Bloomberg News

Turkcell Profit Falls on Losses Tied to Belarus Currency Decline

November 02, 2011

Nov. 2 (Bloomberg) -- Turkcell Iletisim Hizmetleri AS, Turkey’s biggest mobile-phone company, said third-quarter earnings fell 3.4 percent as it incurred losses at its Belarus unit as that country’s currency fell.

Net income dropped to 537.2 million liras ($301 million) from 556.3 million liras a year earlier, the Istanbul-based company said in a PR Newswire statement today. Profit had been expected at 395.4 million liras, the average of 15 analysts’ estimates compiled by Bloomberg.

“Foreign currency losses from Turkcell’s Belarus operations is the main reason behind the lower bottom line,” Istanbul-based broker Ata Invest said in an e-mailed note before the earnings were announced. The Belarusian ruble has fallen more than 30 percent against the lira in the past year, according to Bloomberg data.

Turkcell is seeking ways to boost revenue as it faces increased competition in its home market from Vodafone Group Plc and Avea Iletisim Hizmetleri AS, majority owned by Turk Telekomunikasyon AS.

Average monthly revenue per user rose 3.4 percent in the third quarter from a year earlier, the company said. Total revenue increased 8.6 percent to 2.5 billion liras from 2.3 billion liras. The company had 34.4 million subscribers at the end of September, up from 34.1 million in the second quarter.

“We managed to further strengthen our growth momentum in the third quarter through our investments in customer satisfaction and innovative offers, despite continued aggressive price competition in the sector,” Chief Executive Officer Sureyya Ciliv said in the statement.

--Editors: Romaine Bostick, John Lear

To contact the reporter on this story: Ercan Ersoy in Istanbul at eersoy@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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