“REMARKABLE RESULTS ON THE BACK OF DIGITAL
TRANSFORMATION”
Turkcell Iletisim Hizmetleri A.S. (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, 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.
- 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
December 31, 2017 refer to the same item as at December 31, 2016.
For further details, please refer to our consolidated financial
statements and notes as at and for December 31, 2017, 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 fourth quarters and for the
full year 2016 and 2017 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.
Certain operating data that we previously presented with Fintur
included has been restated without 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 Q416 Q417
y/y % FY16 FY17 y/y
% Revenue 4,044 4,666 15.4% 14,286 17,632 23.4% EBITDA1 1,371
1,739 26.8% 4,620 6,228 34.8% EBITDA Margin (%) 33.9% 37.3% 3.4pp
32.3% 35.3% 3.0pp Net Income 351 216 (38.4%) 1,492 1,979 32.6% Net
income excluding tax settlement2 351 716 104.2% 1,628 2,479 52.3%
Note: Net income excluding the impact of the tax
settlement within the scope of Law No.7061 has been displayed as a
separate line in order to facilitate comparison of current quarter
and full year performance to prior periods.
FULL YEAR HIGHLIGHTS
- 2017 has been a remarkable year in
terms of both operational and financial results
- Record operational results achieved:
- Mobile churn at 20.5%, lowest of the
past decade
- 36.7 million total subscriber base in
Turkey; 1.5 million net additions
- 4.5G subscriber penetration at 87%
- Record financial results achieved:
- Group revenues and EBITDA up 23.4% and
34.8%, respectively
- Group EBITDA margin of 35.3% up 3.0pp,
highest of past 9 years
- Turkcell Turkey data and digital
services revenues, comprising 67% of Turkcell Turkey revenues, up
51.2%
- Group net income up 32.6% to TRY1,979
million (TRY1,492 million) on solid operational performance
- Group net income of TRY2,479 million
excluding TRY500 million net income impact of tax settlement within
the scope of Law No.7061
- Guidance delivered via stellar growth
performance at top line, midterm EBITDA margin target achieved a
year early, and operational capex over sales ratio3 at 21% with
2018 investments brought forward in Q417
- TRY3 billion dividend distributed to
shareholders
- TRY1,240 million dividend proposal for
year 2017, subject to approval of General Assembly
- 2018 Group guidance4; revenue growth
target of 13-15%, EBITDA margin target of 33-35% and operational
capex over sales ratio3 target of 18-19%
FOURTH QUARTER HIGHLIGHTS
- Operational momentum continued:
- Mobile triple play subscribers ratio5
reached 55.8%, up 14pp year-on-year; and multiplay with TV
subscribers6 reached 44.4%, up 9pp year-on-year
- 72% smartphone penetration, 15 million
4.5G compatible smartphones in our subscriber base
- Data usage of 4.5G users at 5.9GB in
Q417, 6.0GB in December
- Record financial results achieved:
- All time high quarterly Group revenue
and EBITDA, highest EBITDA margin of past 9 years
- Group revenues and EBITDA up 15.4% and
26.8%, respectively with EBITDA margin of 37.3% up 3.4pp
year-on-year
- Turkcell Turkey’s data and digital
services revenues up 22.9%
- Group net income at TRY216 million
(TRY351 million)
- Group net income doubled to TRY716
million excluding TRY500 million net income impact of tax
settlement within the scope of Law No.7061
- On January 25, 2018, Fintur signed a
binding agreement with Silknet JSC, a joint stock company in
Georgia, to transfer its 100% shareholding in Geocell, for US$153
million.
(1) EBITDA is a non-GAAP financial measure. See page 14 for the
explanation of how we calculate Adjusted EBITDA and its
reconciliation to net income.(2) Excluding the TRY500 million net
income impact of the tax settlement in Q417 and TRY136 million net
income impact of the tax amnesty in Q316(3) Excluding license
fee(4) 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
2016 filed with U.S. Securities and Exchange Commission, and in
particular, the risk factor section therein.(5) Share among mobile
voice users excluding subscribers who have not used their lines in
the last 3 months(6) Multiplay subscribers with TV: Internet + TV
users & internet + TV + voice usersFor further details, please
refer to our consolidated financial statements and notes as at and
for December 31, 2017 which can be accessed via our web site in the
investor relations section (www.turkcell.com.tr).
COMMENTS BY KAAN TERZIOGLU, CEO
Digital transformation has been the key driver behind the 23%
revenue growth, 35% EBITDA1 growth and, excluding the
one-off impact of the tax settlement, a 52% net income
increase
2017 was a year in which we reached important milestones in
Turkcell’s digital transformation, including the launch of a new
digital brand and new digital services, realized a record revenue
increase and subscriber additions and gained the largest revenue
generator status in the Turkish telecoms market. Moreover, solid
financial and operational results led to a record high share price
performance.
As Turkcell Group we registered the highest top line growth
performance of the past 10 years at 23.4%, and an EBITDA margin
increase of 3 percentage points in 2017, thanks to our 4.5G
investments and successful digitalization model. We thereby,
achieved higher results both in revenue growth and operational
profitability than our guidance, which we upgraded twice during the
year. We have brought forward our investments to meet our
customers’ rising digital demands. Accordingly, we registered an
operational capex2 of 3.7 billion TL, which has allowed us to widen
the quality gap between us and our competitors. As we have
completed the 20th month of our 4.5G network, one of the main
constituents of our growth, we have accelerated efforts towards 5G
technology development. With rising customer satisfaction and
record customer retention of the past 10 years, Turkcell Turkey now
has 36.7 million subscribers on approximately 1.5 million net
subscriber adds. Moreover, 56%3 of our mobile subscribers are using
at least one of our digital services.
Our digital services that add value to our customers’ 1440
daily minutes…
As Turkey’s leading digital operator, in addition to providing
legacy communication services, we continued to advance our existing
digital services, while expanding the portfolio that enriches our
customers’ 1440 daily minutes. Our digital services and solutions
play a bigger part in our customers’ lives than the mere 31-minute4
phone call initiated by an average phone user, or the raw data
consumed on the OTT services.
Within this framework, we enhanced the messaging, audio and
video calling capabilities of our digital communications platform
BiP, by adding the group video call feature. With 2 billion
messages sent in December 2017 alone, BiP surpassed the number of
SMS messages sent, marking a first. Enriched with our telco
capabilities, BiP offers a wide variety of solutions and services
ranging from multi-screen calls to digitalized customer services,
from gaming to money transfer and from app-to-network calls to
web-based communication.
