Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document - Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | TKC |
Entity Registrant Name | TURKCELL ILETISIM HIZMETLERI A S |
Entity Central Index Key | 1,071,321 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 2,200,000,000 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Property, plant and equipment | ₺ 9,665,408 | ₺ 8,195,705 |
Intangible assets | 8,340,410 | 8,235,989 |
Telecommunication licenses | 5,720,398 | 6,160,536 |
Computer software | 2,346,236 | 1,838,409 |
Other intangible assets | 273,776 | 237,044 |
Investment properties | 980 | 46,270 |
Trade receivables | 155,634 | 235,393 |
Receivables from financial services | 1,297,597 | 909,466 |
Deferred tax assets | 96,060 | 51,255 |
Held to maturity investments | 654 | |
Other non-currentassets | 356,620 | 575,234 |
Total non-current assets | 19,913,363 | 18,249,312 |
Inventories | 104,102 | 131,973 |
Trade receivables and accrued revenue | 2,848,572 | 3,289,904 |
Due from related parties | 5,299 | 5,861 |
Receivables from financial services | 2,950,523 | 1,486,906 |
Derivative financial instruments | 981,396 | 390,958 |
Held to maturity investments | 11,338 | |
Cash and cash equivalents | 4,712,333 | 6,052,352 |
Other current assets | 1,160,605 | 770,135 |
Subtotal | 12,774,168 | 12,128,089 |
Assets classified as held for sale | 1,294,938 | 1,222,757 |
Total current assets | 14,069,106 | 13,350,846 |
Total assets | 33,982,469 | 31,600,158 |
Equity | ||
Share capital | 2,200,000 | 2,200,000 |
Share premium | 269 | 269 |
Treasury shares | (56,313) | (65,607) |
Additional paid-incapital | 35,026 | 35,026 |
Reserves | 1,542,679 | 1,102,896 |
Remeasurements of employee termination benefit | (44,776) | (41,786) |
Retained earnings | 11,312,276 | 12,780,967 |
Total equity attributable to equity holders of Turkcell Iletisim Hizmetleri AS ("the Company") | 14,989,161 | 16,011,765 |
Non-controlling interests | 55,927 | 56,632 |
Total equity | 15,045,088 | 16,068,397 |
Liabilities | ||
Borrowings | 8,257,995 | 6,935,102 |
Employee benefit obligations | 197,666 | 164,553 |
Provisions | 197,418 | 187,541 |
Deferred tax liabilities | 651,122 | 458,160 |
Other non-currentliabilities | 409,337 | 427,547 |
Total non-current liabilities | 9,713,538 | 8,172,903 |
Borrowings | 4,278,154 | 2,846,060 |
Current tax liabilities | 103,105 | 71,638 |
Trade and other payables | 3,696,466 | 4,101,991 |
Due to related parties | 6,980 | 11,201 |
Deferred revenue | 193,831 | 93,800 |
Provisions | 835,199 | 192,442 |
Derivative financial instruments | 110,108 | 41,726 |
Total current liabilities | 9,223,843 | 7,358,858 |
Total liabilities | 18,937,381 | 15,531,761 |
Total equity and liabilities | ₺ 33,982,469 | ₺ 31,600,158 |
Consolidated Statement of Profi
Consolidated Statement of Profit or Loss - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit or loss [abstract] | |||
Revenue | ₺ 17,026,401 | ₺ 14,100,863 | ₺ 12,769,415 |
Revenue from financial services | 605,663 | 184,698 | |
Total revenue | 17,632,064 | 14,285,561 | 12,769,415 |
Cost of revenue | (11,073,465) | (9,166,384) | (7,769,483) |
Cost of revenue from financial services | (276,709) | (70,223) | |
Total cost of revenue | (11,350,174) | (9,236,607) | (7,769,483) |
Gross profit | 5,952,936 | 4,934,479 | 4,999,932 |
Gross profit from financial services | 328,954 | 114,475 | |
Total gross profit | 6,281,890 | 5,048,954 | 4,999,932 |
Other income | 74,438 | 78,569 | 44,454 |
Selling and marketing expenses | (2,005,420) | (1,910,947) | (1,901,859) |
Administrative expenses | (645,196) | (721,849) | (625,279) |
Other expenses | (773,329) | (312,801) | (270,446) |
Operating profit | 2,932,383 | 2,181,926 | 2,246,802 |
Finance income | 1,090,449 | 1,064,794 | 756,039 |
Finance costs | (1,413,315) | (1,237,593) | (799,514) |
Net finance costs | (322,866) | (172,799) | (43,475) |
Profit before income tax | 2,609,517 | 2,009,127 | 2,203,327 |
Income tax expense | (571,758) | (423,160) | (667,112) |
Profit from continuing operations | 2,037,759 | 1,585,967 | 1,536,215 |
(Loss)/profit from discontinued operations (attributable to owners of the Company) | (42,164) | 367,336 | |
Profit for the year | 2,037,759 | 1,543,803 | 1,903,551 |
Profit for the year is attributable to: | |||
Owners of the Company | 1,979,129 | 1,492,088 | 2,067,654 |
Non-controlling interests | 58,630 | 51,715 | (164,103) |
Profit for the year | ₺ 2,037,759 | ₺ 1,543,803 | ₺ 1,903,551 |
Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) | ₺ 0.90 | ₺ 0.68 | ₺ 0.94 |
Basic and diluted earnings per share for profit from continuing operations attributable to owners of the Company (in full TL) | ₺ 0.90 | 0.70 | 0.77 |
Basic and diluted earnings/(losses) per share for profit /(loss) from discontinued operations attributable to owners of the Company (in full TL) | ₺ (0.02) | ₺ 0.17 |
Consolidated Statement of Other
Consolidated Statement of Other Comprehensive Income - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Owners of Turkcell Iletisim Hizmetleri AS | ₺ 1,968,102 | ₺ 1,594,465 | ₺ 1,616,867 |
Profit for the year | 2,037,759 | 1,543,803 | 1,903,551 |
Items that will not be reclassified to profit or loss: | |||
Remeasurements of employee termination benefits | (3,738) | (34,532) | (13,466) |
Income tax relating to remeasurements of employee termination benefits | 748 | 7,066 | 2,563 |
Remeasurements of employee benefits, net of tax | (2,990) | (27,466) | (10,903) |
Items that may be reclassified to profit or loss: | |||
Changes in cash flow hedge reserve | 719 | ||
Exchange differences on translation of foreign operations | 27,959 | 63,920 | 166,730 |
Exchange differences arising from discontinued operations | 72,190 | 154,552 | (551,196) |
Income tax relating to these items | (107,299) | (87,381) | (5,749) |
Items that may be reclassified to profit or loss, net of tax | (7,150) | 131,091 | (389,496) |
Other comprehensive (loss)/income for the year, net of income tax | (10,140) | 103,625 | (400,399) |
Total comprehensive income for the year | 2,027,619 | 1,647,428 | 1,503,152 |
Total comprehensive income for the year is attributable to: | |||
Owners of Turkcell Iletisim Hizmetleri AS | 1,968,102 | 1,594,465 | 1,616,867 |
Non-controlling interests | 59,517 | 52,963 | (113,715) |
Total comprehensive income for the year | 2,027,619 | 1,647,428 | 1,503,152 |
Owners of Turkcell Iletisim Hizmetleri AS | 1,968,102 | 1,594,465 | 1,616,867 |
Continuing operations [member] | |||
Owners of Turkcell Iletisim Hizmetleri AS | 1,903,109 | 1,496,209 | 1,798,094 |
Total comprehensive income for the year is attributable to: | |||
Owners of Turkcell Iletisim Hizmetleri AS | 1,903,109 | 1,496,209 | 1,798,094 |
Owners of Turkcell Iletisim Hizmetleri AS | 1,903,109 | 1,496,209 | 1,798,094 |
Discontinued operations [member] | |||
Owners of Turkcell Iletisim Hizmetleri AS | 64,993 | 98,256 | (181,227) |
Total comprehensive income for the year is attributable to: | |||
Owners of Turkcell Iletisim Hizmetleri AS | 64,993 | 98,256 | (181,227) |
Owners of Turkcell Iletisim Hizmetleri AS | ₺ 64,993 | ₺ 98,256 | ₺ (181,227) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - TRY (₺) ₺ in Thousands | Total | Share capital [member] | Treasury share [member] | Additional paid-in capital [member] | Share premium [member] | Legal reserve [member] | [1] | Cash flow hedge reserves [member] | [1] | Reserve for non-controlling interest put option [member] | [1] | Reserve of remeasurements of defined benefit plans [member] | Foreign currency translation reserve [member] | [1] | Retained earnings [member] | Total [member] | Non-controlling interests [member] |
Beginning balance at Dec. 31, 2014 | ₺ 16,710,645 | ₺ 2,200,000 | ₺ 35,026 | ₺ 269 | ₺ 839,284 | ₺ (719) | ₺ (758,432) | ₺ (3,417) | ₺ 350,254 | ₺ 14,431,158 | ₺ 17,093,423 | ₺ (382,778) | |||||
Total comprehensive income/(loss) | |||||||||||||||||
Profit for the year | 1,903,551 | 2,067,654 | 2,067,654 | (164,103) | |||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||
Foreign currency translation differences | (390,215) | (229,173) | (211,430) | (440,603) | 50,388 | ||||||||||||
Remeasurements of employee termination benefit | (10,903) | (10,903) | (10,903) | ||||||||||||||
Change in cash flow hedge reserve | 719 | 719 | 719 | ||||||||||||||
Other comprehensive income for the year, net of income tax | (400,399) | 719 | (229,173) | (10,903) | (211,430) | (450,787) | 50,388 | ||||||||||
Total comprehensive income for the year | 1,503,152 | ₺ 719 | (229,173) | (10,903) | (211,430) | 2,067,654 | 1,616,867 | (113,715) | |||||||||
Transfers | 372,068 | (372,068) | |||||||||||||||
Dividend paid | (4,025,515) | (3,925,000) | (3,925,000) | (100,515) | |||||||||||||
Change in fair value of non-controlling interest | 498,540 | 498,540 | 498,540 | ||||||||||||||
Acquisition of non-controlling interest | (267,920) | (929,013) | (929,013) | 661,093 | |||||||||||||
Ending balance at Dec. 31, 2015 | 14,418,902 | 2,200,000 | 35,026 | 269 | 1,211,352 | (489,065) | (14,320) | 138,824 | 11,272,731 | 14,354,817 | 64,085 | ||||||
Total comprehensive income/(loss) | |||||||||||||||||
Profit for the year | 1,543,803 | 1,492,088 | 1,492,088 | 51,715 | |||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||
Foreign currency translation differences | 131,091 | (133,222) | 263,065 | 129,843 | 1,248 | ||||||||||||
Remeasurements of employee termination benefit | (27,466) | (27,466) | (27,466) | ||||||||||||||
Other comprehensive income for the year, net of income tax | 103,625 | (133,222) | (27,466) | 263,065 | 102,377 | 1,248 | |||||||||||
Total comprehensive income for the year | 1,647,428 | (133,222) | (27,466) | 263,065 | 1,492,088 | 1,594,465 | 52,963 | ||||||||||
Transfers | (16,148) | 16,148 | |||||||||||||||
Dividend paid | (51,416) | (51,416) | |||||||||||||||
Change in fair value of non-controlling interest | 128,090 | 128,090 | 128,090 | ||||||||||||||
Transactions with non-controlling interests | (9,000) | (9,000) | |||||||||||||||
Acquisition of treasury shares (-) (Note 24) | (65,607) | ₺ (65,607) | (65,607) | ||||||||||||||
Ending balance at Dec. 31, 2016 | 16,068,397 | 2,200,000 | (65,607) | 35,026 | 269 | 1,195,204 | (494,197) | (41,786) | 401,889 | 12,780,967 | 16,011,765 | 56,632 | |||||
Total comprehensive income/(loss) | |||||||||||||||||
Profit for the year | 2,037,759 | 1,979,129 | 1,979,129 | 58,630 | |||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||
Foreign currency translation differences | (7,150) | (45,848) | 37,811 | (8,037) | 887 | ||||||||||||
Remeasurements of employee termination benefit | (2,990) | (2,990) | (2,990) | ||||||||||||||
Other comprehensive income for the year, net of income tax | (10,140) | (45,848) | (2,990) | 37,811 | (11,027) | 887 | |||||||||||
Total comprehensive income for the year | 2,027,619 | (45,848) | (2,990) | 37,811 | 1,979,129 | 1,968,102 | 59,517 | ||||||||||
Transfers | 447,820 | (447,820) | |||||||||||||||
Dividend paid | (3,050,928) | 9,294 | (3,000,000) | (2,990,706) | (60,222) | ||||||||||||
Ending balance at Dec. 31, 2017 | ₺ 15,045,088 | ₺ 2,200,000 | ₺ (56,313) | ₺ 35,026 | ₺ 269 | ₺ 1,643,024 | ₺ (540,045) | ₺ (44,776) | ₺ 439,700 | ₺ 11,312,276 | ₺ 14,989,161 | ₺ 55,927 | |||||
[1] | Included in Reserves in the consolidated statement of financial position. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit for the year | |||
Continuing operations | ₺ 2,037,759 | ₺ 1,585,967 | ₺ 1,536,215 |
Discontinued operations | (42,164) | 367,336 | |
Profit for the year including discontinued operations | 2,037,759 | 1,543,803 | 1,903,551 |
Adjustments for: | |||
Depreciation and impairment of property, plant and equipment and investment properties | 1,501,579 | 1,281,539 | 1,118,499 |
Amortization of intangible assets | 1,095,401 | 921,812 | 549,251 |
Net finance income | 165,387 | (117,598) | (515,040) |
Fair value adjustments to derivatives | (562,562) | (383,452) | |
Income tax expense | 571,758 | 423,160 | 667,112 |
Gain on sale of property, plant and equipment | (33,837) | (25,010) | (13,141) |
Unrealized foreign exchange losses on operating assets | 966,340 | 545,287 | 579,372 |
Provisions | 980,040 | 197,543 | 196,588 |
Share of losses/(profits) of discontinued operations | 42,164 | (367,336) | |
Deferred revenue | 131,486 | (20,350) | 8,095 |
Adjustments to reconcile profit (loss) | 6,853,351 | 4,408,898 | 4,126,951 |
Change in trade receivables | 613,404 | 1,197,053 | (821,208) |
Change in due from related parties | 1,107 | 7,514 | 3,907 |
Change in receivables from financial services | (1,931,538) | (2,396,372) | |
Change in inventories | 27,871 | (62,090) | (4,526) |
Change in other current assets | (198,268) | 643,444 | (771,583) |
Change in other non-current assets | 15,012 | 78,770 | (70,030) |
Change in due to related parties | (4,099) | 4,302 | (20,530) |
Change in trade and other payables | (507,043) | (2,733,901) | 348,472 |
Change in other non-current liabilities | (82,018) | (14,477) | (14,088) |
Change in employee benefit obligations | (18,627) | 15,151 | 5,125 |
Changes in other working capital | (265,518) | 29,286 | 23,423 |
Cash generated from operations | 4,503,634 | 1,177,578 | 2,805,913 |
Interest paid | (909,881) | (434,521) | (153,529) |
Income tax paid | (492,487) | (135,920) | (751,078) |
Net cash inflow from operating activities | 3,101,266 | 607,137 | 1,901,306 |
Cash flows from investing activities: | |||
Acquisition of property, plant and equipment | (2,937,195) | (2,572,401) | (2,135,358) |
Acquisition of intangible assets | (1,172,847) | (855,097) | (2,461,612) |
Proceeds from sale of property, plant and equipment | 58,740 | 49,639 | 24,192 |
Proceeds from currency option contracts | 1,070 | ||
Proceeds from advances given for acquisition of property, plant and equipment | 205,580 | (209,686) | 228,070 |
Proceeds from financial assets | 19,350 | ||
Payments for held to maturity investment | (11,992) | ||
Interest received | 553,066 | 610,837 | 761,328 |
Net cash outflow from investing activities | (3,304,648) | (2,976,708) | (3,562,960) |
Cash flows from financing activities: | |||
Acquisition of non-controlling interest | (267,920) | ||
Capital decrease in subsidiaries | (9,000) | ||
Proceeds from issues of loans and borrowings | 24,102,643 | 9,381,318 | 4,866,381 |
Proceeds from issues of bonds | 209,808 | 167,500 | 1,439,862 |
Repayment of borrowings | (22,265,088) | (4,932,768) | (6,551,001) |
Repayment of bonds | (379,660) | ||
Dividends paid to shareholders | (2,990,706) | (3,925,000) | |
Dividends paid to non-controlling interest in subsidiaries | (60,222) | (51,416) | (100,515) |
Acquisition of treasury shares | (65,607) | ||
(Increase)/decrease in cash collateral related to loans | (183,518) | 349,004 | (349,243) |
Net cash (outflow)/inflow from financing activities | (1,566,743) | 4,839,031 | (4,887,436) |
Net (decrease)/increase in cash and cash equivalents | (1,770,125) | 2,469,460 | (6,549,090) |
Cash and cash equivalents at 1 January | 6,052,352 | 2,918,796 | 9,031,881 |
Effects of exchange rate changes on cash and cash equivalents | 430,106 | 664,096 | 436,005 |
Cash and cash equivalents at 31 December | ₺ 4,712,333 | ₺ 6,052,352 | ₺ 2,918,796 |
Reporting entity
Reporting entity | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Reporting entity | 1. Turkcell Iletisim Hizmetleri Anonim Sirketi (the “Company”) was incorporated in Turkey on 5 October 1993 and commenced its operations in 1994. The address of the Company’s registered office is Maltepe Aydinevler Mahallesi Inonu Caddesi No: 20, Kucukyali Ofispark/Istanbul. It is engaged in establishing and operating a Global System for Mobile Communications (“GSM”) network in Turkey and regional states. In April 1998, the Company signed a license agreement (the “2G License”) with the Ministry of Transport, Maritime Affairs and Communications of Turkey (the “Turkish Ministry”), under which it was granted a 25 year GSM license in exchange for a license fee of $500,000. The License permits the Company to operate as a stand-alone GSM operator and releases it from some of the operating constraints in the Revenue Sharing Agreement, which was in effect prior to the 2G License. Under 2G licence, the Company pays in cash the Undersecretariat of the Treasury (the “Turkish Treasury”) a monthly tax levy namely ‘treasury share’ equal to 15% of the Company’s gross revenue from Turkish GSM operations. The Company continues to build and operate its GSM network and is authorized to, among other things, set its own tariffs within certain limits, charge peak and off-peak IMT-2000/UMTS A-Type On 26 August 2015, “Authorization Tender on IMT Services and Infrastructure” publicly known as 4.5G license tender, was held by the ICTA and the Company was awarded with a total frequency band of 172.4 MHz for 13 years. The tender price is EUR 1,623,460 (excluding VAT of 18%). IMT authorization period expires on 30 April 2029 and operators were able to commence service delivery for 4.5G starting from 1 April 2016. 2x1.4 MHz frequency band in 900MHz spectrum and 2 units of 2x5 MHz frequency bands in 2100 MHz spectrum were commenced on 1 December 2015, while remaining packages were commenced on 1 April 2016. For details please refer to Note 12. On 25 June 2005, the Turkish Government declared that GSM operators are required to pay 10% of their existing monthly treasury share to the Turkish Ministry as a universal service fund contribution in accordance with Law No: 5369. As a result, starting from 30 June 2005, the Company started to pay 90% of the treasury share to the Turkish Treasury and 10% to the Turkish Ministry as universal service fund. In July 2000, the Company completed an initial public offering with the listing of its ordinary shares on the Istanbul Stock Exchange and American Depositary Shares, or ADSs, on the New York Stock Exchange. The Company’s parent is Turkcell Holding A.S., which holds 51% of the Company’s shares as of 31 December 2017. The main shareholders of Turkcell Holding A.S. are TeliaSonera Finland Oyj (Sonera), Cukurova Group and Alfa Telecom Turkey Limited (“Alfa”) according to the information obtained from public sources. After failure to comply with corporate governance principles for election of independent board members, the CMB appointed 3 independent board members and 4 members, of which 2 members were chosen from the independent nominees list submitted by Sonera, as board members who satisfy the independence criteria in 2013. All members shall serve as members until new members are elected by the general assembly or until the CMB announces a new resolution. After appointment of board members by the CMB, Turkcell board is comprised of 7 non-executive The consolidated financial statements of the Company as at and for the year ended 31 December 2017 comprise the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interest in an associate. Subsidiaries of the Company, their locations and their nature of operations are disclosed in Note 38. The Company’s and each of its subsidiaries’ and associate’s financial statements are prepared as at and for the year ended 31 December 2017. |
Basis of preparation and summar
