ISTANBUL--(BUSINESS WIRE)--Turkcell (NYSE:TKC) (BIST:TCELL) :
- Please note that all financial data is consolidated and comprises that of Turkcell Iletisim Hizmetleri A.S., (the “Company”, or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”). All non-financial data is unconsolidated and comprises Turkcell only figures. The terms "we", "us", and "our" in this press release refer only to the Company, except in discussions of financial data, where such terms refer to the Group, and where context otherwise requires.
- In this press release, a year-on-year comparison of our key indicators is provided and figures in parentheses following the operational and financial results for September 30, 2014 refer to the same item as at September 30, 2013. For further details, please refer to our consolidated financial statements and notes as at and for September 30, 2014, which can be accessed on our website in the investor relations section (www.turkcell.com.tr).
- Please note that selected financial information presented in this press release for the third quarter of 2013, and the second and third quarters of 2014, both in TRY and US$, is based on IFRS figures.
- In the tables used in this press release totals may not foot due to rounding differences. The same applies for the calculations in the text.
HIGHLIGHTS OF THE THIRD QUARTER OF 2014
- Group revenues grew by 6% to TRY3,162 million (TRY2,981 million), driven by higher growth in mobile broadband and fiber broadband revenues.
- Group EBITDA1 rose by 3% to TRY1,050 million (TRY1,016 million), while the EBITDA margin declined by 0.9pp to 33.2% (34.1%). This resulted mainly from increased sales and marketing expenses due to intense competition in the Turkish mobile market, the higher interconnect and network costs of Turkcell Turkey and increased operational expenses of certain subsidiaries.
- Group net income rose by 8% to TRY755 million (TRY699 million).
-
Turkcell’s mobile business in Turkey recorded revenue growth of 5% to
TRY2,477 million (TRY2,365 million) with a 33.5% (34.5%) EBITDA margin.
- Mobile broadband revenues rose by 38% to TRY530 million (TRY385 million).
- Voice revenues2 increased by 0.7% to TRY 1,676 million (TRY1,664 million).
- Revenues of subsidiaries3 increased by 11% to TRY685 million (TRY616 million), while EBITDA rose by 11% to TRY222 million (TRY199 million), despite a lower contribution from our Ukrainian business due to further currency devaluation.
COMMENTS FROM CEO, SUREYYA CILIV
“In the third quarter, we recorded our historically highest Group revenue and EBITDA. Consolidated revenues rose 6% to TRY3.2 billion, while EBITDA grew 3% to TRY1.1 billion. Meanwhile, EBIT rose 3% to TRY647 million and net income climbed 8% to TRY755 million.
Turkcell Turkey’s mobile business revenues grew by 5%, despite a tough competitive environment. This growth was driven mainly by a 38% rise in mobile broadband revenues and 7% growth in mobile services, whereas messaging declined 27% parallel to industry-wide trends. Turkcell Superonline grew by 38% year on year on the strength of our growing fiber customer base. While Astelit’s revenues increased by 16% in local currency terms, they declined by 21% in TRY terms due to 62% devaluation in Ukraine. Overall, the nine-month Group performance was in line with our plans, and we maintain our full year guidance.
As the Turkcell team, our strategic focus is on providing a superior experience with more value and best-in-class service through technology, innovation, and operational excellence. In this respect, the T-50, which launched in July, with its superior quality and affordable price, ranked as the top selling smartphone in Turkey in the third quarter, and was a key contributor in reaching 37% smartphone penetration. Meanwhile, we recently launched our cutting edge TV platform Turkcell TV plus, taking the Turkcell TV service to the next level. We, therefore, continue to increase customer satisfaction through the service we provide and the synergy between our 3G network and fiber infrastructure.
We thank all of our customers, employees, business partners and shareholders for their contribution to our success.”
(1) EBITDA is a non-GAAP financial measure. See page 12 for the
reconciliation of EBITDA to net cash from operating activities.
(2)
Voice revenues include outgoing, incoming, roaming and other (comprising
almost 1% of Turkcell Turkey) revenues.
(3) Including eliminations.
(*)For
further details, please refer to our consolidated financial statements
and notes as at and for September 30, 2014 which can be accessed on our
web site in the investor relations section (www.turkcell.com.tr).
OVERVIEW OF TURKCELL TURKEY
The third quarter of the year was seasonally favorable with increased customer usage. Meanwhile, aggressively priced offers introduced in the first half continued to be effective throughout the quarter. The competition maintained its primary focus on acquisition offers with high data incentives, leading to increased MNP activity.
In this environment, our continued timely execution resulted in 97 thousand net additions in this quarter together with the positive impact of seasonality. Postpaid subscriber base continued to be our main focus, which expanded by 295 thousand in the third quarter, and by 793 thousand in the first nine months, mainly driven by pre-to-post switches. This focus is marked by the favorable change in our subscriber mix by 3.1pp year-on-year in favor of the postpaid base, which constitutes 42.6% of the total. The strong rise in mobile data usage increased both postpaid ARPU, and prepaid ARPU, resulting in overall 4.8% blended growth, regardless of the dilutive impact of switches.
Smartphones, a key driver of mobile broadband revenues, reached 11.9 million on our network with 923 thousand net quarterly additions, indicating 37% penetration. Our newest T-50 smartphone, the sales of which have exceeded our expectations, has contributed to the notable increase in quarterly net additions compared to the previous quarter. Our “Smartphone Festival” campaign that started in late August was also effective in this rise.
Moreover, we took our Turkcell TV service to the next level and recently launched Turkcell TV+, our cutting-edge TV platform that offers seamless multiple screen experience, 12-hour rewinding and cloud-recording, anytime, anywhere. The synergy between Turkcell’s superior 3G technology and Turkcell Superonline’s fiber network allows this product to be enjoyed seamlessly on any compatible device, which we believe, will boost customer satisfaction. This platform also enables Turkcell Superonline to offer triple play services.
The overall performance of Turkcell Group in the first nine months has been in line with our plans. Therefore, we maintain our full year guidance* of TRY12,000 million – TRY 12,200 million for revenues, TRY3,700 million – TRY3,800 million for EBITDA and 17% operational capex over sales.