For the first time this year, we began live concert broadcasts
on fizy, Turkey’s most popular music application. This summer’s
concerts, each of which exceeded 200 thousand views, saw fizy rank
first in App Store downloads. In total, 2.2 billion songs were
streamed on fizy this year. At the time of our 4.5G launch, we said
that “we will change the TV experience on the small screen,” a
claim we have now delivered on with record viewing times on TV+.
The mobile users’ daily average TV+ viewing duration rose by 29
minutes year-on-year to over 63 minutes. Our digital publishing
app, Dergilik, which offers users 413 magazines and 75 newspapers,
has created a significant revival in the publishing industry. In
September, taking courage from the attention received by our
digital services, we launched the digital brand, Lifecell, and its
accompanying tariffs, swiftly reaching 242 thousand subscribers.
Lifecell offers all communication services via mobile internet and
the digital platform, including calling and messaging. Our strong
presence in the digital space is evidenced by our ranking as the
fourth publisher on Google Play, and third in the App Store
according to the past twelve months' downloads.
Our search engine Yaani, launched this quarter, positioned
Turkey among the countries with their own search engines. Yaani,
designed to understand the unique syntax of Turkish, provides its
users with easier access to information. Integrated with Turkcell
services, Yaani simplifies the lives of its users. With Yaani,
downloaded 3.5 million times, Turkcell is well positioned to carve
its share of the digital advertising market. In accordance with our
targeted contribution to the digital transformation of the economy,
along with Yaani, we launched our e-commerce platform, the second
phase of our digital operator strategy. On this platform, users are
now able to securely log into digital services with GSMA-enabled
Mobile Connect technology, and complete their shopping through easy
and secure payment using Paycell.
Differentiated financing solutions from Turkcell
Turkcell Finansman A.Ş. (Financell), established to provide
flexible financing solutions for our customers’ smart device needs,
continued to provide services at Turkcell’s three thousand stores
across Turkey. Granting approximately 4.3 million loans, it has
reached a total loan portfolio of 4.2 billion TL. With Financell,
we have already met our 2018 year-end smartphone penetration target
at the end of the second quarter. As of the fourth quarter, this
ratio had reached 72%.
Given the sheer scope of techfin, our Paycell brand reached over
two thousand member companies and over five million users. Paycell,
providing fast and easy payment services, has, among others,
offered utility bill payments, fuel payments without leaving the
vehicle, and Turkcell tariff purchases.
Leveraging our technology strengths in new business
areas
Through Turkcell Enerji Ç�zümleri (Energy Solutions), a company
we established this year, we will provide energy management
technologies. Besides providing our customers with uninterrupted
electricity through Turkcell’s service quality, we are excited to
offer systems and solutions that will enable more efficient energy
consumption.
Meanwhile, as one of the five founding participants, we
commenced our studies into contribution to the Joint Initiative
Group for Turkey’s Automobile Project. The goal is to produce
Turkey’s first domestic car, and we will leverage our strong
technological infrastructure and software capabilities to this
end.
Our technology contributes to the value we place on human
life
In accomplishing this work, we are ever aware of the potential
to make a tangible difference in the lives of our disabled
customers. We developed an app for the hearing impaired, having
thus far developed similar apps more for the use of the visually
impaired. Our “My Sign Language” app offered to hearing impaired
individuals and their families in Turkey has registered one million
downloads. Elsewhere, our “Hello Hope” app, developed for our
Syrian guests, has registered more than 750 thousand downloads to
date since its launch in September 2016. In facilitating the lives
of millions of Syrian guests, the opportunity to showcase this
effort on international platforms is a source of pride both for
Turkcell and Turkey.
We have distributed 54% of our net income since 2010
With the 3 billion TL in dividends paid out in 2017, we have
distributed 54% of our net income recorded since 2010, abiding by
our dividend policy. Today we also announced TRY1,240 million
dividend proposal for year 2017, which reflects our commitment to
our dividend policy.
We achieved our targets in 2017, and will continue to grow in
2018 through digital services
The global reach of our digital experience, which has propelled
customer loyalty and preferences, is among our focus areas for
future periods. We will continue to initiate new projects that
strengthen our positioning as the digital operator with global
services. Accordingly, we have accelerated our B2B efforts. Our
subsidiary, Lifecell Ventures, which is extending Turkcell’s
digital footprint to global markets, sold its first digital service
(lifebox) to Moldcell of Moldova in the last quarter.
On the back of our solid fundamentals cemented in 2017, and our
2018 strategy, we target5 Group revenue growth of 13-15%, an EBITDA
margin of 33-35% and an operational capex to sales ratio2 of
18-19%. We plan to also announce our mid-term targets at the
Turkcell Capital Markets Day on March 14th, 2018 in İstanbul.
Meanwhile, we will present our success story, an exemplary among
many global operators, at the GSMA Mobile World Congress, one of
the key platforms of our industry.
We take this opportunity to once again thank our Board of
Directors and the Turkcell team for their outstanding performance,
dedication and compassion, which fully embodies the Turkcell
spirit. We would also like to express our gratitude to our
customers, who have continued to show their trust in us throughout
our success story.
(1) EBITDA is a non-GAAP financial measure. See page 14 for the
explanation of how we calculate Adjusted EBITDA and its
reconciliation to net income.(2) Excluding license fee(3) Share
among mobile voice users excluding subscribers who have not used
their lines in the last 3 months(4) Duration of a phone call
initiated by an average phone user per day(5) 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 2016 filed with U.S. Securities and
Exchange Commission, and in particular, the risk factor section
therein.
