Turkcell Posts Second-Quarter Net Loss on Belarus Unit Losses

• Bloomberg
• 28.07.2011, 13:54

Turkcell Iletisim Hizmetleri AS, Turkey’s biggest mobile-phone company, posted a second-quarter net loss as its Belarusian unit incurred losses and the company provided for an antitrust fine.

Istanbul-based Turkcell posted a loss of 21.4 million liras ($12.7 million) compared with net income of 422.3 million liras a year earlier, it said in a statement late yesterday. The company had been expected to post a profit of 20 million liras, according to the average of 11 analyst estimates compiled by Bloomberg.

Turkcell in June predicted its Belarus unit BeST would post a foreign-exchange loss of $150 million to $200 million in the second quarter on foreign-currency-denominated net liabilities, following a devaluation of the Belarus ruble. Turkcell is seeking ways to boost revenue as it faces more competition in its home market from Vodafone Group Plc (VOD) and Avea Iletisim Hizmetleri AS, majority owned by Turk Telekomunikasyon AS. (TTKOM)

“We foresee the competitive challenges of the Turkish mobile market, where we generate the bulk of our revenues, continuing into the second half of 2011,” Chief Executive Officer Sureyya Ciliv said in the statement. “With the contribution of our consolidated subsidiaries, we expect to achieve targeted growth and profitability levels on a group basis”

Turkcell is owned by Teliasonera AB (TLSN), Moscow-based Altimo and Cukurova Holding AS of Turkey. Altimo and TeliaSonera, Sweden’s largest phone company, blocked a decision on shareholder payments at the April 21 annual meeting after failing to oust Chairman Colin Williams from the board.