(*) Please note that this paragraph contains forward looking statements based on our current estimates and expectations regarding market conditions for each of our different businesses. No assurance can be given that actual results will be consistent with such estimates and expectations. For a discussion of factors that may affect our results, see our Annual Report on Form 20-F for 2013 filed with U.S. Securities and Exchange Commission, and in particular, the risk factor section therein.
FINANCIAL AND OPERATIONAL REVIEW OF THE THIRD QUARTER 2014
The following discussion focuses principally on the developments and trends in our business in the third quarter of 2014 in TRY terms. Selected financial information presented in this press release for the third quarter of 2013, and the second and third quarters of 2014, both in TRY and US$, is based on IFRS figures.
Selected financial information for the third quarter of 2013, and the second and third quarters of 2014, both in TRY and in US$ prepared in accordance with IFRS, and in TRY prepared in accordance with the Turkish Accounting Standards, are also included at the end of this press release.
Financial Review of Turkcell Group
| Profit & Loss Statement (million TRY) | Q313 | Q214 | Q314 | y/y % | q/q % | |||||
| Total Revenue | 2,980.7 | 2,923.0 | 3,162.2 | 6.1% | 8.2% | |||||
| Direct cost of revenues1 | (1,754.0) | (1,789.2) | (1,880.2) | 7.2% | 5.1% | |||||
| Direct cost of revenues1/revenues | (58.8%) | (61.2%) | (59.5%) | (0.7pp) | 1.7pp | |||||
| Depreciation and amortization | (385.6) | (386.2) | (402.9) | 4.5% | 4.3% | |||||
| Gross Margin | 41.2% | 38.8% | 40.5% | (0.7pp) | 1.7pp | |||||
| Administrative expenses | (140.4) | (135.8) | (138.0) | (1.7%) | 1.6% | |||||
| Administrative expenses/revenues | (4.7%) | (4.6%) | (4.4%) | 0.3pp | 0.2pp | |||||
| Selling and marketing expenses | (455.7) | (477.2) | (496.5) | 9.0% | 4.0% | |||||
| Selling and marketing expenses/revenues | (15.3%) | (16.3%) | (15.7%) | (0.4pp) | 0.6pp | |||||
| EBITDA2 | 1,016.2 | 907.0 | 1,050.4 | 3.4% | 15.8% | |||||
| EBITDA Margin | 34.1% | 31.0% | 33.2% | (0.9pp) | 2.2pp | |||||
| EBIT3 | 630.6 | 520.8 | 647.5 | 2.7% | 24.3% | |||||
| Net finance income / (expense) | 137.5 | 46.6 | 142.0 | 3.3% | 204.7% | |||||
| Finance expense | (46.9) | (211.3) | (83.7) | 78.5% | (60.4%) | |||||
| Finance income | 184.4 | 257.9 | 225.7 | 22.4% | (12.5%) | |||||
| Share of profit of associates | 92.9 | 73.8 | 66.8 | (28.1%) | (9.5%) | |||||
| Other income / (expense) | (2.2) | (92.0) | 17.8 | (909.1%) | (119.3%) | |||||
| Monetary gains / (losses) | 30.6 | 60.0 | 48.3 | 57.8% | (19.5%) | |||||
| Non-controlling interests | (1.4) | 49.6 | 49.0 | n.m. | (1.2%) | |||||
| Income tax expense | (188.9) | (166.5) | (216.4) | 14.6% | 30.0% | |||||
| Net Income | 699.1 | 492.3 | 755.0 | 8.0% | 53.4% |
(1) Including depreciation and amortization expenses.
(2) EBITDA is
a non-GAAP financial measure. See page 12 for the reconciliation of
EBITDA to net cash from operating activities.
(3) EBIT is a
non-GAAP financial measure and is equal to EBITDA minus depreciation and
amortization expenses.
Revenue rose by 6.1% to TRY3,162.2 million (TRY2,980.7 million), driven mainly by:
-
14.3% increase in mobile broadband and services revenues in Turkey to
TRY800.8 million (TRY700.8 million), comprising 32.3% (29.6%) of
mobile business revenues in Turkey.
- 37.8% growth in mobile broadband revenues to TRY530.1 million (TRY384.8 million) with increased smartphone penetration, mobile broadband users and usage amount
- 26.8% decrease in SMS revenues, which continued to be negatively impacted by the industry-wide declining trend in demand, as well as the 20% decreased SMS maximum price following the related ICTA decision in January 2014
- 6.5% rise in mobile services revenues, which is a promising growth business for Turkcell where we are committed to further growth through innovative products
- Starting from Q314, bulk SMS and one-time password (OTP) revenues, which were recorded under mobile services revenues, have been reclassified under SMS revenues. Furthermore, IFRS adjustments on mobile broadband and services revenues, previously netted-off from mobile services revenues for presentation purposes, will be treated separately going forward. Total mobile broadband and services revenues figures did not change after this reclassification and the change of presentation. The table below presents the breakdown for SMS and mobile services revenues retrospectively, after these changes.
| Million TRY | Q113 | Q213 | Q313 | Q413 | Q114 | Q214 | Q314 | |||||||
| SMS revenues | 206 | 213 | 216 | 203 | 172 | 164 | 158 | |||||||
| Mobile services revenues | 96 | 106 | 104 | 102 | 96 | 100 | 111 |
-
11.3% growth in revenues of subsidiaries to TRY685.2 million (TRY615.6
million), constituting 21.7% (20.7%) of the Group top line.
- 38.2% growth in Turkcell Superonline revenues to TRY327.6 million (TRY237.1 million)
- 20.9% decline in Astelit revenues to TRY193.9 million (TRY245.0 million)
Direct cost of revenues grew by 7.2% to TRY1,880.2 million (TRY1,754.0 million), while as a percentage of revenues increased to 59.5% (58.8%), driven mainly by the higher interconnect and network costs of Turkcell Turkey and increased operational expenses of certain subsidiaries.
The table below presents the interconnect revenues and costs of Turkcell Turkey:
| Million TRY | Q313 | Q214 | Q314 | y/y % | q/q % | |||||
| Interconnect revenues | 266.7 | 281.2 | 300.3 | 12.6% | 6.8% | |||||
| as a % of revenues | 11.3% | 12.2% | 12.1% | 0.8pp | (0.1pp) | |||||
| Interconnect costs | (249.4) | (262.7) | (278.5) | 11.7% | 6.0% | |||||
| as a % of revenues | (10.5%) | (11.4%) | (11.2%) | (0.7pp) | 0.2pp |
Administrative expenses as a percentage of revenues declined by 0.3pp to 4.4% (4.7%) year-on-year.