FINANCIAL AND OPERATIONAL REVIEW
Financial Review of Turkcell Group
Profit & Loss Statement
(million TRY)
Quarter Year Q416
Q417 y/y % FY16 FY17
y/y % Revenue 4,043.6 4,666.0
15.4% 14,285.6 17,632.1 23.4% Cost of
revenue1 (2,608.3) (3,016.2) 15.6% (9,236.6) (11,350.2) 22.9%
Cost of revenue1/Revenue (64.5%)
(64.6%) (0.1pp) (64.7%) (64.4%)
0.3pp Depreciation and amortization (604.3) (700.5) 15.9%
(2,203.2) (2,597.0) 17.9%
Gross Margin 35.5%
35.4% (0.1pp) 35.3% 35.6% 0.3pp
Administrative expenses (190.0) (67.3) (64.6%) (721.8) (645.2)
(10.6%)
Administrative expenses/Revenue (4.7%)
(1.4%) 3.3pp (5.1%) (3.7%) 1.4pp
Selling and marketing expenses (478.5) (544.1) 13.7% (1,910.9)
(2,005.4) 4.9%
Selling and marketing expenses/Revenue
(11.8%) (11.7%) 0.1pp (13.4%)
(11.4%) 2.0pp EBITDA2 1,371.1
1,738.9 26.8% 4,619.5 6,228.3
34.8% EBITDA Margin 33.9% 37.3%
3.4pp 32.3% 35.3% 3.0pp
EBIT3 766.8 1,038.4 35.4%
2,416.3 3,631.3 50.3% Net finance income /
(costs) (198.3) (106.7) (46.2%) (172.8) (322.9) 86.9% Finance
income 493.9 471.3 (4.6%) 1,064.8 1,090.4 2.4% Finance costs
(692.2) (578.0) (16.5%) (1,237.6) (1,413.3) 14.2% Other income /
(expense) (44.4) (625.8) n.m (234.3) (698.9) 198.3% Non-controlling
interests (17.7) (20.5) 15.8% (51.7) (58.6) 13.3% Income tax
expense (111.3) (69.5) (37.6%) (423.2) (571.8) 35.1% Discontinued
operations (44.4) - n.m (42.2) - n.m
Net Income 350.7
215.9 (38.4%) 1,492.1 1,979.2
32.6% Net Income excluding tax
settlement4 350.7 716.0 104.2%
1,627.6 2,479.3 52.3%
(1) Including depreciation and amortization expenses.(2) EBITDA
is a non-GAAP financial measure. See page 14 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) Excluding
the TRY500 million net income impact of the tax settlement in Q417
and TRY136 million net income impact of the tax amnesty in Q316
Revenue of the Group rose by 15.4% year-on-year in Q417.
Increased ARPU level at Turkcell Turkey with data and digital
services growth and a larger subscriber base with a higher postpaid
ratio were the main drivers of growth.
Turkcell Turkey revenues, at 87% of Group revenues, grew by
13.0% to TRY4,041 million (TRY3,576 million).
- Data and digital services revenues grew
by 22.9% to TRY2,735 million (TRY2,226 million).
- Rising smartphone penetration, an
increased number of data users and higher data consumption per user
were the main drivers of data and digital services revenue growth
on the mobile side. On the fixed side main drivers were a larger
subscriber base, price adjustments, and increased share of
multiplay subscribers with TV.
- Revenues from our digital publishing
service Dergilik, TV+, music platform fizy, personal cloud service
lifebox and other mobile services helped to boost data and digital
services revenues.
- Wholesale revenues grew by 11.4% to
TRY153 million (TRY137 million) due to increased carrier traffic
and the positive impact of TRY depreciation on FX based
revenues.
- We reported revenues of TRY104 million
originating from our Universal Service Project, which is aimed at
building and operating infrastructure in unserved rural areas.
Contractually, this project is financed by the Universal Service
Fund on a net cost basis.
Turkcell International revenues, constituting 6% of Group
revenues, rose by 14.6% to TRY288 million (TRY252 million) mainly
with the increase in lifecell and BeST revenues.
Other subsidiaries' revenues, at 7% of Group revenues, which
includes information and entertainment services, call center
revenues and revenues from financial services grew by 56.3% to
TRY337 million (TRY216 million). This was mainly driven by the
increase in the consumer finance company’s revenues to TRY183
million (TRY90 million) in Q417.
For the full year, Turkcell Group revenues rose by 23.4%.
Turkcell Turkey revenues grew by 20.8% to TRY15,450 million
(TRY12,788 million).
- Data and digital services revenues, at
67% of Turkcell Turkey revenues, grew by 51.2% to TRY10,304 million
(TRY6,814 million).
- Wholesale revenues grew by 29.5% to
TRY587 million (TRY453 million).
- We reported revenues of TRY258 million
originating from our Universal Service Project.
Turkcell International revenues rose by 22.0% to TRY1,067
million (TRY875 million).
Other subsidiaries' revenues grew by 78.9% to TRY1,115 million
(TRY623 million).
Cost of revenue slightly increased to 64.6% (64.5%) as a
percentage of revenues in Q417. The increase in consumer finance
company funding costs (0.5pp) and other cost items (1.4pp) was
offset by the decline in GSM related equipment expenses
(1.8pp).
For the full year, cost of revenue decreased to 64.4% (64.7%) as
a percentage of revenues. This was mainly due to the decrease in
treasury share (1.0pp), radio costs (1.0pp), interconnect costs
(0.8pp) and depreciation and amortization (0.7pp), despite the rise
in consumer finance company funding costs (1.1pp), GSM related
equipment expenses (0.8pp) and other cost items (1.3pp).
Administrative expenses declined to 1.4% (4.7%) as a
percentage of revenues in Q417, mainly due to the change we made in
our doubtful receivable provision assumptions based on improvement
in collection performance which had a positive impact of TRY133
million.
For the full year, administrative expenses declined to 3.7%
(5.1%) mainly due to the change made in doubtful receivable
provision assumptions as explained above.
Selling and marketing expenses slightly declined to 11.7%
(11.8%) as a percentage of revenues in Q417. The decline in prepaid
subscriber frequency usage fees (0.7pp) and other cost items
(0.2pp) was offset by the increase in marketing expenses
(0.8pp).
For the full year, selling and marketing expenses as a
percentage of revenues declined to 11.4% (13.4%) on the back of the
fall in prepaid subscriber frequency usage fees (0.8pp), marketing
expenses (0.6pp), selling expenses (0.2pp) and other cost items
(0.4pp).
EBITDA1 rose by 26.8% year-on-year in Q417 leading
to a 3.4pp improvement in EBITDA margin to 37.3% (33.9%). This was
mainly due to the solid rise in revenues and effective management
of costs. Cost of revenue (excluding depreciation and amortization)
remained unchanged, while administrative expenses and selling and
marketing expenses declined by 3.3pp and 0.1pp, respectively as a
percentage of revenues.
- Turkcell Turkey’s EBITDA grew by 27.7%
to TRY1,566 million (TRY1,227 million) with an EBITDA margin of
38.8% (34.3%) on 4.5pp improvement.
