Turkcell Looking Long Term, Market Thinking Short Term
Stephen Simpson, CFA
Stephen Simpson, CFA
Turkcell Looking At Short-Term Pain For Long-Term Gain
Stephen Simpson, CFA
Stephen Simpson, CFA
Thu, Apr. 28, 11:13 AM
Mon, Mar. 28, 10:38 AM
- Russia's Alfa Telecom -- part of the empire of billionaire Mikhail Fridman -- says it's set to sell its stake in Turkcell (TKC -0.4%) for about $2.7B.
- That's amid a legal battle between Alfa and its equity partner Cukurova, run by Turkcell founder Mehmet Emin Karamehmet.
- Alfa plans to sell its 13.22% indirect stake -- via 49 class A shares, each at about $54.9M/share -- to Cukurova and Ziraat Bank.
- The legal battle has brewed over Alfa's return of a separate 13.8% stake to Cukurova two years ago, for $1.6B -- a sum financed with a loan from state-owned Ziraat Bank that Cukurova has yet to repay.
- The dispute has hampered development at Turkcell for years and even prevented some dividends from being paid.
Thu, Mar. 10, 11:36 AM
- Turkcell (TKC -2.7%) has added "service-as-a-contact" features to its BiP communications app, adding financial products and customer care to what had been an entertainment product.
- CEO Kaan Terzioglu described the offering at Turkcell's eighth annual technology summit. “Starting today, our communication platform BiP is an open platform" that offers banking, insurance and customer care in working with partner insurer Ak Sigorta and Garanti Bank.
- Turkcell added voice and video to what had been a disappearing-message app (like Snapchat) in November. It had been downloaded 4.2M times before spreading to Ukraine in December.
- The summit comes just a few weeks before the launch of 4.5G in country.
- Previously: Turkcell chief: We want to serve 100M in region (Feb. 25 2016)
- Previously: Turkcell posts record revenues on gains in mobile, broadband (Feb. 18 2016)
Thu, Feb. 25, 9:28 PM
- At Mobile World Congress, Turkcell (TKC +2.6%) chief Kaan Terzioglu said his company has a goal of serving 100M customers in his keynote speech.
- The carrier had begun a major push last year to grow beyond Turkey and look for control of Eurasian operators. Last summer it bought out the rest of its Ukrainian unit and used that as a model for pursuing a bigger role in Azerbaijan, Georgia, Kazakhstan and Moldova.
- Aside from M&A, though, Terzioglu said digital services can give the company inroads outside of its current operations. He pointed to the success of its IP-based communications app BiP, which has reached more than 6.2M users and seen heavy downloads in Iran, Germany, Azerbaijan and Ukraine.
- Terzioglu laid out three growth pillars for Turkcell: Growing as an integrated operator, exporting its Turkey success across borders, and pushing its relevance through OTT offerings.
Thu, Feb. 18, 3:56 PM
- Turkcell (TKC +0.7%) is mildly higher after posting record revenues and EBITDA for its Turkey telecom operations as well as the Turkcell Group overall.
- Revenues at Turkcell Group were up 7.5% to 3.33B Turkish lira while EBITDA rose 15.4% to TRY1.06B. In domestic telecom ops, Turkcell Turkey revenues rose 10.1% to TRY2.998B on the back of gains in mobile and fixed broadband.
- International revenues declined nearly 12% to TRY224M, feeling impact from currency devaluations.
- Mobile ARPU was up 9.1% to TRY25.1, and fixed residential ARPU grew 4.6% to TRY50.3, due to "a larger postpaid subscriber base, increased data and services revenues and higher triple play ratio on the fixed side with the immediate positive impact of our new business model."
- Press release
Thu, Feb. 18, 11:18 AM
Tue, Feb. 9, 11:49 AM
- Turkcell (TKC -1.5%) is going forward with an effort to buy out partner TeliaSonera (OTCPK:TLSNY +1.3%) in their Fintur Eurasian joint venture, its CEO says.
- The company has a non-binding bid in and will follow with a another offer after it completes due diligence, says CEO Kaan Terzioglu. TeliaSonera owns the other 58.55% of the venture, which owns operators in Azerbaijan, Georgia, Kazakhstan and Moldova.
- Meanwhile, despite tough timing on the sale, TeliaSonera says "Several parties are interested in our holdings in Fintur and one of them is Turkcell."
- As much as TeliaSonera is interested in getting out of the region, Turkcell has been pursuing more cross-border expansion after the end of a long boardroom deadlock broken by regulators.
- Previously: TeliaSonera facing tough economic timing on Eurasian sale (Jan. 29 2016)
- Previously: RenCap: Turkey may be best bet for emerging telecom growth, dividends (Jan. 04 2016)
Fri, Jan. 29, 10:24 AM
- Economic problems in Eurasia are complicating a plan for TeliaSonera (OTCPK:TLSNY +1.6%) to sell out of networks there, chief Johan Dennelind says.
- "Macro is troublesome in many markets and you could argue the timing is wrong," Dennelind says. "But focusing efforts into the Nordic and Baltic markets is more important. We have to make sure we exit responsibly -- we are not running away and leave the keys on the table."
- The Swedish operator expressed an interest in selling out of the region -- and its Fintur co-owner Turkcell (TKC +2.9%) showed a strong interest in buying -- but the company says closing a sale may be tough.
- Other parties than Turkcell are interested in Fintur, though, which owns four operators in Azerbaijan, Georgia, Kazakhstan and Moldova.
- TeliaSonera already treats the Eurasian operations as "discontinued" in reports.
