Türk Telekom’s Q3 net profit falls on forex loss

Türk Telekom’s Q3 net profit falls on forex loss

ISTANBUL - Reuters
Türk Telekom’s Q3 net profit falls on forex loss

Türk Telekom, headed by Hakam Kanafani(P), posted 553 mllion liras of net expenditures in the third quarter mainly due to the loss of lira’s value. Company photo

Türk Telekom’s third-quarter net profit declined 63 percent to 236.2 million Turkish Liras ($119.6 million) due to foreign exchange losses, the company has announced.

The company told the Istanbul Stock Exchange in a statement late Oct. 23 that its sales had risen 4.71 percent to 3.39 billion lira compared to same period last year.

However, Türk Telekom’s liabilities, worth around 8.4 billion lira as of the end of the second quarter, are in dollars, euros and Japanese yen, making the company vulnerable to volatility in global markets.

“The company posted 553 million liras net financial expenditures in the third quarter, particularly due to the lira’s loss in value against the dollar and the euro. The group’s net profit is 236 million liras due to the lira’s depreciation,” it said. However, the company’s net financial expenditures were 85 million liras in the same period of last year.

Türk Telekom’s net sale income rose to 3.4 billion liras with a 4.8 percent increase in the same period thanks to the rise in mobile incomes, wide-band income and information communication technologies income. The company’s operation profit fell to 864 million liras with a 3.2 percent decrease. Also, the company said it made 645 million liras of investment in the third quarter.

Meanwhile, Türk Telekomunikasyon also plans to issue bonds and/or Islamic bonds worth up to $1 billion. The bonds will have maximum maturities of 10 years, it announced.