-
-
772.4
n.a.
Net Income
241.4
801.3
231.9%
1,157.2
2,490.9
115.3%
(1) Excluding depreciation and amortization expenses. (2) EBITDA
is a non-GAAP financial measure. See page 13 for the explanation of
how we calculate Adjusted EBITDA and its reconciliation to net
income. (3) EBIT is a non-GAAP financial measure and is equal to
EBITDA minus depreciation and amortization expenses. (4) Fair value
loss and interest expense regarding derivative instruments and the
respective fair value gain and interest income regarding derivative
instruments are represented on a net basis. Starting from Q219,
interest income on financial assets and interest expenses for
financial liabilities, both measured at amortized cost, are
represented on a net basis. Historical periods were restated to
reflect this change.
Revenue of the Group rose 13.6% year-on-year in Q319
mainly driven by the strong ARPU performance of Turkcell Turkey on
the back of rising data and digital services usage of subscribers
and upsell efforts.
Turkcell Turkey revenues, comprising 86% of Group revenues, rose
15.2% to TRY5,652 million (TRY4,907 million).
- Data and digital services revenues grew by 21.9% to TRY3,806
million (TRY3,123 million).
- Rising number and data consumption of 4.5G subscribers,
increased digital services usage along with upsell to higher ARPU
offerings were the main drivers of revenue growth on the mobile
side.
- The main drivers on the fixed front were the increased ratio of
multiplay subscribers with TV, upsell efforts and price
adjustments.
- Equipment revenues rose to TRY470 million (TRY419
million).
- Wholesale revenues rose to TRY327 million (TRY320 million) on
the back of increased carrier traffic.
Turkcell International revenues, at 8% of Group revenues, rose
23.8% to TRY525 million (TRY424 million), mainly driven by the
strong ARPU performance of lifecell and BeST on the back of rising
mobile data revenues.
Other subsidiaries' revenues, comprising 6% of Group revenues,
which includes information and entertainment services, call center
revenues and revenues from financial services were at TRY409
million (TRY468 million).
- We completed the sale of our shares in Azerinteltek, our
sports betting business in Azerbaijan, as of January 11, 2019. We
received the transfer of proceeds on December 27, 2018 and
transferred control of the subsidiary. We did not report any
revenues in the first nine months of 2019 in relation to
Azerinteltek operations.
- Our contract with Spor Toto to carry out sports betting
operations in Turkey has ended as of August 28, 2019.
- Our consumer finance company’s revenues were at TRY218 million
(TRY252 million) in Q319. Revenues were impacted by the decline in
the consumer loan portfolio, from TRY4.8 billion as of Q318 to
TRY2.7 billion as of Q319, due mainly to the installment limitation
on consumer loans for telecom devices.
Cost of revenue (excluding depreciation and amortization)
decreased to 46.8% (47.8%) as a percentage of revenues in Q319.
This was mainly driven by the decline in consumer finance business
cost of funding (1.5pp) and Universal Project costs (1.0pp) despite
the rise in other cost items (1.5pp) as a percentage of revenues.
Please note that Universal Project is aimed at covering unserved
rural areas and realized at cost.
Administrative expenses were at 2.8% (2.8%) as a
percentage of revenues in Q319.
Selling and marketing expenses declined to 5.4% (6.3%) as
a percentage of revenues in Q319. This was mainly driven by the
decline in selling expenses (1.2pp), despite the rise in other cost
items (0.3pp) as a percentage of revenues.
Net impairment losses on financial and contract assets
increased to TRY126 million (TRY109 million) in Q319.
EBITDA1 grew by 18.6% year-on-year in Q319 leading to an
EBITDA margin of 43.1% (41.3%). This was driven by the increased
share of telecommunications services revenues and effective opex
management.
- Turkcell Turkey’s EBITDA rose by 16.8% to TRY2,392 million
(TRY2,048 million) leading to an EBITDA margin of 42.3%
(41.7%).
- Turkcell International EBITDA2 increased to TRY236 million
(TRY151 million) leading to an EBITDA margin of 45.0% (35.5%).
- The EBITDA of other subsidiaries grew by 8.3% to TRY211
million (TRY195 million).
Depreciation and amortization expenses increased by 22.8%
in Q319 year-on-year.
Net finance expense decreased to TRY521 million (TRY869
million) in Q319. This was mainly driven by lower net foreign
exchange losses after hedging despite lower interest income on bank
deposits compared to Q318. Please note that the Group started to
apply hedge accounting as of July 1, 2018 for existing
participating cross currency swap and cross currency swap
transactions, in accordance with the IFRS 9 hedge accounting
requirement. Please see the IFRS report for details.
See Appendix A for details of net foreign exchange gain and
loss.
Income tax expense increased 58.7% year-on-year in Q319.
Please see Appendix A for details.