- Turkcell International EBITDA decreased
by 6.3% to TRY64 million (TRY68 million), which resulted in an
EBITDA margin of 22.2% (27.2%). This was mainly due to the increase
in radio costs and device sales.
- The EBITDA of other subsidiaries rose
by 42.9% to TRY109 million (TRY76 million) with the increasing
contribution of our consumer finance company.
For the full year, EBITDA grew by 34.8% with an EBITDA margin of
35.3% (32.3%) on 3.0pp rise. Direct cost of revenues (excluding
depreciation and amortization) rose by 0.4pp, while administrative
expenses and selling and marketing expenses fell by 1.4pp and
2.0pp, respectively.
(1) EBITDA is a non-GAAP financial measure. See page 14 for the
explanation of how we calculate Adjusted EBITDA and its
reconciliation to net income.
- Turkcell Turkey’s EBITDA rose by 34.4%
to TRY5,594 million (TRY4,161 million), while the EBITDA margin
rose 3.7pp to 36.2% (32.5%).
- Turkcell International EBITDA grew by
12.1% to TRY264 million (TRY235 million), while the EBITDA margin
was at 24.7% (26.9%).
- The EBITDA of other subsidiaries rose
by 65.9% to TRY370 million (TRY223 million).
In Q417, we changed our doubtful receivable provision
assumptions based on improvement in collection performance, which
had a positive impact of TYR133 million on EBITDA.
Net finance expense declined to TRY107 million (TRY198
million) in Q417 year-on-year. This was mainly due to lower
translation losses in Q417, despite the decline in interest income
from contracted receivables, and rise in interest expense of
loans.
For the full year net finance expense rose to TRY323 million
(TRY173 million). This was mainly due to the decline in interest
income from contracted receivables and the increased interest
expense of loans despite lower translation losses and positive
impact from the fair market value changes of the swap
contracts.
Income tax expense decreased 37.6% year-on-year in Q417.
For the full year the income tax expense increased 35.1%. Please
see Appendix A for details.
Net income of the Group declined to TRY216 million
(TRY351 million) year-on-year in Q417, mainly due to the TRY575
million provision booked for tax settlement within the scope of Law
No.7061, which had a TRY500 million impact on net income after tax.
Excluding the impact of this provision, net income rose by 104.2%
to TRY716 million driven by a solid operational performance and
lower translation losses.
Turkcell Turkey’s net income decreased to TRY179 million (TRY386
million) in Q417 mainly due to the provision booked for tax
settlement as explained above. Excluding the impact of this
provision, net income rose by 75.8% to TRY679 million.
For the full year, Group net income increased to TRY1,979
million (TRY1,492 million), mainly due to solid operational
performance and better FX results, despite the provision booked for
tax settlement in Q417 and higher depreciation and amortization
expenses. In FY16 we also booked provisions for tax amnesty within
the scope of Article 6736, which had a TRY136 million impact on net
income after tax. Excluding the respective provision amounts booked
for each year, net income rose by 52.3% to TRY2,479 million.
Turkcell Turkey’s net income increased to TRY1,962 million
(TRY1,480 million) in FY17 mainly due to the drivers explained
above with respect to the rise in Group net income. Excluding the
respective provision amounts booked for each year, net income rose
by 52.4% to TRY2,462 million (TRY1,615 million).
Total cash & debt: Consolidated cash as of December
31, 2017 declined to TRY4,712 million from TRY4,906 million as of
September 30, 2017. TRY2,598 million (US$689 million) of
consolidated cash was denominated in US$, TRY1,073 million (EUR238
million) in EUR and TRY1,041 million in TRY and other local
currencies.
Consolidated debt as of December 31, 2017 rose to TRY12,536
million from TRY11,867 million as of September 30, 2017. This was
mainly due to the increased debt portfolio of our consumer finance
company and the translation increase in the FX denominated debt
portfolio of Turkcell Turkey, due to TRY depreciation against the
US$ and EUR.
- Turkcell Turkey’s debt was TRY8,475
million, of which TRY3,768 million (US$999 million) was denominated
in US$, TRY4,656 million (EUR1,031 million) in EUR and the
remaining TRY51 million in TRY.
- The debt balance of lifecell was TRY521
million, denominated in UAH.
- Our consumer finance company had a debt
balance of TRY3,536 million, of which TRY988 million (US$262
million) was denominated in US$, and TRY973 million (EUR215
million) in EUR with the remaining TRY1,575 million in TRY (please
note that the figures in parentheses refer to US$ or EUR
equivalents).
TRY8,392 million of our consolidated debt is set at a floating
rate, while TRY4,278 million will mature within less than a
year.
Net debt as of December 31, 2017 was at TRY7,824 million with a
net debt to EBITDA ratio of 1.26 times. Excluding consumer finance
company consumer loans, our telco only net debt was at TRY3,576
million with a leverage of 0.59 times.
Turkcell Group’s short position was at US$144 million as at the
end of Q417, thus within our comfort zone, which is below US$500
million as advised by our Board considering the size of our
operations and balance sheet. (Please note that this figure takes
into account advance payments, hedging and excluding FX swap
transactions for TL borrowing).
Cash flow analysis: Capital expenditures, including
non-operational items amounted to TRY1,806.6 million in Q417. The
cash flow item noted as “other” in Q417 included mainly the
positive impact of the change in working capital.
For the full year, capital expenditures, including
non-operational items were at TRY4,090.4 million. The cash flow
item noted as “other” included the payment of the final installment
of the 4.5G license fee (TRY1,535 million) and mainly the negative
impact of the change in working capital (TRY831 million).
In Q417 and FY17, operational capital expenditures (excluding
license fees) at the Group level were at 35.7% and 21.0% of total
revenues, respectively.
Consolidated Cash Flow (million TRY) Quarter
Year Q416 Q417 FY16
FY17 EBITDA1 1,371.1
1,738.9 4,619.5 6,228.3 LESS: Capex and
License (1,133.5) (1,806.6) (3,494.7) (4,090.4) Turkcell Turkey
(980.7) (1,716.6) (3,144.4) (3,821.5) Turkcell International2
(149.7) (82.8) (336.7) (246.6) Other Subsidiaries2 (3.1) (7.2)
(13.6) (22.3) Net interest Income/ (expense) 324.1 250.0 616.9
395.6 Other (939.6) 541.3 (3,020.0) (2,366.3) Net Change in Debt
784.0 82.2 4,411.9 1,492.9
Cash generated / (used)
406.1 805.8 3,133.6 1,660.0 Cash
balance before dividend payment 6,052.4 5,712.3
6,052.4 7,712.3 Dividend paid -
(1,000.0) - (3,000.0) Cash balance after
dividend payment 6,052.4 4,712.3 6,052.4
4,712.3
(1) EBITDA is a non-GAAP financial measure. See page 14 for the
explanation of how we calculate adjusted EBITDA and its
reconciliation to net income.(2) The impact from the movement of
reporting currency (TRY) against local currencies of subsidiaries
in other countries is included in these lines.
