Turk Telekom 4Q Net Profit Falls 57% on High Financial Expenses

By Yeliz Candemir

ISTANBUL--Turk Telekomunikasyon AS (TTKOM.IS) reported late Tuesday a 57% decline in fourth-quarter net profit, in line with analyst expectations, due to expenses stemming from the weak lira.

Net profit was 260 million Turkish lira ($116 million), in line with TRY263 million market consensus, but significantly below the TRY599.5 million profit posted a year earlier.

Revenues fell 1% on the year to TRY3.3 billion in the fourth quarter, according to a statement issued to the Istanbul stock exchange.

"As expected, Turk Telekom was a victim of weaker Turkish lira with its TRY8.1 billion short forex position. According to 4Q13 CMB financials, net financial expenses led mainly by forex losses jumped to TRY474 million compared to TRY100 million in 4Q12," said Istanbul-based Oyak Securities.

The Turkish lira plummeted 21% against the dollar last year in line with a broader sell off in emerging markets due to the U.S. Federal Reserve's decision to scale back its monthly bond purchases and domestic political risks.

Write to Yeliz Candemir at [e-mail]

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