Basis of preparation and summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Basis of preparation and summary of significant accounting policies | 2. This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements to the extent they have not already been disclosed in the other notes below. These policies have been consistently applied to all the years presented, unless otherwise stated. The consolidated financial statements are for the Group consisting of Turkcell İetişim Hizmetleri A.Ş. and its subsidiaries and the Group’s interest in an associate. (a) Compliance with IFRS The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and interpretations issued by the IFRS Interpretations Committee (“IFRS IC”) applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board (“IASB”). The General Assembly has the power to amend and reissue the financial statements. The consolidated financial statements as at and for the year ended 31 December 2016 were authorized for issue by the Board of Directors on 15 February 2017. The consolidated financial statements as at and for the year ended 31 December 2017 were authorized for issue by the Board of Directors on 15 February 2018. (b) Historical cost convention The accompanying consolidated financial statements are based on the statutory records, with adjustments and reclassifications for the purpose of fair presentation in accordance with IFRS as issued by the IASB. The financial statements have been prepared on a historical cost basis, except for the following measured at fair value: - Derivative financial instruments - Consideration payable in relation to the acquisition of Belarusian Telecom (c) Functional and presentation currency (i) Transactions and balances Transactions denominated in foreign currencies are translated into the functional currency using the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency using the exchange rates at that date. Non-monetary available-for-sale Foreign exchange gains and losses are recognized in profit or loss, except: • For capitalized foreign exchange differences relating to borrowings to the extent that they are regarded as an adjustment to interest costs eligible for capitalization. Foreign exchange differences that are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. Foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within finance income or finance costs. (ii) Foreign operations The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet • income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average monthly exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and • all resulting exchange differences are recognized in other comprehensive income and accumulated in the foreign currency translation reserve, in equity. On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are recognized in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. (d) Use of estimates and judgments The preparation of the consolidated financial statements requires the use of accounting estimates. Management also needs to exercise judgement in applying the Group’s accounting policies. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are described below: Allowance for doubtful receivables The Group maintains an allowance for doubtful receivables for estimated losses resulting from the inability of the Group’s subscribers and customers to make required payments. The Group bases the allowance on the likelihood of recoverability of trade and other receivables based on the aging of the balances, historical collection trends and general economic conditions. The allowance is periodically reviewed. The allowance charged to expenses is determined in respect of receivable balances, calculated as a specified percentage of the outstanding balance in each aging group, with the percentage of the allowance increasing as the aging of the receivable becomes older. Capitalization and useful lives of assets The useful lives and residual values of the Group’s assets are estimated by management at the time the asset is acquired and regularly reviewed for appropriateness. The Group defines useful life of its assets in terms of the assets’ expected utility to the Group. This judgment is based on the experience of the Group with similar assets. In determining the useful life of an asset, the Group also follows technical and/or commercial obsolescence arising on changes or improvements from a change in the market. The useful lives of the telecommunication licenses are based on the duration of the license agreements. Belarusian Telecom has 10 years of special GSM and UMTS services licenses acquired on 26 August 2008. In addition, the license period has been committed and signed for an additional 10 years for an insignificant fee. The amortization on the consolidated financial statements has been recognized on the assumption that the duration of the license would be extended. Gross versus net presentation of revenue When the Group acts as principal in sale of goods or rendering of services, revenue from customers and costs with suppliers are reported on a gross basis. When the Group acts as agent in sale of goods or rendering of services, revenue from customer and costs with suppliers are reported on a net basis, representing the net margin earned. Whether the Group is acting as principal or agent depends on management’s analysis of both legal form and substance of the agreement between the Group and its business partners; such judgements impact the amount of reported revenue and costs but do not impact reported assets, liabilities or cash flows. Multiple element arrangements In arrangements which include multiple elements where the Group acts as principal, the Group considers the elements to be separate units of accounting in the arrangement. Total arrangement consideration relating to the bundled contracts is allocated among the different units according the following criteria: • the component has standalone value to the customer; and • the fair value of the component can be measured reliably. The arrangement consideration is allocated to each deliverable in proportion to the fair value of the individual deliverables. If a delivered element of a transaction is not a separately identifiable component, then it is accounted for as an integrated part of the remaining components of the transaction. Income taxes The calculation of income taxes involves a degree of estimation and judgment in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through formal legal process. As part of the process of preparing the consolidated financial statements, the Group is required to estimate the income taxes in each of the jurisdictions and countries in which they operate. This process involves estimating the actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as deferred revenue and reserves for tax and accounting purposes. The Group management assesses the likelihood that the deferred tax assets will be recovered from future taxable income and to the extent the recovery is not considered probable the deferred asset is adjusted accordingly. The recognition of deferred tax assets is based upon whether it is probable that future taxable profits will be available, against which the temporary differences can be utilized. Recognition, therefore, involves judgment regarding the future financial performance of the particular legal entity in which the deferred tax asset has been recognized. Provisions, contingent liabilities and contingent assets As detailed and disclosed in Note 36, the Group is involved in a number of investigations and legal proceedings (both as a plaintiff and as a defendant) during the year arising in the ordinary course of business. All of these investigations and litigations are evaluated by the Group Management in accordance with IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” Annual impairment review The Group tests annually whether goodwill and intangible asset not yet available for use have suffered any impairment in accordance with IAS 36 “Impairment of Assets” As at 31 December 2014, the Group has impaired its assets in Crimea region amounting to TL 19,897. As at 31 December 2017, the Group has impaired its assets in Luhansk and Donetsk regions amounting to TL 10,872. Current and potential future political and economic changes in Belarus and Ukraine could have an adverse effect on the subsidiaries operating in these countries. The economic stability of Belarus and Ukraine depends on the economic measures that will be taken by the governments and the outcomes of the legal, administrative and political processes in these countries. These processes are beyond the control of the subsidiaries established in these countries. Consequently, the subsidiaries operating within Belarus and Ukraine may subject to foreign currency and interest rate risks related to borrowings, the subscriber’s purchasing power, liquidity and increase in corporate and personal insolvencies, that may not necessarily be observable in other markets. The accompanying consolidated financial statements contain the Group management’s estimations on the economic and financial positions of its subsidiaries operating in Belarus and Ukraine. The future economic situation of Belarus and Ukraine might differ from the Group’s expectations. As at 31 December 2017, the Group’s management believes that their approach is appropriate in taking all the necessary measures to support the sustainability of these subsidiaries’ businesses in the current circumstances and the achievability of the financials projections used in the impairment assessments. Fair value measurements and valuation processes Some of the Group’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where Level 1 and 2 inputs are not available, the Group can engage third party qualified valuers to perform the valuation, if necessary. The management works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model. Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in Note 33. Contracted handset sales The Company, the distributors and dealers offer joint campaigns to the subscribers which may include the sale of device by the dealer and/or distributor and a communication service to be provided by the Company. The Company does not recognize any revenue for the device in these transactions by considering the below factors: - the Company is not primary obligor for the sale of handset, - the Company does not have control over the sale prices of handsets, - the Company has no inventory risk, - the Company has no responsibility on technical compability of equipment delivered to customers - the responsibility after sale belongs to the distributor and - the Company does not make any modification on the equipment. (e) Changes in accounting policies Other than the adoption of the new and revised standards as explained in Note 2(af), the Group did not make any significant changes to its accounting policies during the current year. (f) Changes in accounting estimates If the application of changes in the accounting estimates affects the financial results of a specific period, the changes in the accounting estimates are applied in that specific period, if they affect the financial results of current and following periods; the accounting estimate is applied prospectively in the period in which such change is made. A change in the measurement basis applied is a change in an accounting policy, and is not a change in an accounting estimate. The Company does not have significant changes in accounting estimates during the year. (g) Comparative information and revision of prior period financial statements The consolidated financial statements of the Group have been prepared consistent with prior periods. (h) Principles of consolidation and equity accounting (i) Business combinations Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination comprises: • the fair value of the assets transferred • liabilities incurred to the former owners of the acquired business • equity interests issued by the Group • the fair value of any asset or liability resulting from a contingent consideration arrangement, and • the fair value of any pre-existing Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. Goodwill is measured as the excess of the consideration transferred, amount of any non-controlling non-controlling acquisition-by-acquisition non-controlling Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in profit or loss.canc Contingent consideration classified as equity is not subject to remeasurement. Instead, any gain or loss at settlement is recorded as an adjustment to equity through other comprehensive income. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquire is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in profit or loss. (ii) Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling Non -controlling interest has not been attributed to Belarus Telekom on the grounds that net assets of Belarus Telekom is negative, Belarus Telekom is financed solely by the Company and management’s assessment of relevant articles of the share purchase agreement with the non-controlling Turkcell Finansman A.Ş. (“Turkcell Finansman”) sold financial loans amounting to TL 87,589 to Aktif Yatırım Bankası A.Ş. Turkcell Varlık Finansmanı Fund (“Fund”) founded by Aktif Yatırım Bankası A.Ş. on 14 April 2017 in order to create funds for issuance of Asset Backed Securities (“ABS”) which will be issued by the Fund in a structure where Turkcell Finansman will act as the source organization. Turkcell Finansman sold second financial loans amounting to TL 89,607 to Aktif Yatırım Bankası A.Ş. Turkcell Varlık Finansmanı Fund (“Fund”) founded by Aktif Yatırım Bankası A.Ş. on 22 August 2017. Turkcell Finansman transferred its contractual rights to receive cash flows from the financial loans that have been sold to the Fund resulting in de-recognition (iii) Changes in ownership interests The Group treats transactions with non-controlling non-controlling non-controlling non-controlling When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate. (iv) Business combinations under common control Business combinations between entities or businesses under common control are excluded from the scope of IFRS 3. In a business combination under common control, assets and liabilities of the acquired entity are stated at predecessor carrying values. Any difference between the consideration given and the aggregate book value of the assets and liabilities of the acquired entity at the date of the transaction is recognized in equity. The acquired entity’s results and financial position are incorporated as if both entities (acquirer and acquiree) had always been combined, or using the results from the date when either entity joined the Group, where such a date is later. (vi) Put option over shares relating to non-controlling Where a put option is written by the Group on shares in an existing subsidiary held by non-controlling non-controlling non-controlling Reserve for put option over shares relating to non-controlling non-controlling non-controlling (vii) Investments in associates An associate is an entity over which the Group has significant influence, but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting after initially being recognized at cost. Under the equity method of accounting, an investment in an associate is initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates are recognized as a reduction in the carrying amount of the investment. When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in that entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. On acquisition of an associate, any excess of the cost of the investment over the Group’s share of the net fair values of the associate’s identifiable assets and liabilities is recognized as goodwill, which is included in the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the associate’s identifiable assets and liabilities over the cost of the investment is included as part of the Group’s share of the associate profit or loss in the period in which the investment is acquired. The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in (Note 15). The Group measures an associate that is classified as held for sale at the lower of its carrying amount at the date of classification as held for sale and fair value less costs of disposal. Equity accounting ceases once an associate is classified as held for sale. (i) Financial instruments (i) Classification The Group classifies its financial assets in the following categories: • financial assets at fair value through profit or loss, • loans and receivables, • held-to-maturity • available-for-sale The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluates (ii) Reclassification The Group may choose to reclassify a non-derivative available-for-sale Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortized cost as applicable, and no reversals of fair value gains or losses recorded before reclassification date are subsequently made. Effective interest rates for financial assets reclassified to loans and receivables and held-to-maturity (iii) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on trade date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When securities classified as available-for-sale (iv) Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Loans and receivables and held-to-maturity Available-for-sale • for ‘financial assets at fair value through profit or loss’ – in profit or loss • for available-for-sale • for other monetary and non-monetary available-for-sale Dividends on financial assets at fair value through profit or loss and available-for-sale Details on how the fair value of financial instruments is determined are disclosed in Note 33. (iv) Impairment The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. In the case of equity investments classified as available-for-sale, For loans and receivables, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in profit or loss. If a loan or held-to-maturity If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (such as an improvement in the debtor’s credit rating), the reversal of the previously recognized impairment loss is recognized in profit or loss. Impairment testing of trade receivables is described in Note 33. If there is objective evidence of impairment for available-for-sale Impairment losses on equity instruments that were recognised in profit or loss are not reversed through profit or loss in a subsequent period. If the fair value of a debt instrument classified as available-for-sale (v) Derecognition of financial assets The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. (vi) Income recognition Interest income is recognised using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans is recognised using the original effective interest rate. Dividends are recognised as revenue when the right to receive payment is established. This applies even if they are paid out of pre-acquisition (vii) Derivative financial instruments Forward foreign exchange, interest rate and foreign exchange swaps (IRS, Cross Currency Swaps etc.) and option transaction fair values are calculated with market levels of interest rates and Central Bank of Republic of Turkey (CBRT) exchange rates via Bloomberg financial terminal. If market levels are not available for valuation date, fair value for forward contracts will be value of discounted future value of difference between contract price level and forward value of CBRT exchange rate with risk fee rates for the period. Interest rate and currency swaps will be valued with the difference of discounted cash flows of each leg of the swaps using risk free rates and CBRT exchange rates. Option transactions will be valued with option pricing models using risk free rates and CBRT exchange rates. (viii) Offsetting financial assets and financial liabilities Financial assets and liabilities are offset and the net amount presented in the statement of financial position where the Group has a legally enforcable right to offset the recognized amounts, and there is an intention to settle on a net basis or to realize the asset and settle the liability simultaneously. (j) Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (k) Trade receivables Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. If collection of the amounts is expected in one year or less they are classified as current assets. If not, they are presented as non-current Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. See Note 33 for a description of the Group’s impairment policies. (l) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are stated at historical cost less depreciation and impairment losses. Property, plant and equipment related to the Company and its subsidiaries operating in Turkey are adjusted for the effects of inflation during the hyperinflationary period ended on 31 December 2005. Since the inflation accounting commenced on 1 January 2011, property, plant and equipment related to the subsidiaries operating in Belarus are adjusted for the effects of inflation. However, decrease in inflation rate in subsequent years led the three-year cumulative rate as of the end of 2014 to decrease to 65%. Accordingly, the economy of Belarus was considered to transit out of hyperinflationary status and 2015 is determined to be appropriate to cease applying IAS 29. Therefore, subsidiaries operating in Belarus ceased applying IAS 29 in 2015. Historical cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes cost of materials and direct labor, any other costs directly attributable to bringing the asset to a working condition for its intended use and the costs of dismantling and removing the items and restoring the site on which they are located, if any. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. There are recognized included in profit or loss. Changes in the obligation to dismantle, remove assets on sites and to restore sites on which they are located, other than changes deriving from the passing of time, are added or deducted from the cost of the assets in the period in which they occur. The amount deducted from the cost of the asset shall not exceed the balance of the carrying amount on the date of change, and any excess balance is recognized immediately in profit or loss. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. (ii) Subsequent costs Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2017 | |
