Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener.

Tuckcell lletisim Hizmetleri's

(TKC) - Get Report

Q3 FY08 revenue grew 19.6% to $2.06 billion from $1.72 billion in Q3 FY07. The reported revenue growth was supported by a 4.3% subscriber growth, 7.5% appreciation of Turkish Lira (TRY) against U.S. dollar, and the partial impact of a 31.6% increase in usage combined with upward price adjustments.

Looking at its international operations, revenue from the Fintur's operations, in which TKC holds 41.5% stake, rose 21.7% to $500.00 million from $411.00 million, attributable to 25.3% increase in the total number of subscribers to 12.40 million from 9.90 million a year ago. Revenue from the Astelit operations, which includes Tuckcell's 55.0% stake, grew 68.2% to $127.80 million from $76.00 million, fueled by 40.8% increase in subscriber base, and 20.7% rise in average revenue per user (ARPU).

Looking at the metrics, total subscriber base increased to 36.30 million from 34.80 million. Number of postpaid subscribers rose 14.3% to 7.20 million from 6.30 million, while prepaid subscribers inched up to 29.10 million from 28.50 million. Blended ARPU rose 13.1% to $17.30 from $15.30. Postpaid ARPU grew 6.1% to $41.90, while prepaid ARPU improved 12.0% to $11.20 from $10.00. Blended MOU (Average Monthly Minutes of usage per subscriber) grew 31.6% to 109.20 from 83.00 a year ago. Finally, churn rate increased to 6.2% from 5.7% a year ago.

Tuckcell's gross profit margin for the latest third quarter declined 534 basis points to 60.82% from 66.16% a year ago, due to 17.0% increase in direct cost of revenue to $935.50 million from $799.90 million. Depreciation and amortization expenses declined 14.9% to $172.00 million, whereas selling and marketing expenses spiked 23.5% to $366.80 million. Similarly, administrative expenses rose 54.5% to $87.90 million from $56.90 million. Consequently, operating margin declined 68 basis points to 32.46% from 33.14% in Q3 FY07. Interest expenses rose 57.2% to $19.19 million from $12.21 million, thereby deteriorating the interest coverage ratio to 34.87 from 46.81.Overall, net income surged 50.5% to $603.79 million or $0.69 per share from $401.19 million or $0.46 per share in the prior year's quarter.

For the quarter ended September 2008, Tuckcell's cash and cash equivalents spiked 21.0% to $3.21 billion from $2.66 billion. Moreover, a quick ratio of 1.95 reflects the company's strong ability to cover any short term cash obligations. Total debt rose 10.9% year-over-year to $820.89 million from $739.95 million, whereas shareholders' equity advanced 24.4% to $6.65 billion from $5.35 billion. As a result, the company's debt-to-equity ratio improved to 0.12 from 0.14. Furthermore, return on assets escalated 389 basis points to 20.06% from 16.17%, while return on equity ascended 575 basis points to 28.87% from 23.12%.

During the quarter under review, the company completed the acquisition of an 80% stake in Belarusian Telecommunications Network (BEST). The company also announced that it is in talks to buy a 51.0% stake in Datacom Solutions. Furthermore, TKC signed an agreement with


(AAPL) - Get Report

to sell third-generation iPhone in Turkey. Recently, Turkcell Iletisim Hizmetleri announced that its wholly owned subsidiary, Turktell Bilisim Interaktif Hizmetleri (Turktell), has sold its 55.0% in Bilyoner Interaktif Hizmetler to Demir Toprak.

A detailed report covering this quarterly release is now available. To purchase the report, click here.