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We have been big fans of Turkcell (TKC) for ages. This is one of the great emerging market phone companies, but its margins are only now showing concrete signs of improvement.

TKC earned a 12% fatter profit in the third quarter, handily beating analyst consensus across the board.

The company attributes part of its improved performance to a substantial campaign of cost cutting: lower sales and marketing costs, as well as transmission fees, added 2% to its margins last quarter.

On the other hand, revenue dipped a bit on a year-over-year basis, largely due to lower subscriber price caps and sharply lower interconnection fees. Still, revenue from wireless data -- a key metric for emerging phone companies -- is up 28% on a year-over-year basis.

From here, Turkey watchers will be glued to Vodafone's (VOD) earnings on Monday. The company is a global behemoth, but its business in Turkey in particular is eagerly anticipated.

Meanwhile, TKC is a key component of Turkish ETF TUR (quote). At a 7% weighting, the company's recent underperformance has dragged on TUR, so any rebound could give the already-booming ETF an added boost.

Turkey, notably, is growing as fast as China right now, with GDP surging ahead at around 10%. The country is exposed to the eurozone and is a key supplier of several niche commodities as well as manufactured products.

Disclosure: No positions

Source: Turkcell Margins Finally Turn the Corner