Turkcell Profits Down on Ukraine Problems

Turkcell Group has reported that its second-quarter revenues grew by 1.1% to TRY2,204 million, mainly driven by Turkcell Turkey's strong operational performance. However, the Ukrainian operation Astelit and the betting business Inteltek reported weaker results. Astelit was negatively impacted by a GDP drop in Ukraine of 20% and by devaluation.

Group EBITDA decreased by 10.9% to TRY709 million and net profits decreased by 26.2% to TRY389 million in the second quarter.

In dollar terms Group revenue decreased by 20.3% to $1,398 million, EBITDA decreased by 30.0% to $449 million and net income decreased by 42.4% to $246 million reflecting the impact of the depreciation of the TRY by 26.9% and provisions recorded for the second quarter of 2009.

In Turkey, despite very challenging economic and market conditions, Turkcell's postpaid subscribers increased by 24.6% yoy to 8.6 million. The operator recorded a net subscriber loss of only 42,750 where the market which contracted by approximately 800,000.

CEO, Sureyya Ciliv said "In the second quarter of 2009, we maintained our strong market position in our mature businesses and continued to build and invest in our emerging ones. Although we faced unusual challenges in our businesses during the quarter, we are excited and optimistic about our future."

Posted to the site on 6th August 2009