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Turkcell Fourth-Quarter Profits Down 45%
Turkey's Turkcell has reported that its fourth-quarter revenues declined by 3% to TRY2.26 billion (US$1.47 billion), mainly due to a reimbursement based on previously announced regulatory decisions as well as a declining contribution from Group companies.
Net income plunged by 45.3% to TRY253 million (US$164 million) mainly due to the negative impact of goodwill impairment charges, fixed asset write-offs, and legal payments and provisions totaling TRY256 million in the fourth quarter of 2009. EBITDA declined by 11.5% to TRY682 million, while the EBITDA margin decreased by 2.8 percentage points to 30.2%.
For the full year, the group's revenue increased by 1.0% to TRY8.9 billion (US$5.8 billion), while net income was down by 25.9% to TRY1.7 billion (US$1.1 billion) due to lower operational profitability, as well as the negative impact of the goodwill impairment charges, fixed asset write- offs, and legal payments and provisions in 2009 which totaled TRY381 million.
Turkcell's CEO, Sureyya Ciliv commented: "The severe economic contraction in our key markets, competitive and regulatory developments, goodwill impairment charges, fixed asset write-offs and legal provisions related to the Authorities' decisions had a negative impact on our financial results."
"In 2010, we remain very excited about the future potential of our business despite significant challenges. However, we believe we have built sustainable competitive advantages as a Group which will allow us to continue to outperform the competition."
The group had approximately 62.7 million GSM subscribers as of December 31, 2009. This figure is calculated by taking the number of GSM subscribers in Turkcell and each of the subsidiaries and unconsolidated investees. This figure includes the total number of GSM subscribers in Astelit, BeST, in our operations in Northern Cyprus and Fintur.
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