SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Report on Form 6-K dated June 16, 2005
--------------------
TURKCELL ILETISIM HIZMETLERI A.S.
Turkcell Plaza
Mesrutiyet Caddesi No.153
34430 Tepebasi
Istanbul, Turkey
--------------------
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F: |X| Form 40-F: |_|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
Yes: |_| No: |X|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
Yes: |_| No: |X|
Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes: |_| No: |X|
Enclosures: Press releases
[GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE
TURKCELL ILETISIM HIZMETLERI A.S. REPORTS Q1 2005 RESULTS
"Consistent performance in an increasingly price-based competitive environment"
Istanbul, Turkey, May 25, 2005 - Turkcell (NYSE:TKC, ISE:TCELL),
(www.turkcell.com.tr), the leading provider of mobile communications services in
Turkey, today announced results for the quarter ended March 31, 2005. All
financial results in this press release are unaudited and reported in accordance
with accounting principles generally accepted in the United States (US GAAP).
Figures in parentheses following the operational and financial results for the
first quarter of 2005 refer to the same item in the fourth quarter of 2004. All
TRY figures in the press release have been converted into US$ using the Turkish
Central Bank's TRY/US$ exchange rate of TRY1.3706 dated March 31, 2005, for
convenience purposes.
Highlights of the Quarter
o Turkcell added 0.9 million (1.1 million) net new subscribers during the
first quarter of 2005 and increased its subscriber base by 3.8% to 24.3
million (23.4 million) as of March 31, 2005
o Revenues increased slightly to US$898 million in the first quarter of 2005
(US$880 million)
o Turkcell recorded lower usage of 59.6 minutes (63.8 minutes) as a result of
seasonality
o EBITDA* remained stable at US$394 million in the first quarter of 2005
(US$384 million)
o Turkcell's net income decreased to US$128 million (US$139 million) in the
first quarter of 2005
o Turkcell shareholders approved a dividend distribution in the form of both
cash and bonus shares at the Annual General Assembly of Shareholders held
on April 29, 2005
o Turkcell announced a capital increase from approximately TRY1.5 billion to
approximately TRY1.9 billion in the form of bonus shares
Summary of Financial and Operational Data
Q1 2004 Q4 2004 Q1 2005
Number of total subscribers (million) 19.7 23.4 24.3
Number of post-paid subscribers (million) 4.9 5.1 5.2
Number of pre-paid subscribers (million) 14.8 18.3 19.1
Average revenue per user, blended (US$) 12.7 12.4 12.0
Average revenue per user, postpaid (US$) 28.8 29.0 28.5
Average revenue per user, prepaid (US$) 7.4 7.6 7.4
Churn (%) 3.2 2.0 2.5
Minutes of usage, blended, per month 56.4 63.8 59.6
Revenue (US$ million) 746 880 898
EBITDA* (US$ million) 337 384 394
Translation Loss (US$ million) (20) (33) (4)
Net Income (US$ million) 126 139 128
All figures are quarterly other than subscriber numbers.
* EBITDA is a non-GAAP financial measure. See page 11 for the reconciliation of
EBITDA to net cash used for operating activities.
Comments from the CEO, Muzaffer Akpinar
--------------------------------------------------------------------------------
During the first quarter of 2005, our results were in line with our
expectations. We continued our subscriber growth and maintained our leading
position in the market in terms of new subscriber additions. We recorded an
EBITDA margin of 44% in the first quarter of 2005.
Our operating environment remained stable in the first quarter of 2005 with
positive macroeconomic indicators such as inflation, capacity utilization ratio
in the manufacturing industry and number of tourists visiting Turkey.
Notwithstanding these improvements, there were also macroeconomic and political
developments in Turkey and globally that highlighted some of the vulnerabilities
of the Turkish economy. As we move forward, the execution of the recently signed
IMF standby agreement, the government's continued commitment to its economic
targets, and the progress of the EU accession talks will continue to have a
significant impact on the macroeconomic environment in Turkey.