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Financial risk management | 3. This note explains the Group’s exposure to financial risks and how these risks could affect the Group’s future financial performance. Current year profit and loss information has been included where relevant to add further context. The Group’s risk management is carried out by a central treasury department (“Group Treasury) under policies approved by the Audit Committee. Group Treasury identifies, evaluates and manages financial risks in close co-operation non-derivative Credit risk At the reporting date, there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of cash and cash equivalents, held-to-maturity Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Group may require collateral in respect of financial assets. Also, the Group may demand letters of guarantee from third parties related to certain projects or contracts. The Group may also demand certain pledges from counterparties if necessary in return for the credit support it gives related to certain financings (Note 19). In monitoring customer credit risk, customers are grouped according to whether they are subscribers, financial services customers, other corporate customers, aging profile, maturity and existence of previous financial difficulties. Trade receivables and accrued income are mainly related to the Group’s subscribers. The Group’s exposure to credit risk on trade receivables is influenced mainly by the individual payment characteristics of postpaid subscribers. The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. This allowance comprise of the general provision which is determined based on the age of the balances and historical collection trends. Investments are preferred to be in liquid securities. The counterparty limits are set monthly depending on their ratings from the most credible rating agencies and the amount of their paid-in paid-in Transactions involving derivatives are executed with local and international counterparties with whom the Group has signed international agreements and which have sound credit ratings. The Group’s policy is to provide financial guarantees only to subsidiaries and distributors. At 31 December 2017, guarantees of TL 3,720,954 were outstanding (31 December 2016: TL 1,409,749). Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. At the end of the reporting period the Group held deposits at call of TL 603,553 (2016: TL 569,826) that are expected to readily generate cash inflows for managing liquidity risk. Due to the dynamic nature of the underlying businesses, Group Treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Group’s liquidity reserve (Note 33) and cash and cash equivalents (Note 23) on the basis of expected cash flows. In addition, the Group’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk. The Group uses derivatives in order to manage market risks. All such transactions are carried at within the guidelines set by the Group Treasury. (i) Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EUR. Foreign exchange risk arises from recognized assets and liabilities denominated in a currency that is not the functional currency of the relevant Group entity. The Group holds a significant portion of its cash and cash equivalent in foreign currency in order to manage foreign exchange risk. In additional, derivative financial instruments are used to manage exposure to fluctuations in foreign exchange rates. (ii) Interest rate risk The Group’s exposure to interest rate risk is related to its financial assets and liabilities. The Group manage its financial liabilities by providing an appropriate distribution between fixed and floating rate loans. Floating rate exposures can be changed to fixed rate exposures based on short term and long term market expectations via financial derivatives. The use of financial derivatives is governed by the Group Treasury’s policies approved by the Audit Committee, which provide written principles on the use of derivatives. The Group’s borrowings and receivables are carried at amortized cost. The borrowings are periodically contractually repriced (Note 33) and to that extent are also exposed to the risk of future changes in market interest rates. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2017 | |
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Segment information | 4. The Group has two reportable segments in accordance with its integrated communication and technology services strategy – Turkcell Turkey and Turkcell International. While some of these strategic segments offer the same types of services, they are managed separately because they operate in different geographical locations and are affected by different economic conditions. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker function is carried out by the Board of Directors, however Board of Directors may transfer the authorities, other than recognized by the law, to the General Manager and other directors. Turkcell Turkey reportable segment includes the operations of Turkcell, Turkcell Superonline Iletisim Hizmetleri A.S. (“Turkcell Superonline”), Turkcell Satis ve Dagitim Hizmetleri A.S. (“Turkcell Satis”), group call center operations of Global Bilgi Pazarlama Danisma ve Cagri Servisi Hizmetleri A.S. (“Turkcell Global Bilgi”), Turktell Bilisim Servisleri A.S. (“Turktell”), Turkcell Teknoloji Arastirma ve Gelistirme A.S. (“Turkcell Teknoloji”), Kule Hizmet ve Isletmecilik A.S. (“Global Tower”), Rehberlik Hizmetleri Servisi A.S. (“Rehberlik”), Turkcell Odeme Hizmetleri A.S. (“Turkcell Odeme”) and Turkcell Gayrimenkul Hizmetleri A.S. (“Turkcell Gayrimenkul”). Turkcell International reportable segment includes the operations of Kibris Mobile Telekomunikasyon Limited Sirketi (“Kibris Telekom”), East Asian Consortium B.V. (“Eastasia”), LLC lifecell (“lifecell”), Lifecell Ventures Coöperatief U.A (“Lifecell Ventures”), Beltel Telekomunikasyon Hizmetleri A.S. (“Beltel”), CJSC Belarusian Telecommunications Network (“Belarusian Telecom”), LLC UkrTower (“UkrTower”), LLC Global Bilgi (“Global LLC”), Turkcell Europe GmbH (“Turkcell Europe”), Lifetech LLC (“Lifetech”), Beltower LLC (“Beltower”), Lifecell Digital Limited and Fintur. The operations of these legal entities aggregated into one reportable segment as the nature of services are similar and most of them share similar economic characteristics. Other reportable segment mainly comprises the information and entertainment services in Turkey and Azerbaijan, non-group The Board primarily uses adjusted EBITDA to assess the performance of the operating segments. Adjusted EBITDA definition includes revenue, cost of revenue excluding depreciation and amortization, selling and marketing expenses and administrative expenses. Adjusted EBITDA is not a financial measure defined by IFRS as a measurement of financial performance and may not be comparable to other similarly-titled indicators used by other companies. Reconciliation of Adjusted EBITDA to the consolidated profit for the year is included in the accompanying notes. Turkcell Turkey Turkcell International All other segments Intersegment Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Total segment revenue 15,450,136 12,787,592 1,067,078 874,692 1,187,454 661,923 (72,604 ) (38,646 ) 17,632,064 14,285,561 Inter-segment revenue (31,690 ) (19,680 ) (40,897 ) (18,964 ) (17 ) (2 ) 72,604 38,646 — — Revenues from external customers 15,418,446 12,767,912 1,026,181 855,728 1,187,437 661,921 — — 17,632,064 14,285,561 Adjusted EBITDA 5,593,837 4,160,861 263,962 235,348 374,314 222,849 (3,859 ) 451 6,228,254 4,619,509 Bad debt expense 49,468 (195,472 ) (6,070 ) (5,956 ) (79,676 ) (9,956 ) — — (36,278 ) (211,384 ) Turkcell Turkey Turkcell International All other segments Intersegment Consolidated 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 Total segment revenue 12,787,592 11,480,890 874,692 856,147 661,923 458,563 (38,646 ) (26,185 ) 14,285,561 12,769,415 Inter-segment revenue (19,680 ) (14,608 ) (18,964 ) (11,731 ) (2 ) 154 38,646 26,185 — — Revenues from external customers 12,767,912 11,466,282 855,728 844,416 661,921 458,717 — — 14,285,561 12,769,415 Adjusted EBITDA 4,160,861 3,759,590 235,348 245,959 222,849 134,484 451 511 4,619,509 4,140,544 Bad debt expense (195,472 ) (187,963 ) (5,956 ) (8,292 ) (9,956 ) (333 ) — — (211,384 ) (196,588 ) 2017 2016 2015 Profit for the period 2,037,759 1,543,803 1,903,551 Add(Subtract): Profit/(loss) from discontinued operations — 42,164 (367,336 ) Profit from continuing operations 2,037,759 1,585,967 1,536,215 Income tax expense 571,758 423,160 667,112 Finance income (1,090,449 ) (1,064,794 ) (756,039 ) Finance costs 1,413,315 1,237,593 799,514 Other income (74,438 ) (78,569 ) (44,454 ) Other expenses 773,329 312,801 270,446 Depreciation and amortization 2,596,980 2,203,351 1,667,750 Consolidated adjusted EBITDA 6,228,254 4,619,509 4,140,544 Geographical information In presenting the information on the basis of geographical segments, segment revenue is based on the geographical location of operations and segment assets are based on the geographical location of the assets. 2017 2016 2015 Revenues Turkey 16,431,863 13,321,503 11,779,345 Ukraine 664,643 573,951 571,630 Belarus 209,884 149,005 141,219 Azerbaijan 174,021 108,329 145,654 Turkish Republic of Northern Cyprus 148,637 129,785 125,668 Germany 3,016 2,988 5,899 17,632,064 14,285,561 12,769,415 Non-current 31 December 31 December Turkey 18,098,228 16,548,162 Ukraine 1,408,783 1,211,789 Turkish Republic of Northern Cyprus 141,802 117,243 Belarus 138,371 291,498 Azerbaijan 13,663 13,563 Unallocated non-current 112,516 67,057 19,913,363 18,249,312 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2017 | |
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Revenue | 5. 2017 2016 2015 Telecommunication services 15,115,816 12,883,974 11,972,443 Equipment revenues 1,159,500 624,352 254,582 Revenue from financial services 605,663 184,698 — Revenue and commission fees on betting business 355,907 284,496 277,525 Call center revenues 232,679 198,564 187,840 Other 162,499 109,477 77,025 17,632,064 14,285,561 12,769,415 |
Other income and expense
Other income and expense | 12 Months Ended |
Dec. 31, 2017 | |
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Other income and expense | 6. Other income amounted to TL 74,438, TL 78,569 and TL 44,454 for the years ended 31 December 2017, 2016 and 2015, respectively. Other expenses amounted to TL 773,329, TL 312,801 and TL 270,446 for years ended 31 December 2017, 2016 and 2015, respectively. Other income for the years ended 31 December 2017, 2016 and 2015 mainly consist of gain on sale of fixed assets and reversal of legal provisions (Note 36). Other expenses for the year ended 31 December 2017 and 2016 mainly consist of donations and litigation expenses (Note 36). Other expenses for the year ended 31 December 2015 mainly consist of expenses for termination of commercial agreements and litigation expenses. |
Employee benefit expenses
Employee benefit expenses | 12 Months Ended |
Dec. 31, 2017 | |
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Employee benefit expenses | 7. 2017 2016 2015 Wages and salaries (*) 1,746,147 1,450,262 1,317,655 Employee termination benefits (**) 32,862 32,977 30,593 Defined contribution plans 8,107 7,722 8,364 1,787,116 1,490,961 1,356,612 (*) Wages and salaries include compulsory social security contributions and bonuses. (**) Remeasurements of employee termination benefits for the years ended 31 December 2017, 2016 and 2015 amounting to TL 3,738, TL 34,532 and TL 13,466 respectively are reflected in other comprehensive income. |
Finance income and costs
Finance income and costs | 12 Months Ended |
Dec. 31, 2017 | |
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Finance income and costs | 8. Recognized in the statement of profit or loss: 2017 2016 2015 Fair value gains on derivative financial instruments 589,555 385,560 1,070 Interest income on bank deposits 278,599 158,206 303,221 Interest income on financial assets measured at amortized cost 185,004 445,943 436,024 Credit finance income 36,186 74,522 13,865 Other 1,105 563 1,859 Finance income 1,090,449 1,064,794 756,039 Net foreign exchange losses (718,501 ) (782,463 ) (489,320 ) Interest expenses for financial liabilities measured at amortized cost (385,386 ) (343,290 ) (224,724 ) Interest expenses for derivative financial instruments (244,841 ) (93,038 ) — Late payment interest expense (29,115 ) — (68,083 ) Option premium charges (27,172 ) (10,114 ) (2,290 ) Other (8,300 ) (8,688 ) (15,097 ) Finance costs (1,413,315 ) (1,237,593 ) (799,514 ) Net finance costs (322,866 ) (172,799 ) (43,475 ) Finance incomes for the years ended 31 December 2017, 2016 and 2015 are mainly attributable to interest income on contracted handset sales, changes in fair value of derivative financial instruments and interest income on bank deposits. Foreign exchange losses mainly include foreign exchange losses on borrowings and bonds issued amounting to TL 920,862 and TL 113,081 as of 31 December 2017. Finance costs for year ended 31 December 2016 and 2015 is mainly attributable to the financing costs of borrowings, 4.5G license fees payable, foreign exchange losses of Belarusian Telecom operating in Belarus and foreign exchange losses of lifecell operating in Ukraine. Foreign exchange losses from Belarusian Telecom and lifecell exclude foreign exchange losses incurred in the foreign operations’ individual financial statements which have been recognized directly in equity under foreign currency translation reserve in the consolidated financial statements in accordance with the accounting policy for net investment in foreign operations as disclosed in Note 2c. |
Income tax expense
Income tax expense | 12 Months Ended |
Dec. 31, 2017 | |
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Income tax expense | 9. 2017 2016 2015 Current income tax expense (437,967 ) (200,663 ) (591,297 ) Deferred income tax expense (133,791 ) (222,497 ) (75,815 ) Total income tax expense (571,758 ) (423,160 ) (667,112 ) Income tax expense is attributable to profit from continuing operations. Income tax relating to each component of other 2017 Before tax Tax (expense)/ credit Net of tax Foreign currency translation differences 100,149 (107,299 ) (7,150 ) Remeasurements of employee termination benefits (3,738 ) 748 (2,990 ) 96,411 (106,551 ) (10,140 ) 2016 Foreign currency translation differences 218,472 (87,381 ) 131,091 Remeasurements of employee termination benefits (34,532 ) 7,066 (27,466 ) 183,940 (80,315 ) 103,625 2015 Foreign currency translation differences (384,466 ) (5,749 ) (390,215 ) Changes in cash flow hedge reserve 719 — 719 Remeasurements of employee termination benefits (13,466 ) 2,563 (10,903 ) (397,213 ) (3,186 ) (400,399 ) Reconciliation of income tax expense 2017 2016 2015 Profit from continuing operations before income tax expense 2,609,517 2,009,127 2,203,327 Profit from discontinued operations before income tax expense — (42,164 ) 367,336 Profit before income tax expense 2,609,517 1,966,963 2,570,663 Tax at the Turkey’s tax rate (521,903 ) (393,393 ) (514,133 ) Difference in overseas tax rates 4,133 (15,935 ) (52,688 ) Effect of exemptions (*) 73,916 104,244 62,163 Effect of amounts which are not deductible (102,102 ) (78,571 ) (16,104 ) Utilization of previously unrecognized tax losses — 1,253 22,863 Change in unrecognized deferred tax assets (**) (41,340 ) (30,616 ) (198,364 ) Adjustments for current tax of prior years 11,280 (8,176 ) — Tax effect of investment in associate — — 32,926 Other 4,258 (1,966 ) (3,775 ) Total income tax expense (571,758 ) (423,160 ) (667,112 ) (*) Mainly comprises of research and development tax credit. (**) Mainly comprises of tax losses for which no deferred tax asset has been recognized. As of 31 December 2017, the Turkish entities within the Group are subject to corporate tax at the Turkey’s tax rate of 20%. On December 5, 2017, Turkey’s Law No. 7061 on the Amendment of Some Tax Laws and Some Other Laws, which was adopted on November 28, 2017, was published in the Official Gazette. The Law increases the corporate tax rate under the Corporate Tax Law, No. 5520, from the current 20% rate to 22% for tax years 2018, 2019, and 2020; the change took effect on the Law’s date of publication. It is expected to continue with 20% afterwards. In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Companies file their tax returns at the end of until the 25th day of the forth month following the close of the accounting year to which they relate. Corporate tax payment is made until the end of the month in which the tax return is filed. Tax authorities may, however, examine such returns and the underlying accounting records and may revise assessments within five years. Advance tax returns are filed on a quarterly basis. Corporate tax is applied on taxable corporate income, which is calculated from the statutory accounting profit by adding back non-deductible In Turkey, the transfer pricing provisions have been stated under the Article 13 of Corporate Tax Law with the heading of “disguised profit distribution via transfer pricing”. The General Communiqué on disguised profit distribution via Transfer Pricing, dated 18 November 2007 sets details about implementation. If a taxpayer enters into transactions regarding sale or purchase of goods and services with related parties, where the prices are not set in accordance with arm’s length principle, then related profits are considered to be distributed in a disguised manner through transfer pricing. Such disguised profit distributions through transfer pricing are not accepted as tax deductible for corporate income tax purposes. The deduction of 100% of the research and development expenses is allowed when the taxpayers are made these expenditures exclusively for new technology and information researches. Dividend payments of Turkish resident corporations against Turkish real persons, foreign corporations and foreign real persons are subject to 15% withholding tax. It is possible to apply reduced withholding tax rate for dividend payments made to abroad, in case it is stated in a double tax treaty. On the other hand, dividend payments made to Turkish resident companies are not subject to withholding tax. Dividend income of Turkish taxpayers received from other Turkish taxpayers is exempted from corporate tax. However, dividends received from participation shares and stocks of fund and investment partnerships cannot utilize from this exemption. 75% of the profits arising from sale of affiliate shares, founders’ shares, redeemed shares and preemptive rights that are held by the corporations for at least two years are exempted from corporate tax. However, as of 5 December 2017, the date of the publication of the Law No. 7061, 50% part of the profits arising from the sale of the immovable properties that are included in assets of the corporations for two years are exempted from corporate tax. The exemption rate is 75% before this date. In order to benefit from these exemptions, profits must be recorded under a passive fund account in balance sheet and not withdrawn for 5 years. Also, the sale amounts must be received until the end of the second calendar year following the sale. |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2017 | |