Operational Review of Turkcell Turkey
Summary of Operational Data Quarter
Year Q416 Q417 y/y%
FY16 FY17 y/y% Number of
subscribers (million) 35.3 36.7 4.0%
35.3 36.7 4.0% Mobile Postpaid (million) 17.4
18.5 6.3% 17.4 18.5 6.3% Mobile M2M (million) 2.1 2.3 9.5% 2.1 2.3
9.5% Mobile Prepaid (million) 15.7 15.6 (0.6%) 15.7 15.6 (0.6%)
Fiber (thousand) 1,043.9 1,204.3 15.4% 1,043.9 1,204.3 15.4% ADSL
(thousand) 818.0 921.4 12.6% 818.0 921.4 12.6% IPTV (thousand)
359.7 505.9 40.6% 359.7 505.9 40.6%
Churn (%) Mobile Churn
(%)1 5.6% 7.1% 1.5pp 24.6% 20.5% (4.1pp) Fixed Churn (%) 5.3% 5.7%
0.4pp 18.9% 19.6% 0.7pp
ARPU (Average Monthly Revenue per User)
(TRY) Mobile ARPU, blended 29.2 30.4 4.1% 26.8 29.8 11.2%
Mobile ARPU, blended (excluding M2M) 30.9 32.3 4.5% 28.3 31.6 11.7%
Postpaid 41.6 43.8 5.3% 39.2 43.0 9.7% Postpaid (excluding M2M)
46.8 49.6 6.0% 44.0 48.5 10.2% Prepaid 15.6 15.1 (3.2%) 13.9 14.9
7.2% Fixed Residential ARPU, blended 51.1 55.2 8.0% 51.1 53.6 4.9%
Average mobile data usage per user (GB/user) 2.8
4.3 53.6% 2.4 3.9 62.5%
Mobile MOU (Avg. Monthly Minutes of usage per subs) blended
331.3 353.4 6.7% 323.9 347.1
7.2%
(1) 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. Please note that figures for prior periods have not been
restated to reflect this change in churn policy.
Our mobile subscriber base continued to expand and reached 34.1
million in FY17. We registered 1.0 million net subscriber additions
during the year, marking the highest net additions of the past 6
years. This was driven by 1.1 million net additions to postpaid
subscribers, comprising 54.2% (52.5%) of our total mobile
subscriber base. In Q417 the mobile subscriber base declined by 537
thousand as 596 thousand prepaid subscribers, who last topped up
between January and March, were disconnected in accordance with our
churn policy. Meanwhile, our postpaid subscribers rose by 103
thousand net additions.Our fixed subscriber base exceeded 2.1
million in Q417 with 52 thousand quarterly net additions. We
registered 264 thousand net additions during the year, of which 160
thousand were fiber and 103 thousand were ADSL subscribers. IPTV
subscribers reached 506 thousand with 39 thousand quarterly and 146
thousand annual net additions. Total TV users, including OTT TV
only subscribers, reached 2.2 million. The Turkcell TV+ mobile
application has been downloaded 6.6 million times as of February
2018.Mobile churn declined 4.1pp for the full year, marking the
lowest churn rate of the past 10 years. This was driven by our
value focused customer strategy, service quality, an attractive
digital services portfolio and targeted retention campaigns in
2017. In Q417, our mobile churn rate rose 1.5pp year-on-year due to
the disconnection of prepaid subscribers in line with our churn
policy as explained above. Excluding this impact, our mobile churn
would have been at 5.5%. Our fixed churn rate was 5.7% for Q417 and
19.6% for the full year.Mobile ARPU (excluding M2M) rose by 4.5%
year-on-year in Q417. For the full year, mobile ARPU (excluding
M2M) rose by 11.7%. Mobile ARPU growth was mainly driven by
increased data and digital services usage, our upsell efforts,
price adjustment and larger postpaid subscriber base. ARPU growth
was also supported by the increased share of triple play
subscribers, who use voice, data and digital services combined, to
55.8%1.Fixed Residential ARPU rose 8.0% in Q417 year-on-year and
4.9% for the full year, positively impacted by the increase in
multiplay subscribers with TV2 to 44.4% of total residential fiber
subscribers, along with upsell efforts.Average mobile data usage
per user rose by 53.6% in Q417 year-on-year and 62.5% for the full
year driven by increased usage of data and digital services
offerings. Average mobile data usage of 4.5G users was at 5.9GB in
Q417 and 6.0GB in December. Our smartphone penetration reached 72%
in FY17, while 4.5G enabled smartphones reached 68% of total
smartphones.
(1) Share among mobile voice users excluding subscribers who
have not used their lines in the last 3 months(2) Multiplay
subscribers with TV: Internet + TV users & internet + TV +
voice users
TURKCELL INTERNATIONAL
lifecell* Financial Data Quarter
Year Q416 Q417 y/y%
FY16 FY17 y/y% Revenue
(million UAH) 1,313.7 1,269.2 (3.4%)
4,837.5 4,876.0 0.8% EBITDA (million UAH)
362.8 331.3 (8.7%) 1,356.4 1,326.5 (2.2%)
EBITDA margin
27.6% 26.1% (1.5pp) 28.0% 27.2%
(0.8pp) Net income / (loss) (million UAH) (62.5) (179.6)
187.4% 928.3 (503.6) (154.2%)
Capex (million UAH)
847.0 414.3 (51.1%)
2,255.8 1,330.1 (41.0%) Revenue
(million TRY) 165.6 178.0 7.5% 570.7 664.7 16.5%
EBITDA
(million TRY) 45.8 46.5 1.5%
159.9 180.7 13.0% EBITDA margin 27.6% 26.1%
(1.5pp) 28.0% 27.2% (0.8pp)
Net income / (loss) (million
TRY) (7.9) (25.2)
219.0% 98.3 (69.0)
(170.2%)
(*) Since July 10, 2015, we hold a 100% stake in lifecell.
lifecell (Ukraine) revenues declined 3.4% year-on-year in
Q417 in local currency terms, mainly due to the MTR cut from
UAH0.23/min to UAH0.15/min, effective as of January 1, 2017.
lifecell’s EBITDA in local currency terms decreased 8.7%
year-on-year leading to an EBITDA margin of 26.1%. This was mainly
due to the increase in radio costs in Q417. lifecell’s revenues in
TRY terms rose by 7.5%, while EBITDA increased by 1.5% year-on-year
in Q417.