In the first quarter of 2005, the structural outlook for the Turkish
telecommunications market remained mainly unchanged. The privatization process
of Turk Telekom continued, although the deadline for bidders to enter the
process was extended from May 2005 to June 2005, and the government's intention
to sell one of the GSM operators in Turkey remained.
2
During the first quarter of 2005, our competitors in the GSM market continued to
compete on price as offers evolved from mainly on-net community discounts to a
flat rate tariff which includes off-net discounts to GSM and to fixed line
calls. We continued our focus on our 'Better Value for Money' approach as we
introduced campaigns and services to better serve the needs and expectations of
our customers. We also focused on maintaining our technological leadership
position by adding more value added services and enhanced data usage
capabilities with the roll-out of EDGE. Furthermore, we introduced several
campaigns to increase usage and penetration of our existing value added services
portfolio.
We celebrated the anniversary of the commencement of our operations with the
introduction of a campaign offering 50% volume based discount to all of our
customers during March. This offer resulted in higher usage levels during a
period when we generally experience seasonally lower usage levels. Furthermore,
our campaigns to enhance usage as well as the loyalty of both our postpaid and
prepaid subscribers were relaunched and extended into the second quarter of
2005.
We would like to reiterate that, as a leading player in the telecommunications
sector in Turkey, we are continuously monitoring the transformation of the
sector and specific actions of our competitors. We will continue to remain
proactive in responding to the needs and expectations of our customers and
market requirements, as well as our business objectives.
On the international front, our indirectly owned subsidiary, Astelit, began its
operations in the Ukrainian GSM market under its new brand "life :)" in the
first quarter of 2005. Astelit's operations are progressing in line with our
expectations, and we are continuing to seek to create a fundamentally sound
business model in Ukraine.
In Iran, the Guardian Council approved all of the amendments to the license
agreement between Irancell and the government that were proposed by the Iranian
Parliament. As a result, it is likely that we will be limited to a 49% stake in
Irancell's ownership structure. In addition, the proposal approved by the
Guardian Council includes several other amendments to the terms of the license
agreement. As a consequence of these developments, we plan to evaluate the
potential elements of the new structure and extend discussions with local
authorities as well as current and potential partners to ensure appropriate
ownership structure and management controls in the local company as well as the
amendments to the license agreement conditions.
Overview
--------
The stable macro-economic environment in Turkey during the first quarter of 2005
supported our operating performance. In addition, we may conclude that the
growth of total subscribers in the Turkish GSM market overall was higher than
expected mainly due to increased sales and marketing efforts in the market. We
increased our subscriber base in the first quarter of 2005 by 3.8% to 24.3
million, and we maintained our leading position in the market in terms of new
subscriber additions. We recorded a slight increase in revenue to US$898 million
(US$880 million) in the first quarter of 2005 mainly as a result of the growth
in the subscriber base and the appreciation of TRY against US$ on average basis.
However, usage levels decreased 7% to 59.6 minutes (63.8 minutes) during the
quarter in line with the expected impact of seasonality.
3
In addition to the price focus of our competitors in our market, as we have
stated before, lower termination charges applied in the wholesale market, based
on pricing terms of the current interconnection agreements, have also been a
factor leading to pricing pressures since September 2003. We believe the
reference tariff structure defined by the Telecommunications Authority during
the fourth quarter of 2004, if applied, will lead to further reductions in
termination rates, as pricing terms of the interconnection agreements among
operators have not been established through negotiations.
Turkcell made an upward price adjustment of 4.6% on average to its prepaid
scratch cards effective as of May 7, 2005, despite the increased competition and
price pressure in the market. Other GSM operators also made upward price
adjustments during the same period, while continuing their aggressive tariff
campaigns, such as pricing options with low on-net community minute pricing or
aggressive flat rate offers. We, on the other hand, relaunched our mass loyalty
programs both for postpaid and prepaid subscribers and implemented volume
discount campaigns for both during and after the acquisition of a subscriber. We
believe these loyalty and acquisition campaigns limited the impact of the upward
price adjustments during the quarter.
We believe the recent price pressures in our market confirm again the extent of
the irrational play in our market, and we believe further expansion of such
behavior and lower termination charges may not be financially as viable for our
sector.