Selling and marketing expenses as a percentage of revenues rose by 0.4pp to 15.7% (15.3%) year-on-year due to increased selling expenses (0.4pp) and other cost items (0.3pp), as opposed to decreased marketing expenses (0.3pp).
EBITDA* increased by 3.4% to TRY1,050.4 million (TRY1,016.2 million) year-on-year, while the EBITDA margin was at 33.2% (34.1%). This was driven by the rise in direct cost of revenues (excluding depreciation and amortization) by 0.8pp, and selling and marketing expenses by 0.4pp, as opposed to the decline in administrative expenses by 0.3pp as a percentage of revenues.
The EBITDA of subsidiaries improved by 11.2% to TRY221.8 million (TRY199.4 million) driven mainly by the increased EBITDA of Turkcell Superonline.
Net finance income rose by 3.3% to TRY142.0 million (TRY137.5 million), despite the increased translation loss of TRY54.5 million (TRY27.8 million), which has been compensated for primarily by higher interest income.
Astelit recorded a translation loss of TRY125.0 million due to the devaluation of the UAH against the US$ during the quarter. Meanwhile, BeST recorded a TRY55.4 million translation loss, Turkcell Superonline recorded a TRY32.6 million translation loss and other group companies recorded a TRY8.5 million translation loss. Turkcell Turkey recorded a translation gain of TRY167.0 million.
Share of profit of equity accounted investees declined by 28.1% year-on-year to TRY66.8 million (TRY92.9 million) mainly due to a total non-cash write down of US$36 million in Fintur as a result of the ongoing assessment of its operational assets. The impact of this on our Group financials was TRY33 million on the basis of our 41.45% share of Fintur.
(*)EBITDA is a non-GAAP financial measure. See page 12 for the reconciliation of EBITDA to net cash from operating activities.
Income tax expense details in Q314 are presented in the table below:
| Million TRY | Q313 | Q214 | Q314 | y/y % | q/q % | |||||
| Current Tax expense | (195.5) | (165.6) | (199.5) | 2.0% | 20.5% | |||||
| Deferred Tax Income/expense | 6.6 | (0.9) | (16.9) | (356.1%) | n.m. | |||||
| Income Tax expense | (188.9) | (166.5) | (216.4) | 14.6% | 30.0% |
Net income rose by 8.0% to TRY755.0 million (TRY699.1 million) in Q314. This was driven by increased EBITDA, higher interest income, the positive impact of TRY depreciation against USD, and the one-off positive impact of TRY24 million from the A-Tel share sale process, which we announced on August 27, 2014. On the other hand, net income was negatively impacted by the devaluation of UAH against US$ in Ukraine and BYR against US$ in Belarus, in addition to the write down of the operational assets of Fintur.
Total debt as of September 30, 2014 was at TRY3,545.0 million
(US$1,555.6 million), which was at TRY3,459.9 million (US$1,629.4
million) as of June 30, 2014 in consolidated terms. The debt balance of
Ukraine (including intra-group debt) was TRY1,523.7 million (US$668.6
million), while that of Belarus was TRY1,461.9 million (US$641.5
million), and of Turkcell Superonline was TRY704.9 million (US$309.3
million).
TRY3,003.8 million (US$1,318.1 million) of our
consolidated debt is at a floating rate, while TRY2,443.7 million
(US$1,072.3 million) will mature within less than a year. (Please
note that the figures in parentheses refer to US$ equivalents).
Cash flow analysis: Capital expenditures, including non-operational items, amounted to TRY555.1 million in Q314, of which TRY363.8 million was related to Turkcell Turkey, TRY125.3 million to Turkcell Superonline, TRY36.6 million to Astelit, and TRY9.9 million to BeST. The cash flow item noted as “other” included cash inflows mainly relating to the effects of foreign exchange rate valuation fluctuations on cash and cash equivalents, a decrease in advance payment for capex, TRY92 million in dividends from Fintur and cash outflows due to corporate tax payment and the change in net working capital.
| Consolidated Cash Flow (million TRY) | Q313 | Q214 | Q314 | |||
| EBITDA1 | 1,016.2 | 907.0 | 1,050.4 | |||
| LESS: | ||||||
| Capex and License | (449.0) | (314.0) | (555.1) | |||
| Turkcell | (232.4) | (173.9) | (363.8) | |||
| Turkcell Superonline | (94.7) | (103.3) | (125.3) | |||
| Ukraine2 | (56.6) | (12.0) | (36.6) | |||
| Investment & Marketable Securities | (8.4) | 51.9 | (6.4) | |||
| Net interest Income/ (expense) | 165.3 | 211.2 | 196.5 | |||
| Other | 45.2 | (967.2) | 225.8 | |||
| Net Change in Debt | (69.0) | 38.9 | (136.1) | |||
| Cash generated | 700.3 | (72.2) | 775.1 | |||
| Cash balance | 7,703.3 | 7,916.9 | 8,692.0 |
(1) EBITDA is a non-GAAP financial measurement. See page 12 for the
reconciliation of EBITDA to net cash from operating activities.
(2)
The impact from the movement of reporting currency (TRY) against US$ is
included in this line.
Operational Review in Turkey
| Summary of Operational data | Q313 | Q214 | Q314 | y/y % | q/q % | |||||
| Number of total subscribers (million) | 35.0 | 34.6 | 34.7 | (0.9%) | 0.3% | |||||
| Postpaid | 13.8 | 14.5 | 14.8 | 7.2% | 2.1% | |||||
| Prepaid | 21.2 | 20.1 | 19.9 | (6.1%) | (1.0%) | |||||
| ARPU, blended (TRY) | 22.7 | 22.1 | 23.8 | 4.8% | 7.7% | |||||
| Postpaid | 38.5 | 36.8 | 39.4 | 2.3% | 7.1% | |||||
| Prepaid | 12.3 | 11.8 | 12.4 | 0.8% | 5.1% | |||||
| ARPU (Average Monthly Revenue per User), blended (US$) | 11.5 | 10.4 | 11.1 | (3.5%) | 6.7% | |||||
| Postpaid | 19.5 | 17.3 | 18.3 | (6.2%) | 5.8% | |||||
| Prepaid | 6.2 | 5.6 | 5.8 | (6.5%) | 3.6% | |||||
| Churn (%) | 6.9% | 8.1% | 8.2% | 1.3pp | 0.1pp | |||||
| MoU (Average Monthly Minutes of usage per subscriber), blended | 271.6 | 279.5 | 288.0 | 6.0% | 3.0% |
Subscribers of our mobile business in Turkey rose by 97 thousand in Q314, despite the prevailing tough competitive environment. Our postpaid subscriber base continued to expand, by 295 thousand, as a result of our continued focus on customer satisfaction and our efforts to switch prepaid to postpaid. The share of our postpaid subscribers in the total subscriber base increased to 42.6% (39.5%).
