Bloomberg News

Turkcell Second-Quarter Profit Beats Analysts’ Estimates

July 25, 2012

Turkcell Iletisim Hizmetleri AS (TCELL), Turkey’s biggest mobile-phone operator, said net income in the second quarter was 535.8 million liras ($293.6 million) as revenue from fixed-line and mobile-data services increased.

Turkcell had a loss of 18.4 million liras in the same quarter last year because of impairment charges and foreign exchange losses at the Belarus unit, the Istanbul-based company said today in a statement to the stock exchange. Net income was expected to be 473 million liras, according to the average of seven analyst estimates compiled by Bloomberg.

“Turkcell Group continued its double-digit growth in the second quarter following a strong start to the year,” Chief Executive Officer Sureyya Ciliv said in a statement of results. As a result, Turkcell “generated its historic highest second- quarter and first-half revenue.”

Turkcell, owned by TeliaSonera AB (TLSN), Moscow-based Altimo and Cukurova Holding AS of Turkey, faces increasing competition in its home market from Vodafone Group Plc (VOD) and Avea Iletisim Hizmetleri AS, the smallest operator in the country and majority owned by Turk Telekomunikasyon AS. (TTKOM)

Turkcell had 52.5 percent of Turkey’s mobile-phone subscribers at the end of March, down from 53.4 percent a year ago, and compared to Vodafone’s 27.8 percent and Avea’s 19.7 percent, according to the market regulator data. Turkey’s mobile penetration was 88 percent at the end of March, it said.

Turkcell’s average monthly revenue per user, or Arpu, rose to 20.7 liras in the second quarter an increase of 5.6 percent from a year earlier and 7.8 percent from the previous quarter.

The company’s revenue rose 12.5 percent to 2.57 billion liras in the second quarter from 2.28 billion liras a year earlier. It had 34.7 million subscribers at the end of June, compared with 34.5 million in the previous quarter.

Shareholders’ Dispute

Cukurova, Altimo, owned by Russian billionaire Mikhail Fridman’s Alfa Group, and TeliaSonera have been fighting a three-cornered battle for control of Turkcell for almost a decade. While TeliaSonera is the largest shareholder with 38 percent, Cukurova has sought to retain control via a complex ownership structure even as its stake has declined to 13.8 percent.

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

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


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