Under these circumstances, we will continue to monitor the market and developing
conditions such as in competitive, regulatory and macroeconomic areas while
implementing solutions for our customers.
The following is a list of some of our recent offerings in 2005 through which we
have continued to emphasize our "Better Value for Money" approach while
customizing our offers for the specific needs of customer segments:
50% volume discount: We celebrated the anniversary of the commencement of our
operations with the introduction of a volume discount campaign with a 50%
discount after the 1st on-net minute offered to all of our customers during
March 2005. This offer resulted in higher usage levels during a period in which
we generally experience seasonally lower usage levels.
Free trial for value added services: We introduced a free trial campaign to
increase usage and penetration of our existing value added services portfolio.
Instant Messaging Service: We launched an instant messaging service which
enables subscribers to send instant messages to each other in the same manner as
MSN Messenger.
EDGE: Our recent introduction of EDGE (Enhanced Data rate for GSM Evolution)
technology provides our subscribers with faster Internet access through their
GSM handsets as well as laptops.
4
Turkcell Connect: Following the introduction of EDGE, we introduced Turkcell
Connect Mobile Modem Card pack which enables fast and easy access to the
Internet via laptop computers.
Youth Club "Gnctrkcll": We introduced a new club for young customers, a
community loyalty program, based on their life-style.
Blackberry: We launched the Blackberry service for corporate customers, which
will be offered to the remainder of our subscriber base in the fourth quarter of
2005.
Ringback tone: We launched a service that allows our customers to play
personalized ringback tones to all or specific callers.
The government has not made any announcement regarding the timetable for the
sale of one of the Turkish GSM operators, Telsim. We are currently in the
process of evaluating bidding through one of our subsidiaries as a part of a
consortium in which we have a minority stake, for a 55% stake of Turk Telekom
which is on sale.
Since these developments and timing of the changes will affect our operational
environment, we closely monitor these developments and the surrounding issues.
Dividend Distribution
--------------------------------------------------------------------------------
As announced on April 29, 2005, our General Assembly of Shareholders has
approved the dividend distribution in accordance with our dividend policy.
Our shareholders have approved a 100% dividend distribution of our 2004
distributable net income, to our shareholders. The dividend is in the form of a
50% cash and 50% share distribution. Based on the CMB (Capital Markets Board of
Turkey) accounts, the net distributable income after legal reserves amounted to
TRY500 million (US$365 million). Accordingly, the total net cash dividend of
TRY250 million (US$182 million) will be distributed to our shareholders,
representing a cash dividend of TRY0.169619 (US$0.1238) per ordinary share
having a nominal value of TRY1 and approximately TRY0.424 (US$0.309) per ADR.
Also a total stock dividend of TRY380 million (US$277 million) including TRY146
million (US$107 million) of capital inflation adjustment difference in the legal
records will be distributed to shareholders, representing a 25.785829% stock
dividend per ordinary share and ADR. Our shareholders will not be subject to a
withholding tax deduction from the gross dividend according to the current tax
regulations.
Payment of the cash dividend commenced on May 17, 2005, and the payment of the
share dividend will commence on May 31, 2005.
Capital Increase
--------------------------------------------------------------------------------
On April 29, 2005, the Annual General Assembly approved the increase in the
registered capital ceiling of Turkcell to TRY2,200,000,000 (US$1,605 million)
from TRY1,500,000,000 (US$1,094 million). Thereafter, the Board of Directors
resolved that the issued capital
5
would be increased to TRY1,854,887,341 (US$1,353 million) from TRY1,474,639,361
(US$1,076 million). Accordingly, the total amount to be increased is
TRY380,247,980 (US$277 million). Of this, TRY234,091,601 (US$171 million) is
from the distributable income of Turkcell from 2004 earnings while
TRY146,156,379 (US$107 million) is from the capital inflation adjustment. The
total amount will be added to the capital and the bonus shares to be issued
accordingly will be distributed to Turkcell's shareholders.
International Investments
--------------------------------------------------------------------------------
Fintur
------
Fintur International continued its strong growth in the first quarter of 2005.
