By Emre Peker
ISTANBUL--Turk Telekomunikasyon AS (TTKOM.IS), Turkey's biggest
landline operator and internet-service provider, reported late
Wednesday a 35% jump in third-quarter net profit, with its mobile
and broadband businesses driving growth.
Net income for the three months to September was 319 million
Turkish liras ($142 million), in line analyst forecasts, and higher
than the TRY236 million profit posted in the same period last year,
the Istanbul-based company said. The operator is 55% owned by Saudi
Oger Group, with Turkey's Treasury holding a 30% stake and the
remaining shares trading publicly.
Turk Telekom's revenue rose 4.4% on the year to TRY3.5 billion
in the third quarter, according to a statement on the company's
website. Mobile sales jumped by 18% annually and the broadband
business clocked a 10% increase in the same period, the operator
said.
"In the past 12 months, we have successfully implemented our
scale building strategy while protecting our profitability. The
outstanding 2.1 million net [mobile user] additions in this period
while holding on to our EBITDA margin is a proof that we are on the
right track," Turk Telekom said.
Still, some analysts maintained their neutral stance on the
operator, citing challenges on the fixed-voice business, where
revenue declined by 10% on the year.
Istanbul-based Tera Brokers said it maintains a TRY7.5 target
price for Turk Telekom shares, compared with the company's
Wednesday close of TRY6.01. The stock rose 0.5% to 6.04 in its
first trade Thursday.
Write to Emre Peker at emre.peker@wsj.com
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