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Expenses by nature | 10. Breakdown of expenses by nature for the years ended 31 December 2017, 2016 and 2015 is as follows: Cost of revenue: 2017 2016 2015 Depreciation and amortization (*) (2,596,980 ) (2,203,351 ) (1,667,750 ) Treasury share (1,669,807 ) (1,491,503 ) (1,418,683 ) Interconnection and termination expenses (1,607,079 ) (1,420,233 ) (1,326,990 ) Radio expenses (1,123,668 ) (1,057,618 ) (911,454 ) Employee benefit expenses (1,046,544 ) (859,143 ) (734,725 ) Cost of goods sold (870,226 ) (551,656 ) (250,779 ) Cost of revenue from financial services (270,366 ) (68,546 ) — Universal service fund (221,431 ) (192,045 ) (182,508 ) Transmission expenses (218,221 ) (139,185 ) (113,574 ) Roaming expenses (177,258 ) (128,429 ) (108,102 ) Billing and archiving expenses (55,185 ) (61,647 ) (55,056 ) Others (1,493,409 ) (1,063,251 ) (999,862 ) (11,350,174 ) (9,236,607 ) (7,769,483 ) (*) As at 31 December 2017, depreciation and amortization expenses includes depreciation and amortization expenses related to the financial services amounting to TL 6,343 (31 December 2016: 1.677 TL). Selling and marketing expenses: 2017 2016 2015 Selling expenses (898,936 ) (757,869 ) (783,234 ) Marketing expenses (532,989 ) (518,382 ) (428,596 ) Employee benefit expenses (394,421 ) (354,380 ) (381,582 ) Frequency usage fees related to prepaid subscribers (82,994 ) (186,530 ) (191,408 ) Others (96,080 ) (93,786 ) (117,039 ) (2,005,420 ) (1,910,947 ) (1,901,859 ) Administrative expenses: 2017 2016 2015 Employee benefit expenses (346,151 ) (277,438 ) (240,305 ) Consultancy expenses (50,247 ) (54,315 ) (43,995 ) Rent expenses (36,280 ) (30,314 ) (23,924 ) Net impairment expense recognized on receivables (36,278 ) (211,384 ) (196,588 ) Travel and entertainment expenses (30,957 ) (18,913 ) (13,484 ) Maintenance and repair expenses (24,342 ) (20,315 ) (23,424 ) Collection expenses (20,415 ) (20,827 ) (17,533 ) Other (100,526 ) (88,343 ) (66,026 ) (645,196 ) (721,849 ) (625,279 ) |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
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Property, plant and equipment | 11. Cost Balance as at Additions Disposals Transfers Impairment Effects of Transfer Balance as at Network infrastructure (All operational) 13,897,308 574,301 (1,009,922 ) 1,907,022 — 111,419 — 15,480,128 Land and buildings 519,702 162,206 (1,340 ) 39,130 — 1,766 64,594 786,058 Equipment, fixtures and fittings 617,732 117,087 (10,854 ) 2,209 — 2,028 — 728,202 Motor vehicles 34,136 4,415 (1,719 ) — — 384 — 37,216 Leasehold improvements 311,761 7,400 (5,041 ) 486 — 261 — 314,867 Construction in progress 566,523 2,063,329 — (1,949,000 ) (14,535 ) 5,977 — 672,294 Total 15,947,162 2,928,738 (1,028,876 ) (153 ) (14,535 ) 121,835 64,594 18,018,765 Accumulated depreciation Network infrastructure (All operational) 6,843,580 1,353,419 (990,719 ) — 23,589 96,690 — 7,326,559 Land and buildings 159,351 26,295 (221 ) — 1,482 645 22,366 209,918 Equipment, fixtures and fittings 497,606 48,393 (8,202 ) — 115 1,915 — 539,827 Motor vehicles 30,252 2,276 (1,642 ) — — 420 — 31,306 Leasehold improvements 220,668 29,138 (4,417 ) — — 358 — 245,747 Total 7,751,457 1,459,521 (1,005,201 ) — 25,186 100,028 22,366 8,353,357 Net book amount 8,195,705 1,469,217 (23,675 ) (153 ) (39,721 ) 21,807 42,228 9,665,408 Depreciation expenses for the years ended 31 December 2017, 2016 and 2015 amounting to TL 1,499,242, TL 1,278,009 and TL 1,112,039, respectively include impairment losses and are recognized in cost of revenue. Impairment losses on property, plant and equipment for the years ended 31 December 2017, 2016 and 2015 are TL 39,721, TL 43,198 and TL 18,567, respectively and are recognized in depreciation expenses. Capitalization rates and amounts other than borrowings made specifically for the purpose of acquiring a qualifying asset are 10.0%, 9.9% and 9.7%, TL 66,513 and TL 76,899 and TL 75,315 for the years ended 31 December 2017, 2016 and 2015 respectively. Impaired network infrastructure mainly consists of damaged or technologically inadequate mobile and fixed network infrastructure investments. The network infrastructure mainly consists of mobile and fixed network infrastructure investments. Cost Balance as at Additions Disposals Transfers Impairment (reversals) Effects of Balance as at Network infrastructure (all operational) 11,302,326 615,041 (518,827 ) 2,312,011 — 186,757 13,897,308 Land and buildings 389,366 26,603 (32 ) 102,311 — 1,454 519,702 Equipment, fixtures and fittings 586,463 37,545 (19,291 ) 10,079 — 2,936 617,732 Motor vehicles 33,676 2,710 (2,946 ) 71 — 625 34,136 Leasehold improvements 306,176 5,663 (374 ) — — 296 311,761 Construction in progress 1,005,358 1,979,449 (454 ) (2,426,303 ) — 8,473 566,523 Total 13,623,365 2,667,011 (541,924 ) (1,831 ) — 200,541 15,947,162 Accumulated depreciation Network infrastructure (all operational) 5,976,699 1,139,343 (501,719 ) — 42,682 186,575 6,843,580 Buildings 140,627 17,395 — — 488 841 159,351 Equipment, fixtures and fittings 462,618 47,001 (15,229 ) — 28 3,188 497,606 Motor vehicles 29,704 2,723 (2,926 ) — — 751 30,252 Leasehold improvements 192,223 28,349 (374 ) — — 470 220,668 Total 6,801,871 1,234,811 (520,248 ) — 43,198 191,825 7,751,457 Net book amount 6,821,494 1,432,200 (21,676 ) (1,831 ) (43,198 ) 8,716 8,195,705 Leased assets The Group leases equipment and intangible assets under a number of finance lease agreements. As of 31 December 2017, The Group did not acquire any property, plant and equipment and intangibles assets without cash outflows through beneficial price option to purchase the equipment and intangible assets (31 December 2016: 36,322 TL). As at 31 December 2017, net book amount of fixed assets acquired under finance leases amounted to TL 170,249 (31 December 2016: TL 89,425). |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
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Intangible assets | 12. Turkcell - 2G License On 27 April 1998, the Company was granted a 25-year GSM license (the “2G License”) for a consideration of USD 500,000, the carrying amount of the 2G license is TL 241,407 at 31 December 2017 (31 December 2016: TL 287,390) and it is amortized over 25 years. Turkcell - 3G License On 30 April 2009, the Company signed a license agreement (the “3G License”) with the ICTA which provides authorization for providing IMT 2000/UMTS services and infrastructure. The Company acquired the A-type license providing the widest frequency band for a consideration of EUR 358,000 (excluding VAT). The license is effective for 20 years starting from 30 April 2009. The carrying amount of the 3G License is TL 436,014 at 31 December 2017 (31 December 2016: TL 474,486) and it is amortized over 25 years. Turkcell - 4.5G License On 26 August 2015, “Authorization Tender on IMT Services and Infrastructure” publicly known as 4.5G license tender, was held by the Information Technologies and Communication Authority and the Company was granted a total frequency band of 172.4M Hz for 13 years for a consideration of EUR 1,623,460 (excluding VAT). IMT authorization period expires on 30 April 2029 and operators commenced service delivery for 4.5G from 1 April 2016. 2x1.4 MHz frequency band in 900MHz spectrum and 2 units of 2x5 MHz frequency band in 2100 MHz spectrum were commenced on 1 December 2015, while remaining packages were commenced on 1 April 2016. Tender price amounting to EUR 1,623,460 (excluding VAT) was paid semi-annually by four equal installments total of which amounted to EUR 1,655,290 including interest and excluding VAT of 18%. As at 31 December 2017, there is no payable related to the 4.5G license (31 December 2016: TL 1,522,615 in current liabilities). Cost Balance at Additions Disposals Transfers Impairment Effects of movements Balance at 31 December Telecommunication licenses 8,039,431 10,154 — 69,945 — 20,098 8,139,628 Computer software 6,076,405 470,457 (8,624 ) 569,153 — 9,725 7,117,116 Transmission line software 71,602 218 — — — — 71,820 Central betting system operating right 11,981 — — — — — 11,981 Indefeasible right of usage 46,017 66,539 — — — — 112,556 Brand name 7,040 — — — — — 7,040 Customer base 15,512 — — — — — 15,512 Goodwill 32,834 — — — — — 32,834 Other 38,321 5,016 — (588 ) — — 42,749 Construction in progress 142,875 620,463 — (638,357 ) — 2,656 127,637 Total 14,482,018 1,172,847 (8,624 ) 153 — 32,479 15,678,873 Accumulated amortization Telecommunication licenses 1,878,895 537,162 — — — 3,173 2,419,230 Computer software 4,237,996 537,805 (8,120 ) — 1,219 1,980 4,770,880 Transmission line software 58,203 3,498 — — 767 — 62,468 Central betting system operating right 10,588 903 — — — — 11,491 Indefeasible right of usage 18,785 4,489 — — — — 23,274 Brand name 5,808 704 — — — — 6,512 Customer base 11,286 488 — — — — 11,774 Other 24,468 8,366 — — — — 32,834 Total 6,246,029 1,093,415 (8,120 ) — 1,986 5,153 7,338,463 Net book amount 8,235,989 79,432 (504 ) 153 (1,986 ) 27,326 8,340,410 Amortization expenses for the years ended 31 December 2017, 2016 and 2015 amounting to TL 1,095,401, TL 921,812 and TL 549,251, respectively include impairment losses and are recognized in cost of revenue. Impairment losses on intangible assets for the years ended 31 December 2017, 2016 and 2015 are TL 1,986, TL 3,181 and nil respectively and are recognized in amortization expenses. Computer software includes capitalized software development costs that meet the definition of an intangible asset. The amount of capitalized development costs is TL 124,504 for the year ended 31 December 2017 (31 December 2016: TL 126,916). The amortization expenses related to capitalized software development costs for the years ended 31 December 2017, 2016 and 2015 amounting to TL 37,532, TL 30,148 and TL 28,560, respectively are recognized in cost of revenue. Cost Balance at Additions Disposals Transfers Impairment Effects of Balance at Telecommunication licenses 3,950,729 34,494 (4 ) 4,021,090 — 33,122 8,039,431 Computer software 5,342,056 329,836 (6,444 ) 390,248 — 20,709 6,076,405 Transmission line software 71,506 96 — — — — 71,602 Central betting system operating right 11,907 — — 74 — — 11,981 Indefeasible right of usage 42,132 3,885 — — — — 46,017 Brand name 7,040 — — — — — 7,040 Customer base 15,512 — — — — — 15,512 Goodwill 32,834 — — — — — 32,834 Other 29,713 8,607 (184 ) 185 — — 38,321 4.5G license not yet available for use 3,984,954 33,316 — (4,018,270 ) — — — Construction in progress 52,597 478,179 — (391,496 ) — 3,595 142,875 Total 13,540,980 888,413 (6,632 ) 1,831 — 57,426 14,482,018 Accumulated amortization Telecommunication licenses 1,429,944 445,069 (4 ) — — 3,886 1,878,895 Computer software 3,771,710 454,111 (2,972 ) — — 15,147 4,237,996 Transmission line software 52,058 3,615 — — 2,530 — 58,203 Central betting system operating right 9,663 925 — — — — 10,588 Indefeasible right of usage 15,446 3,339 — — — — 18,785 Brand name 5,104 704 — — — — 5,808 Customer base 10,111 1,175 — — — — 11,286 Other 14,307 9,693 (183 ) — 651 — 24,468 Total 5,308,343 918,631 (3,159 ) — 3,181 19,033 6,246,029 Net book amount 8,232,637 (30,218 ) (3,473 ) 1,831 (3,181 ) 38,393 8,235,989 |
Impairment of assets
Impairment of assets | 12 Months Ended |
Dec. 31, 2017 | |
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Impairment of assets | 13. The Group’s cash-generating units (CGUs) are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the recoverable amount of the CGU is estimated. The recoverable amount of the CGU is its fair value less cost of disposal. Ukraine and Belarus CGUs were tested for impairment at 31 December 2017. None of these CGUs contains goodwill or an intangible asset with an indefinite useful life. lifecell At 31 December 2017, impairment of Ukraine CGU was tested using the assumption that lifecell was the CGU. The recoverable amount of lifecell is determined based on fair value less cost of disposal calculations which require the use of assumptions. The calculations use cash flow projections based on financial budgets approved by management covering a six-year period. Cash flows beyond the six-year period are extrapolated using the estimated growth rate. Sensitivity analysis was performed on the change in WACC by +0.5%/-0.5% (31 December 2016: +0.5%/-0.5%). The assumptions used in recoverable amount calculations of lifecell were: A post-tax WACC rate of 26.5% for the period from 2018 to 2022, a post-tax WACC rate of 25.9% for the period after 2022 and a terminal growth rate of 6.0% were used to extrapolate cash flows beyond the 6-year forecasts period based on the business plans. A post-tax WACC rate of 28.7% for the period from 2017 to 2021, a post-tax WACC rate of 27.9% for the period after 2021 and a terminal growth rate of 6.0% were used to extrapolate cash flows beyond the 5-year forecasts period based on the business plans. The pre-tax rate for disclosure purposes was 30.0%. As the recoverable amount of lifecell was higher than its carrying amount, no impairment charge was recognized. Belarusian Telecom The aggregate carrying amount of goodwill arising from the acquisition of Belarusian Telecom was impaired at 31 December 2011. The cumulative impairment loss recognized in the statement of profit or loss is TL 228,774. At 31 December 2017, impairment of Belarus CGU was tested using the assumption that Belarusian Telecom was the CGU. The recoverable amount of Belarusian Telecom is determined based on fair value less cost of disposal calculations which require the use of assumptions. The calculations use cash flow projections based on financial budgets approved by management covering a five-year period. Cash flows beyond the five-year period are extrapolated using the estimated growth rate. Sensitivity analysis was performed on the change in WACC by +0.5%/-0.5% (31 December 2016: +0.5%/-0.5%). The assumptions used in recoverable amount calculations of Belarusian Telecom were: A post-tax WACC rate of 25.4% for the period from 2018 to 2022, a post-tax WACC rate of 24.9% for the period after 2022, and a terminal growth rate of 8.0% were used to extrapolate cash flows beyond the 5-year forecast period based on the business plan. A post-tax WACC rate of 29.4% for the period from 2017 to 2021, a post-tax WACC rate of 28.7% for the period after 2021 and a terminal growth rate of 10.0% were used to extrapolate cash flows beyond the 5-year forecast period based on the business plan. The pre-tax rate for disclosure purposes was 30.9%. As the recoverable amount of Belarusian Telecom was higher than its carrying amount, no impairment charge was recognized. Turkcell Superonline As at 31 December 2017, the aggregate carrying amount of goodwill allocated to Turkcell Superonline is TL 32,834 (31 December 2016: TL 32,834). No impairment test was performed for goodwill allocated to Turkcell Superonline on the grounds of materiality. |
Investment properties
Investment properties | 12 Months Ended |
Dec. 31, 2017 | |
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Investment properties | 14. 31 December 2017 31 December 2016 Cost Opening balance 165,472 164,467 Addition — 1,005 Disposal (940 ) — Transfer to property, plant and equipment (*) (64,594 ) — Closing balance 99,938 165,472 Accumulated depreciation Opening balance (119,202 ) (114,895 ) Transfer to property, plant and equipment 22,366 — Depreciation and impairment charges during the year (2,337 ) (3,530 ) Disposal 215 — Other — (777 ) Closing balance (98,958 ) (119,202 ) Net book amount 980 46,270 (*) During the year, the Group transferred its building located in Istanbul, Tepebası from investment properties to property, plant and equipment due to the change in purpose of use. Determination of the fair values of the Group’s investment properties The Group engages qualified external valuers, authorized by the Capital Markets Board of Turkey, to perform the valuation of investment properties. Management works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model. The fair values of these investment properties were determined using a variety of valuation methods: direct capitalization approach income capitalization approach, replacement cost approach market approach Rent income from investment properties during the year ended 31 December 2017 is TL 2,821 (31 December 2016: TL 2,317 and 31 December 2015: TL 1,836). Direct operating expenses for investment properties during the year ended 31 December 2017 is TL 22 (31 December 2016: TL 22 and 31 December 2015: TL 126). The Group’s investment properties and their fair values at 31 December 2017 and 2016 are as follows: 31 December 2017 Level 1 Level 2 Level 3 Valuation Method Investment properties in Izmir — — 52,110 Replacement cost approach Investment properties in Gebze — — 16,690 Income capitalization approach Investment properties in Ankara — — 15,160 Market approach Investment properties in Istanbul — — 13,000 Market approach Investment properties in Adana — — 3,150 Replacement cost approach Investment properties in Balıkesir — — 3,112 Replacement cost approach Other investment properties — — 3,970 Replacement cost approach Other investment properties — — 2,146 Market approach — — 109,338 31 December 2016 Level 1 Level 2 Level 3 Valuation Method Investment properties in İstanbul: – Istanbul Tepebasi — — 321,835 Direct capitalization approach – Kucukcekmece — — 12,890 Replacement cost approach Investment properties in Gebze — — 12,558 Income capitalization approach Investment properties in Izmir — — 42,315 Replacement cost approach Other investment properties — — 17,419 Market approach Other investment properties — — 8,946 Replacement cost approach Other investment properties — — 2,410 Direct capitalization approach Total — — 418,373 Significant unobservable inputs and sensitivity of fair values of respective investment properties are as follows: Fair values of the investment properties determined based on the “direct capitalization” approach will increase/(decrease) significantly, when there is a significant decrease/ (increase) in capitalization rate and a significant increase/(decrease) in current market rentals. Capitalization rate is calculated by dividing comparable properties’ annual net operating income by the selling price of the respective properties. In the “income capitalization” approach, a significant increase/(decrease) in rentals will cause a significant increase/(decrease) in the fair value. In addition, a slight decrease/(increase) in risk premium and discount rate which are calculated by considering the current market conditions will cause a significant increase/(decrease) in the fair value. In the “replacement cost approach”, a significant increase/(decrease) of construction costs and miscellaneous costs of any similar properties in the market will cause a significant increase/(decrease) in the fair value. In the “market approach”, a significant increase/(decrease) in the market value of any properties which are located in the similar areas with similar conditions will cause a significant increase/(decrease) in the fair value. |
Investments accounted for using
