October 21, 2010 14:00
Turk Telekom Group Announces Q3 2010 Financial Results
Published under Investor Relations, About TT > Press Bulletin
Strong Quarterly Performance
Türk Telekom Group, Turkey’s leading communication and convergence technologies Group, announced 2010 third quarter financial results. Türk Telekom Group’s net income grew 38.2% year over year for the first nine months of 2010 to TL 1.9 billion. Türk Telekom Group’s nine month 2010 consolidated revenues have reached nearly TL 8 billion with an increase of 1.8% compared to the same period of last year. The Group’s consolidated EBITDA* improved to TL 3.5 billion with a margin of 44%.
2010 Third Quarter Highlights
• Consolidated Net Income YTD is TL 1.9 bn, an increase of over TL 500 mn on the YTD prior year
• Consolidated revenue reached almost TL 8 bn growing 1.8% YoY, with EBITDA* margin of 44% YTD 2010
• Consolidated Operating Profit for the period is TL 2.4 bn, representing 13% increase compared to first nine months of 2009
• Mobile EBITDA recovery continues with 19% margin in the third quarter 2010; Mobile EBITDA more than tripled YTD 2010 compared to prior year ADSL revenue increased by 17% YoY to TL 1.8 bn; 330K net subscriber gain YTD 2010
*EBITDA is a non-GAAP financial measure. The EBITDA definition used in this press release includes Revenues, Direct Cost of Revenues excluding depreciation and amortization, Selling and Marketing expenses, Administrative expenses, and other operating income/(expense), but excludes translation gain/(loss), financial income, income on unconsolidated subsidiaries, gain on sale of investments, income/(loss) from related parties, and minority interest.
Türk Telekom Group CEO Hakam Kanafani commented as follows on the third quarter performance of the Group:
“Türk Telekom, as Turkey’s leading communication and convergence technologies group, had a strong quarter with year-to-date EBITDA and Operating Profit increasing by 6% and 13% respectively compared to the first nine months of 2009. Year-to-date Net Income also grew by 38% year-over-year. Both our fixed line and mobile businesses contributed to this strong performance with Avea achieving higher margins despite the continuing tough competitive environment in Turkish Mobile market.
During the third quarter our Home Advantage customers enjoyed even more value with our free calls to fixed lines offer for the Ramadan four week period. For our other residential customers on fixed voice lines we extended our innovative campaign enabling free calls from 7 PM till 7 AM until the end of the year.
In the quarter we were able to double the number of customers using our Tivibu, WebTV service of Group's broadband operator TTNET. Our Tivibu service of which middleware platform was developed by Group convergence technology company Argela will continue to be enhanced further during the coming months.
In ADSL we launched an innovative offer, with a daily internet offer enabling customers to choose to have internet access on a daily basis rather than committing for a full month usage. In addition, we have provided our customers with extended payment terms to enable them to purchase computers at below TL 20 per month and almost forty thousand customers have purchased computers in September from the Türk Telekom dealer network.
On the 7th October we finalized the acquisition of Invitel International, which is one of the important players in Central and Eastern Europe’s wholesale data market with an infrastructure of 27,000 km in 16 countries. Following the JADI Link agreement which collects the international data infrastructures of 4 countries on a single line, we aim to become a significant alternative in data communication between the Far East- Middle East and Europe with Invitel International.
In Germany, we have started offering our products to meet the communication needs of the Turkish Community with the partnership we have established with Hansenet, a German Internet Service Provider. We will include our online education software Vitamin, which was developed by the Group's online education company Sebit, and the online football game I Can Football, that was developed by the Group's online gaming company Sobee, that has 700,000 subscribers in Turkey, and a communication package including mutual calls between Germany and Turkey.
The Group's IT solutions provider Innova, that exports its products into 19 different countries, has recently launched biometric kiosk project in Dubai which offer solutions via kiosks for foreigners who need to have a work permit in Dubai.
Türk Telekom was again awarded this year “The Most Valuable Brand of Turkey”, following our success in 2009, with USD 1.7 billion brand value by the independent brand valuation company Brand Finance. We will continue our strong financial and operational performance by focusing on creating value for our customers and by investing in people, technology and infrastructure. I would like to thank all Group employees for their contribution to the Company success. I am very proud to be a part of such a professional and dedicated team.”
About Türk Telekom Group (ISE: TTKOM)
Türk Telekom, the leading communication and convergence technology group in Turkey, provides integrated telecommunication services from PSTN and GSM to broadband internet. As of September 30, 2010; Türk Telekom group companies have 16.1 mn Fixed Access Lines, 6.5 mn ADSL Connections and 11.4 mn Mobile Subscribers. Group companies have a modern network infrastructure covering the whole country and offer a wide variety of services to residential and commercial customers all over Turkey. Apart from 81,4 % shares in Avea, one of the three GSM operators in Turkey, Türk Telekom owns 100% of wholesale data and capacity service provider company Invitel International AG and its subsidiaries, 99.9% of broadband provider TTNET, convergence technologies company Argela, IT solutions provider Innova, online education company Sebit A.Ş. online gaming company Sobee and call center company AssisTT. Türk Telekom also has an indirect minority share in Albtelecom, the Albanian incumbent telecom operator. 55% of Türk Telekom shares belongs to Ojer Telekomünikasyon A.Ş. and 30% belongs to Turkish Treasury. The remaining 15% is publicly traded. Türk Telekom shares are listed in Istanbul Stock Exchange since May 2008.