Net income of the Group ramped up to TRY801 million
(TRY241 million) in Q319. This was mainly driven by a solid
operational performance and lower net FX losses after hedging.
Please note that, we booked a provision of TRY128 million for
wireless tax related to 2018 and 2019 fiscal years in Q319 which
had after tax net income impact of TRY116 million.
Total cash & debt: Consolidated cash as of September
30, 2019 increased to TRY10,975 million from TRY10,687 million as
of June 30, 2019. Excluding the FX swap transactions for TRY
borrowing, 72% of our cash is in US$, 17% in EUR and 11% in
TRY.
Consolidated debt as of September 30, 2019 declined to TRY20,675
million from TRY22,062 million as of June 30, 2019 mainly driven by
debt repayments of the consumer finance business and the impact of
FX on foreign currency denominated debt. Please note that TRY1,544
million of our consolidated debt is comprised of lease
obligations.
(1) EBITDA is a non-GAAP financial measure. See page 13 for the
explanation of how we calculate adjusted EBITDA and its
reconciliation to net income. (2) We started to capitalize the
frequency usage fees of lifecell in Q418 in accordance with IFRS16.
The change was implemented retrospectively for 2018; impact
regarding previous quarters of 2018 was booked in Q418. We started
to capitalize the frequency usage fees of BeST in Q219 in
accordance with IFRS16. The impact regarding Q119 was also booked
in Q219. These changes positively impacted Turkcell International
EBITDA.
Consolidated debt breakdown excluding lease obligations:
- Turkcell Turkey’s debt was at TRY15,911 million, of which
TRY9,321 million (US$1,647 million) was denominated in US$,
TRY5,814 million (EUR940 million) in EUR, TRY204 million (CNY258
million) in CNY and the remaining TRY572 million in TRY.
- Our consumer finance company had a debt balance of TRY2,154
million, of which TRY1,139 million (US$201 million) was denominated
in US$, and TRY601 million (EUR97 million) in EUR with the
remaining TRY414 million in TRY.
- The debt balance of lifecell was TRY1,063 million, all
denominated in UAH.
- TRY783 million of lease obligations is denominated in TRY,
TRY18 million (US$3 million) in US$, TRY160 million (EUR26 million)
in EUR and the remaining balance in other local currencies (please
note that the figures in parentheses refer to US$ or EUR
equivalents).
TRY11,072 million of our consolidated debt is set at a floating
rate. Excluding consumer finance business borrowings, TRY6,321
million of consolidated debt will mature within less than a
year.
Net debt as of September 30, 2019 was at TRY9,700 million with a
net debt to EBITDA ratio of 1.0 times. Excluding consumer finance
company consumer loans, our telco only net debt was at TRY6,975
million with a leverage of 0.7 times.
Turkcell Group has a long FX position of US$155 million as at
the end of Q319. (Please note that this figure takes into account
advance payments and hedging, but excludes FX swap transactions for
TRY borrowing. Derivatives (VIOP) and forward transactions are
included).
Capital expenditures: Capital expenditures, including
non-operational items, amounted to TRY1,618 million in Q319. In
Q319 and in 9M19, operational capital expenditures (excluding
license fees) at the Group level were at 15.0% and 15.3% of total
revenues, respectively.
Capital expenditures (million
TRY)
Quarter
Nine Months
Q318
Q319
9M18
9M19
Operational Capex
905.8
989.9
2,494.5
2,829.5
License and Related Costs
87.2
0.4
412.4
1.6
Non-operational Capex (Including IFRS15
& IFRS16)
272.5
627.5
2,502.6
1,947.1
Total Capex1
1,265.5
1,617.9
5,409.5
4,778.3
(1) Breakdown of capex for Q318 has been restated
Operational Review of Turkcell Turkey
Summary of Operational Data
Q318
Q219
Q319
y/y%
q/q%
Number of subscribers (million)
37.8
36.8
37.3
(1.3%)
1.4%
Mobile Postpaid (million)
19.0
18.9
19.4
2.1%
2.6%
Mobile M2M (million)
2.5
2.5
2.5
-
-
Mobile Prepaid (million)
15.9
15.0
15.0
(5.7%)
-
Fiber (thousand)
1,331.3
1,426.4
1,455.7
9.3%
2.1%
ADSL (thousand)
917.6
798.2
758.9
(17.3%)
(4.9%)
Superbox (thousand)1
19.1
129.8
217.4
n.m.
67.5%
Cable (thousand)
-
20.3
33.0
n.a.
