Forex loss hits profits of Turkey’s phone giant

Bloomberg

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Net income fell to 1.75 billion liras ($1.04 billion) from 2.55 billion liras a year earlier, the Ankara-based company said in a statement Thursday. Sales rose 8.2 percent to 10.2 billion liras, it said.

Türk Telekom recorded a financial loss of 574 million liras in 2008 compared with a gain of 435 million liras a year earlier. The lira fell 24 percent against the dollar last year, raising the costs of servicing the company’s $1.6 billion debt. Operating profit rose 5.6 percent to 2.7 billion liras in the period, according to the statement.

"The growth was not at the expense of operating profit, which remained stable at 27 percent of revenue," Chief Executive Officer Paul Doany said. Türk Telekom had 5.8 million customers for fixed-line broadband Internet access at the end of the year, up from 5.5 million at the end of September and 4.2 million at the end of 2007. Avea, Turkey’s third-biggest mobile-phone operator, controlled by Türk Telekom, added 500,000 customers for a total of 12.2 million.