Churn Rate refers to voluntarily and involuntarily disconnected subscribers. Our churn rate rose to 8.2% (6.9%*) due to increased competition.
ARPU rose by 4.8% to TRY23.8 (TRY22.7) mainly on increased mobile broadband revenues and higher postpaid subscriber base. Meanwhile, postpaid and prepaid ARPU rose by 2.3% and 0.8% year-on-year, respectively, regardless of the dilutive impact of switches.
MoU increased 6.0% year-on-year to 288.0 minutes (271.6 minutes), due to higher incentives and greater package utilization.
OTHER DOMESTIC AND INTERNATIONAL OPERATIONS
Astelit, which generated 6% of Group revenues in Q314, continued to be impacted by the tough macroeconomic and political environment in Ukraine. The local currency devalued by a further 9.6% during the quarter, reaching 62.1% year-to-date. This has led to a 20.9% decline in Astelit’s revenues to TRY193.9 million (TRY245.0 million) and an 18.8% drop in EBITDA to TRY61.2 million (TRY75.4 million). However, operational performance remained solid with 15.5% growth in local currency terms year-on-year on a larger subscriber base. Further, operational profitability increased 0.8pp to 31.6% (30.8%), mainly due to revenue growth.
Astelit’s three-month active subscriber base reached 10.6 million on 1.1 million quarterly additions, with the positive impact of seasonality. Blended ARPU (3-month active) increased by 4.1% to UAH37.9 (UAH36.4), the growth of which was limited by the controlled spending behavior of subscribers. The MoU (12-months active) decline of 3.4% to 168.1 minutes (174.0 minutes) resulted mainly from the change in consumer behavior as a consequence of the prevailing macroeconomic environment.
(*) Churn rate in Q313 was impacted by the ICTA decision enabling users of mobile lines without a subscription to register those lines under their names. Each subscription line registered due to this decision had to be recorded as a churn, and also as an acquisition in operators’ records. Excluding the impact of this decision, the churn rate would have been 6.7% in Q313.
With regards to the Crimea region, which accounts for 3.5% of Astelit’s revenues for the nine months, in September 2014, Astelit’s network experienced cut offs of its fiber optic channels due to circumstances beyond its control. Currently, Astelit has very limited coverage in this region.
Astelit has put all of its efforts into restoring the network, yet, significant challenges remain. We closely monitor the potential consequences of the political ambiguity and related counterparty risks, and meanwhile, continue to evaluate our alternatives in this region. As of 30 September 2014, the net book value of non-current assets of the Group located in the Crimea, which was annexed by the Russian Federation in March 2014, amounts to US$7.2 million.
| Astelit* | Q313 | Q214 | Q314 | y/y % | q/q % | |||||
| Number of subscribers (million)1 | 12.2 | 12.7 | 13.6 | 11.5% | 7.1% | |||||
| Active (3 months)2 | 9.4 | 9.5 | 10.6 | 12.8% | 11.6% | |||||
| MoU (minutes) (12 months) | 174.0 | 168.8 | 168.1 | (3.4%) | (0.4%) | |||||
| ARPU (Average Monthly Revenue per User), blended (US$) | 3.5 | 2.2 | 2.3 | (34.3%) | 4.5% | |||||
| Active (3 months) (US$) | 4.6 | 3.0 | 3.0 | (34.8%) | - | |||||
| Active (3 months) (UAH) | 36.4 | 34.1 | 37.9 | 4.1% | 11.1% | |||||
| Revenue (million UAH) | 991.0 | 961.0 | 1,144.6 | 15.5% | 19.1% | |||||
| Revenue (million TRY) | 245.0 | 176.9 | 193.9 | (20.9%) | 9.6% | |||||
| Revenue (million US$) | 124.0 | 83.4 | 90.3 | (27.2%) | 8.3% | |||||
| EBITDA (million UAH) | 305.2 | 277.5 | 361.7 | 18.5% | 30.3% | |||||
| EBITDA (million TRY) | 75.4 | 51.1 | 61.2 | (18.8%) | 19.8% | |||||
| EBITDA (million US$)3 | 38.2 | 24.1 | 28.5 | (25.4%) | 18.3% | |||||
| EBITDA margin | 30.8% | 28.9% | 31.6% | 0.8pp | 2.7pp | |||||
| Net loss (million UAH) | (47.6) | (677.8) | (831.7) | n.m. | 22.7% | |||||
| Net loss (million TRY) | (11.9) | (126.6) | (139.0) | n.m. | 9.8% | |||||
| Net loss (million US$) | (6.0) | (59.4) | (66.8) | n.m. | 12.5% | |||||
| Capex (million UAH) | 216.4 | 75.4 | 211.0 | (2.5%) | 179.8% | |||||
| Capex (million TRY) | 56.6 | 12.0 | 36.6 | (35.3%) | 205.0% | |||||
| Capex (million US$) | 27.1 | 5.9 | 15.2 | (43.9%) | 157.6% |
(*) Astelit, in which we hold a 55% stake through Euroasia, has operated
in Ukraine since February 2005.
(1) We may occasionally offer
campaigns and tariff schemes that have an active subscriber life
differing from the one that we normally use to deactivate subscribers
and calculate churn.
(2) Active subscribers are those who in the
past three months made a revenue generating activity.
(3) EBITDA is
a non-GAAP financial measurement. See page 12 for the reconciliation of
Euroasia’s EBITDA to net cash from operating activities. Euroasia holds
a 100% stake in Astelit.
