Turkcell Predicts Revenue Will Climb as Much as 7.8% This Year

Turkcell Iletisim Hizmetleri AS (TCELL), Turkey’s biggest mobile phone operator, forecast that sales will increase in 2012 by as much as 7.8 percent to a range of 9.9 billion liras ($5.6 million) to 10.1 billion liras from 9.37 billion liras last year.

The prediction compares will the average estimate of 9.99 billion liras of 15 analysts surveyed by Bloomberg. The Istanbul-based company had 34.5 million subscribers at the end of December, up from 33.9 million in the previous quarter, it said in a statement yesterday.

Turkcell has adjusted tariffs and has said it’s looking for acquisitions in other countries as it faces competition at home from Vodafone Group Plc (VOD) and Avea Iletisim Hizmetleri AS, majority owned by Turk Telekomunikasyon AS. (TTKOM) Turkcell aims to post consolidated Ebitda of between 3 billion lira and 3.2 billion lira in 2012, compared with 2.91 billion liras last year, the company said today.

“When we look at the projected quarterly trend for 2012, we estimate the first quarter to be the lowest in terms of profitability,” Turkcell said in the statement “This is due to necessary investments to position ourselves strongly against the competition,” the company said.

Turkcell, owned by Teliasonera AB (TLSN), Altimo of Russia and Istanbul-based Cukurova Holding AS, said it expects capital investment this year, as a percentage of revenues, to be at around 17 percent, similar to the previous year.

In the fourth quarter, average monthly revenue per user rose 4.2 percent to 19.7 liras from a year earlier, Turkcell said in the statement.

Net income fell to 331.7 million liras in the quarter from 368.1 million liras a year earlier. Turkcell said on Feb. 17 that it expected profit at 330 million liras after an accounting change for its Belarus division to reflect inflation.

Vodafone had 18 million users in Turkey at the end of December after adding 1.3 million users in a year while Avea gained 1.1 million for a total of 12.8 million.

“Following a tough, but successful year for us, I am confident that we will give pace to our growth momentum in the year 2012,” Chief Executive Officer Sureyya Ciliv said in the statement.

To contact the reporter on this story: Ercan Ersoy in Istanbul eersoy@bloomberg.net.

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net.

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