Investments accounted for using the equity method | 12 Months Ended |
Dec. 31, 2017 | |
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Investments accounted for using the equity method | 15. The tables below provide summarised financial information for the Group’s associate. The information disclosed reflects the amounts presented in the financial statement of the associate and not the Group’s share of those amounts. They have been amended to reflect adjustments made by the Group when using the equity method, including modifications for differences in accounting policy. (The summarised financial information is presented in USD): Ownership Current Non-current Total assets Current Non-current Non-controlling Equity attributable Total liabilities 31 December 2015 Fintur (associate) 41.45 % 770,402 923,237 1,693,639 316,504 482,668 189,441 705,026 1,693,639 Revenue Profit for the Other comprehensive Total comprehensive 2015 Fintur (associate) 1,325,535 327,194 (592,741 ) (265,547 ) (*) Attributable to the parent. Reconciliation of the summarized financial information to the carrying amount in the consolidated financial statements: 2015 Net assets of Fintur 2,049,934 The Group’s share 849,697 Goodwill 132,242 Carrying amount 981,939 As at 1 October 2016, Fintur has been classified as asset held for sale and reported as a discontinued operation (Note 16). |
Asset held for sale and discont
Asset held for sale and discontinued operations | 12 Months Ended |
Dec. 31, 2017 | |
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Asset held for sale and discontinued operations | 16. Disposal of Fintur Classification On 1 October 2016, the Group announced its intention to exit from jurisdictions in which Fintur operates and initiated an active program to locate a buyer. Starting from 1 October 2016, Fintur has been classified as held for sale and reported as a discontinued operation. The Group is still committed to the plan to exit from jurisdictions in which Fintur operates and the delay in the initial one-year period to complete the sale was caused by events and circumstances beyond the Group’s control. The Group has taken necessary actions to respond to those circumstances and Fintur is being actively marketed at reasonable prices given the change in circumstances. Presentation Fintur is classified as held for sale and reported as a discontinued operation and therefore disclosed separately on a single line as discontinued operation in the consolidated statements of profit or loss, comprehensive income and cash flows. Investment in Fintur is presented as held for sale in the consolidated statement of financial position. Comparative periods in the consolidated statements of profit or loss, comprehensive income and cash flows are restated to reflect the classification of Fintur as a discontinued operation. Measurement Equity accounting for Fintur ceased from 1 October 2016, and in accordance with IFRS 5, Fintur has been measured at the lower of carrying amount and fair value less costs of disposal. As at 31 December 2017, carrying value of investment in Fintur is TL 1,294,938 (31 December 2016: TL 1,222,757) which is lower than the fair value less costs of disposal indicating that no impairment is required at 31 December 2017. The reconciliation of statement of profit or loss statement of Fintur is listed below (The financial statements are presented in USD); 1 January – 1 January – Revenue 617,214 1,325,535 Cost of sales (369,104 ) (674,334 ) Gross profit 248,110 651,201 Selling and marketing expenses (69,983 ) (123,244 ) General and administrative expenses (69,818 ) (95,380 ) Other operating (expenses), net (31,258 ) (23,850 ) Operating profit 77,051 408,727 Finance (expense)/income, net (61,203 ) 162,357 Profit before income tax 15,848 571,084 Total income tax (30,947 ) (128,121 ) (Loss)/profit for period (15,099 ) 442,963 Attributable to: -owners of the parent (28,695 ) 327,194 -non-controlling interests 13,596 115,769 (Loss)/profit for period (15,099 ) 442,963 |
Other non-current assets
Other non-current assets | 12 Months Ended |
Dec. 31, 2017 | |
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Other non-current assets | 17. 2017 2016 Prepaid expenses 197,431 183,029 Receivables from the Public Administration 72,848 72,848 Deposits and guarantees given 23,999 29,201 VAT receivable 4,429 28,772 Advances given for property, plant and equipment 12,078 217,658 Others 45,835 43,726 356,620 575,234 |
Deferred tax assets and liabili
Deferred tax assets and liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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Deferred tax assets and liabilities | 18. Recognized deferred tax assets and liabilities Deferred tax assets and liabilities at 31 December 2017 and 2016 are attributable to the following: Assets Liabilities Net 2017 2016 2017 2016 2017 2016 Property, plant and equipment and intangible assets 41,903 3,516 (680,134 ) (532,547 ) (638,231 ) (529,031 ) Investment 32,926 33,242 — — 32,926 33,242 Reserve for employee termination benefits and provisions (*) 202,112 55,288 (64 ) — 202,048 55,288 Asset classified as held for sale — — (92,327 ) (90,209 ) (92,327 ) (90,209 ) Trade and other payables 11,717 57,686 (26,091 ) — (14,374 ) 57,686 Tax losses carried forward — 1,508 — 1,508 Tax allowances 10,775 32,200 — — 10,775 32,200 Other assets and liabilities 31,916 65,905 (87,795 ) (33,494 ) (55,879 ) 32,411 Deferred tax assets/(liabilities) 331,349 249,345 (886,411 ) (656,250 ) (555,062 ) (406,905 ) Offsetting (235,289 ) (198,090 ) 235,289 198,090 — — Net deferred tax assets/ (liabilities) 96,060 51,255 (651,122 ) (458,160 ) (555,062 ) (406,905 ) (*) The Company has treated provisions recognized for legal claims (Note 36) as being deductible for tax purposes and recognized deferred tax assets amounting to TL 74,975 in the consolidated financial statements. Movement in deferred tax assets/(liabilities) for the years ended 31 December 2017 and 2016 were as follows: 2017 2016 Opening balance (406,905 ) (64,822 ) Income statement charge (133,791 ) (222,497 ) Tax charge relating to components of other comprehensive income (6,449 ) (7,066 ) Prior year corporate tax base differences (2,729 ) (109,640 ) Exchange differences (5,188 ) (2,880 ) Closing balance, net (555,062 ) (406,905 ) The Group did not recognise deferred income tax assets of TL 502,523 in respect of tax losses amounting to TL 2,698,248 that can be carried forward against future taxable income. The unused tax losses were mainly incurred by lifecell and Belarusian Telecom that are not likely to generate taxable income in the foreseeable future. Unused tax losses will expire at the following dates: Expiration Date Amount 2018 8,911 2019 9,394 2020 8,775 2021 4,467 2022 3,506 2023 281 2024 128,314 2025 803,533 Indefinite 1,731,067 Total 2,698,248 |
Trade receivables and accrued r
Trade receivables and accrued revenue | 12 Months Ended |
Dec. 31, 2017 | |
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Trade receivables and accrued revenue | 19. 31 December 31 December Receivables from subscribers 1,369,948 1,223,183 Undue assigned contracted receivables 347,596 1,215,314 Accrued revenue 632,631 558,169 Accounts and notes receivable 498,397 293,238 2,848,572 3,289,904 Trade receivables are shown net of provision for impairment amounting to TL 705,213 at 31 December 2017 (31 December 2016: TL 964,080). Movements in provision for impairment of trade receivables and due from related parties are disclosed in Note 33. The accounts and notes receivable represent receivables from distributors and roaming receivables. The Group’s exposure to currency risk and credit risk arising from trade receivables are disclosed in Note 33. Letters of guarantee received with respect to the accounts and notes receivable amounted to TL 339,543 and TL 156,647 at 31 December 2017 and 2016, respectively. The undue assigned contracted receivables are the remaining portion of the assigned receivables from the distributors related to the handset campaigns which will be collected from subscribers in instalments by the Company. When monthly instalment is billed to the subscriber, that portion is transferred to “Receivables from subscribers”. The Company measures the undue assigned contracted receivables at amortized cost, bears the credit risk and recognizes interest income throughout the contract period. The accrued revenue represents accrued revenue from subscribers. Due to the high volume of subscribers, there are different billing cycles. Accordingly, an accrual is made at the end of each reporting period to accrue revenue for services rendered but not billed. Contracted receivables related to handset campaigns, which will be billed after one year is presented under non-current trade receivables amounting to TL 131,392 (31 December 2016: TL 217,492). |
Receivables from financial serv
Receivables from financial services | 12 Months Ended |
Dec. 31, 2017 | |
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Receivables from financial services | 20. 31 December 31 December Current receivables from financial services 2,950,523 1,486,906 Non-current receivables from financial services 1,297,597 909,466 4,248,120 2,396,372 Movements in provision for impairment of receivables from financial services are disclosed in Note 33. Starting from 2016 the Group and its distributors have offered handset campaigns where subscribers can buy handsets using loans placed by Turkcell Finansman. The Group assumes credit risk in these transactions. Turkcell Finansman collects the loan from the subscriber during the contract period and does not recognize handset revenue since it is not acting as principal in the handset sale. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2017 | |
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Inventory | 21. As of 31 December 2017 inventories amounting to TL 104.102 which consist of mainly mobile phone, modem, tablet, sim card and tower construction materials (31 December 2016: TL 131,973). |
Other current assets
Other current assets | 12 Months Ended |
Dec. 31, 2017 | |
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Other current assets | 22. 31 December 31 December Prepaid expenses 322,388 294,540 Restricted cash 183,806 289 Receivables from the Ministry of Transport, Maritime Affairs and Communications 143,669 32,299 Subscriber acquisition costs 138,177 108,628 Receivables from tax office 93,917 52,561 Advances given to suppliers 55,754 57,020 VAT receivable 38,934 49,211 Special communication tax to be collected from subscribers 38,318 36,941 Other 145,642 138,646 1,160,605 770,135 Prepaid expenses mainly comprise of prepaid rent expenses and frequency usage fees. Subscriber acquisition costs are bonus payments to dealers for acquisition of subscribers contracted for a period of time. As at 31 December 2017, restricted cash amounting to TL 183,483 represents the deposits as guarantees in connection with the foreign currency loans utilized by Turkcell Finansman and restricted cash amounting to TL 323 represents the time deposits at a local bank as guarantees in connection with the loans utilized by Azerinteltek. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2017 | |
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Cash and cash equivalents | 23. 31 December 31 December Cash in hand 192 223 Banks 4,712,141 6,051,472 – Demand deposits 603,553 569,826 – Time deposits 4,108,588 5,481,646 Other cash and cash equivalents — 657 Cash and cash equivalents 4,712,333 6,052,352 As at 31 December 2017, the average effective interest rates of TL, USD and EUR time deposits are 14.3%, 5.8% and 2.2% (31 December 2016:11.0%, 3.6% and 2.0%) respectively. As at 31 December 2017, average maturity of time deposits is 32 days (31 December 2016: 49 days). |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
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Equity | 24. Share capital As at 31 December 2017, share capital represents 2,200,000,000 (31 December 2016: 2,200,000,000) authorized, issued and fully paid shares with a par value of TL 1 each. In this respect, share capital presented in the consolidated financial statements refers to nominal amount of registered share capital. Every holder of shares are entitled to receive dividends as declared and approved and is entitled to one vote at a meeting in person or by proxy. Companies with their shareholding percentage are as follows: 31 December 2017 31 December 2016 (%) TL (%) TL Turkcell Holding A.Ş. (“Turkcell Holding”) 51,00 1.122.000 51,00 1.122.000 Public Share 48,95 1.077.004 48,95 1.077.004 Other 0,05 996 0,05 996 Total 100,00 2.200.000 100,00 2.200.000 Inflation adjustment to share capital (52.352 ) (52.352 ) Inflation adjusted capital 2.147.648 2.147.648 As at 31 December 2017, total number of shares pledged as security is 995,509 (2016: 995,509). Legal reserves The legal reserves consist of first and second reserves, appropriated in accordance with the Turkish Commercial Code (“TCC”). The TCC stipulates that the first legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of a company’s paid-in share capital. The second legal reserve is appropriated at the rate of 10% per annum of all cash dividends in excess of 5% of the paid-in share capital. Under the TCC, the legal reserves can only be used to offset losses and are not available for any other usage unless they exceed 50% of paid-in share capital. Treasury shares During 2016, the Company purchased 6,815,563 of its shares on-market with prices ranging from full TL 8.92 to full TL 9.99. The buy-back was approved by the Board of Directors on 27 July 2016. Total cost of TL 65,607 was deducted from equity. Dividends Turkcell: On 23 March 2016, the Company’s Board of Directors has recommended payment of a dividend amounting to TL 1,200,000 (equivalent to USD 340,987 as of 31 December 2016) out of profits for the year ended 31 December 2015 This represents a gross cash dividend of full TL 0.5454545 (net TL 0.4636364) (equivalent to full USD 0.15 and USD 0.13, respectively as of 31 December 2016) per share. The proposed dividend was discussed and rejected by the shareholders at the Ordinary General Assembly Meeting dated 29 March 2016. On 25 May 2017, the Company’s General Assembly has approved payment of a dividend amounting to TL 3,000,000 (equivalent to USD 841,633 as of 25 May 2017, the date of the Ordinary General Assembly Meeting) out of profits for the period from 1 January 2010 to 31 December 2016. This represents a gross cash dividend of full TL 1.3636364 (equivalent to full USD 0.3825604 as of 25 May 2017, the date of the Ordinary General Assembly Meeting) per share. The Company paid TL 3,000,000 in total including withholding taxes in three instalments on 15 June, 15 September and 15 December 2017 to the shareholders. Inteltek: According to the resolution of the General Assembly Meeting of Inteltek dated 31 March 2017, the shareholders decided to pay a dividend amounting to TL 63,528 out of profits for the year ended 31 December 2016 (remaining amount after deducting interim dividends for the six-month period ended 30 June 2016 amounting to TL 20,455) and a dividend out legal reserves amounting to TL 11,585. The aggregate amount of dividends were paid as of 31 December 2017. According to the the resolution of General Assembly Meeting of Inteltek dated 25 December 2017, shareholders decided to pay dividend amounting to TL 28,402 for the first 9 months of 2017 profit. The related dividend payment was made in January 2018. Azerinteltek: According to the four different resolution of the General Assembly Meeting of Azerinteltek within 2017, shareholders decided to pay dividend amounting to 13,131 AZN (31 December 2017: 27,838 TL) from the profit realized for the last quarter of 2016, first, second and third quarter of 2017.The related dividend payment was made in 2017. According to resolution of the General Assembly Meeting of Azerinteltek , in January 2018, Board of Directors has been decided to pay dividend amounting 5.288 AZN (31 December 2017: 11.620 TL) from the profit realized for the last quarter of 2017. The related dividends were made in 2018. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
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Earnings per share | 25. 2017 2016 2015 Numerator: Profit attributable to owners of the Company 1,979,129 1,492,088 2,067,654 Denominator: Weighted average number of shares (*) 2,193,184,437 2,193,184,437 2,200,000,000 Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) 0.90 0.68 0.94 (*) Refer to Note 24 – Treasury shares 2017 2016 2015 Numerator: Profit from continuing operations attributable to owners of the Company 1,979,129 1,534,252 1,700,318 Denominator: Weighted average number of shares (*) 2,193,184,437 2,193,184,437 2,200,000,000 Basic and diluted earnings per share for profit from continuing operations attributable to owners of the Company (in full TL) 0.90 0.70 0.77 (*) Refer to Note 24 – Treasury shares |
Other non-current liabilities
Other non-current liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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Other non-current liabilities | 26. 2017 2016 Consideration payable in relation to the acquisition of Belarusian Telecom 323,691 295,062 Deferred revenue 85,646 74,241 Deposits and guarantees received from dealers — 58,244 409,337 427,547 Consideration payable in relation to the acquisition of Belarusian Telecom represents present value of the long-term contingent consideration payables to the seller. Payment of USD 100,000 (equivalent to TL 377,190 as of 31 December 2017) is contingent on the financial performance of Belarusian Telecom, and based on management’s estimations, the amount is expected to be paid during the first quarter of 2021 (31 December 2016: the first quarter of 2020). Discount rate used for calculating present value of the consideration payable in relation to the acquisition of Belarusian Telecom as of 31 December 2017 is 4.8% (31 December 2016: 5.6%). |
Loans and borrowings
Loans and borrowings | 12 Months Ended |
Dec. 31, 2017 | |
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Loans and borrowings | 27. 31 December 31 December Non-current liabilities Unsecured bank loans 6,376,981 5,300,756 Debt securities issued 1,770,482 1,589,227 Finance lease liabilities 108,164 41,539 Secured bank loans 2,368 3,580 8,257,995 6,935,102 Current liabilities Unsecured bank loans 2,643,112 1,581,135 Current portion of unsecured bank loans 1,513,425 922,867 Current portion of secured bank loans 2,022 2,054 Current portion of finance lease liabilities 14,556 6,575 Current portion of long-term debt securities issued 105,039 94,473 Debt securities issued — 238,956 4,278,154 2,846,060 Terms and conditions of outstanding loans are as follows: 31 December 2017 31 December 2016 Currency Interest Nominal interest rate Payment Carrying Nominal interest Rate Payment Carrying Unsecured bank loans (*) USD Floating Libor+2.0%-Libor+3.3% 2018-2020 2,880,615 Libor+2.0%-Libor+2.6% 2017-2020 1,984,533 Unsecured bank loans (*) EUR Floating Euribor+1.2%-Euribor+2.2% 2018-2026 5,511,579 Euribor+1.2%-Euribor+2.2% 2017-2025 3,593,110 Unsecured bank loans TL Fixed 11.1%-15.5% 2018-2019 1,620,391 10.4%-12.6% 2017-2018 1,819,944 Unsecured bank loans UAH Fixed 11%-14.5% 2018 520,933 13.5%-18.6% 2017 407,171 Secured bank loans (**) BYN Fixed 12%-16% 2018-2020 4,390 12%-16% 2017-2020 5,634 Debt securities issued USD Fixed 5.8% 2018-2025 1,875,521 5.8% 2017-2025 1,683,700 Debt securities issued TL Fixed — — — 10.7% 2017 238,956 Finance lease liabilities EUR Fixed 3.4% 2018-2024 116,797 3.4% 2017-2024 48,034 Finance lease liabilities USD Fixed 22.5% 2018 41 18%-28% 2017-2018 80 Finance lease liabilities TL Fixed 27.5%-27.7% 2018-2020 5,882 — — — 12,536,149 9,781,162 (*) Secured by blocked deposit amounting to EUR 26,350 and USD 17,100 (equivalent to TL 183,483 as at 31 December 2017), in connection with the foreign currency loans utilized by Turkcell Finansman. (**) Belarusian Telecom pledged its certain property, plant and equipment to secure these bank loans. Also, these bank loans are secured by the Government of the Republic of Belarus (Note 33). Finance lease liabilities are payable as follows: 31 December 2017 31 December 2016 Future Future finance Recognized as Future Future finance Recognized as Within one year 17,447 2,891 14,556 7,908 1,333 6,575 Between 1-5 years 55,722 5,541 50,181 26,506 3,752 22,754 More than 5 years 60,401 2,418 57,983 19,859 1,074 18,785 133,570 10,850 122,720 54,273 6,159 48,114 For the majority of the borrowings, the fair values are not materially different to their carrying amounts, since the interest payable on those borrowings is either close to current market rates or the borrowings are of a short-term nature. Details of the Group’s exposure to risks arising from current and non-current borrowings are set out in Note 33. |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2017 | |
