Türk Telekom, Turkey’s leading communications and convergence technologies group, announced 2012 second quarter financial results. Revenues grew to TL 3.2 bn, an increase of 7% compared to the same period of last year. Net profit was TL 630 mn, which represents 24% increase compared to 2011 second quarter. July 18, 2012
Türk Telekom Group CEO Hakam Kanafani’s comments on 2012 second quarter results:
“Türk Telekom Group continued its strong operational and financial performance in the second quarter of 2012...Net income increased by 24% year on year to TL 630 mn supported by TL’s appreciation...This demonstrates a clear trend towards increased data consumption and speed appetite. With the speed we offer with fiber, we enable our customers to consume more data in the same amount of time spent online...Under “BIZ” concept, we offer end to end fixed line and mobile telecom services as one Türk Telekom Group brand.
Our mobile arm Avea continued its network and channel investments while achieving strong growth and improved profitability despite continued harsh market conditions. Mobile subscribers reached 13 million with net 70 thousand subscriber gain in the second quarter. Mobile revenues increased 13% year on year to historical quarterly record of TL 856 mn. Mobile data continues to be a growth driver for Avea due to new smartphone partnerships and significant increase in device sales.
Brand partnerships we develop as Avea through mobile virtual network operators provide new channels for our mobile arm’s growth...Türk Telekom Group and it demonstrates the value of synergies among our group companies.
As the leading telecommunication and convergence technology group of Turkey, Türk Telekom Group continues to offer innovative bundled packages and value added services to its millions of customers in fixed line and mobile segments. Depreciation and Amortization (387) (414) (433) 11.9% 4.5%
Operating Profit 867 817 840 (3.1%) 2.7%
Net Financial Income/ (Expense) (234) 160 (21) (91.1%) NM
Taxes (171) (233) (199) 16.3% (14.4%)
Minority Interest 45 26 10 (77.7%) (62.4%)
Net Income After Minority Interest 506 772 630 24.4% (18.4%)
Capital Expenditure 566 405 677 19.5% 67.2%
NM: Not meaningful
The Group’s consolidated revenues for Q2 2012 is TL 3.2 bn which showed 7% growth (up by TL 214 mn) compared to that of Q2 2011...TL 50 mn higher excluding one-off expenses; (1) litigation provision and regulatory fine in fixedline (TL 38 mn) and (2) tax dispute provisions in mobile (TL 12 mn).
Depreciation and Amortization
Total depreciation and amortization charges at TL 433 mn are up by 12% from TL 387 mn recorded in Q2 2011.
Operating profit decreased by 3% in Q2 2012 to TL 840 mn as a result of the increase in depreciation and amortization expenses.
Net Financial Income / (Expense)
We recorded a net financial expense of TL 21 mn in Q2 2012 compared to net financial expense of TL 234 mn in Q2 2011 mainly due to TL appreciation against USD and EUR.
Tax Expense at TL 199 mn is up by 16% compared to the tax expense in Q2 2011 due to the increase in profit before tax...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. 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. Türk Telekom shares belong to Ojer Telekomünikasyon A.Ş. and 30% belongs to Turkish Treasury...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, among others, "may", "will", "expect", "intend", “plan”, "estimate", "anticipate", "believe" or "continue".
Although the Company believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give no assurance that such expectations will prove to be correct. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
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