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Turkish mobile operator Turkcell's Q2 consolidated net income down 12% y/y, sharper than expectations. [IntelliNews - Weekly Reports](IntelliNews - Weekly Reports Via Acquire Media NewsEdge) Turkey's largest mobile operator Turkcell posted a consolidated net income of TRY 493mn (EUR 175mn) in Q2, representing a 12% y/y decline. The market was expecting Turkcell to post a consolidated net income of TRY 542.9mn. The mobile operator's consolidated revenues rose by 2% y/y to TRY 2.92bn in the second quarter from TRY 2.86bn a year earlier. The market consensus forecast was TRY 2.94bn. In H1, Turkcell's consolidated net income declined by 24% y/y to TRY 853mn while the company's consolidated revenues rose by 4.2% y/y to TRY 5.8bn. The number of total subscribers rose 0.3% y/y and 0.6% q/q to 34.6mn at end-June while the number of post-paid customers increased by 5.1% y/y and 2.8% y/y to 14.5mn. Turkcell's consolidated net income increased by 11.9% y/y to TRY 2.3bn in 2013 while consolidated turnover increased by 8.6% y/y to TRY 11.4bn last year. Turkcell foresees a revenue growth of 5-7% this year, the company's general manager, Sureyya Ciliv, said in February. Turkcell's revenues will be between TRY 12bn and TRY 12.2bn this year, according to Ciliv. Ciliv also said that the company's investments will increase to TRY 2.1bn this year from TRY 1.82bn in 2013. Turkcell posted a consolidated net income of TRY 360.6mn in Q1, representing a 36.4% y/y decline, due to increase inTurkcell's Ukraine-based subsidiary Astelit's FX losses as a result of the depreciation in UAH. The market was expecting a 35.6% y/y decline in Turkcell's net income to TRY 364.2mn. The mobile operator's consolidated revenues rose by 6.2% y/y to TRY 2.86bn in the first quarter from TRY 2.7bn a year earlier. The market consensus forecast was TRY 2.85bn. Gozde Girisim Sermayesi, a venture capital unit of Yildiz Holding, said earlier this month that regulators disapproved of its plans to provide financing for Cukurova Holding to recover a disputed 13.8% stake in Turkcell. Gozde had been holding talks with Cukurova over a USD 1.6bn structured financing that will help Cukurova recover its stake in Turkcell. Last month, the Privy Council in the UK extended the deadline for Cukurova Holding to pay USD1.6bn to recover the stake in question from Russia's Alfa Group from June 24 to July 30. Turkcell (consolidated) Financials (bn TRY) 2013/H1 2014/H1 (y/y) Revenues 5,5 5,8 4,2% Gross Margin 2,1 2,2 7,7% Operating Income 1,6 1,4 -12,3% Net Income 1,1 0,9 -24,2% Source: PDP (c) 2014 Emerging Markets Direct Media Holdings LLC Provided by SyndiGate Media Inc. (Syndigate.info). |