62.6%
IPTV (thousand)
581.5
653.2
683.4
17.5%
4.6%
Churn (%)2
Mobile Churn (%)3
2.2%
2.0%
2.5%
0.3pp
0.5pp
Fixed Churn (%)
1.8%
2.1%
2.1%
0.3pp
-
ARPU (Average Monthly Revenue per User)
(TRY)
Mobile ARPU, blended
36.2
38.1
42.5
17.4%
11.5%
Mobile ARPU, blended (excluding M2M)
38.7
40.7
45.5
17.6%
11.8%
Postpaid
50.8
54.3
60.8
19.7%
12.0%
Postpaid (excluding M2M)
58.1
61.8
69.3
19.3%
12.1%
Prepaid
18.9
17.8
19.4
2.6%
9.0%
Fixed Residential ARPU, blended
55.3
64.2
66.2
19.7%
3.1%
Residential Fiber ARPU
57.1
66.1
68.4
19.8%
3.5%
Average mobile data usage per user
(GB/user)
5.4
6.6
8.1
50.0%
22.7%
Mobile MoU (Avg. Monthly Minutes of
usage per subs) blended
372.6
416.2
420.6
12.9%
1.1%
(1) Superbox subscribers are included in mobile subscribers. (2)
Presentation of churn figures has been changed to demonstrate
average monthly churn figures for the respective quarters. (3) In
Q117, our churn policy was revised to extend from 9 months to 12
months (the period at the end of which we disconnect prepaid
subscribers who have not topped up above TRY10). Additionally,
under our revised policy, prepaid customers who last topped up
before March will be disconnected at the latest by year-end.
Our mobile subscriber base rose to 34.4 million on 526 thousand
quarterly net additions in Q319 on the back of customized offers
leveraging big data analysis. Our postpaid subscribers grew on 503
thousand quarterly net additions to 56.3% (54.5%) of our total
mobile subscriber base. On the fixed front, our subscriber base was
at 2.2 million as of Q319. We registered 124 thousand annual and 29
thousand quarterly net additions to our fiber subscribers.
Superbox, our fixed wireless access product, continued its strong
momentum and reached 217 thousand subscribers on 88 thousand
quarterly net additions. IPTV subscribers reached 683 thousand on
30 thousand quarterly and 102 thousand annual net additions.
Turkcell TV+ mobile application was downloaded 14.3 million times
as of Q319. In Q319, our average monthly mobile churn rate was at
2.5%, while our average monthly fixed churn rate was at 2.1%. The
regulatory change in registration of the prepaid lines led to
closure of lines with no resident permit and impacted the mobile
churn rate by 0.1pp. Mobile ARPU (excluding M2M) rose by 17.6%
year-on-year in Q319 mainly driven by favorable customer mix,
upsell efforts on increased data consumption, price adjustments and
higher revenue generating subscriber acquisitions. We registered
all time high residential fiber ARPU growth of 19.8% in Q319
year-on-year, mainly on upsell performance and price adjustments
along with higher revenue generating subscriber acquisitions.
Multiplay subscribers with TV4, reaching 52.2% of total residential
fiber subscribers, also contributed to ARPU growth. Average mobile
data usage per user rose 50% in Q319 year-on-year on the back of
increased number and higher data consumption of 4.5G users along
with the contribution of rich digital offerings. Accordingly, the
average mobile data usage of 4.5G users reached 10GB in Q319. The
number of 4.5G compatible smartphones on our network continued to
increase in Q319 and reached 19.6 million on 0.7 million quarterly
additions comprising 85% of total smartphones on our network.
(4) Multiplay subscribers with TV: Fiber internet + IPTV users
& fiber internet + IPTV + fixed voice users
TURKCELL INTERNATIONAL
lifecell1 Financial
Data
Quarter
Nine Months
Q318
Q319
y/y%
9M18
9M19
y/y%
Revenue (million UAH)
1,367.1
1,528.6
11.8%
3,851.6
4,425.9
14.9%
EBITDA (million UAH)
610.0
810.5
32.9%
1,678.6
2,424.9
44.5%
EBITDA margin (%)
44.6%
53.0%
8.4pp
43.6%
54.8%
11.2pp
Net income / (loss) (million UAH)
(185.6)
(338.3)
82.3%
(570.5)
(898.7)
57.5%
Capex (million UAH)
835.3
547.7
(34.4%)
5,072.1
1,255.5
(75.2%)
Revenue (million TRY)
275.0
346.4
26.0%
650.7
946.5
45.5%
EBITDA (million TRY)
115.0
183.6
59.7%
283.6
517.4
82.4%
EBITDA margin (%)
41.8%
53.0%
11.2pp
43.6%
54.7%
11.1pp
Net income / (loss) (million
TRY)
(34.8)
(76.4)
119.5%
(93.9)
(192.5)
105.0%
(1) Since July 10, 2015, we hold a 100% stake in lifecell.
lifecell (Ukraine) revenues rose 11.8% year-on-year in
Q319 in local currency terms, on the back of increased mobile data
revenues with rising data consumption and penetration of 4.5G
users. EBITDA in local currency terms increased to UAH811 million
on 32.9% year-on-year growth, leading to an EBITDA margin of 53.0%.
