Turkcell

Performance indicators

2022: Revenue growth of 50% to 53.88 billion Turkish lira

At the end of 2022, Turkcell, Turkey's largest mobile operator, received revenue of 53.88 billion Turkish lira (approximately $1.99 billion at the exchange rate as of August 18, 2023). This is 50% more than the result for the previous year, when an indicator of 35.92 billion Turkish lira was recorded. Such data are contained in the financial report published on March 9, 2023.

The operator's net annual profit amounted to 6.45 billion Turkish lira ($0.24 billion). For comparison: in 2021, Turkcell demonstrated a net profit of 3.51 billion Turkish lira. Thus, growth in this indicator was recorded at 83.7%.

Turkcell raised 53.88 billion Turkish lira for the year

Turkcell notes that at the beginning of 2022 it set itself a goal for a year to increase the subscriber base in Turkey by 1 million users. The final result exceeded expectations, amounting to 2.3 million new subscribers. As a result, the total customer base of the company in 2022 reached 41.7 million users. In the mobile segment, the subscriber base increased to 37.5 million people, and the ARPU indicator (average income per subscriber) increased by 40.3% compared to 2021 - to 77 Turkish lira (approximately $2.84). The subscriber base of fiber optic networks on an annualized basis increased by 12.4% to 2.12 million customers, and the ARPU rose by 26.5%, amounting to 99.2 Turkish lira (about $3.66).

It is noted that the average monthly consumption of mobile data per user in 2022 increased by 10.5% compared to the previous year, reaching 14.7 GB. This was facilitated by the growth in demand for 4,5G services: in particular, in such networks, the average traffic consumption was at the level of 16 GB. The total penetration of smartphones in Turkcell networks reached 87% by the end of 2022. Moreover, 93% of these devices are compatible with 4,5G services.^[1]

Company history

2023: Sale of Ukrainian assets to French holding NJJ Capital

At the end of December 2023, the Turkish telecommunications company Turkcell announced the sale of Ukrainian assets to the French investment group NJJ Capital, which is owned by billionaire Xavier Niel. The perimeter of the deal included Lifecell, Global Bilgi and Ukrtower. Read more here.

2020

LetterOne sells 5% stake in Turkcell

On November 10, 2020, it became known about the sale of billionaire Mikhail Fridman, owned by IMTIS Holding S.A.R.L. (part of the investment company LetterOne Alfa Group), 5% of Turkcell shares.

As a source in the financial market told Interfax, IMTIS sold about 110 million shares of Turkcell, as a result of which the share of the Alfa Group structure decreased from 24.8% to 19.8%.

IMTIS confirmed the sale of 110 million shares of Turkcell in the market in documents transferred to the US Securities and Exchange Commission (SEC). It also says that the company undertakes not to sell shares for three months.

IMTIS Holding S.A.R.L. sold 5% of Turkcell shares

As part of the deal, IMTIS organized an expedited sale. The selling agents were Credit Suisse Securities and Goldman Sachs International. The shares were sold to institutional investors at 15.25 lire ($1.87) for one security. Thus, 1.677 billion lira (almost $206 million) were raised for the entire package. Within three months of the offering, IMTIS guaranteed the offering agents that it would not alienate Turkcell shares without their consent.

According to the agency, Bloomberg Mikhail Fridman sold part of the shares of Turkey's largest mobile operator Turkcell, taking advantage of the sharp increase in the lira exchange rate and the global stock market. Lira rose in price after the resignations of the finance minister and the head of the central bank. Turkey

In October 2020, Turkcell completed a restructuring of the ownership scheme, as a result of which LetterOne received a 24.8% stake in the company.

Alfa Group began investing in Turkcell in 2005, when it acquired a 49% stake in CTH (51% remained with Cukurova). Since then and until recently, shareholder conflicts have dragged on, the completion of which allowed LetterOne to monetize part of its investment.^[2][3]

Mikhail Fridman doubled his stake in Turkcell

On June 17, 2020, it became known that LetterOne Mikhail Fridman's share in Turkey's largest mobile operator Turkcell is almost doubling as a result of a deal concluded by the Turkey Wealth Fund (TWF) and Swedish telecommunications giant Telia.

Telia sold its indirect 24.02 percent stake in Turkcell to the fund for $530 million, thereby completely withdrawing from the capital of the Turkish operator. Telia explained this step by the company's desire to concentrate on work in the Northern Europe and Baltic countries.