Turkcell Superonline continued to deliver a solid financial performance, registering 38.2% revenue growth along with a 51.4% EBITDA increase. The EBITDA margin improved by 2.5pp to 27.8% (25.3%) on the back of growing scale of the business. The recent launch of Turkcell TV+, our cutting-edge TV platform, enables Turkcell Superonline to enhance its strategy through the ability to offer triple play packages.
Turkcell Superonline’s total subscriber base (including ADSL subscribers) reached a total of 1.1 million, of which 686 thousand were FTTH subscribers1. Of the 69 thousand total net additions during the quarter, 33 thousand were FTTH subscribers.
Residential segment revenues grew by 54.7%, while corporate segment revenues rose by 32.4% year-on-year with increasing synergies at the Group level. Accordingly, the share of residential and corporate segment revenues in total revenues reached 66% (63%). Meanwhile, the share of non-group revenues reached 76% (74%).
Turkcell Superonline has continued to invest in its fiber network, increasing its home pass2 to 2.0 million.
| Turkcell Superonline (million TRY)* | Q313 | Q214 | Q314 | y/y % | q/q % | |||||
| Revenue | 237.1 | 309.4 | 327.6 | 38.2% | 5.9% | |||||
| Residential | 84.8 | 120.6 | 131.2 | 54.7% | 8.8% | |||||
| % of revenues | 35.8% | 39.0% | 40.0% | 4.2pp | 1.0pp | |||||
| Corporate | 64.8 | 82.5 | 85.8 | 32.4% | 4.0% | |||||
| % of revenues | 27.3% | 26.7% | 26.2% | (1.1pp) | (0.5pp) | |||||
| Wholesale | 87.4 | 106.3 | 110.7 | 26.7% | 4.1% | |||||
| % of revenues | 36.9% | 34.4% | 33.8% | (3.1pp) | (0.6pp) | |||||
| EBITDA 3 | 60.1 | 75.5 | 91.0 | 51.4% | 20.5% | |||||
| EBITDA Margin | 25.3% | 24.4% | 27.8% | 2.5pp | 3.4pp | |||||
| Capex | 94.7 | 103.3 | 125.3 | 32.3% | 21.3% | |||||
| FTTH subscribers | 520.6 | 652.5 | 685.5 | 31.7% | 5.1% |
(*)Turkcell Superonline is our wholly-owned subsidiary, providing fiber
broadband.
(1) FTTH subscriber base refers to residential,
corporate and wholesale fiber subscribers.
(2) Home passes figure
refers to the total of home passes and office passes figures.
(3)
EBITDA is a non-GAAP financial measure. See page 12 for the
reconciliation of EBITDA to net cash from operating activities.
Fintur’s subscriber base increased 0.6 million during the quarter. Fintur’s consolidated revenues declined by 9.1%, mainly due to the decrease in KCell’s revenues on devaluation of the Kazakhstani Tenge (KZT) against the US$. Furthermore, Fintur’s contribution to our net income decreased by 37.5% to US$30 million (US$48 million). The asset write-down at Fintur discussed on page 7 was a key factor behind this decrease.
| Fintur | Q313 | Q214 | Q314 | y/y % | q/q % | |||||
| Subscribers (million) | 21.5 | 20.1 | 20.7 | (3.7%) | 3.0% | |||||
| Kazakhstan | 14.3 | 12.9 | 13.0 | (9.1%) | 0.8% | |||||
| Azerbaijan | 4.4 | 4.3 | 4.5 | 2.3% | 4.7% | |||||
| Moldova | 1.0 | 1.0 | 1.1 | 10.0% | 10.0% | |||||
| Georgia | 1.8 | 1.9 | 2.0 | 11.1% | 5.3% | |||||
| Revenue (million US$) | 527 | 468 | 479 | (9.1%) | 2.4% | |||||
| Kazakhstan | 319 | 274 | 271 | (15.0%) | (1.1%) | |||||
| Azerbaijan | 149 | 144 | 154 | 3.4% | 6.9% | |||||
| Moldova | 21 | 18 | 19 | (9.5%) | 5.6% | |||||
| Georgia | 38 | 32 | 34 | (10.5%) | 6.3% | |||||
| Fintur’s contribution to Group’s net income | 48 | 35 | 30 | (37.5%) | (14.3%) |
(*) We hold a 41.45% stake In Fintur, which has interests in Kazakhstan, Azerbaijan, Moldova and Georgia.
Turkcell Group Subscribers amounted to approximately 71.1 million as of September 30, 2014. This figure is calculated by taking the number of subscribers of Turkcell and each of our subsidiaries, and unconsolidated investees. It includes the total number of mobile subscribers of Turkcell Turkey, Astelit and BeST, as well as of our operations in the Turkish Republic of Northern Cyprus (“Northern Cyprus”), Fintur, and Turkcell Europe. Turkcell Group subscribers increased 1.6 million during the quarter.
| Turkcell Group Subscribers (million) | Q313 | Q214 | Q314 | y/y % | q/q % | |||||
| Turkcell | 35.0 | 34.6 | 34.7 | (0.9%) | 0.3% | |||||
| Ukraine | 12.2 | 12.7 | 13.6 | 11.5% | 7.1% | |||||
| Fintur | 21.5 | 20.1 | 20.7 | (3.7%) | 3.0% | |||||
| Northern Cyprus | 0.4 | 0.4 | 0.4 | - | - | |||||
| Belarus | 1.2 | 1.3 | 1.3 | 8.3% | - | |||||
| Turkcell Europe | 0.4 | 0.4 | 0.4 | - | - | |||||
| TURKCELL GROUP | 70.7 | 69.5 | 71.1 | 0.6% | 2.3% |
OVERVIEW OF THE MACROECONOMIC ENVIRONMENT
The foreign exchange rates used in our financial reporting, along with certain macroeconomic indicators, are set out below.