Please note that starting from Q418, lifecell started to capitalize
its radio frequency usage costs in accordance with IFRS16. The
overall impact, including the retrospective adjustments for
previous quarters of 2018, was booked in Q418.
In Q319, lifecell revenues in TRY terms rose 26% year-on-year,
while its EBITDA increased to TRY184 million with an EBITDA margin
of 53.0%.
lifecell Operational Data
Q318
Q219
Q319
y/y%
q/q%
Number of subscribers
(million)2
10.1
9.2
9.0
(10.9%)
(2.2%)
Active (3 months)3
7.6
6.8
6.9
(9.2%)
1.5%
MOU (minutes) (12 months)
145.8
147.4
150.1
2.9%
1.8%
ARPU (Average Monthly Revenue per
User), blended (UAH)
45.0
53.1
56.1
24.7%
5.6%
Active (3 months) (UAH)
59.3
72.5
74.7
26.0%
3.0%
(2) 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. (3)
Active subscribers are those who in the past three months made a
revenue generating activity.
lifecell’s three-month active subscriber base increased to 6.9
million during the quarter on the back of attractive offers and
strong retention focus. lifecell’s 3-month active ARPU grew 26.0%
year-on-year in Q319 mainly driven by increased data consumption of
its subscribers. Meanwhile, lifecell continued upsell efforts and
attracted high ARPU generating subscribers by leveraging the
quality of its 4.5G and 3G networks and attractive digital
services, which also contributed to the strong ARPU
performance.
lifecell continued to expand its 4.5G subscriber base in Q319.
Accordingly, the share of 3-month active 4.5G users in total mobile
data users exceeded 45% and led to higher data consumption. Average
data consumption per user grew by 59% year-on-year with the
increasing number and rising data consumption of 4.5G users. During
the quarter, lifecell continued its leadership of the Ukrainian
market in smartphone penetration, which had reached 79% as at the
end of Q319.
lifecell continued its focus on increasing the penetration of
its digital services within its customer base and enrich its
digital product portfolio. In Q319, lifecell launched its digital
authentication service Mobile ID facilitating access to electronic
platforms and enabling digital signature for electronic
documents.
BeST1
Quarter
Nine Months
Q318
Q319
y/y%
9M18
9M19
y/y%
Number of subscribers (million)
1.6
1.5
(6.3%)
1.6
1.5
(6.3%)
Active (3 months)
1.2
1.1
(8.3%)
1.2
1.1
(8.3%)
Revenue (million BYN)
32.2
35.3
9.6%
92.0
100.9
9.7%
EBITDA (million BYN)
5.5
9.6
74.5%
15.2
28.1
84.9%
EBITDA margin (%)
17.1%
27.2%
10.1pp
16.5%
27.8%
11.3pp
Net loss (million BYN)
(8.5)
(8.0)
(5.9%)
(28.8)
(25.3)
(12.2%)
Capex (million BYN)
4.9
11.6
136.7%
38.3
42.8
11.7%
Revenue (million TRY)
87.1
97.6
12.1%
209.1
271.2
29.7%
EBITDA (million TRY)
14.0
26.5
89.3%
34.8
76.0
118.4%
EBITDA margin (%)
16.1%
27.2%
11.1pp
16.6%
28.0%
11.4pp
Net loss (million TRY)
(23.2)
(22.1)
(4.7%)
(64.7)
(67.7)
4.6%
(1) BeST, in which we hold an 80% stake, has operated in Belarus
since July 2008.
BeST revenues grew 9.6% year-on-year in Q319 in local
currency terms, mainly driven by mobile data revenue growth on the
back of increased number of data users and their increased
consumption. Revenue growth was supported by equipment sales as
well. BeST’s EBITDA rose by 74.5% to BYN9.6 million year-on-year in
Q319 leading to an EBITDA margin of 27.2%. Please note that we
started to capitalize the frequency usage fees of BeST starting
from Q219 in accordance with IFRS16.
In Q319, BeST’s revenues in TRY terms rose by 12.1%
year-on-year, which led to an EBITDA margin of 27.2%.
BeST continued to expand 4G coverage, which translated into
increased penetration of services within its customer base.
Accordingly, 4G users reached 51% of the 3-month active subscriber
base, which continued to support mobile data consumption and
digital services usage. In Q319, the average monthly data
consumption of subscribers rose by 58% year-over-year to 6.9GB.
Meanwhile, BeST also continued to expand the penetration of its
digital services, which translated into higher ARPU growth and
increased loyalty. Music and TV services have been the main drivers
of digital revenue growth. Subscribers who use at least one digital
service comprised 26% of the 3-month active subscriber base.