- Previously: Turkcell on the hunt for control of Eurasian operators (Sep. 18 2015)
Tue, Jan. 12, 11:38 AM
- Turkcell's (TKC -0.6%) Ukrainian unit Astelit, which brands services as "Life:)" (emoji included), is launching service under a new brand, Lifecell.
- The carrier will focus more on corporate subscribers. The rebranding is of a piece with similar branding in Turkcell's other markets.
- The move follows Turkcell's taking full control of the operation last June, its first major move across borders from Turkey. It paid $100M to buy out its partner System Capital Management, which had held 45% of Astelit through a Netherlands venture partner.
Mon, Jan. 4, 6:34 PM
- In its look at telecoms in emerging markets, Renaissance Capital says video could bring new growth -- and the sector may be a place to target dividends.
- "Telcos are jumping too late on the fast moving Internet train," the analysts write. "Video could be the ‘next big thing’ for mobile telcos and the step-up jump in usage (rather than a gradual shift) creates the possibility that this will translate into revenues."
- That growth, though, is likely going to fall victim to competition in no more than 12 months, they say.
- RenCap thinks the growth outlook is best in Turkey, as Russia and MENA face macro headwinds. In Turkey, the firm prefers Turk Telekom (OTC:TRKNY) to Turkcell (TKC -2.1%): “Ultimately a telecom (as with any other sector) is as good as its dividend stream is. On this metric we estimate [Turk Telekom] could be worth TRL5.8/share if all allowable earnings adjusted for availability of cash are paid out as dividends, and assuming the market would be happy with an 11.5% yield – 10.5% versus Turkish local bonds."
- Meanwhile, in Russia the firm likes Mobile TeleSytems (MBT -2.8%) and Sistema over VimpelCom (NASDAQ:VIP), and it highlights MTN Group (OTCPK:MTNOY -1.4%) in South Africa, though noting that firm's huge Nigerian fine shows that developing countries present regulatory risk and "become inventive when it comes to enhancing state coffers.”
Dec. 18, 2015, 11:16 AM
- Turkcell (TKC -2.8%) has brought its expanded messaging app BiP, with expanded voice and video features, to the Ukraine.
- The company offers service in Ukraine under its brand "Life:)" and is launching the IP-based application there after rolling it out in other countries.
- The app -- which also features disappearing messages a la Snapchat -- now supports voice over IP and video over IP. Previously available in Turkish and English, it now supports Ukrainian, Belarussian and Russian as well.
- BiP has been downloaded 4.2M times prior to the Ukraine launch; Turkcell serves 13.8M customers in Ukraine.
- Previously: Turkcell adds voice, video to popular messaging app (Nov. 27 2015)
Nov. 27, 2015, 12:58 PM
- Turkcell (TKC -2.7%) says it has launched voice and video calls on BiP, its IP-based messaging app.
- BiP has been downloaded for free more than 3.3M times (by Turkcell subscribers and otherwise) in more than 166 countries. The app also features disappearing messages a la Snapchat.
- The voice and video addition is coming along with 1 GB of free data for Turkcell's subscribers, though. The company plans to launch it in Ukraine and Belarus, in local languages with local content.
Nov. 2, 2015, 3:11 PM
- Turkcell (NYSE:TKC) is up 4.7%, having a banner day along with other Turkish issues after Turkey's ruling party surprised some observers by regaining a majority government.
- IShares' Turkey ETF (NYSEARCA:TUR) is up 9.2% today, while the Turkish Investment Fund (NYSE:TKF) is up 8.2%.
- Bank of America analyst Turker Hamzaoglu says the election had an unexpected result but it suggests that political risks in the country may have peaked and despite some significant remaining challenges, the investment case has been "resolved in what we believe is a market friendly way."
- He's upgraded his rating on Turkish external debt to Market Weight from Underweight.
Oct. 27, 2015, 1:24 PM
- In Q3 results, Turkcell (TKC -1.5%) posted all-time high quarterly sales and EBITDA.
- Group revenues were up 6.4% to TRY 3.36B, chiefly driven by Turkey. Group EBITDA was up 10.5% to TRY 1.16B. Revenues for Turkcell Turkey (91% of total) rose 9.9% to TRY 3.07B.
- Total customers have exceeded 34M; postpaid customers were up 278K to exceed 16M. Blended mobile ARPU was up 9.7% Y/Y to TRY 26.1.
- Turkcell restructured debt at its Astelit and BeST units to eliminate forex risk.
- The company has updated guidance for full-year EBITDA margin to 32%-32.5% from the previous 31%-32%, and for revenue growth of 10% (for Turkcell Turkey) and 6% (for the wider Turkcell Group).
Oct. 27, 2015, 12:06 PM
- Turkcell Iletisim (NYSE:TKC): Q3 Net income of TRY 630.40M
- Revenue of TRY 3.36B (+6.3% Y/Y)
Oct. 16, 2015, 4:31 PM
- Turkcell (NYSE:TKC) says it's successfully completed a eurobond sale for $500M and it's collected proceeds.
- The bonds were issued at 10 years to maturity with a 5.95% reoffer yield -- which is down from initial price guidance of 6.25% after the order book was almost four times oversubscribed. The company effectively paid no new issue premium.
- “This is yet another stage in the series of developments that have proved the trust of the international investor community in Turkey, Turkcell and our new management strategy," says CEO Kaan Terzioglu.
TURKCELL Iletisim Hizmetleri AS is engaged in the provision of telecommunication services. It operates a global system for mobile communications network in Turkey and regional states. Its services include voice, mobile broadband, mobile applications, mobile marketing business, authentication,... More
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