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Employee benefits | 28. 31 December 31 December Retirement pay liability provision 149,449 120,755 Unused vacation provision 48,217 43,798 197,666 164,553 Provision for annual leave As 31 December 2017 and 2016, provision for annual leave amounted to TL 48,217 and TL 43,798, respectively. Provision for employee termination benefits Movements in provision for employee termination benefits are as follows: 2017 2016 1 January 120,755 74,435 Service cost 32,696 25,933 Remeasurements 3,738 34,532 Interest expense 13,877 8,361 Benefit payments (21,617 ) (22,506 ) 31 December 149,449 120,755 The sensitivity of provision for employee termination benefits to changes in the significant actuarial assumptions is: 31 December 2017 Discount Rate Inflation Rate Sensivity Level 1% increase 1% decrease 1% increase 1% decrease Change in assumption (14.6% ) 18.1 % 18.3 % (14.3% ) Impact on provision for employee termination benefits (21,820 ) 27,050 27,349 (21,371 ) 31 December 2016 Discount Rate Inflation Rate Sensivity Level 1% increase 1% decrease 1% increase 1% decrease Change in assumption (14.7% ) 18.1 % 18.6 % (15.1% ) Impact on provision for employee termination benefits (17,751 ) 21,857 22,460 (18,234 ) The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. Defined contribution plans Obligations for contribution to defined contribution plans are recognized as an expense in the consolidated statement of profit or loss as incurred. The Group incurred TL 8,107, TL 7,722 and TL 8,364 in relation to defined contribution retirement plan for the years ended 31 December 2017, 2016 and 2015, respectively. Share based payments The Group has a share performance based payment plan (cash settled incentive plan) in order to build a common interest with its shareholders, support sustainable success, and ensure loyalty of key employees. The KPIs of the plan are; the total shareholder return in excess of weighted average cost of capital (WACC), and ranking of total shareholder return in comparison with BIST-30 and peer group. Bonus amount is determined according to these evaluations, and it is distributed over a three-year payment plan. As of 31 December 2017, the Group recognized expenses of TL 29,413 regarding this plan (31 December 2016: None). |
Deferred revenue
Deferred revenue | 12 Months Ended |
Dec. 31, 2017 | |
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Deferred revenue | 29. Deferred revenue primarily consists of right of use sold but not used by prepaid subscribers and it is classified as current at 31 December 2017 and 2016. The amount of deferred revenue is TL 193,381 and TL 93,800 as at 31 December 2017 and 2016, respectively. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2017 | |
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Provisions | 30. Non - current provisions: Legal claims Obligations for Total Balance at 1 January 2017 6,889 180,652 187,541 Provisions recognized/(reversed) 4,256 (8,461 ) (4,205 ) Unwinding of discount — 15,328 15,328 Transfer to current provisions (2,258 ) — (2,258 ) Effect of changes in exchange rates — 1,012 1,012 Balance at 31 December 2017 8,887 188,531 197,418 Legal claims Obligations for Total Balance at 1 January 2016 4,103 126,516 130,619 Provisions recognized/(reversed) 4,312 52,031 56,343 Unwinding of discount — (1,308 ) (1,308 ) Transfer to current provisions (1,526 ) — (1,526 ) Effect of changes in exchange rates — 3,413 3,413 Balance at 31 December 2016 6,889 180,652 187,541 Provision for legal claims are recognized for the probable cash outflows related to legal disputes. Refer to Note 36. The Group is required to incur certain costs in respect of a liability to dismantle and remove assets and to restore sites on which the assets were located. The dismantling costs are calculated according to best estimate of future expected payments discounted at a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability. It is expected that the obligations for dismantling, removing and site restoration will be realized in accordance with the useful life of GSM services materials. Additions to obligations for dismantling, removing and site restoration during the period are non-cash transactions and are recorded against property, plant and equipment. Obligations for dismantling, removing and site restoration are discounted using a discount rate of 5.6% at 31 December 2017 (31 December 2016: 5.4%). Current provisions: Legal claims Bonus Other Total Balance at 1 January 2016 10,260 141,855 — 152,115 Provisions recognized/(reversed) 140,457 251,005 785 392,247 Amounts used (134,019 ) (220,269 ) — (354,288 ) Transfers from non-current provisions 1,526 — — 1,526 Effect of changes in exchange rates 42 800 — 842 Balance at 31 December 2016 18,266 173,391 785 192,442 Legal claims Bonus (*) Other Total Balance at 1 January 2017 18,266 173,391 785 192,442 Provisions recognized/(reversed) (**) 583,788 318,603 (785 ) 901,606 Amounts used (1,188 ) (263,080 ) — (264,268 ) Transfer from non-current provisions 2,258 — — 2,258 Unwinding of discount 2,531 — — 2,531 Effect of changes in exchange rates 24 606 — 630 Balance at 31 December 2017 605,679 229,520 — 835,199 (*) Includes share-based payment (Note 28). (**) Refer to Note 36.1 and 36.3. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2017 | |
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Trade and other payables | 31. 2017 2016 Payable to suppliers 2,527,152 1,718,788 Taxes payable 415,650 302,346 Accrued treasury share, universal service fund contribution and contributions to the ICTA’s expenses 305,208 262,748 Accrued selling and marketing expenses 79,011 58,879 4.5G license fees payable — 1,522,615 Other 369,445 236,615 3,696,466 4,101,991 Payable to suppliers arises in the ordinary course of business. Taxes payables include VAT payables, special communications taxes payable, frequency usage fees payable to the ICTA and personnel income taxes payable. The Company is obliged to pay the Undersecretariat of the Treasury (the “Turkish Treasury”) a monthly treasury share equal to 15% of gross revenue. Of such fee, 10% is paid to the Ministry of Transport, Maritime Affairs and Communications of Turkey for a universal service fund. In addition, the Company pays annual contributions in an amount equal to 0.35% of gross revenue to the ICTA’s expenses. Accrued selling and marketing expenses mainly result from services received from third parties related to the marketing activities of the Group but not yet invoiced. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2017 | |
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Derivative financial instruments | 32. The Group has the following derivative financial assets and liabilities: Derivative financial assets: Participating cross currency swap and FX swap contracts Buy Sell Currency Notional amount Currency Notional amount Fair value Maturity USD 47,304 EUR 39,835 1,005 02 January 2018 TL 69,680 USD 20,000 6,554 27 August 2018 TL 81,480 EUR 20,000 9,965 14 December 2018 TL 95,550 USD 25,000 72 24 January 2019 TL 67,410 USD 18,000 1,498 28 January 2019 TL 98,625 EUR 25,000 17,354 13 June 2019 TL 52,164 USD 14,620 4,465 16 July 2019 TL 69,744 USD 19,780 6,996 22 July 2019 TL 203,600 EUR 50,000 27,198 23 July 2019 TL 435,000 USD 150,000 142,085 16 September 2020 TL 386,500 USD 100,000 (4,645 ) 16 September 2020 TL 293,500 USD 100,000 90,071 16 September 2020 TL 242,873 USD 70,500 33,535 16 September 2020 TL 194,000 USD 50,000 (2,951 ) 16 September 2020 TL 1,650,000 EUR 500,000 627,385 25 October 2025 TL 275,850 EUR 60,000 1,078 22 April 2026 Total 961,665 At 31 December 2017, total derivative financial assets of TL 981,396 also include accrued interest income of TL 19,731. Participating cross currency swap and FX swap contracts Buy Sell Currency Notional amount Currency Notional amount Fair value (TL) Maturity TL 18,455 EUR 5,000 86 3 January 2017 TL 73,400 EUR 20,000 598 24 Mar 2017 TL 824,750 EUR 250,000 116,674 12 April 2021 TL 328,600 EUR 100,000 47,949 12 April 2021 TL 495,000 EUR 150,000 81,534 12 April 2021 TL 435,000 USD 150,000 84,416 16 September 2020 TL 293,500 USD 100,000 51,481 16 September 2020 Total 382,738 At 31 December 2016, total derivative financial assets of TL 390,958 also include accrued interest income of TL 8,220. Derivative financial liabilities: Participating cross currency swap and FX swap contracts Buy Sell Currency Notional Currency Notional Fair value Maturity TL 470,232 USD 122,680 (2,465 ) 2 January 2018 TL 180,023 USD 47,250 (545 ) 2 January 2018 TL 141,001 USD 36,786 (726 ) 3 January 2018 TL 219,162 USD 57,245 (1,043 ) 4 January 2018 TL 115,022 USD 30,150 (435 ) 5 January 2018 TL 17,204 USD 4,500 (284 ) 10 January 2018 TL 15,916 EUR 3,500 (157 ) 10 January 2018 TL 91,556 EUR 20,140 (620 ) 22 January 2018 TL 137,834 EUR 30,400 (601 ) 05 February 2018 TL 82,013 EUR 17,860 (1,413 ) 19 February 2018 TL 1,143 EUR 250 (25 ) 5 Mart 2018 TL 97,997 EUR 21,500 (2,154 ) 19 December 2019 TL 269,451 USD 70,500 (5,010 ) 22 December 2020 Total (15,478 ) Currency forward contracts at 31 December 2017 Buy Currency Notional amount Fair value Maturity USD 50,000 (2,246 ) 30 January 2018 Total (2,246 ) At 31 December 2017, total derivative financial liabilities of TL 110,108 also include accrued interest expense of TL 92,384. Derivative financial liabilities: Participating cross currency swap and FX swap contracts Buy Sell Currency Notional amount Currency Notional Fair value Maturity TL 21,009 USD 5,960 (55 ) 3 January 2017 TL 7,050 USD 2,000 (18 ) 3 January 2017 Total (73) Currency forward contracts at 31 December 2016 Buy Currency Notional Fair Maturity USD 30,071 (1,286 ) 28 February 2017 Total (1,286 ) At 31 December 2016, total derivative financial liabilities of TL 41,726 also include accrued interest expense of TL 40,367. For information about the methods and assumptions used in determining the fair value of derivatives please refer to Note 2i. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2017 | |
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Financial instruments | 33. Credit risk Exposure to credit risk: The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is: 2017 2016 Trade receivables 19 3,004,206 3,525,297 Receivables from financial services 20 4,248,120 2,396,372 Cash and cash equivalents* 23 4,712,141 6,052,129 Participating cross currency swap and FX swap contracts 32 981,396 390,958 Other current assets** 22 316,042 93,376 Held to maturity investments 11,992 — Due from related parties 37 5,299 5,861 13,279,196 12,463,993 * Cash in hand is excluded from cash and cash equivalents. ** Prepaid expenses and advances given are excluded from other current assets and other non-current assets. Credit quality: The maximum exposure to credit risk for trade receivables and receivables from financial services arising from sales transactions including those classified as due from related parties at the reporting date by type of customer is: 2017 2016 Receivable from subscribers 2,472,596 3,061,130 Receivables from financial services 4,248,120 2,396,372 Receivables from distributors and other operators 516,352 376,204 Other 20,557 93,824 7,257,625 5,927,530 The aging of trade receivables and due from related parties at 31 December 2017 and 2016: 2017 2016 Not past due 2,124,719 3,138,043 Past due up to 3 months 317,649 285,561 Past due 3 to 6 months 95,738 48,775 Past due over 6 months 471,399 58,779 3,009,505 3,531,158 The aging of receivables from financial services at 31 December 2017 and 2016: 2017 2016 Not past due 3,659,521 2,350,375 Past due up to 3 months 513,925 16,533 Past due 3 to 6 months 39,233 20,227 Past due over 6 months 35,441 9,237 4,248,120 2,396,372 As at 31 December 2017, trade receivables, due from related parties and receivables from financial services of TL 1,473,385 (2016: TL 439,112) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default. The other classes within trade receivables, due from related parties and receivables from financial services do not contain impaired assets and are not past due. Based on the credit history of these other classes, it is expected that these amounts will be received when due. The Group holds TL 339,543 (2016: TL 156,647) collateral in relation to these receivables. Impairment losses Individual receivables which are known to be uncollectible are written off by reducing the carrying amount directly. The other receivables are assessed collectively to determine whether there is objective evidence that an impairment has been incurred but not yet been identified. The Group considers that there is evidence of impairment if any of the following indicators are present: • significant financial difficulties of the customer • probability that the customer will enter bankruptcy or financial reorganisation, and • default or delinquency in payments Receivables for which an impairment provision was recognized are written off against the provision when there is no expectation of recovering additional cash. Impairment losses are recognized in profit or loss within administrative expense (Note 10). Subsequent recoveries of amounts previously written off are credited against administrative expense (Note 10). Movements in the provision for impairment of trade receivables and due from related parties are as follows: 31 December 31 December Opening balance 964,311 816,373 Provision for impairment recognized during the year 180,948 452,767 Amounts collected (224,460 ) (251,553 ) Exchange differences 3,128 5,038 Receivables written off during the year as uncollectible (138,529 ) (58,314 ) Unused amount reversed (*) (79,958 ) — Closing balance 705,440 964,311 (*) The Company signed a transfer of claim agreement with a debt management company to transfer some of its doubtful receivables stemming from the years between 1998 to 2016. Transferred doubtful receivables comprise of balances that the Company started legal proceedings. Movements in the provision for impairment of receivables from financial services are as follows: 31 December 31 December Opening 10,170 — Provision for impairment recognized during the year 117,293 11,593 Amounts collected (37,503 ) (1,423 ) Unused amount reversed (*) (16,968 ) — Closing balance 72,992 10,170 (*) The Company signed a transfer of claim agreement with a debt management company to transfer some of its doubtful receivables stemming from the year 2017. Transferred doubtful receivables comprise of balances that the Company started legal proceedings. Liquidity risk The table below analyses the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities for: - all non-derivative financial liabilities, and - gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows. 31 December 2017 31 December 2016 Carrying Contractual 6 months or less 6-12 Months 1-2 years 2-5 years More than 5 Carrying Contractual 6 months or less 6-12 months 1-2 years 2-5 years More than 5 Non-derivative financial liabilities Secured bank loans 4,390 (5,011 ) — (1,117 ) (2,045 ) (1,849 ) — 5,634 (7,691 ) (1,123 ) (1,077 ) (2,015 ) (3,476 ) — Unsecured bank loans 10,533,518 (11,094,697 ) (3,275,230 ) (955,637 ) (2,575,807 ) (3,035,914 ) (1,252,109 ) 7,804,758 (8,458,901 ) (1,332,478 ) (1,330,322 ) (1,433,790 ) (3,187,687 ) (1,174,624 ) Finance lease liabilities 122,720 (133,570 ) (18 ) (17,429 ) (16,789 ) (38,933 ) (60,401 ) 48,114 (54,273 ) (70 ) (7,837 ) (6,648 ) (19,859 ) (19,859 ) Debt securities issued 1,875,521 (2,753,486 ) (54,221 ) (54,221 ) (108,442 ) (325,326 ) (2,211,276 ) 1,922,656 (2,824,066 ) (298,767 ) (48,767 ) (97,535 ) (292,604 ) (2,086,393 ) Trade and other payables* 2,527,152 (2,548,365 ) (2,548,365 ) — — — — 3,241,403 (3,266,123 ) (3,266,123 ) — — — — Due to related parties 6,980 (6,980 ) (6,980 ) — — — — 11,201 (11,201 ) (11,201 ) — — — — Consideration payable in relation to acquisition of Belarusian Telecom (Note 31) 323,691 (377,190 ) — — — (377,190 ) — 295,062 (351,920 ) — — — (351,920 ) — Derivative financial liabilities Participating Cross Currency Swap and FX swap contracts 107,862 23,428 18,982 — 4,446 — — 40,440 46 46 — — — — Buy 1,838,554 1,471,106 — 367,448 — — — 28,059 28,059 — — — — Sell (1,815,126 ) (1,452,124 ) — (363,002 ) — — — (28,013 ) (28,013 ) — — — — Currency forward contracts 2,246 (2,246 ) (2,246 ) — — — — 1,286 (1,286 ) (1,286 ) — — — — Buy 190,185 190,185 — — — — — 105,826 105,826 — — — — Sell (192,431 ) (192,431 ) — — — — — (107,112 ) (107,112 ) — — — — TOTAL 15,504,080 (16,898,117 ) (5,868,078 ) (1,028,404 ) (2,698,637 ) (3,779,212 ) (3,523,786 ) 13,370,554 (14,975,415 ) (4,911,002 ) (1,388,003 ) (1,539,988 ) (3,855,546 ) (3,280,876 ) * Advances received, license fee accruals, taxes and withholding taxes payable are excluded from trade and other payables. Foreign exchange risk The Group’s exposure to foreign exchange risk at the end of the reporting period, based on notional amounts, was as follows: 31 December 2016 USD EUR Foreign currency denominated assets Other non-current assets 244 2,131 Due from related parties 1,210 388 Trade receivables and accrued income 14,178 61,841 Other current assets 19,929 7,144 Cash and cash equivalents 807,372 378,057 842,933 449,561 Foreign currency denominated liabilities Loans and borrowings-non-current (483,910 ) (959,482 ) Debt securities issued-non-current (451,588 ) — Other non-current liabilities (99,273 ) — Loans and borrowings-current (80,029 ) (21,985 ) Debt securities issued-current (26,845 ) — Trade and other payables-current (175,083 ) (425,992 ) Due to related parties (398 ) (334 ) (1,317,126 ) (1,407,793 ) Derivative financial instruments Participating cross currency swap and FX swap contracts 257,960 525,000 Currency forward contracts (30,071 ) — Net exposure (246,304 ) (433,232 ) 31 December 2017 USD EUR Foreign currency denominated assets Other non-current assets 72 2,681 Due from related parties 571 407 Trade receivables and accrued income 18,890 57,283 Other current assets 43,039 35,049 Cash and cash equivalents 688,717 237,697 751,289 333,117 Foreign currency denominated liabilities Loans and borrowings-non-current (557,180 ) (960,629 ) Debt securities issued-non-current (469,387 ) — Other non-current liabilities (85,816 ) — Loans and borrowings-current (206,535 ) (285,827 ) Debt securities issued-current (27,848 ) — Trade and other payables-current (328,323 ) (29,442 ) Due to related parties (1,172 ) (394 ) (1,676,261 ) (1,276,292 ) Derivative financial instruments Participating cross currency swap and FX swap contracts 937,011 748,650 Currency forward contracts 50,000 — Net exposure 62,039 (194,525 ) Exposure to currency risk (continued) Sensitivity analysis The basis for the sensitivity analysis to measure foreign exchange risk is an aggregate corporate-level currency exposure. The aggregate foreign exchange exposure is composed of all assets and liabilities denominated in foreign currencies. The analysis excludes net foreign currency investments. 