| Q313 | Q214 | Q314 | y/y % | q/q % | ||||||
| US$ / TRY rate | ||||||||||
| Closing Rate | 2.0342 | 2.1234 | 2.2789 | 12.0% | 7.3% | |||||
| Average Rate | 1.9782 | 2.1221 | 2.1505 | 8.7% | 1.3% | |||||
| Consumer Price Index (Turkey) | 1.0% | 2.1% | 0.7% | (0.3pp) | (1.4pp) | |||||
| GDP Growth (Turkey) | 4.2% | 2.1% | - | - | - | |||||
| US$ / UAH rate | ||||||||||
| Closing Rate | 7.99 | 11.82 | 12.95 | 62.1% | 9.6% | |||||
| Average Rate | 7.99 | 11.52 | 12.70 | 58.9% | 10.2% | |||||
| US$ / BYR rate | ||||||||||
| Closing Rate | 9,080 | 10,200 | 10,580 | 16.5% | 3.7% | |||||
| Average Rate | 8,935 | 10,035 | 10,377 | 16.1% | 3.4% |
RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We believe that EBITDA is a measurement commonly used by companies, analysts and investors in the telecommunications industry that enhances the understanding of our cash generation ability and liquidity position, and assists in the evaluation of our capacity to meet our financial obligations. We also use EBITDA as an internal measurement tool, and accordingly, we believe that its presentation provides useful and relevant information to analysts and investors. Our EBITDA definition includes Revenue, Direct Cost of Revenue excluding depreciation and amortization, Selling and Marketing expenses and Administrative expenses, but excludes translation gain/(loss), finance income, share of profit of equity accounted investees, gain on sale of investments, income/(loss) from related parties, minority interest and other income/(expense). EBITDA is not a measure of financial performance under IFRS, and should not be construed as a substitute for net earnings (loss) as a measure of performance, or cash flow from operations as a measure of liquidity. The following table provides a reconciliation of EBITDA, which is a non-GAAP financial measurement, to net cash from operating activities, which we believe is the most directly comparable financial measurement calculated and presented in accordance with IFRS.
|
Turkcell (million US$) |
Q313 |
Q214 |
Q314 |
y/y % |
q/q % |
|||||
| EBITDA | 514.0 | 427.8 | 489.1 | (4.8%) | 14.3% | |||||
| Income tax expense | (95.4) | (78.5) | (100.5) | 5.3% | 28.0% | |||||
| Other operating income / (expense) | (12.1) | (45.1) | 8.2 | (167.8%) | (118.2%) | |||||
| Financial income / (expense) | 250.9 | 28.4 | 1.7 | (99.3%) | (94.0%) | |||||
| Net increase / (decrease) in assets and liabilities | (226.8) | (169.2) | (25.3) | (88.8%) | (85.0%) | |||||
| Net cash from operating activities | 430.6 | 163.4 | 373.2 | (13.3%) | 128.4% |
|
Turkcell Superonline (million TRY) |
Q313 |
Q214 |
Q314 |
y/y % |
q/q % |
|||||
| EBITDA | 60.1 | 75.5 | 91.0 | 51.4% | 20.5% | |||||
| Income tax expense | 0.9 | (7.9) | (1.0) | (211.1%) | (87.3%) | |||||
| Other operating income / (expense) | (2.9) | 1.7 | 0.1 | (103.4%) | (94.1%) | |||||
| Financial income / (expense) | (18.9) | 5.0 | (6.8) | (64.0%) | (236.0%) | |||||
| Net increase / (decrease) in assets and liabilities | 17.9 | 15.7 | 12.7 | (29.1%) | (19.1%) | |||||
| Net cash from operating activities | 57.1 | 90.0 | 96.0 | 68.1% | 6.7% |
|
Euroasia (million US$) |
Q313 |
Q214 |
Q314 |
y/y % |
q/q % |
|||||
| EBITDA | 38.2 | 24.1 | 28.5 | (25.4%) | 18.3% | |||||
| Other operating income / (expense) | 0.2 | (0.5) | 0.2 | - | (140.0%) | |||||
| Financial income / (expense) | (12.6) | (13.8) | (14.0) | 11.1% | 1.4% | |||||
| Net increase / (decrease) in assets and liabilities | 17.7 | 7.7 | (4.5) | (125.4%) | (158.4%) | |||||
| Net cash from operating activities | 43.5 | 17.5 | 10.2 | (76.6%) | (41.7%) |
FORWARD-LOOKING STATEMENTS: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. This includes, in particular, our targets for revenue, EBITDA and capex in 2014. More generally, all statements other than statements of historical facts included in this press release, including, without limitation, certain statements regarding our operations, financial position and business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as, among others, "will," "expect," "intend," "estimate," "believe", "continue" and “guidance”.
Although Turkcell believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give no assurance that such expectations will prove to be correct. All subsequent written and oral forward-looking statements attributable to us are expressly qualified in their entirety by reference to these cautionary statements. For a discussion of certain factors that may affect the outcome of such forward looking statements, see our Annual Report on Form 20-F for 2013 filed with the U.S. Securities and Exchange Commission, and in particular the risk factor section therein. We undertake no duty to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