Kuzey Kıbrıs Turkcell2
(million TRY)
Quarter
Nine Months
Q318
Q319
y/y%
9M18
9M19
y/y%
Number of subscribers (million)
0.5
0.5
-
0.5
0.5
-
Revenue
45.6
55.7
22.1%
134.3
155.2
15.6%
EBITDA
16.0
21.4
33.8%
47.3
57.3
21.1%
EBITDA margin (%)
35.0%
38.4%
3.4pp
35.2%
36.9%
1.7pp
Net income
8.7
16.4
88.5%
24.0
29.4
22.5%
Capex
18.9
11.1
(41.3%)
42.2
34.7
(17.8%)
(2) Kuzey Kıbrıs Turkcell, in which we hold a 100% stake, has
operated in Northern Cyprus since 1999.
Kuzey Kıbrıs Turkcell revenues grew by 22.1% year-on-year
in Q319 mainly driven by mobile data and voice revenue growth.
EBITDA increased by 33.8%, leading to an EBITDA margin of
38.4%.
Fintur: In accordance with our strategic approach and
IFRS requirements, Fintur is classified as ‘held for sale’ and
reported as discontinued operations as of October 2016.
On December 12, 2018, Turkcell signed a binding agreement and on
April 2, 2019 completed the transfer of its shares in Fintur to
Sonera Holding B.V., the majority shareholder of Fintur. The final
value of the transaction was EUR352.9 million. As the conditions
precedent required for the share transfer were completed within
Q119, TRY772 million profit generated from the transaction is
reflected in the Q119 financial statements.
We booked a provision of TRY60 million in Q219 for recognition
of liability in relation to the Kcell Share Purchase Agreement
regarding past Kcell transaction.
Turkcell Group Subscribers Turkcell Group subscribers
amounted to approximately 48.5 million as of September 30, 2019.
This figure is calculated by taking the number of subscribers of
Turkcell Turkey and each of our subsidiaries. It includes the total
number of mobile, fiber, ADSL, cable and IPTV subscribers of
Turkcell Turkey, and the mobile subscribers of lifecell and BeST,
as well as those of Kuzey Kıbrıs Turkcell and lifecell Europe.
Turkcell Group Subscribers
Q318
Q219
Q319
y/y%
q/q%
Mobile Postpaid (million)
19.0
18.9
19.4
2.1%
2.6%
Mobile Prepaid (million)
15.9
15.0
15.0
(5.7%)
-
Fiber (thousand)
1,331.3
1,426.4
1,455.7
9.3%
2.1%
ADSL (thousand)
917.6
798.2
758.9
(17.3%)
(4.9%)
Superbox (thousand)1
19.1
129.8
217.4
n.m.
67.5%
Cable (thousand)
-
20.3
33.0
n.a.
62.6%
IPTV (thousand)
581.5
653.2
683.4
17.5%
4.6%
Turkcell Turkey subscribers
(million)2
37.8
36.8
37.3
(1.3%)
1.4%
lifecell (Ukraine)
10.1
9.2
9.0
(10.9%)
(2.2%)
BeST (Belarus)
1.6
1.5
1.5
(6.3%)
-
Kuzey Kıbrıs Turkcell
0.5
0.6
0.5
-
(16.7%)
lifecell Europe3
0.2
0.2
0.2
-
-
Turkcell Group Subscribers
(million)
50.3
48.2
48.5
(3.6%)
0.6%
(1) Superbox subscribers are included in mobile subscribers. (2)
Subscribers to more than one service are counted separately for
each service. (3) The “wholesale traffic purchase” agreement,
signed between Turkcell Europe GmbH operating in Germany and
Deutsche Telekom for five years in 2010, had been modified to
reflect the shift in business model to a “marketing partnership”.
The new agreement between Turkcell and a subsidiary of Deutsche
Telekom was signed on August 27, 2014. The transfer of Turkcell
Europe operations to Deutsche Telekom’s subsidiary was completed on
January 15, 2015. Subscribers are still included in the Turkcell
Group Subscriber figure. Turkcell Europe was rebranded as lifecell
Europe on January 15, 2018.
OVERVIEW OF THE MACROECONOMIC ENVIRONMENT
The foreign exchange rates used in our financial reporting,
along with certain macroeconomic indicators, are set out below.
Quarter
Nine Months
Q318
Q219
Q319
y/y%
q/q%
9M18
9M19
y/y%
GDP Growth (Turkey)
2.3%
(1.5%)
n.a
n.a
n.a.