10% strengthening of the TL, UAH, BYN against the following currencies at 31 December 2017 and 31 December 2016 would have increased/(decreased) profit or loss before by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. Profit or loss 31 December 31 December USD (23,400 ) 86,679 EUR 87,838 160,725 10% weakening of the TL, UAH, BYN against the following currencies at 31 December 2017 and 31 December 2016 would have increased/(decreased) profit or loss before tax by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. Profit or loss 31 December 31 December USD 23,400 (86,679 ) EUR (87,838 ) (160,725 ) Interest rate risk As at 31 December 2017 and 2016 the interest rate profile of the Group’s interest-bearing financial instruments was as follows: 31 December 2017 31 December 2016 Note Effective Interest Rate Carrying Effective rate Carrying Fixed rate instruments Time deposits 23 USD 5.8 % 2,590,025 3.6 % 2,817,650 EUR 2.2 % 1,069,303 2.0 % 1,383,978 TL 14.3 % 436,224 11.0 % 1,243,843 Other 12.9 % 13,036 11.1 % 36,175 Restricted cash 22 USD — 64,503 — — EUR — 118,983 — — TL — — — — Other — 320 — — Finance lease obligations 27 USD 28.1 % (41 ) 20.7 % (80 ) EUR 3.4 % (116,797 ) 3.4 % (48,034 ) TL 27.6 % (5,882 ) — — Unsecured bank loans 27 TL fixed rate loans 14.7 % (1,620,391 ) 12.1 % (1,819,944 ) UAH fixed rate loans 13.9 % (520,933 ) 15.0 % (407,171 ) Secured bank loans BYN fixed rate loans 11.6 % (4,390 ) 11.9 % (5,634 ) Trade and other payables EUR fixed rate payables 31 — — 2.6 % (1,522,615 ) Debt securities issued 27 USD 5.8 % (1,875,521 ) 5.8 % (1,683,700 ) TL — — 10.7 % (238,956 ) Variable rate instruments 27 USD floating rate loans 3.2 % (2,880,615 ) 3.2 % (1,984,533 ) EUR floating rate loans 2.1 % (5,511,579 ) 2.3 % (3,593,110 ) (*) Includes 4.5G license payables related to the frequency bands which the Company has been awarded with. The last instalment of 4.5G license payable amounting to TL 1,534,702 was paid on 26 April 2017. Sensitivity analysis Cash flow sensitivity analysis for variable rate instruments: An increase/decrease of interest rates by 100 basis points would have (decreased)/increased equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign exchange rates, remain constant. The analysis is performed on the same basis at 31 December 2017 and 2016: Profit or loss Equity 100 bps 100 bps 100 bps 100 bps 31 December 2017 Variable rate instruments (financial liability) (83,922 ) 83,922 — — Cash flow sensitivity (net) (83,922 ) 83,922 — — 31 December 2016 Variable rate instruments (financial liability) (55,776 ) 55,776 — — Cash flow sensitivity (net) (55,776 ) 55,776 — — Fair values Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level is as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; • Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and • Level 3 inputs are unobservable inputs for the asset or liability. Fair values 31 December 31 December Fair value Valuation techniques FX swap contracts (4,675 ) 611 Level 2 Present value of the estimated future cash flows based on observable yield curves and end period FX rates Participating cross currency swap contracts (*) 950,862 382,054 Level 3 Present value of the estimated future cash flows based on unobservable yield curves and end period FX rates Currency forward contracts (2,246 ) (1,286 ) Level 2 Forward exchange rates at the balance sheet date (*) Participating cross currency swap contracts include EUR-TL interest and currency swap contracts, EUR put and call options, amounting to nominal value of EUR 560,000 and also USD-TL interest and currency swap contracts and put and call options amounting to nominal value of USD 400,000 in total. The EUR-TL participating cross currency swap contracts, which are EUR 100,000, EUR 150,000 and EUR 250,000, was combined into one contract as of 26 May 2017 and the maturity of the contracts was extended to 23 October 2025. Additionally, cross currency swap contracts include EUR-TL interest and currency swap contracts nominal value of EUR 43,585 and USD-TL interest and currency swap contracts amounting to nominal value of USD 298,611 in total. Cross currency swap contracts include EUR-TL, cross currency swap contracts nominal value of EUR 184,900 and USD-TL currency swap contracts amounting to nominal value of USD 238,400 in total. Regarding these contracts, TL 92,384 accrual of interest expense and TL 19,731 accrual of interest income has been reflected to consolidated financial statements as at 31 December 2017 (31 December 2016: TL 40,367 and TL 8,220 respectively). Since bid-ask spread is unobservable input; in valuation of participating cross currency swap contracts, prices in bid- ask price range which were considered the most appropriate were used instead of mid prices. If mid prices were used in the valuation the fair value of participating cross currency swap contracts would have been TL 129,870 lower as at 31 December 2017 (31 December 2016: TL 23,291). There were no transfers between fair value hierarchy levels during the year. Movements in the participating cross currency swap contracts for the years ended 31 December 2017 and 31 December 2016 are stated below: 31 December 31 December Opening balance 382,054 — Fair value gains recognized in profit or loss 568,808 382,054 Closing balance 950,862 382,054 Valuation inputs and relationships to fair value The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurement of contingent consideration. Fair value at Inputs 31 December 31 December Unobservable Inputs 31 December 31 December Relationship of unobservable Contingent consideration 323,691 295,062 Risk-adjusted 4.8% 5.6% A change in the discount rate by 100 bps would increase/decrease FV by TL (9,834) and TL 10,241 respectively. Expected first first If expected settlement date changes by 1 year FV would increase/decrease by TL (14,884) and TL 15,602 respectively. Changes in the consideration payable in relation to acquisition of Belarusian Telecom for the years ended 31 December 2017 and 31 December 2016 are stated below: 2017 2016 Opening balance 295,062 235,281 Gains recognized in profit or loss 28,629 59,781 Closing balance 323,691 295,062 Financial assets: Carrying values of significant portion of financial assets do not differ significantly from their fair values due to their short-term nature. Financial liabilities: Fair values of financial liabilities are assumed to approximate their carrying values due to their short term nature and floating interest rates. As at 31 December 2017, the fair value of debt securities issued by the Company with a nominal value of USD 500,000 and fixed interest rate (Note 27), is TL 2,063,972. As at 31 December 2016, the fair value of debt securities issued by the Company and Turkcell Finansman, with a nominal value of USD 500,000 and TL 500,000 comparatively, and fixed interest rate (Note 27), is TL 1,921,199. |
Operating leases
Operating leases | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Operating leases | 34. Lease contracts, which mainly comprise leases of radio, transmission, office and internet capacity, expire on various dates. The leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated. Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: 2017 2016 Within one year 144,424 163,336 Later than one year but not later than five years 346,832 345,374 Later than five years 167,227 101,328 658,483 610,038 Rental expense relating to operating leases are as follows: 2017 2016 2015 Minimum lease payments 812,385 837,575 751,816 Contingent rentals — — 1,733 Total 812,385 837,575 753,549 Rental expenses have been recognized within cost of sales and administration expenses for the years ended 31 December 2017, 2016 and 2015. |
Guarantees and purchase obligat
Guarantees and purchase obligations | 12 Months Ended |
Dec. 31, 2017 | |
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Guarantees and purchase obligations | 35. At 31 December 2017, outstanding purchase commitments with respect to property, plant and equipment, inventory, advertising and sponsorship amount to TL 592,956 (31 December 2016: TL 915,868). Payments for these commitments will be made within 3 years. The Group is contingently liable in respect of letters of guarantee obtained from banks and given to public institutions and private entities, and financial guarantees provided to subsidiaries amounting to TL 4,926,916 at 31 December 2017 (31 December 2016: TL 2,370,723). At 31 December 2017, the Company has commitments regarding lifecell’s 3G license amounting to UAH 217,793 (equivalent to TL 29,269 as at 31 December 2017). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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Commitments and Contingencies | 36. The following disclosures comprise of material legal lawsuits, investigations and in-depth investigations against the Company. License Agreements Turkcell: On 27 April 1998, the Company signed the Agreement for grant of concession for the establishment and Operation of the Pan-European Mobile Telephone System, GSM (hereinafter referred to as the “License Agreement”) with the Turkish Ministry. In accordance with the License Agreement, the Company was granted a 25 year license for the provision of GSM services for a license fee of $500,000. 3G License On 30 April 2009, the Company signed a separate License Agreement with ICTA which provides authorization for providing IMT 2000/UMTS services and establishment and operation of the required infrastructure. Turkcell acquired the A license providing the widest frequency band for a consideration of EUR 358,000 (excluding VAT). The license is effective for duration of 20 years starting from 30 April 2009. According to the agreement, Turkcell has provided IMT 2000/UMTS services starting from 30 July 2009. 4.5G License The 4.5 licensing process is finalized by signing of IMT License Commitments Document by Turkcell and therefore, ICTA granted Turkcell 4.5G License on 27 October 2015. The 4.5G License is effective for 13 years until 30 April 2029. According to the License, Turkcell started to provide 4.5G services on 1 April 2016. Belarusian Telecom: Belarusian Telecom owns a license issued on 28 August 2008 for a period of 10 years and was valid till 28 August 2018. According to the Sale and Purchase Agreement signed, the State Property Committee of the Republic of Belarus committed to grant the license from the acquisition date of 26 August 2008 for a period of 10 years. In accordance with the Edict of the President of the Republic of Belarus dated 26 November 2015, numbered 475, the license is now issued without limitation of the period of validity. Starting from 1 March 2016, the license is valid from the date of the licensing authority’s decision on its issue and for an unlimited period. Under the terms of its license, Belarusian Telecom is required to gradually increase its geographical coverage until the end of 2018. Belarusian Telecom has fulfilled all coverage requirements except covering all Belarusian settlements. The number of uncovered settlements is 657 out of a total of 22,552 settlements. lifecell: lifecell owns twelve activity licenses, for GSM 900, GSM 1800, a technology neutral license, issued for 3G, one license for international and long-distance calls and eight PSTN licenses for eight regions in Ukraine. As of December 31, 2017, lifecell owned 28 frequency use licenses for IMT-2000 (UMTS), GSM-900, GSM-1800, CDMA-800, Wi-fi and microwave Radiorelay and Broadband Radio Access, which are regional and national. 3G activity and frequency licenses were issued in March 2015, reissued due to company name change in March 2016 and are valid for 15 years. Additionally, lifecell holds a specific number range – three NDC codes for mobile networks, sixteen permissions on a number resource for short numbers, eleven permissions on a number resource for SS-7 codes (7 regional and 4 international), one permission on a number resource for Mobile Network Code, nine permissions on a number resource for local ranges for PSTN licenses, two permissions on a service codes for alternative routing selection for international and long-distance fixed telephony and one permission on a code for global telecommunication service “800”. Inteltek: On 12 August 2008, Spor Toto conducted a tender which allowed private companies to organize fixed odds and paramutual betting games based on sports competitions. Inteltek gave the best offer for the tender. On 29 August 2008, Inteltek signed a contract with Spor Toto, receiving the rights to operate the fixed odds and paramutual betting games based on sports competitions for the next ten years. New commission rate, which is 1.4% of the takings arising from the operation of the fixed odds and paramutual betting games based on sports competitions (until 1 March 2009, commission rate was 7% of gross takings), is applicable starting from March 2009. As at 31 December 2017, Inteltek has a letter of guarantee of TL 159,752 (31 December 2016: TL 159,752) provided to Spor Toto. Inteltek has a mobile agency agreement with Spor Toto, receiving the rights to assign mobile sub agencies to operate the fixed odds and paramutual betting games based on sports competitions. As at 31 December 2017, Inteltek has a letter of guarantee of TL 25,000 (31 December 2016: TL 25,000) provided to Spor Toto for mobile agency agreement. The targeted payout is 50% of the turnover balance including VAT. The fact that Inteltek is obliged to pay the difference between the realized and the targeted payout balances, whenever the pool balance falls negative, creates an excess payment risk. Kibris Telekom: On 27 April 2007, Kibris Telekom signed the License Agreement for Installation and Operation of a Digital, Cellular, Mobile Telecommunication System (“Mobile Communication License Agreement”) with the Ministry of Communications and Public Works of the Turkish Republic of Northern Cyprus which is effective from 1 August 2007, replacing the previous GSM-Mobile Telephony System Agreement dated 25 March 1999. In accordance with the Mobile Communication License Agreement, Kibris Telekom was granted an 18 year GSM 900, GSM 1800 and IMT 2000/UMTS license for GSM 900, GSM 1800 frequencies while the usage of IMT 2000/UMTS frequency bands is subject to the fulfillment of certain conditions. On 14 March 2008, Kibris Telekom was awarded a 3G infrastructure license at a cost of $10,000 including VAT, which was paid at the end of March 2008. Under the terms of the license, the system had to be operational by mid-October 2008. In 2010, Kibris Telekom has completed the radio transmission (air link) project providing direct international voice and data connection with mainland and started using it from the third quarter of 2010. The Project is the only direct connection in Turkish Republic of Northern Cyprus besides Telecommunication Authority. Azerinteltek: Azerinteltek, in which Inteltek’s shareholding is 51%, was established on 19 January 2010, and authorized to organize, operate, manage and develop the fixed-odds and para-mutual sports betting games by the Ministry of Youth and Sports of Azerbaijan for a period of 10 years. The agreement signed with Azeridmanservis which is founded by the Ministry of Youth and Sports of Azerbaijan is renewed with the same terms and conditions in accordance with the new legislation enforced in Azerbaijan regarding the betting games based on sports on 30 September 2010. Azerinteltek officially commenced sports betting games on 18 January 2011. On 4 March 2015, Azerinteltek authorization of organizing, operating, managing and developing the fixed-odds and para-mutual sports betting games of was extended till 2 March 2025. Since January 1, 2013, Azerinteltek was authorized for the sales of lottery tickets as a main distributor by Azerlotereya. As at 1 January 2016, the authorization for the sales of lottery tickets decided to be extended yearly. Management believes that the Group is in compliance with the terms and conditions of the license agreements in all material respects as at 31 December 2017 and 2016. 36.1 Dispute on Treasury Share Amounts Turkcell has the 2G and 3G Concession Agreements which was signed with the regulatory party in Turkey for rendering mobile telecommunication services. According to the 2G and 3G Concession Agreements, The Company is obliged to pay each month 15% of its monthly gross sales; with the exception of the interest for late payment of the amounts charged to its subscribers and of the indirect taxes, fiscal obligations such as fees and duties and the invoiced amounts recorded in the accounts to the Treasury as treasury share. The Company is obliged to pay 90% of this share to Treasury and 10% of the remaining as the universal services share to the Ministry. The Company is also obliged to pay once a year 0.35% of its gross sale as the Authority contribution share. As “Applicable Law and Settlement of Disputes” of the 2G and 3G Concession Agremeent, the parties agreed that the disputes shall be settled by three arbitrators to be appointed in accordance with the arbitration rules of the International Chamber of Commerce for 2G while the Council of State is authorized to solve the disputes arising from the agreement and its annexes thereof for 3G. The Undersecretariat of Treasury and ICTA alleged that Company made deficient treasury payments in the past, The Company objected to these claims. After then, the Company has resolved the following within the scope of Provisional Article 13 added to the Telegraph and Telephone Law No.406 dated 4 February 1924 of the Law on the Amendment of Certain Tax Laws and Other Laws No. 7061 published in the Official Gazette dated December 5th, 2017: to restructure relevant disputes and their interest fees and to choose the method of increasing tax base from the options in order to restructure relevant disputes and their interest fees for the periods for which examination is ongoing or has not been yet initiated. The Company applied for restructure, and according to the Law The Company submitted waiver petition or accepted the cases related to the restructured amounts. It is expected that the Courts grant decisions about the statement of waiver/acceptance of the aforementioned cases. Based on the Laws stated above, the total amount, including principal and interest, calculated is TL 206,365 and is TL 209,159, respectively. The payment will be made in 6 equal installments in two-month periods, starting from January 31st, 2018. The total payment including interest on installments is TL 436,300. Based on the management opinion, the probability of an outflow of resources embodying economic benefits to settle the obligation is certain, thus, including discount TL 417,668 provision is recognized in the consolidated financial statements as at and for the period ended 31 December 2017 (31 December 2016: None). 36.2 Dispute on Special Communication Tax Large Tax Payers Office levied Special Communication Tax (SCT) and tax penalty on the Company amounting to TL 527,639 in total, of which SCT amounting 211,056 and penalty amounting to TL 316,583 based on the claim stated on Tax Investigation Reports related to SCT prepared for the years 2008-2012. The Company filed lawsuits in the Tax Courts for the cancellation of each tax and tax penalty claim. In some of the cases, The Court decided in favour of The Company or in favour of the Court. The parties appealed the decisions regarding the parts against them. The Large Tax Payers Office has collected TL 80,355 calculated for the parts against the Company for the assessment of the SCT for the year 2011 by offsetting the receivables of the Company from Public Administrations. As per the Law no. 6736, the Company filed applications for the restructuring of penalties and interest on the SCT regarding the dispute on the tax amount for the years 2008, 2009, 2010, 2011 and 2012. Tax Office rejected the application for the year 2011 and the case is pending for the year 2011; accepted the other restructuring applications for the years 2008, 2009, 2010, 2012 and the Company paid the restructuring amount of TL 117,058. Limited tax investigation for the period of 2013 has been started in 2014 and the result of investigation has not yet been notified to Turkcell. Large Tax Payers Office has begun the limited tax investigation for the period of 2013. For the year of 2014, 2015 and 2016 a new investigation has been initiated. Based on the probable payment including interest in case of restructuring the SCT for the year 2013 as per the Law no. 6736, the Company accrued provisions in the consolidated financial statements as at and for the period ended 31 December 2017 amounting to 24,175 TL including discount (31 December 2016: 14,866). 