ABOUT TURKCELL: Turkcell is the leading communications and technology company in Turkey, with 34.7 million subscribers as of September 30, 2014. Turkcell is a leading regional player with its approximately 71.1 million subscribers in nine countries as of September 30, 2014. It has become one of the first among the global operators to have implemented HSPA+. It has achieved up to 43.2 Mbps speed using the Dual Carrier technology, and is continuously working to provide the latest technology to its customers. Turkcell Superonline, a wholly owned subsidiary of Turkcell, is the first telecom operator to offer households fiber broadband connection at speeds of up to 1,000 Mbps in Turkey. As of September 2014, Turkcell’s population coverage is at 99.62% in 2G and 88.09% in 3G. Turkcell reported a TRY3.2 billion (US$1.5 billion) revenue with total assets of TRY22.7 billion (US$10.0 billion) as of September 30, 2014. It has been listed on the NYSE and the BIST since July 2000, and is the only NYSE-listed company in Turkey. Read more at www.turkcell.com.tr
|
TURKCELL ILETISIM HIZMETLERI A.S. TURKISH ACCOUNTING STANDARDS SELECTED FINANCIALS (TRY Million) |
||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||
|
|
2013 |
2014 |
2014 |
2013 |
2014 |
|||||
| Consolidated Statement of Operations Data | ||||||||||
| Revenues | ||||||||||
| Communication fees | 2,681.8 | 2,551.8 | 2,757.5 | 7,697.5 | 7,805.3 | |||||
| Commission fees on betting business | 52.1 | 67.1 | 69.1 | 157.3 | 212.4 | |||||
| Monthly fixed fees | 18.2 | 14.4 | 10.0 | 57.7 | 41.1 | |||||
| Simcard sales | 8.9 | 7.0 | 11.9 | 22.6 | 25.4 | |||||
| Call center revenues and other revenues | 219.7 | 282.7 | 313.7 | 589.2 | 856.2 | |||||
| Total revenues | 2,980.7 | 2,923.0 | 3,162.2 | 8,524.3 | 8,940.4 | |||||
| Direct cost of revenues | -1,754.5 | -1,788.7 | -1,879.0 | -5,210.0 | -5,408.6 | |||||
| Gross profit | 1,226.2 | 1,134.3 | 1,283.2 | 3,314.3 | 3,531.8 | |||||
| Administrative expenses | -140.4 | -135.8 | -138.0 | -398.3 | -415.9 | |||||
| Selling & marketing expenses | -455.7 | -477.2 | -496.5 | -1,333.2 | -1,456.8 | |||||
| Other Operating Income / (Expense) | 262.5 | 104.3 | 424.0 | 872.6 | 784.2 | |||||
| Operating profit before financing and investing costs | 892.6 | 625.6 | 1,072.7 | 2,455.4 | 2,443.3 | |||||
| Income from investing activities | 6.1 | 8.0 | 1.7 | 21.3 | 14.6 | |||||
| Expense from investing activities | -10.2 | -5.1 | -10.2 | -42.8 | -26.1 | |||||
| Share of profit of equity accounted investees | 92.9 | 73.8 | 66.8 | 221.5 | 214.2 | |||||
| Income before financing costs | 981.4 | 702.3 | 1,131.0 | 2,655.4 | 2,646.0 | |||||
| Finance income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||
| Finance expense | -123.1 | -152.8 | -255.6 | -468.3 | -965.1 | |||||
| Monetary gain/(loss) | 30.6 | 60.0 | 48.3 | 104.4 | 172.8 | |||||
| Income before tax and non-controlling interest | 888.9 | 609.5 | 923.7 | 2,291.5 | 1,853.7 | |||||
| Income tax expense | -188.9 | -166.4 | -217.0 | -472.4 | -544.0 | |||||
| Income before non-controlling interest | 700.0 | 443.1 | 706.7 | 1,819.1 | 1,309.7 | |||||
| Non-controlling interest | -1.4 | 49.6 | 49.0 | 4.5 | 299.3 | |||||
| Net income | 698.6 | 492.7 | 755.7 | 1,823.6 | 1,609.0 | |||||
| Net income per share | 0.32 | 0.22 | 0.34 | 0.83 | 0.73 | |||||
| Other Financial Data | ||||||||||
| Gross margin | 41.1% | 38.8% | 40.6% | 38.9% | 39.5% | |||||
| EBITDA(*) | 1,016.2 | 907.0 | 1,050.4 | 2,693.0 | 2,844.7 | |||||
| Capital expenditures | 449.0 | 314.0 | 555.1 | 1,003.8 | 1,209.5 | |||||
| Consolidated Balance Sheet Data (at period end) | ||||||||||
| Cash and cash equivalents | 7,703.3 | 7,916.9 | 8,692.0 | 7,703.3 | 8,692.0 | |||||
| Total assets | 20,433.4 | 21,740.1 | 22,673.4 | 20,433.4 | 22,673.4 | |||||
| Long term debt | 1,437.5 | 1,111.6 | 1,101.3 | 1,437.5 | 1,101.3 | |||||
| Total debt | 3,205.4 | 3,459.9 | 3,545.0 | 3,205.4 | 3,545.0 | |||||
| Total liabilities | 6,028.5 | 6,217.6 | 6,472.5 | 6,028.5 | 6,472.5 | |||||
| Total shareholders’ equity / Net Assets | 14,404.9 | 15,522.5 | 16,200.9 | 14,404.9 | 16,200.9 | |||||
| * For further details, please refer to our consolidated financial statements and notes as at 30 September 2014 on our web site. | ||||||||||
|
TURKCELL ILETISIM HIZMETLERI A.S.
IFRS SELECTED FINANCIALS (TRY Million) |
||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||
|
2013 |
2014 |
2014 |
2013 |
2014 |
||||||
| Consolidated Statement of Operations Data | ||||||||||
| Revenues | ||||||||||
| Communication fees | 2,681.8 | 2,551.8 | 2,757.5 | 7,697.5 | 7,805.3 | |||||
| Commission fees on betting business | 52.1 | 67.1 | 69.1 | 157.3 | 212.4 | |||||
| Monthly fixed fees | 18.2 | 14.4 | 10.0 | 57.7 | 41.1 | |||||
| Simcard sales | 8.9 | 7.0 | 11.9 | 22.6 | 25.4 | |||||
| Call center revenues and other revenues | 219.7 | 282.7 | 313.7 | 589.2 | 856.2 | |||||
| Total revenues | 2,980.7 | 2,923.0 | 3,162.2 | 8,524.3 | 8,940.4 | |||||
| Direct cost of revenues | -1,754.0 | -1,789.2 | -1,880.2 | -5,212.6 | -5,411.7 | |||||
| Gross profit | 1,226.7 | 1,133.8 | 1,282.0 | 3,311.7 | 3,528.7 | |||||