The GSM businesses in Azerbaijan, Kazakhstan, Georgia and Moldova added
approximately 337,000 net new subscribers, raising the total number of
subscribers to approximately 4.2 million (3.9 million) as of March 31, 2005.
Furthermore, in the first quarter of 2005 revenues remained stable at US$167
million (US$164 million). We own 41.45% of Fintur and account for this
investment using the equity method, which totaled US$13.1 million in income in
the first quarter of 2005.
Ukraine
-------
Our indirectly owned subsidiary Astelit began its operations in the Ukrainian
market on February 1, 2005, with its new brand "life :)". Currently, life :) is
operating in 25 major cities and planning to increase its coverage to 91 cities
and the majority of the country's tourist areas and principal intercity highways
with 70% of population coverage. Life :) is offering new products and services
to differentiate itself from other operators in the market, including incoming
call bonus, ringback tone, pre-paid / postpaid convergence, balance transfer and
advanced video MMS. Also life :) was the first operator in the market to launch
EDGE thereby positioning itself as a leader in the introduction of cutting edge
technologies.
During the first quarter of 2005, in line with the plans, capital expenditure of
US$55 million was recorded for the Ukrainian operations.
In May 2005, Astelit gave a mandate to ING Bank N.V. and Standard Bank London
Ltd. to arrange financing of US$280 million with a tenor of 6 years to refinance
Astelit's existing vendor loans and to meet additional capital expenditure and
working capital requirements. The financing will be in the form of a syndicated
loan and it is expected to be finalized in the third quarter of 2005.
Furthermore, in order to provide additional funds to finance working capital
requirements, Astelit increased its paid in capital from US$50 million to US$100
million in May 2005 and we participated in the capital increase of the company
in an amount of US$27.5 million, an amount exceeding our stake. Subsequent to
this capital increase, our stake at Astelit increased from 51% to 52.35%.
6
Iran
----
In Iran, the Guardian Council approved all of the amendments to the license
agreement between Irancell and the government that were proposed by the Iranian
Parliament. As a result, it is likely that we will be limited to a 49% stake in
Irancell's ownership structure. In addition, the proposal approved by the
Guardian Council includes several other amendments to the terms of the license
agreement. As a consequence of these developments, we plan to evaluate the
potential elements of the new structure and extend discussions with local
authorities as well as current and potential partners to ensure appropriate
ownership structure and management controls in the local company as well as the
amendments to the license agreement conditions.
Operational and Financial Review
--------------------------------------------------------------------------------
The following discussion focuses principally on the developments and trends in
our business in the first quarter of 2005.
Exchange Rate Information
--------------------------------------------------------------------------------
One US$ equaled TRY 1.3706 as of March 31, 2005, which implies a quarterly 2%
depreciation of TRY against US$ as of the end of the first quarter of 2005
whereas there was an 8% appreciation of TRY against US$ on monthly average basis
during the first quarter of 2005. The producer price index and consumer price
index increased by 0.96% and 0.83%, respectively in the first quarter of 2005.
Financial and Operational Review
--------------------------------------------------------------------------------
The following discussion focuses principally on the developments and trends in
Turkcell's business in the first quarter of 2005 compared to the fourth quarter
of 2004. For your information, selected financial information for the first
quarter of 2004 is included at the end of this press release.
Subscribers
We added approximately 0.9 million (1.1 million) net new subscribers in the
first quarter of 2005, raising our total number of subscribers to 24.3 million
as of March 31, 2005, up from 23.4 million subscribers as at December 31, 2004.
Accordingly, the quarterly growth in our subscriber base was 3.8%. The overall
subscriber base consisted of 5.2 million postpaid and 19.1 million prepaid
subscribers as of March 31, 2005. New gross subscribers acquired in first
quarter of 2005 consisted of 90% prepaid and 10% postpaid subscribers.
Revenues
We recorded US$898.0 million (US$879.5 million) in revenues in the first quarter
of 2005, which implies a 2% increase compared to the fourth quarter of 2004
mainly due to the
7
increase in our subscriber base and the appreciation of TRY against US$. These
two factors offset the negative impact of seasonally lower MoU during the first
quarter of 2005.