For the full year, lifecell revenues in local currency terms
rose by 0.8% with an EBITDA margin of 27.2%. In TRY terms, lifecell
registered revenue growth of 16.5% while EBITDA rose by 13.0%.
lifecell* Operational Data Quarter
Year Q416 Q417 y/y%
FY16 FY17 y/y% Number of
subscribers (million)1 12.4 11.1
(10.5%) 12.4 11.1 (10.5%) Active (3
months)2 9.2 8.0 (13.0%) 9.2 8.0 (13.0%)
MOU
(minutes) (12 months) 141.3 135.7 (4.0%)
140.5 129.4 (7.9%) ARPU (Average Monthly
Revenue per User),
blended (UAH)
35.2 37.0 5.1% 31.3 33.8
8.0%
Active (3 months) (UAH) 46.0 52.3 13.7% 40.6 47.7 17.5%
(1) 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.(2)
Active subscribers are those who in the past three months made a
revenue generating activity.(*) Since July 10, 2015, we hold a 100%
stake in lifecell.
lifecell maintained its leadership in Ukraine in terms of 3G+
network geographical coverage. lifecell continued to grow
three-month active 3G data users, which exceeded 3.8 million as at
the end of the quarter. Meanwhile, data usage per 3G user posted
75% growth in Q417 on a year-on-year basis. lifecell continued to
lead the market in terms of smartphone penetration, which reached
68% as at the end of Q417.
lifecell’s three-month active subscriber base declined to 8.0
million, mainly due to the declining multiple SIM card usage trend
in the country. Blended ARPU (3-month active) rose by 13.7%
year-on-year in Q417, mainly on rising mobile data consumption and
a greater number of customers with higher ARPU tariffs.
On January 31, 2018, lifecell participated in the 2600 MHz
frequency tender as part of the 4G License Tender. lifecell has
been awarded the license for 15 years, bidding UAH909 million for
the 15 MHz frequency band, the total of Lot 1 and Lot 2. Within the
scope of the 4G tender, the 1800 MHz frequency tender is expected
to be held in the first quarter of 2018.
BeST* Quarter Year Q416
Q417 y/y% FY16
FY17 y/y% Number of subscribers
(million) 1.6 1.6 - 1.6 1.6
- Active (3 months) 1.2 1.3 8.3% 1.2
1.3 8.3%
Revenue (million BYN) 26.5
30.4 14.7% 98.6 111.8 13.4%
EBITDA (million BYN) 1.6 1.8 12.5% 3.9 4.3 10.3%
EBITDA
margin 6.1% 6.0% (0.1pp) 4.0%
3.8% (0.2pp) Net loss (million BYN) (9.9) (9.4)
(5.1%) (43.5) (42.0) (3.4%)
Capex (million BYN)
3.3 5.1 54.5% 11.1
13.3 19.8% Revenue (million TRY) 44.5 58.2
30.8% 150.0 210.4 40.3%
EBITDA (million TRY) 2.8
3.5 25.0% 6.2 8.0 29.0% EBITDA
margin 6.2% 6.0% (0.2pp) 4.1% 3.8% (0.3pp)
Net loss (million
TRY) (16.5) (18.0) 9.1% (65.6)
(79.2) 20.7% Capex (million TRY) 7.8
10.6 35.9% 19.9 25.4 27.6%
(*)BeST, in which we hold an 80% stake, has operated in Belarus
since July 2008.
BeST revenues rose by 14.7% year-on-year in Q417 in local
currency terms, driven mainly by growth in voice and mobile data
revenues. EBITDA rose by 12.5% leading to an EBITDA margin of 6.0%.
BeST’s revenues in TRY terms rose by 30.8% year-on-year in
Q417.
For the full year, revenues in local currency terms rose by
13.4%, while EBITDA increased by 10.3% leading to an EBITDA margin
of 3.8%. Revenues in TRY terms increased by 40.3%, while EBITDA
rose by 29.0%.
BeST continued to offer its 4G services in all regions of
Belarus increasing its coverage. The increased number of 4G users
and higher data consumption led to increased data revenues.
Meanwhile, BeST continued to increase the penetration of its
digital services within its customer base in accordance with
Turkcell’s global digital services strategy.
Kuzey Kıbrıs Turkcell (million TRY)* Quarter
Year Q416 Q417
y/y% FY16 FY17 y/y%
Number of subscribers (million) 0.5 0.5
- 0.5 0.5 - Revenue 35.7 41.2 15.4%
135.9 158.2 16.4%
EBITDA 12.3 10.6
(13.8%) 50.0 53.0 6.0% EBITDA margin
34.4% 25.7% (8.7pp) 36.8% 33.5% (3.3pp)
Net income
3.6 7.7 113.9% 28.6 34.0
18.9% Capex 11.4 14.2 24.6% 24.4 41.8 71.3%
(*) Kuzey Kıbrıs Turkcell, in which we hold a 100% stake, has
operated in Northern Cyprus since 1999.
Kuzey Kıbrıs Turkcell revenues grew by 15.4% year-on-year
in Q417 on the back of growing mobile data and device sales
revenues. EBITDA declined by 13.8% leading to an EBITDA margin of
25.7%, mainly due to the increase in cost of devices sold and
interconnection costs.
For the full year, revenues rose by 16.4%, while EBITDA growth
was 6.0%. This led to a 3.3pp decline in EBITDA margin to 33.5%
mainly due to increased cost of devices sold.
Fintur has operations in Azerbaijan, Kazakhstan, Moldova
and Georgia, and we hold a 41.45% stake in the company. 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 January 25th, 2018, Fintur has signed a binding agreement
with Silknet JSC, a joint stock company in Georgia, to transfer its
100% total shareholding in Geocell, for US$153 million. The
transaction is expected to be completed once regulatory approvals
are received. The transaction has no impact on our financial
statements since Fintur is classified as “assets held for sale” in
our financials.