| Administrative expenses | -140.4 | -135.8 | -138.0 | -398.3 | -415.9 | |||||
| Selling & marketing expenses | -455.7 | -477.2 | -496.5 | -1,333.2 | -1,456.8 | |||||
| Other Operating Income / (Expense) | -2.2 | -92.0 | 17.8 | -23.3 | -77.7 | |||||
| Operating profit before financing costs | 628.4 | 428.8 | 665.3 | 1,556.9 | 1,578.3 | |||||
| Finance costs | -46.9 | -211.3 | -83.7 | -114.9 | -846.9 | |||||
| Finance income | 184.4 | 257.9 | 225.7 | 520.5 | 732.2 | |||||
| Monetary gain/(loss) | 30.6 | 60.0 | 48.3 | 104.4 | 172.8 | |||||
| Share of profit of equity accounted investees | 92.9 | 73.8 | 66.8 | 221.5 | 214.2 | |||||
| Income before taxes and minority interest | 889.4 | 609.2 | 922.4 | 2,288.4 | 1,850.6 | |||||
| Income tax expense | -188.9 | -166.5 | -216.4 | -471.9 | -543.1 | |||||
| Income before minority interest | 700.5 | 442.7 | 706.0 | 1,816.5 | 1,307.5 | |||||
| Non-controlling interests | -1.4 | 49.6 | 49.0 | 4.5 | 299.3 | |||||
| Net income | 699.1 | 492.3 | 755.0 | 1,821.0 | 1,606.8 | |||||
| Net income per share | 0.32 | 0.22 | 0.34 | 0.83 | 0.73 | |||||
| Other Financial Data | ||||||||||
| Gross margin | 41.2% | 38.8% | 40.5% | 38.9% | 39.5% | |||||
| EBITDA(*) | 1,016.2 | 907.0 | 1,050.4 | 2,693.0 | 2,844.7 | |||||
| Capital expenditures | 449.0 | 314.0 | 555.1 | 1,003.8 | 1,209.5 | |||||
| Consolidated Balance Sheet Data (at period end) | ||||||||||
| Cash and cash equivalents | 7,703.3 | 7,916.9 | 8,692.0 | 7,703.3 | 8,692.0 | |||||
| Total assets | 20,464.7 | 21,767.2 | 22,699.3 | 20,464.7 | 22,699.3 | |||||
| Long term debt | 1,437.5 | 1,111.6 | 1,101.3 | 1,437.5 | 1,101.3 | |||||
| Total debt | 3,205.4 | 3,459.9 | 3,545.0 | 3,205.4 | 3,545.0 | |||||
| Total liabilities | 6,033.7 | 6,221.8 | 6,476.3 | 6,033.7 | 6,476.3 | |||||
| Total shareholders’ equity / Net Assets | 14,431.0 | 15,545.4 | 16,223.0 | 14,431.0 | 16,223.0 | |||||
| * For further details, please refer to our consolidated financial statements and notes as at 30 September 2014 on our web site. | ||||||||||
|
TURKCELL ILETISIM HIZMETLERI A.S.
IFRS SELECTED FINANCIALS (US$ MILLION) |
||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||
|
2013 |
2014 |
2014 |
2013 |
2014 |
||||||
| Consolidated Statement of Operations Data | ||||||||||
| Revenues | ||||||||||
| Communication fees | 1,355.2 | 1,203.5 | 1,280.6 | 4,117.0 | 3,606.6 | |||||
| Commission fees on betting business | 26.2 | 31.5 | 32.1 | 84.4 | 97.9 | |||||
| Monthly fixed fees | 9.2 | 6.8 | 4.6 | 31.0 | 18.9 | |||||
| Simcard sales | 4.4 | 3.3 | 5.6 | 12.0 | 11.8 | |||||
| Call center revenues and other revenues | 110.4 | 133.6 | 144.7 | 313.4 | 395.1 | |||||
| Total revenues | 1,505.4 | 1,378.7 | 1,467.6 | 4,557.8 | 4,130.3 | |||||
| Direct cost of revenues | -884.2 | -843.9 | -870.4 | -2,787.7 | -2,497.9 | |||||
| Gross profit | 621.2 | 534.8 | 597.2 | 1,770.1 | 1,632.4 | |||||
| Administrative expenses | -70.6 | -64.1 | -63.6 | -212.5 | -191.6 | |||||
| Selling & marketing expenses | -230.2 | -225.0 | -230.3 | -713.4 | -672.4 | |||||
| Other Operating Income / (Expense) | -1.2 | -43.3 | 8.7 | -12.3 | -36.1 | |||||
| Operating profit before financing costs | 319.2 | 202.4 | 312.0 | 831.9 | 732.3 | |||||
| Finance costs | -20.2 | -99.7 | -37.6 | -56.4 | -383.9 | |||||
| Finance income | 92.2 | 121.1 | 105.8 | 278.1 | 338.6 | |||||
| Monetary gain/(loss) | 13.0 | 29.2 | 17.1 | 51.3 | 75.8 | |||||
| Share of profit of equity accounted investees | 47.3 | 34.8 | 31.4 | 118.0 | 99.3 | |||||
| Income before taxes and minority interest | 451.5 | 287.8 | 428.7 | 1,222.9 | 862.1 | |||||
| Income tax expense | -95.4 | -78.5 | -100.5 | -251.3 | -251.1 | |||||
| Income before minority interest | 356.1 | 209.3 | 328.2 | 971.6 | 611.0 | |||||
| Non-controlling interests | -0.7 | 23.2 | 23.8 | 2.6 | 136.4 | |||||
| Net income | 355.4 | 232.5 | 352.0 | 974.2 | 747.4 | |||||
| Net income per share | 0.16 | 0.11 | 0.16 | 0.44 | 0.34 | |||||
| Other Financial Data | ||||||||||
| Gross margin | 41.3% | 38.8% | 40.7% | 38.8% | 39.5% | |||||
| EBITDA(*) | 514.0 | 427.8 | 489.1 | 1,437.6 | 1,316.1 | |||||
| Capital expenditures | 205.3 | 152.8 | 222.5 | 493.5 | 530.7 | |||||
| Consolidated Balance Sheet Data (at period end) | ||||||||||
| Cash and cash equivalents | 3,786.9 | 3,728.4 | 3,814.1 | 3,786.9 | 3,814.1 | |||||
| Total assets | 10,060.3 | 10,251.1 | 9,960.6 | 10,060.3 | 9,960.6 | |||||
| Long term debt | 706.7 | 523.5 | 483.3 | 706.7 | 483.3 | |||||
| Total debt | 1,575.7 | 1,629.4 | 1,555.6 | 1,575.7 | 1,555.6 | |||||
| Total liabilities | 2,966.1 | 2,930.1 | 2,841.8 | 2,966.1 | 2,841.8 | |||||
| Total equity | 7,094.2 | 7,321.0 | 7,118.8 | 7,094.2 | 7,118.8 | |||||
| * Please refer to the notes on reconciliation of Non-GAAP Financial measures on page 11 | ||||||||||
| ** For further details, please refer to our consolidated financial statements and notes as at 30 September 2014 on our web site. | ||||||||||