The introduction of MNP in Turkey (on 09 November 2008), intensified competition and forced Turkcell to carry out various promotional activities to attract new subscribers during 4Q 08, resulting in higher subscriber acquisition costs. Going forward, we expect intensified competition (due to MNP) to result in a decline in subscriber-base and blended ARPU negatively impacting revenues from Turkish operations. Conversely, we expect non Turkish operations to register impressive top-line growth, driven by robust expansion in subscriber-base. Furthermore, the acquisition of BeST expanded geographical coverage and is likely to provide new business opportunities for Turkcell. Along with higher promotional activities and increased network expenses, we expect depreciation and amortization expenses to increase, going forward due to an increase in asset base. Accordingly, we expect operating margin to remain under pressure. In light of the above factors, coupled with a decline in consumer confidence index and weak Turkish economy, we have a muted outlook for the company.

Read the full report free of charge with free to view access to institutional-quality research on 400 companies and over 700 stocks at www.researchoracle.com or purchase a pdf of the full report from the Alacra store

Disclaimer Independent International Investment Research PLC supplies this research via Pronet Analytics.com Ltd. (‘Pronet’). Pronet is Regulated and Authorized by the Financial Services Authority (FSA) and registered with the Securities Exchange Commission (SEC). You are reminded that investment advice provided by Pronet is for your general information and use and is not intended to address your particular requirements. Any advice or recommendations contained in this report may not be suitable for you and are not intended to be relied upon by you in the making (or refraining from making) any specific investment or other decision. Such decisions should only be made on the basis of independent advice from an appropriately qualified adviser. Pronet Analytics.com Ltd. and Independent Financial Markets Research Ltd. are subsidiaries of Independent International Investment Research PLC (the ‘Group’). Research analysts working for the Group are subject to stringent confidentiality and security policies and are located in secure-access premises which may be in the proximity of professionals conducting similar work for other firms. The Group is not nor has been nor will be engaged in investment banking and does not make markets in any of the securities covered in this report or have any investment banking relationship with the firm whose security is covered in this report. No employee or contractor of the Group is permitted to personally buy or sell stock in the company covered in this report, and neither the analysts responsible for this report nor any related household members are officers, directors, or advisory board members of any covered company. No one at a covered company is on the Board of Directors of the Group or any of its affiliates. This report is not a solicitation to buy or sell any security and past performance is no guarantee of future results. Copyright © 2009 Independent International Investment Research PLC. All rights reserved.