Turkcell’s net profit falls amid forex losses

ISTANBUL

Turkcell expects an operational capex to sales ratio of 20 percent, with more investments in the mobile network to the transition to 4G, says company chief İlker Kuruöz.

Turkey’s largest mobile operator Turkcell posted a lower-than-expected net profit of 258 million Turkish Liras ($105 million) in the fourth quarter,  due to foreign currency losses in operations in Ukraine and Belarus.

Group revenues grew by 8 percent to 3.1 billion liras with the higher contribution of mobile broadband and fiber broadband revenues, said the company via written statement late Feb. 13.
 
In the full-year of 2014, Turkcell’s net profit fell 20 percent to 1.8 billion liras, reflecting macroeconomic conditions in the company’s international markets and several one-off items, said the company.

“Our Ukrainian business sustained its operational performance, and accordingly its full-year revenues rose by 13 percent in local-currency terms. Nonetheless, its revenues contracted 12 percent in terms of the lira due to the 97 percent local currency devaluation in Ukraine,” Turkcell said.

“Turkcell Group reached its 2014 targets,” said İlker Kuruöz, adding that in 2014, Turkcell Turkey’s revenues grew by 3 percent on 34 percent of growth in mobile broadband.

Transition to 4G

“In accordance with the company’s growth plans, we expect an operational capex to sales ratio of around 20 percent, with increased investments in preparation of the mobile network to the transition to 4G, further expansion of the fiber network and the roll out of Astelit’s 3G network in 2015. This ratio excludes new spectrum fees in Turkey and Ukraine related to 4G and 3G, respectively, which are expected to be auctioned this year,” he noted.