By Yeliz Candemir
ISTANBUL--Turk Telekomunikasyon AS (TTKOM.IS) reported late
Tuesday a 57% decline in fourth-quarter net profit, in line with
analyst expectations, due to expenses stemming from the weak
lira.
Net profit was 260 million Turkish lira ($116 million), in line
with TRY263 million market consensus, but significantly below the
TRY599.5 million profit posted a year earlier.
Revenues fell 1% on the year to TRY3.3 billion in the fourth
quarter, according to a statement issued to the Istanbul stock
exchange.
"As expected, Turk Telekom was a victim of weaker Turkish lira
with its TRY8.1 billion short forex position. According to 4Q13 CMB
financials, net financial expenses led mainly by forex losses
jumped to TRY474 million compared to TRY100 million in 4Q12," said
Istanbul-based Oyak Securities.
The Turkish lira plummeted 21% against the dollar last year in
line with a broader sell off in emerging markets due to the U.S.
Federal Reserve's decision to scale back its monthly bond purchases
and domestic political risks.
Write to Yeliz Candemir at yeliz.candemir@wsj.com
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