5.0%
n.a.
n.a
Consumer Price Index (Turkey)
(yoy)
24.5%
15.7%
9.3%
(15.2pp)
(6.4pp)
24.5%
9.3%
(15.2pp)
US$ / TRY rate
Closing Rate
5.9902
5.7551
5.6591
(5.5%)
(1.7%)
5.9902
5.6591
(5.5%)
Average Rate
5.5223
5.8478
5.6973
3.2%
(2.6%)
4.5313
5.6276
24.2%
EUR / TRY rate
Closing Rate
6.9505
6.5507
6.1836
(11.0%)
(5.6%)
6.9505
6.1836
(11.0%)
Average Rate
6.4356
6.5488
6.3389
(1.5%)
(3.2%)
5.3929
6.3218
17.2%
US$ / UAH rate
Closing Rate
28.30
26.17
24.08
(14.9%)
(8.0%)
28.30
24.08
(14.9%)
Average Rate
27.43
26.73
25.15
(8.3%)
(5.9%)
27.03
26.43
(2.2%)
US$ / BYN rate
Closing Rate
2.1121
2.0433
2.0743
(1.8%)
1.5%
2.1121
2.0743
(1.8%)
Average Rate
2.0408
2.0967
2.0639
1.1%
(1.6%)
2.0015
2.1025
5.0%
RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We
believe Adjusted EBITDA, among other measures, facilitates
performance comparisons from period to period and management
decision making. It also facilitates performance comparisons from
company to company. Adjusted EBITDA as a performance measure
eliminates potential differences caused by variations in capital
structures (affecting interest expense), tax positions (such as the
impact of changes in effective tax rates on periods or companies)
and the age and book depreciation of tangible assets (affecting
relative depreciation expense). We also present Adjusted EBITDA
because we believe it is frequently used by securities analysts,
investors and other interested parties in evaluating the
performance of other mobile operators in the telecommunications
industry in Europe, many of which present Adjusted EBITDA when
reporting their results.
Our Adjusted EBITDA definition includes Revenue, Cost of Revenue
excluding depreciation and amortization, Selling and Marketing
expenses, Administrative expenses and Net impairment losses on
financial and contract assets, but excludes translation
gain/(loss), finance income, finance expense, share of profit of
equity accounted investees, gain on sale of investments, minority
interest and other income/(expense).
Nevertheless, Adjusted EBITDA has limitations as an analytical
tool, and you should not consider it in isolation from, or as a
substitute for analysis of our results of operations, as reported
under IFRS. The following table provides a reconciliation of
Adjusted EBITDA, as calculated using financial data prepared in
accordance with IFRS as issued by the IASB, to net profit, which we
believe is the most directly comparable financial measure
calculated and presented in accordance with IFRS as issued by the
IASB.
Turkcell Group (million TRY)
Quarter
Nine Months
Q318
Q319
y/y%
9M18
9M19
y/y%
Adjusted EBITDA
2,392.8
2,838.7
18.6%
6,549.0
7,672.6
17.2%
Depreciation and amortization
(975.1)
(1,197.7)
22.8%
(3,001.0)
(3,641.7)
21.3%
Finance income
2,113.2
(82.2)
(103.9%)
3,038.1
252.6
(91.7%)
Finance costs
(2,981.8)
(439.1)
(85.3%)
(4,706.6)
(1,765.9)
(62.5%)
Other income / (expense)
(123.0)
(92.8)
(24.6%)
(186.6)
(218.4)
17.0%
Share of profit of equity accounted
investees
(0.4)
1.6
n.m.
(0.4)
3.4
n.m.
Consolidated profit from continued
operations before income tax & minority interest
425.6
1,028.6
141.7%
1,692.5
2,302.5
36.0%
Income tax expense
(144.4)
(229.2)
58.7%
(456.7)
(551.9)
20.8%
Consolidated profit from continued
operations before minority interest
281.3
799.4
184.2%
1,235.7
1,750.6
41.7%
Discontinued operations
-
-
-
-
772.4
n.a.
Consolidated profit before minority
interest
281.3
799.4
184.2%
1,235.7
2,523.0
104.2%
NOTICE: 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 for 2019. More generally, all statements other
than statements of historical facts included in this press release,
including, without limitation, certain statements regarding the
launch of new businesses, 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 2018 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.
The Company makes no representation as to the accuracy or
completeness of the information contained in this press release,
which remains subject to verification, completion and change. No
responsibility or liability is or will be accepted by the Company
or any of its subsidiaries, board members, officers, employees or
agents as to or in relation to the accuracy or completeness of the
information contained in this press release or any other written or
oral information made available to any interested party or its
advisers.
ABOUT TURKCELL: Turkcell is a digital operator
headquartered in Turkey, serving its customers with its unique
portfolio of digital services along with voice, messaging, data and
IPTV services on its mobile and fixed networks. Turkcell Group
companies operate in 5 countries – Turkey, Ukraine, Belarus,
Northern Cyprus, Germany. Turkcell launched LTE services in its
home country on April 1st, 2016, employing LTE-Advanced and 3
carrier aggregation technologies in 81 cities. Turkcell offers up
to 10 Gbps fiber internet speed with its FTTH services. Turkcell
Group reported TRY6.6 billion revenue in Q319 with total assets of
TRY45.5 billion as of September 30, 2019. 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.