Mikhail Fridman doubled his stake in Turkey's largest mobile operator

Prior to this transaction, 52.9% of Turkcell shares were owned by Cukurova Telecom Holdings, which in turn was owned by Turkish Cukurova Finance (51%) and LetterOne - Alfa Telecom Turkey (49%). In this situation, the indirect share of LetterOne in Turkcell was 13.2%. Now it will grow to 24.8%, and the share of the Turkish National Welfare Fund will be 26.2%.

As a result, TWF becomes Turkcell's largest shareholder and gains actual control of the board through the 15% preferred shares now held by the state fund. He will be able to appoint five out of nine board members.

Cukurova withdrew from Turkcell's capital. The rest of the operator's shares will be in free float. The joint venture Turkcell Holding actually ceases to exist as a result of restructuring related to the change of ownership. The deal is scheduled to close in the second half of 2020.

Turkcell's headquarters will remain in Turkey, and the company's shares will still be traded on exchanges in New York and Istanbul. By June 17, 2020, the operator has a total of more than 47 million mobile and fixed-line subscribers.^[4]

2011

On April 21, 2011, it became known that the Russian holding Altimo and the Scandinavian TeliaSonera failed to change the chairman of the board of directors of the Turkish operator Turkcell, loyal to the controlling shareholder of the operator - Cukurova Group. The Turkish authorities opposed the strengthening of the influence of foreigners^[5].

The annual meeting of shareholders of the Turkish mobile operator Turkcell refused to consider changing the chairman of the board of directors Colin J. Williams and expanding the number of board members from 7 to 9. This is insisted on by two of the three largest shareholders of Turkcell - the Swedish-Finnish TeliaSonera and the Russian telecommunications holding Altimo, but the controlling shareholder of the operator, the Turkish group Cukurova, opposes.

Earlier, TeliaSonera asked Williams to include the issue of changing the quantitative composition of the board of directors on the agenda of the meeting of shareholders, but he refused to do so, in connection with which the Scandinavian company promised to sue the chairman of the board of directors of Turkcell. At the meeting of shareholders, the Scandinavians again tried to put this issue on the agenda. "TeliaSonera, as a shareholder who owns more than 5% of the shares, has this right," said Evgeny Dumalkin, vice president of Altimo. "However, Turkish officials, in violation of Turkish laws, refused to register the inclusion of this issue on the agenda."

In response, Altimo Managing Director Alexei Khudyakov, who had a power of attorney to vote from the operator's controlling shareholder - Turkcell Holdings (a "paper" structure in which Altimo, TeliaSonera and Cukurova own shares) - refused to vote on all issues submitted to the vote: distribution of net profit, approval of the annual and audit reports, election of a new auditor, etc.

A source close to Turkcell shareholders explained to CNews this position of the authorities by the upcoming elections in Turkey. According to the interlocutor of CNews, the owner of Cukurova Mehmet Ermin Karamehmet (Mehmet Emin Karamehmet) managed to convince the authorities that the loss of Turkish business control over one of the country's main brands - Turkcell - will negatively affect their rating.

As of April 2011, Telia, Altimo and Cukurova's stakes in Turkcell are 40%, 13.3% and 13.7% respectively.

At the same time, the features of Turkcell's shareholder structure are such that Cukurova has control over the company. She owns a 51% stake in Cukurova Telecom Holdings (CTH), which owns a 53% stake in the operator's controlling shareholder, Turkcell Holdings. Altimo owns 49% of CTH, TeliaSonera 47% of Turkcell Holdings and 13% of Turkcell directly.

2010

In 2010, when Altimo tried to remove Turkcell chairman Colin J. Williams, a loyal Cukurova Group, and replace him with Julian Horn-Smith, Turkish officials who were supposed to register the results of the shareholder meeting simply did not reach him.

2009

TeliaSonera and Altimo are suing Cukurova for control of Turkcell. In 2009, the parties reached an agreement in principle on the merger of their shares in Megafon and Turkcell. As part of the struggle for control over the Turkish operator, the parties insist on increasing the number of members of its board of directors to 9 people by introducing three independent directors. There is only one independent director on the board, Colin Williams, however TeliaSonera and Altimo believe it is acting in Cukurova's best interests. William denies the accusations against him.

Notes