Weaker Turkish Currency Hits Turkcell's Earnings

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On May 13, 2009, Turkcell Iletisim Hizmetleri(TKC Quote) reported that its Q1 FY09 earnings plunged 18.5%, hurt by the Turkish currency's decline in value against the US dollar. Net income for the quarter stood at $344.20 million or $0.16 per share compared to $486.80 million or $0.22 per share in the prior year's quarter. The latest quarterly results missed the consensus estimate of $0.30 per share.

Turkcell's revenue dropped 18.5% to $1.28 billion from $1.57 billion a year ago, hurt by lower communication fees. Communication fees slumped 18.9% to $1.21 billion from $1.49 billion, while commission fees on the betting business fell to $25.30 million from $52.90 million in Q1 FY08. Moreover, monthly fixed fees declined 33.3% to $11.20 million from $16.80 million. Simcard sales decreased 5.8% to $4.90 million from $5.20 million. On the positive side, call center and other revenue more than doubled to $36.30 million from $14.10 million in the year-ago quarter. ...