Turkcell Group Subscribers
Turkcell Group subscribers amounted to approximately 50.2
million as of December 31, 2017. 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
and IPTV subscribers of Turkcell Turkey, and the mobile subscribers
of lifecell and BeST, as well as those of Kuzey Kıbrıs Turkcell and
Turkcell Europe.
Turkcell Group Subscribers Q416
Q417 y/y % Mobile Postpaid (million) 17.4 18.5
6.3% Mobile Prepaid (million) 15.7 15.6 (0.6%) Fiber (thousand)
1,043.9 1,204.3 15.4% ADSL (thousand) 818.0 921.4 12.6% IPTV
(thousand) 359.7 505.9 40.6%
Turkcell Turkey subscribers
(million)1 35.3 36.7 4.0% Ukraine
12.4 11.1 (10.5%) Belarus 1.6 1.6 - Kuzey Kıbrıs Turkcell 0.5 0.5 -
Turkcell Europe2 0.3 0.3 -
Turkcell Group Subscribers
(million) 50.1 50.2
0.2%
(1) Subscribers to more than one service are counted separately
for each service.(2) 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.
OVERVIEW OF THE MACROECONOMIC ENVIRONMENT
The foreign exchange rates used in our financial reporting,
along with certain macroeconomic indicators, are set out below.
Quarter Year Q416
Q317 Q417 y/y%
q/q% FY16 FY17 y/y%
GDP Growth (Turkey) 4.2% 11.1% n.a.
n.a. n.a. 3.2% n.a. n.a.
Consumer Price Index (Turkey) 3.6% 1.3%
4.3% 0.7pp 3.0pp 8.5% 11.9%
3.4pp US$ / TRY rate Closing Rate 3.5192 3.5521
3.7719 7.2% 6.2% 3.5192 3.7719 7.2% Average Rate 3.2591 3.4999
3.7942 16.4% 8.4% 3.0059 3.6308 20.8%
EUR / TRY rate Closing
Rate 3.7099 4.1924 4.5155 21.7% 7.7% 3.7099 4.5155 21.7% Average
Rate 3.5147 4.1241 4.4747 27.3% 8.5% 3.3179 4.1087 23.8%
US$ /
UAH rate Closing Rate 27.19 26.52 28.07 3.2% 5.8% 27.19 28.07
3.2% Average Rate 25.88 25.94 27.05 4.5% 4.3% 25.56 26.64 4.2%
US$ / BYN rate* Closing Rate 1.9585 1.9623 1.9727 0.7% 0.5%
1.9585 1.9727 0.7% Average Rate 1.9403 1.9404 1.9812 2.1% 2.1%
1.9846 1.9278 (2.8%)
* The official currency of the Republic of Belarus has been
redenominated on July 1, 2016. As a result, BYR10,000 has become
BYN1 starting from 1 July 2016. Prior periods have been adjusted
accordingly for presentation purposes.
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 and Administrative expenses, 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
Year Q416 Q417 y/y%
FY16 FY17 y/y% Adjusted
EBITDA 1,371.1 1,738.9 26.8%
4,619.5 6,228.3 34.8% Depreciation and
amortization (604.3) (700.5) 15.9% (2,203.2) (2,597.0) 17.9%
Finance income 493.9 471.3 (4.6%) 1,064.8 1,090.4 2.4% Finance
costs (692.2) (578.0) (16.5%) (1,237.6) (1,413.3) 14.2% Other
income / (expense) (44.4) (625.8) n.m (234.3) (698.9) 198.3%
Consolidated profit from continued operations before income tax
& minority interest 524.1 305.8
(41.7%) 2,009.2 2,609.5 29.9% Income
tax expense (111.3) (69.5) (37.6%) (423.2) (571.8) 35.1%
Consolidated profit from continued operations before minority
interest 412.8 236.3 (42.8%)
1,586.0 2,037.8 28.5% Discontinued operations (44.4)
- n.m (42.2) - n.m
Consolidated profit before
minority interest 368.4 236.3 (35.9%)
1,543.8 2,037.8 32.0%
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 2018. More generally, all statements other
than statements of historical facts included in this press release,
including, without limitation, certain statements regarding the
launch and goals of our payment card business, 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 2016 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 9 countries – Turkey, Ukraine, Belarus,
Northern Cyprus, Germany, Azerbaijan, Kazakhstan, Georgia, Moldova.
Turkcell launched LTE services in its home country on April 1st,
2016, employing LTE-Advanced and 3 carrier aggregation technologies
in 81 cities. In 2G and 3G, Turkcell’s population coverage in
Turkey is at 99.61% and 97.94%, respectively, as of December, 2017.
Turkcell offers up to 1 Gbps fiber internet speed with its FTTH
services. Turkcell Group reported TRY17.6 billion revenue in FY17
with total assets of TRY34.0 billion as of December 31, 2017. 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
This press release can also be viewed using the Turkcell
Investor Relation app, which can be downloaded
here for iOS,
and here for Android mobile
devices.
Appendix A – Tables
Table: Translation gain and loss details
Million TRY Quarter Year
Q416 Q417 y/y % FY16
FY17 y/y % Turkcell Turkey (499.1)
(284.7) (43.0%) (759.5) (564.9) (25.6%) Turkcell International
(29.6) (9.4) (68.2%) (37.4) (8.3) (77.8%) Other Subsidiaries 6.3
(62.7) n.m 7.2 (145.3) n.m
Turkcell Group (522.4)
(356.7) (31.7%) (789.7) (718.5)
(9.0%)
Table: Income tax expense details
Million TRY Quarter Year
Q416 Q417 y/y % FY16
FY17 y/y % Current Tax expense (12.4)
(84.3) 579.8% (200.7) (438.0) 118.2% Deferred Tax Income/expense
(98.9) 14.8 (115.0%) (222.5) (133.8) (39.9%)
Income Tax
expense (111.3) (69.5) (37.6%)
(423.2) (571.8) 35.1% TURKCELL
ILETISIM HIZMETLERI A.S.