MoU
Usage in the first quarter has historically been lower than in the fourth
quarter as people become less mobile during winter and the fewer number of days
in the first quarter. On the back of this trend, our blended MoU decreased by 7%
to 59.6 minutes (63.8 minutes) in the first quarter of 2005.
ARPU
In the first quarter of 2005, our blended average revenue per user ("ARPU")
decreased to US$12.0 (US$12.4) as a consequence of seasonally lower usage. ARPU
for prepaid and postpaid subscribers was US$7.4 (US$7.6) and US$28.5 (US$29.0)
respectively during the same quarter.
EBITDA
EBITDA in the first quarter of 2005 remained relatively flat at US$394.0 million
(US$384.1 million). EBITDA margin also remained stable at 44% (44%).
Translation loss
The depreciation of TRY by 2% in the first quarter of 2005 led to a relatively
low translation loss of US$4.1 million (US$32.7 million loss).
Churn rate
Churn refers to disconnected subscribers, whether disconnected voluntarily or
involuntarily. Our churn rate increased to 2.5% (2%) in the first quarter of
2005 mainly due to seasonally high subscriber acquisitions in summer season of
2004.
Profit & Loss and Balance Sheet Statements
--------------------------------------------------------------------------------
Net income
Our net income decreased slightly to US$128.4 million (US$138.6 million) in the
first quarter of 2005, mainly due to taxation expense including the impact of
legal payments in 2005.
Direct cost of revenues
The direct cost of revenues, including depreciation and amortization was
US$523.5 million (US$477.7 million), which represents an 10% quarter on quarter
increase in nominal terms. The proportion of the direct cost of revenues in
total revenues increased to 58% (54%).
8
The reason for the change was the one time positive impact of provisions
reversed related to various dispute items in the fourth quarter of 2004 which
were not included in the first quarter 2005 figures.
Depreciation and amortization
Depreciation and amortization remained broadly stable at US$109.1 million
(US$107.2 million) in the first quarter of 2005.
Selling and marketing expenses
Our selling and marketing expenses decreased slightly to US$103.6 million
(US$107.2 million) in the first quarter of 2005 in nominal terms mainly due to
the absence of expenses for New Year and roaming related advertisements made
during the fourth quarter of 2004. However, the proportion of selling and
marketing expenses in revenues remained stable at 12% (12%).
General and administrative expenses
We recorded US$35.1 million (US$43.3 million) in general and administrative
expenses in the first quarter of 2005 mainly due to one time costs incurred in
the fourth quarter of 2004. Accordingly, the proportion of general and
administrative expenses in revenues decreased to 4% (5%).
Equity in net income of unconsolidated investees
Fintur continued its strong performance throughout the first quarter of 2005,
and we recorded US$13.1 million (US$11.8 million) equity in net income of
unconsolidated investees.
Net interest income/(expense)
Net interest expense decreased in the first quarter of 2005 to US$23.2 million
(expense of US$45.3 million) mainly due to interest expenses related to
settlement agreements in fourth quarter of 2004.
Income tax benefit (expense)
Turkcell recorded US$97.0 million of income tax expense (of which US$28.1
million and US$68.9 million were related to current tax charges and deferred tax
charges, respectively) in the first quarter of 2005 compared to US$54.8 million
income tax expense in the previous quarter.
9
The tax expenses that were recorded during the quarter was mainly due to the
decrease in deferred tax assets as a result of the reversal of certain amount of
deferred tax asset related to the settlement agreements, which are to be tax
deductible for the corporate tax purposes as of the 2005 year end, and provision
for withholding tax to be paid on taxable income of 2005.
Total assets
In the first quarter of 2005, our total assets decreased slightly to US$4,220.6
million (US$4,361.5 million).
Capital Expenditures
In the first quarter of 2005, we recorded US$217.2 million (US$134.6 million) in
capital expenditures, US$55 million (US$47 million) of which was related to the
Ukrainian operations.
