Page 69 - TURKRptOct19

due 2025 at a coupon rate of 6.875% and a re-offer price of 99.396%.
In 2014, the company issued $1bn worth of senior unsecured eurobonds in two equal $500mn tranches with maturities of 5 and 10 years. It redeemed the 5- year papers in June this year.
In February this year, Turk Telekom allocated $20mn to repurchase the 10- year paper due 2024 (XS1028951264), currently trading on the Irish Stock Exchange.
The company on February 4 bought bonds nominally-valued at $5mn at an average price of $93.125 for a total consideration of $4.69mn. On February 6, it said it had bought another $5mn of nominally-valued bonds at an average price of $93.25 for a total consideration of $4.66mn. On February 7, it bought an additional $2.5mn of nominally-valued bonds at an average price of $93.625 for a total consideration of $2.34mn.
On February 11, it said it acquired another $2mn of nominally-valued bonds at an average price of $92.4 for a total consideration of $1.85mn. On February 13, it said it purchased another $5.5mn of nominally-valued bonds at an average price of $92.045 for a total consideration of $5.06mn.
Turk Telekom operates with a paid-in capital of TRY3.5bn while its market value stood at TRY19.8bn as of October 3 with the share price up 50% y/y to TRY5.58.
Turk Telekom shares saw the TRY3.17s at the end of October last year and they tested above the TRY6 at the end of last month.
The Borsa Istanbul’s benchmark BIST-100 was up 5% y/y to 102,951 as of 17:00 local time on October 3.
The index jumped by 3.15% d/d to 105,152 on September 27 and it has been falling since then.
The foreign share of Turk Telekom’s 14.98% free-float gradually fell to 67.21% on October 2 from 68.85% on September 25 but still compared as significantly high against the 46.59% seen at end-2018, according to Is Yatirim’s daily foreign share bulletin.
Turk Telekom posted TRY435mn of net profit in Q2 versus a net loss of TRY870mn in Q2 2018 while revenues rose by 16% y/y to TRY5.8bn.
The market expected a net profit of TRY454mn for the second quarter.
The company increased its Ebitda target for 2019 to TRY10.3-10.5bn from a previous TRY10-10.2bn after its Ebitda rose by 36% y/y to TRY2.3bn in Q2.
The Ebitda margin also rose, moving up to 49% in the quarter from 40% a year ago but comparing two percentage points lower than in the first quarter of 2019.
Turk Telekom’s FX debt hedge ratio declined to 76% in Q2 from 84% in Q1 but it was higher than 44% in Q2 2018.
The number of total subscribers rose by 320,000 in the quarter to a total of 47mn.
Turk Telekom had 11.1mn broadband subscribers as of end-June while its total number of mobile customers stood at 22.4mn. The number of fixed-line users was 9.9mn.
TT Mobil, Turk Telekom’s mobile unit, managed to increase its number of subscribers to 21.52mn at the end of 2018 from 19.59mn a year ago.
69 TURKEY Country Report October 2019 www.intellinews.com