Turkcell Sees Sharp Jump in Q2 Revenues and Profits

Turkey's Turkcell has reported that its Q2 revenue increased by 29% to US$1.5 billion compared to US$1.2 billion in the quarter a year ago. The operator also recorded net income of US$274 million (US$87 million) and the subscriber base grew by 13% on an annual basis to 33.8 million (29.8 million) as of June 30, 2007.

CEO, Sureyya Ciliv commented "I am very pleased that we were able to accelerate our growth and deliver another strong quarter. Our revenue increased 29%, EBITDA increased 29% and net income increased 215% over the same period last year. Strong performance by our Turkish operations was followed by our international operations, especially in Ukraine."

"The second quarter of 2007 was characterized in Turkey by active discussion of the July 22nd parliamentary elections. The election process has been completed without any significant volatility, which demonstrates the great resilience of the Turkish economy. As always, we will continue to monitor possible uncertainties during the forthcoming months which may have an impact on our business."

In 2007, the company says that it expects revenue growth of at least 20% on the back of growth in the subscriber base. In 2007, the company expects to spend approximately US$400 million in capital
expenditure in Turkey, which includes some 3G and broadband capital expenditures.

During 2007, Turkcell expects the growth in the Turkish GSM market to continue, although at a slower pace compared to 2006, while they expect penetration to reach just above 80% by the end of 2007. The company expects its subscriber base to continue to grow, although the net subscriber additions in the second half of 2007 to be lower than the first half of 2007 levels."

Posted to the site on 9th August 2007