Appendix A – Tables
Table: Net foreign exchange gain and loss details
Million TRY
Quarter
Nine Months
Q318
Q319
y/y%
9M18
9M19
y/y%
Turkcell Turkey
(1,818.4)
135.2
n.m
(2,846.1)
(460.8)
(83.8%)
Turkcell International
(80.6)
1.1
n.m
(123.6)
(34.5)
(72.1%)
Other Subsidiaries
(811.6)
78.1
n.m
(1,195.5)
(111.9)
(90.6%)
Net FX loss before hedging
(2,710.5)
214.4
n.m
(4,165.1)
(607.2)
(85.4%)
Swap interest income/(expense)1
(96.5)
(192.4)
99.4%
(319.7)
(514.8)
61.0%
Fair value gain on derivative financial
instruments1
2,089.4
(354.6)
(117.0%)
3,094.9
120.1
(96.1%)
Net FX gain / (loss) after
hedging
(717.6)
(332.6)
(53.7%)
(1,389.9)
(1,001.9)
(27.9%)
(1) Swap interest income / (expense) which was included in fair
value gain on derivative financial instruments line in previous
quarters has been presented separately.
Table: Income tax expense details
Million TRY
Quarter
Nine Months
Q318
Q319
y/y%
9M18
9M19
y/y%
Current tax expense
(178.3)
(146.2)
(18.0%)
(540.0)
(508.0)
(5.9%)
Deferred tax income / (expense)
33.9
(83.0)
(344.8%)
83.2
(43.9)
(152.8%)
Income Tax expense
(144.4)
(229.2)
58.7%
(456.8)
(551.9)
20.8%
TURKCELL ILETISIM HIZMETLERI A.S.IFRS SELECTED FINANCIALS
(TRY Million) Quarter Ended Quarter Ended
Quarter Ended Nine Months Nine Months Sep
30, Jun 30, Sep 30, Sep 30, Sep 30,
2018
2019
2019
2018
2019
Consolidated Statement of Operations Data
Turkcell Turkey
4,907.5
5,260.8
5,652.4
13,345.1
15,746.5
Turkcell International
424.2
492.0
525.0
1,035.1
1,441.8
Other
467.6
438.3
409.5
1,285.9
1,265.1
Total revenues
5,799.2
6,191.1
6,586.9
15,666.2
18,453.4
Direct cost of revenues
(3,745.0)
(4,284.4)
(4,279.6)
(10,251.5)
(12,472.2)
Gross profit
2,054.3
1,906.8
2,307.3
5,414.7
5,981.1
Administrative expenses
(162.1)
(184.9)
(186.8)
(475.2)
(562.3)
Selling & marketing expenses
(365.2)
(413.4)
(353.8)
(1,126.1)
(1,170.3)
Other Operating Income / (Expense)
(123.0)
(73.8)
(92.8)
(186.6)
(218.4)
Net impairment loses on financial and contract assets
(109.3)
(21.4)
(125.7)
(265.4)
(217.5)
Operating profit before financing costs
1,294.7
1,213.2
1,548.2
3,361.4
3,812.5
Finance costs
(2,981.8)
(371.4)
(439.1)
(4,706.6)
(1,765.9)
Finance income
2,113.2
(200.4)
(82.2)
3,038.1
252.6
Share of profit of equity accounted investees
(0.4)
1.0
1.6
(0.4)
3.4
Income before tax and non-controlling interest
425.6
642.4
1,028.6
1,692.5
2,302.5
Income tax expense
(144.4)
(163.0)
(229.2)
(456.7)
(551.9)
Income from continuing operations before non-controlling interest
281.3
479.4
799.4
1,235.7
1,750.6
Discontinued operations
-
-
-
-
772.4
Non-controlling interests
(39.9)
(14.3)
1.9
(78.5)
(32.2)
Net income
241.4
465.2
801.3
1,157.2
2,490.9
Net income per share
0.11
0.21
0.37
0.53
0.79
Other Financial Data Gross margin
35.4%
30.8%
35.0%
34.6%
32.4%
EBITDA(*)
2,392.8
2,552.8
2,838.7
6,549.0
7,672.6
Total Capex
1,265.5
1,807.8
1,617.9
5,409.5
4,778.3
Operational capex
905.8
956.0
989.9
2,494.5
2,829.5
Licence and related costs
87.2
0.5
0.4
412.4
1.6
Non-operational Capex
272.5
851.3
627.5
2,502.6
1,947.1
Consolidated Balance Sheet Data (at period
end) Cash and cash equivalents
8,749.2
10,686.7
10,975.4
8,749.2
10,975.4
Total assets
45,404.1
45,611.9
45,515.0
45,404.1
45,515.0
Long term debt
14,955.1
14,558.5
12,903.9
14,955.1
12,903.9
Total debt
23,055.1
22,062.0
20,675.2
23,055.1
20,675.2
Total liabilities
30,513.2