Debt
Turkcell's consolidated indebtedness including indebtedness from the Ukraine
operation amounted to US$866.7 million (US$832.6 million) in the first quarter
of 2005. Of the total amount, US$147.7 million (US$67 million) was related to
the Ukrainian operations.
10
Repayment Schedule for Major Debt and Liabilities
Bank Debt and Settlement Repayment Schedule
-------------------------------------------
US$ million Q1 Q2 Q3 Q4 FY FY FY
2005 2005 2005 2005 2005 2006 2007
Debt Repayment-Principal 46 111 385 75 617 230 58
Turkcell 46 85 380 20 531 168 58
Ukraine - 26 5 55 86 62 -
Settlement Repayment * -
Principal 307 112 102 99 620 164 -
Treasury 195 - - - 195 - -
Interconnection 99 99 99 99 396 164 -
Infrastructure** 13 13 3 - 29 - -
TOTAL 353 223 487 174 1,237 394 58
* The repayment schedule is for the remaining principal balances, excluding
taxes, as of January 1, 2005.
** On October 14, 2004, we announced that we settled our Infrastructure Usage
and Fund Share dispute with Turk Telekom by an amicable agreement.
Reconciliation of Non-GAAP Financial Measures
Turkcell complies with the SEC's guidance regarding the use of non-GAAP
financial measures. We believe that EBITDA is a measure commonly used by
companies, analysts and investors in the telecommunications industry that
enhances the understanding of our operating results and assists in the
evaluation of our capacity to meet our financial obligations. We also use EBITDA
as an internal measurement tool and accordingly, we believe that the
presentation of EBITDA provides useful and relevant information to analysts and
investors. We are continuing to monitor developments in the interpretation of
these new rules and will make adjustments to the use of non-GAAP measures as may
be required.
EBITDA equals net income (loss) before depreciation and amortization, interest
expense and income tax benefit (expense). EBITDA is not a measurement of
financial performance under US GAAP and should not be construed as a substitute
for net earnings (loss) as a measure of performance or cash flow from operations
as a measure of liquidity.
11
The following table provides a reconciliation of EBITDA, which is a non-GAAP
financial measure, to net cash provided by operating activities, which we
believe is the most directly comparable financial measure calculated and
presented in accordance with US GAAP.
US$ million Q1 2004 Q4 2004 Q1 2005
EBITDA 337.2 384.1 394.0
Minority interest 1.0 3.0 1.9
Equity in net income of
unconsolidated investees 7.9 11.8 13.1
Interest expense (77.4) (83.5) (59.4)
Net increase (decrease) in assets
and liabilities (49.8) (319.8) (24.3)
Net cash provided by operating
activities 201.1 (34.0) 295.3
Forward Looking Statements
This release may include forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934 and the Safe Harbor provisions of the US Private Securities
Litigation Reform Act of 1995. All statements other than statements of
historical facts included in this press release, including, without limitation,
certain statements regarding our operations, financial position and business
strategy, may constitute forward-looking statements. In addition,
forward-looking statements generally can be identified by the use of
forward-looking terminology such as "may," "will," "expect," "intend," "plan,"
"estimate," "anticipate," "believe" or "continue."
Any forward-looking statements in this release are not historical facts but,
rather, represent Turkcell's future expectations. Turkcell believes that the
expectations reflected in these forward-looking statements are based on
reasonable assumptions. However, forward-looking statements involve inherent
risks and uncertainties, and there can be no assurance that Turkcell's actual
results will not differ materially from those expressed or implied by any
forward-looking statements in this release. A number of important factors could
cause actual results or outcomes to differ materially from those expressed in
any forward-looking statement in this release, including Turkcell's market
position, the effects of competition and other economic, business, competitive
and/or regulatory factors affecting the business of Turkcell and the
telecommunications industry in general. Forward-looking statements speak only as
of the date they were made, and, other than as required by applicable law,
Turkcell undertakes no obligation to update any of them in light of new
information or future events.
www.turkcell.com.tr
-------------------
About Turkcell
Turkcell is the leading GSM operator in Turkey with 24.3 million postpaid and
prepaid customers as of March 31, 2005. Turkcell provides high-quality wireless
telephone services throughout Turkey and has coverage of 100% of the towns with
more than 10,000 inhabitants. Turkcell provides roaming with 454 operators in
178 countries as of May 25, 2005. Turkcell is the only NYSE listed company in
Turkey. Turkcell has interests in international GSM operations in Azerbaijan,
Georgia, Kazakhstan, Moldova, Northern Cyprus and Ukraine.