IFRS SELECTED FINANCIALS (TRY
Million)
Quarter Ended Quarter
Ended Quarter Ended Year Ended Year Ended
Dec 31, Sep 30, Dec 31, Dec 31, Dec
31, 2016 2017
2017 2016
2017 Consolidated
Statement of Operations Data Turkcell Turkey 3,576.2 4,044.0
4,040.7 12,787.6 15,450.2 Turkcell International 251.6 272.9 288.3
874.7 1,067.1 Other 215.8 280.5 337.1 623.3 1,114.8 Total revenues
4,043.6 4,597.4 4,666.1 14,285.6 17,632.1 Direct cost of revenues
(2,608.3) (2,933.4) (3,016.3) (9,236.6)
(11,350.2) Gross profit 1,435.3 1,664.0 1,649.8 5,049.0 6,281.9
Administrative expenses (190.0) (194.3) (67.3) (721.8) (645.2)
Selling & marketing expenses (478.5) (488.4) (544.1) (1,910.9)
(2,005.4) Other Operating Income / (Expense) (44.4) (39.9)
(625.9) (234.3) (698.9) Operating profit
before financing costs 722.4 941.5 412.5 2,182.0 2,932.4 Finance
costs (692.2) (341.1) (577.9) (1,237.6) (1,413.3) Finance income
493.9 175.7 471.3 1,064.8 1,090.4
Income before tax and non-controlling interest 524.1 776.1 305.9
2,009.2 2,609.5 Income tax expense (111.3) (161.1)
(69.6) (423.2) (571.8) Income from continuing
operations before non-controlling interest 412.8 615.0 236.3
1,586.0 2,037.7 Discontinued operations (44.4) - - (42.2) -
Non-controlling interests (17.7) (14.4) (20.4)
(51.7) (58.6) Net income 350.7 600.6 215.9
1,492.1 1,979.1 Net income per share 0.16 0.27
0.10 0.68 0.90
Other Financial Data Gross
margin 35.5% 36.2% 35.4% 35.3% 35.6% EBITDA(*) 1,371.1 1,632.4
1,739.0 4,619.5 6,228.3 Capital expenditures 1,133.5 938.1 1,807.6
3,494.7 4,090.4
Consolidated Balance Sheet Data (at
period end) Cash and cash equivalents 6,052.4 4,906.5 4,712.3
6,052.4 4,712.3 Total assets 31,600.2 32,321.9 33,982.5 31,600.2
33,982.5 Long term debt 6,935.1 7,780.0 8,258.0 6,935.1 8,258.0
Total debt 9,781.2 11,867.0 12,536.1 9,781.2 12,536.1 Total
liabilities 15,531.8 17,505.1 18,937.4 15,531.8 18,937.4 Total
shareholders’ equity / Net Assets 16,068.4 14,816.8 15,045.1
16,068.4 15,045.1 (*) Please refer to the notes on
reconciliation of Non-GAAP Financial measures on page 14 (**) For
further details, please refer to our consolidated financial
statements and notes as at 31 December 2017 on our web site
TURKCELL ILETISIM HIZMETLERI A.S.
TURKISH ACCOUNTING STANDARDS SELECTED
FINANCIALS (TRY Million)
Quarter Ended
Quarter Ended Quarter Ended Year Ended Year
Ended Dec 31, Sep 30, Dec 31, Dec
31, Dec 31, 2016
2017 2017
2016 2017
Consolidated Statement of Operations Data Turkcell Turkey
3,576.2 4,044.0 4,040.7 12,787.6 15,450.2 Turkcell International
251.6 272.9 288.3 874.7 1,067.1 Other 215.8 280.5 337.1 623.3
1,114.8 Total revenues 4,043.6 4,597.4 4,666.1 14,285.6 17,632.1
Direct cost of revenues (2,608.3) (2,933.4) (3,016.3) (9,219.1)
(11,350.2) Gross profit 1,435.3 1,664.0 1,649.8 5,066.5 6,281.9
Administrative expenses (190.0) (194.3) (67.3) (721.8) (645.2)
Selling & marketing expenses (478.5) (488.4) (544.1) (1,910.9)
(2,005.4) Other Operating Income / (Expense) 545.4 189.1 (348.3)
1,016.9 114.3 Operating profit before financing and investing costs
1,312.2 1,170.4 690.1 3,450.7 3,745.6 Income from investing
activities 8.3 6.9 16.4 24.6 33.8 Expense from investing activities
(40.3) (8.6) (4.1) (59.9) (28.6) Income before financing costs
1,280.2 1,168.7 702.4 3,415.4 3,750.8 Finance income 385.6 54.3
332.9 385.6 589.6 Finance expense (1,141.7) (446.9) (729.3)
(1,768.8) (1,730.9) Income from continuing operations before tax
and non-controlling interest 524.1 776.1 305.9 2,032.2 2,609.5
Income tax expense from continuing operations (111.3) (161.1)
(69.6) (426.6) (571.8) Income from continuing operations before
non-controlling interest 412.8 615.0 236.3 1,605.6 2,037.7
Discontinued operations (44.4) - - (42.2) - Income before
non-controlling interest 368.4 615.0 236.3 1,563.4 2,037.7
Non-controlling interest (17.7) (14.4) (20.4) (51.7) (58.6) Net
income 350.7 600.6 215.9 1,511.7 1,979.1 Net income per
share 0.16 0.27 0.10 0.69 0.90
Other Financial Data
Gross margin 35.5% 36.2% 35.4% 35.5% 35.6% EBITDA(*) 1,371.1
1,632.4 1,739.0 4,619.5 6,228.3 Capital expenditures 1,133.5 938.1
1,807.6 3,494.7 4,090.4
Consolidated Balance Sheet Data
(at period end) Cash and cash equivalents 6,052.4 4,906.5
4,712.3 6,052.4 4,712.3 Total assets 31,600.2 32,321.9 33,982.5
31,600.2 33,982.5 Long term debt 6,935.1 7,780.0 8,258.0 6,935.1
8,258.0 Total debt 9,781.2 11,867.0 12,536.1 9,781.2 12,536.1 Total
liabilities 15,531.8 17,505.1 18,937.4 15,531.8 18,937.4 Total
shareholders’ equity / Net Assets 16,068.4 14,816.8 15,045.1
16,068.4 15,045.1
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180215005897/en/
Turkcell Iletisim HizmetleriInvestor
RelationsKorhan Bilek, Tel: + 90 212 313
1888investor.relations@turkcell.com.trorCorporate
Communications:Tel: + 90 212 313
2321Turkcell-Kurumsal-Iletisim@turkcell.com.tr
Turkcell lletism Hizmetl... (NYSE:TKC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Turkcell lletism Hizmetl... (NYSE:TKC)
Historical Stock Chart
From Apr 2023 to Apr 2024