28,281.3
28,084.2
30,513.2
28,084.2
Total shareholders’ equity / Net Assets
14,890.9
17,330.6
17,430.8
14,890.9
17,430.8
(*) Please refer to the notes on reconciliation of Non-GAAP
Financial measures on page 13 For further details, please refer to
our consolidated financial statements and notes as at 30 September
2019 on our web site
TURKCELL ILETISIM HIZMETLERI A.S.TURKISH
ACCOUNTING STANDARDS SELECTED FINANCIALS (TRY Million)
Quarter Ended Quarter Ended Quarter Ended
Nine Months Nine Months Sep 30, Jun 30,
Sep 30, Sep 30, Sep 30,
2018
2019
2019
2018
2019
Consolidated Statement of Operations Data
Turkcell Turkey
4,907.5
5,260.8
5,652.4
13,345.1
15,746.5
Turkcell International
424.2
492.0
525.0
1,035.1
1,441.8
Other
467.6
438.3
409.5
1,285.9
1,265.1
Total revenues
5,799.2
6,191.1
6,586.9
15,666.2
18,453.4
Direct cost of revenues
(3,745.0)
(4,284.4)
(4,279.6)
(10,251.5)
(12,472.2)
Gross profit
2,054.3
1,906.8
2,307.3
5,414.7
5,981.1
Administrative expenses
(162.1)
(184.9)
(186.8)
(475.2)
(562.3)
Selling & marketing expenses
(365.2)
(413.4)
(353.8)
(1,126.1)
(1,170.3)
Other Operating Income / (Expense)
1,169.5
327.0
(163.7)
1,893.2
411.9
Operating profit before financing and investing costs
2,696.4
1,635.4
1,602.9
5,706.6
4,660.3
Net impairment loses on financial and contract assets
(109.3)
(21.4)
(125.7)
(265.4)
(217.5)
Income from investing activities
9.5
26.0
9.9
25.9
48.6
Expense from investing activities
(120.1)
(16.5)
(19.8)
(177.0)
(86.4)
Share of profit of equity accounted investees
(0.4)
1.0
1.6
(0.4)
3.4
Income before financing costs
2,476.1
1,624.4
1,468.9
5,289.7
4,408.4
Finance income
1,981.2
(259.4)
(96.5)
2,813.3
105.6
Finance expense
(4,031.7)
(722.6)
(343.9)
(6,410.5)
(2,211.5)
Income from continuing operations before tax and non-controlling
interest
425.6
642.4
1,028.6
1,692.5
2,302.5
Income tax expense from continuing operations
(144.4)
(163.0)
(229.2)
(456.7)
(551.9)
Income from continuing operations before non-controlling interest
281.3
479.4
799.4
1,235.7
1,750.6
Discontinued operations
-
-
-
-
772.4
Income before non-controlling interest
281.3
479.4
799.4
1,235.7
2,523.0
Non-controlling interest
(39.9)
(14.3)
1.9
(78.5)
(32.2)
Net income
241.4
465.2
801.3
1,157.2
2,490.9
Net income per share
0.11
0.21
0.37
0.53
0.79
Other Financial Data Gross margin
35.4%
30.8%
35.0%
34.6%
32.4%
EBITDA
2,392.8
2,552.8
2,838.7
6,549.0
7,672.6
Total Capex
1,265.5
1,807.8
1,617.9
5,409.5
4,778.3
Operational capex
905.8
956.0
989.9
2,494.5
2,829.5
Licence and related costs
87.2
0.5
0.4
412.4
1.6
Non-operational Capex
272.5
851.3
627.5
2,502.6
1,947.1
Consolidated Balance Sheet Data (at period
end) Cash and cash equivalents
8,749.2
10,686.7
10,975.4
8,749.2
10,975.4
Total assets
45,404.1
45,611.9
45,515.0
45,404.1
45,515.0
Long term debt
14,955.1
14,558.5
12,903.9
14,955.1
12,903.9
Total debt
23,055.1
22,062.0
20,675.2
23,055.1
20,675.2
Total liabilities
30,513.2
28,281.3
28,084.2
30,513.2
28,084.2
Total shareholders’ equity / Net Assets
14,890.9
17,330.6
17,430.8
14,890.9
17,430.8
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191031005700/en/
Investor Relations Korhan Bilek, Tel: + 90 212 313 1888
investor.relations@turkcell.com.tr
Corporate Communications: Tel: + 90 212 313 2321
Turkcell-Kurumsal-Iletisim@turkcell.com.tr
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