12
For further information please contact:
Contact:
Turkcell: Citigate Dewe Rogerson:
--------- -----------------------
Investors: Europe:
---------- Kate Delahunty
Koray Ozturkler, Investor Relations Tel: +44-207-282-2934
Tel: +90-212-313-1500 Email: kate.delahunty@citigatedr.co.uk
Email: koray.ozturkler@turkcell.com.tr or
United States:
Ferda Atabek, Investor Relations Victoria Hofstad
Tel: + 90-212-313-1275 Tel: +1-212-687-8080
Email: ferda.atabek@turkcell.com.tr Email: vhofstad@sardverb.com
investor.relations@turkcell.com.tr
Media:
------
Ilke Homris, Corporate Communications
Tel: + 90-212-313-2320
Email: ilke.homris@turkcell.com.tr
Bahar Erbengi, Corporate Communications
Tel: + 90-212-313-2309
Email: bahar.erbengi@turkcell.com.tr
13
TURKCELL ILETISIM HIZMETLERI A.S.
SELECTED FINANCIALS
Quarter Ended Quarter Ended Quarter Ended
March 31, March 31, March 31,
------------- ------------- -------------
2004 2004 2005
---- ---- ----
Consolidated Statement of Operations Data
Revenues
Communication fees 721,8 841,3 850,2
Monthly fixed fees 11,9 13,5 13,5
SIM card sales 8,3 6,8 8,7
Call center revenues 2,2 2,4 2,0
Other 1,3 15,5 23,6
Total revenues 745,5 879,5 898,0
Direct cost of revenues (433,0) (477,6) (523,5)
-------- -------- --------
Gross profit 312,5 401,9 374,5
General & administrative expenses (29,3) (43,3) (35,1)
Selling & marketing expenses (76,0) (107,2) (103,6)
-------- -------- --------
Income from operations 207,2 251,4 235,8
Income / (loss) from related parties , net 0,5 0,5 0,3
Interest expense (77,4) (83,5) (59,4)
Interest income 36,9 38,3 36,2
Other income / (expense ) , net (0,5) 4,6 1,6
Equity in net income of unconsolidated investees 7,9 11,8 13,1
Minority interest 1,0 3,0 1,9
Translation loss (20,2) (32,7) (4,1)
-------- -------- --------
Income before taxes 155,4 193,4 225,4
Income tax expense (29,2) (54,8) (97,0)
-------- -------- --------
Net income 126,2 138,6 128,4
======== ======== ========
Net income per share 0,000086 0,000094 0,000087
Other Financial Data
Gross margin 41,9% 45,7% 41,7%
EBITDA(*) 337,2 384,1 394,0
Capital expenditures 53,2 134,6 217,2
Consolidated Balance Sheet Data (at period end)
Cash and cash equivalents 939,3 763,8 872,0
Total assets 4.364,3 4.361,5 4.220,6
Long term debt 707,6 270,3 155,1
Total debt 852,6 832,6 866,7
Total liabilities 2.689,7 2.376,0 2.101,6
Total shareholders' equity / Net Assets 1.674,6 1.985,5 2.119,0
Consolidated Cash Flow Information
Net cash provided by / (used in) operating activities 201,1 (34,0) 295,3
Net cash used in investing activities (66,5) (190,1) (221,4)
Net cash provided by financing activities 222,0 33,8 34,3
* Please refer to the notes on reconciliation of Non-GAAP Financial measures
on page 11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Turkcell Iletisim Hizmetleri A.S. has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
TURKCELL ILETISIM HIZMETLERI A.S.
Date: June 16, 2005 By: /s/ MUZAFFER AKPINAR
------------------------
Name: Muzaffer Akpinar
Title: Chief Executive Officer