36.3 Investigation initiated by ICTA on subscription numbers and radio utilization and usage fees ICTA commenced in-depth investigations, against the GSM operators for the years, 2004-2009, 2010-2011, 2012, 2013 and 2014. As a result of the investigations, ICTA imposed administrative fines to the Company amounting TL 11,240 in total and decided to warn the Company. The administrative fines were paid within 1 month following the notification of the decision of ICTA, with 25% discount. The Company filed lawsuits for the cancellation of aforementioned administrative fines and ICTA’s administrative acts. ICTA filed lawsuits against Company for the collection of the radio utilization and usage fee amount which was alleged that the Company paid deficiently. The Company has resolved the following based on the Laws No. 7061 as explained in detailed note 36.1 to restructure radio fees which are in dispute and respective penalty, default interest regarding these disputes. The Company applied for restructure, and according to the Law The Company submitted waiver petition or accepted the cases related to the restructured amounts. It is expected that the Courts grant decisions about the statement of waiver/acceptance of the aforementioned cases. The total amount, including principal and interest, calculated within the scope of clause 2 is TL 156,637. The payment will be made in 6 equal installments in two-month periods, starting from 31 January 2018. The total payment including interest on installments is TL 164,469. Based on the management opinion, the probability of an outflow of resources embodying economic benefits is certain, thus, including discount TL 157,446 provision is recognized in the consolidated financial statements as at and for the period ended 31 December 2017 (31 December 2016: None). 36.4 Disputes regarding the Law on the Protection of Competition On the grounds of the investigation initiated by the Competition Board on the grounds that the Company violated the competitive environment through abusing its dominant position in the Turkish mobile market and it was decided to apply administrative fine amounting to TL 91,942 on the Company. A lawsuit was filed by the Company. The case is still pending. The payment order has been sent to the Company by the Tax Office. The Company filed a lawsuit for the stay of execution and cancellation of the payment order. The Court accepted the lawsuit and cancelled the payment order. Tax Office appealed the decision. The Company replied the appeal request. Appeal process is still pending. Three private companies filed a lawsuits against the Company in relation with this case claiming in total of TL 113,084 together with up to 3 times of the loss amount to be determined by the court for its material damages by reserving its rights for surpluses allegedly. The cases are still pending. Based on the management opinion, the probability of an outflow of resources embodying economic benefits is uncertain, thus, no provision is recognized in the consolidated financial statements as at and for the period ended 31 December 2017 (31 December 2016: None). 36.5 Other ongoing lawsuits and investigations Within consolidated financial statements prepared as of 31 December 2017, obligations which are related to following ongoing disputes have been evaluated. Based on the management opinion, an outflow of resources embodying economic benefits is deemed to be less than probable, thus, no provision is recognized in the consolidated financial statements as at and for the period ended 31 December 2017 (31 December 2016: None). Subject 31 December 2017 Anticipated Maximum (excluding accrued 31 December 2016 Anticipated Maximum (excluding accrued 31 December 2017 Provision 31 December 2016 Provision Disputes related with ICTA 13,367 22,544 — — In addition, Tax Audit Committee carries out limited tax investigations regarding the Company’s VAT and corporate tax practices for the years 2012, 2013 and 2014 and VAT practices for the years 2015 and 2016. Based on the management opinion, the probability of an outflow of resources embodying economic benefits is uncertain, thus, no provision is recognized in the consolidated financial statements as at and for the period ended 31 December 2017. |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2017 | |
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Related parties | 37. Transactions with key management personnel Key management personnel comprise of the Group’s members of the Board of Directors and chief officers. There are no loans to key management personnel as of 31 December 2017 and 2016. The Group provide additional benefits to key management personnel and contribution to retirement plans based on a pre-determined ratio of compensation. 31 December 31 December 31 December Short-term benefits (*) 74,696 50,001 52,767 Termination benefits 604 10,064 13,454 Long-term benefits 548 479 655 75,848 60,544 66,876 (*) Includes share-based payment. The following balances are outstanding at the end of the reporting period in relation to transactions with related parties: 31 December 31 December Due from related parties Telia Sonera International Carrier AB (“Telia”) 1,256 607 Kyivstar GSM JSC (“Kyivstar”) 1,061 75 GSM Kazakhstan Ltd (“Kazakcell”) 830 937 Azercell Telekom MMC (“Azercell”) 364 446 MegaFon OJSC (“Megafon”) 281 1,387 Hobim Bilgi Islem Hizmetleri AS (“Hobim”) (*) — 1,223 Vimpelcom OJSC (“Vimpelcom”) — 586 Other 1,507 600 5,299 5,861 (*) Hobim is not a related party effective from 20 June 2017. Due from related parties is shown net of allowance for doubtful receivables amounting to TL 227 at 31 December 2017 (31 December 2016: TL 231). Due from Megafon, Telia, Vimpelcom, Azercell, Millenicom and Kyivstar resulted from telecommunications services. Due from Kazakcell, mainly resulted from software services and telecommunications services 31 December 31 December Due to related parties Kyivstar GSM JSC (“Kyivstar”) 2,346 2,382 Wind Telecomunicazioni S.P.A. 1,738 — Vimpelcom (Bvı) Ltd. 1,552 100 Geocell LLC (“Geocell”) 447 445 Megafon 17 892 Hobim (*) — 6,260 Other 880 1,122 6,980 11,201 (*) Hobim is not a related party effective from 20 June 2017. Due to Kyivstar, Megafon, Geocell, Wind Telecomunicazioni S.P.A. and Vimpelcom (Bvı) Ltd.mainly resulted from telecommunications services received. The Group’s exposure to currency risk related to outstanding balances with related parties is disclosed in Note 33. The following transactions occurred with related parties: 2017 2016 2015 Revenue from related parties Sales to Kyivstar Telecommunications services 30,875 30,964 41,728 Sales to Telia Telecommunications services 10,020 15,761 16,955 Sales to Vimpelcom Telecommunications services 7,230 20,775 20,489 Sales to Megafon Telecommunication services 6,362 11,773 14,958 Sales to Azercell Telecommunication services 1,583 2,585 4,183 Sales to Krea (*) Call center services, fixed line services, rent and interest charges — 3,422 4,831 Sales to Millenicom (**) Telecommunication services — 997 8,861 Sales to KVK Teknoloji (***) Simcard SIM card and prepaid card sales — — 217,080 Sales to other related parties 4,962 3,149 6,049 61,032 89,426 335,134 Transactions with related parties 2017 2016 2015 Related party expenses Charges from Kyivstar Telecommunications services 49,178 47,595 49,608 Charges from Hobim (****) Invoicing and archiving services 16,993 31,832 29,570 Charges from Vimpelcom Telecommunications services 10,853 2,721 4,348 Charges from Megafon Telecommunications services 5,169 3,162 4,342 Charges from Telia Telecommunications services 3,120 2,499 3,409 Charges from Azercell Telecommunications services 734 1,361 28 Charges from Krea Digital television broadcasting services — 5,975 15,826 Charges from KVK Teknoloji Dealer activation fees and others — — 76,743 Charges from other related parties 11,832 8,497 15,151 97,879 103,642 199,025 (*) Transactions with Krea include transactions until 26 August 2016. (**) Transactions with Millenicom include transactions until 21 January 2016. (***) KVK Teknoloji is not a related party effective from 6 July 2015. Transactions with KVK Teknoloji include transactions until that date. (****) Transactions with Hobim include transactions until 20 June 2017. Transactions with Kyivstar: Kyivstar, an entity under common control with Alfa, is rendering and receiving telecommunications services such as interconnection and roaming. Transactions with Hobim: Hobim, one of the leading data processing and application service provider companies in Turkey, is owned by Cukurova Group. The Company has entered into invoice printing and archiving agreements with Hobim under which Hobim provides the Company with monthly invoice printing services, manages archiving of invoices and subscription documents. Prices of the agreements are determined through alternative proposals’ evaluation. Transactions with Vimpelcom: Vimpelcom, an entity under common control with Alfa, is rendering and receiving telecommunications services such as interconnection and roaming. Transactions with Megafon: Megafon, a subsidiary of Sonera, is rendering and receiving telecommunications services such as interconnection and roaming. Transactions with Telia: Telia, a subsidiary of Sonera, is rendering and receiving telecommunications services such as interconnection and roaming. Transactions with Azercell: Azercell, a subsidiary of Sonera, is rendering and receiving telecommunications services such as interconnection and roaming. Transactions with Krea: Çukurova Holding has signed a share purchase agreement with BeIN Media Group LLC related to the sale of their shares in Krea. Share transfer has finalized as at 26 August 2016. Krea, a direct-to-home digital television service company under the Digiturk brand name. There are no specific agreements between Turkcell and digital channels branded under Digiturk name. Every year, as in every other media channel, standard ad spaces are purchased on a spot basis. Also, Krea provides instant football content related to Spor Toto Super League to the Company to be delivered to mobile phones and tablets. The Company has agreements for fixed telephone, leased line, corporate internet, and data center services provided by the Company’s subsidiary Turkcell Superonline. Transactions with KVK Teknoloji: KVK Teknoloji shares held by Cukurova Group were acquired by MV Holding on 6 July 2015. The Company has a distributorship agreement with KVK Teknoloji. |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
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Subsidiaries | 38. The Group’s ultimate parent company is Turkcell Holding. Subsidiaries of the Company as at 31 December 2017 and 31 December 2016 are as follows: Effective Ownership Subsidiaries Name Country of Business 31 December 31 December Kibris Telekom Turkish Republic of Northern Cyprus Telecommunications 100 100 Turkcell Global Bilgi Turkey Customer relations management 100 100 Turktell Turkey Information technology, value added GSM services and entertainment investments 100 100 Turkcell Superonline Turkey Telecommunications, television services and content services 100 100 Turkcell Satis Turkey Sales and delivery 100 100 Eastasia Netherlands Telecommunications investments 100 100 Turkcell Teknoloji Turkey Research and development 100 100 Global Tower Turkey Telecommunications infrastructure business 100 100 Financell Netherlands Financing business 100 100 Rehberlik Turkey Directory Assistance 100 100 Lifecell Ventures Netherlands Telecommunications investments 100 100 Beltel Turkey Telecommunications investments 100 100 Turkcell Gayrimenkul Turkey Property investments 100 100 Global LLC Ukraine Customer relations management 100 100 UkrTower Ukraine Telecommunications infrastructure business 100 100 Turkcell Europe Germany Telecommunications 100 100 Turkcell Odeme (1) Turkey Payment services and e-money licence 100 100 Lifecell Ukraine Telecommunications 100 100 Turkcell Finansman Turkey Consumer financing services 100 100 Beltower Republic of Belarus Telecommunications Infrastructure business 100 100 Turkcell Enerji (2) Turkey Electricity energy trade and wholesale and retail electricity sales 100 — Paycell (3) Ukraine Payment services and e-money licence 100 — Lifecell Digital (4) Turkish Republic of Northern Cyprus Telecommunications 100 — Belarusian Telecom Republic of Belarus Telecommunications 80 80 Lifetech Republic of Belarus Research and development 80 80 Inteltek Turkey Information and Entertainment Services 55 55 Azerinteltek Azerbaijan Information and Entertainment Services 28 28 (1) Turkcell Odeme operating under “Paycell” brand has been authorized by the Banking Regulation and Supervision Agency (“BRSA”) to operate as an “electronic money institution” and to provide intermediation service for invoice payments. The decision was published in the Official Gazette on 22 July 2017. (2) Turkcell Enerji that will be engaged in electricity energy trade, wholesale sales and retail sales was incorporated on 20 February 2017. The Company is a wholly owned subsidiary of Turktell and has obtained its electricity supply license upon approval from Energy Market Regulatory Authority (“EMRA”) as at 11 May 2017. (3) The company “Paycell LLC” which is established in Ukraine by lifecell and wholly owned by the company granted the “financial company” status on September 21, 2017. Paycell LLC will apply for financial services and local money transfer licenses to provide digital payment services to customers via credit device sales and e-money. (4) The transactions in relation to the incorporation of Lifecell Digital Limited in the Turkish Republic of Northern Cyprus (“TRNC”), which will offer services as an internet service provider, by our wholly-owned subsidiary Kıbrıs Mobile Telekomünikasyon Limited based in TRNC is completed as at 14 December 2017. Details of non-wholly owned subsidiaries that have material non-controlling interests to the Company are disclosed below: Name of subsidiary Place of Proportion of ownership Profit/(loss) allocated to Accumulated non- 31 December 31 December 31 December 31 December 31 December 31 December Inteltek Turkey 45.00 % 45.00 % 35,924 39,346 46,072 50,863 Individually immaterial subsidiaries with non – controlling interest 22,706 12,369 9,855 5,769 58,630 51,715 55,927 56,632 Summarized financial information in respect of Inteltek is set out below. The summarized financial information below represents amounts before intragroup eliminations. Inteltek 31 December 31 December Current assets 223,119 191,199 Non-current assets 9,290 17,367 Current liabilities 125,286 30,516 Non-current liabilities 4,742 65,020 Equity attributable to owners 102,381 113,030 2017 2016 Revenue 184,025 178,408 Expenses (104,194 ) (90,973 ) Profit for the year 79,831 87,435 Other comprehensive income/(loss) for the year 172 (618 ) Dividend paid to non-controlling interests (46,582 ) (44,888 ) Net cash inflow from operating activities 73,575 69,497 Net cash inflow from investing activities 19,930 17,470 Net cash outflow from financing activities (75,113 ) (119,751 ) Effects of foreign exchange rate fluctuations on cash and cash equivalents 8,574 18,213 Net cash outflow/(inflow) 26,966 (14,571 ) |
Cash flow information
Cash flow information | 12 Months Ended |
Dec. 31, 2017 | |
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Cash flow information | 39. Net debt reconciliation: Debt securities Loans Financial Total Balance at 1 January 2017 1,922,656 7,810,392 48,114 9,781,162 Cash inflows 209,808 24,030,222 72,421 24,312,451 Cash outflows (503,391 ) (22,768,911 ) (1,068 ) (23,273,370 ) Other non-cash movements 246,448 1,466,205 3,253 1,715,906 Balance at 31 December 2017 1,875,521 10,537,908 122,720 12,536,149 Cash and cash equivalents 4,712,333 Net debt (7,823,816 ) |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2017 | |
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Subsequent events | 40. Fintur, in which the Group holds 41.45% stake, has completed the transfer of its 99.99% total shareholding in Geocell LLC to Silknet JSC on 20 March 2018, a joint stock company organized under the laws of Georgia, for a total consideration of USD 153,000 upon receiving the necessary regulatory approvals. The transaction has no impact on consolidated financial statements since Fintur is classified as “assets held for sale” in the statement of financial position. 2600 MHz frequency tender as part of the 4G License Tender, which the Group’s fully owned subsidiary lifecell based in Ukraine had applied to participate, has been held on 31 January 2018. At the tender, lifecell has been awarded with the license for 15 years bidding UAH 909,251 (TL 129,155) for 15 MHz frequency band, the total of Lot 1 and Lot 2. Payment amounting to UAH 909,251 (equivalent to TL 129,155) of license was made in cash on 1 March 2018. 1800 MHz frequency tender as part of the 4G License Tender, which the Group’s fully owned subsidiary lifecell based in Ukraine had applied to participate, was held on 6 March 2018. As a result of the tender, lifecell was awarded with the license for 15 years for 15 MHz frequency band on Lot 1 with its UAH 795,000 bid. The 2017 General Assembly will be held on March 29, 2018 and the Board of Directors has proposed a dividend distribution for the year 2017 amounting to TL 1,239,500 which represented approximately 63% of distributable net income for the year 2017 on 15 February 2018. Dividend distribution decision is subject to approval of the General Assembly. This distribution is proposed to be paid in three equal installments on June 18, 2018, September 17, 2018 and December 17, 2018. The dividend amount is in line with the Group’s dividend policy approved during the Ordinary General Assembly Meeting held on March 26, 2015 and without deduction for tax settlements provisioned as disclosed on January 30, 2018. |
Basis of preparation and summ47
Basis of preparation and summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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Compliance with IFRS | (a) Compliance with IFRS The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and interpretations issued by the IFRS Interpretations Committee (“IFRS IC”) applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board (“IASB”). The General Assembly has the power to amend and reissue the financial statements. The consolidated financial statements as at and for the year ended 31 December 2016 were authorized for issue by the Board of Directors on 15 February 2017. The consolidated financial statements as at and for the year ended 31 December 2017 were authorized for issue by the Board of Directors on 15 February 2018. |
Historical cost convention | (b) Historical cost convention The accompanying consolidated financial statements are based on the statutory records, with adjustments and reclassifications for the purpose of fair presentation in accordance with IFRS as issued by the IASB. The financial statements have been prepared on a historical cost basis, except for the following measured at fair value: - Derivative financial instruments - Consideration payable in relation to the acquisition of Belarusian Telecom |
Functional and presentation currency | (c) Functional and presentation currency (i) Transactions and balances Transactions denominated in foreign currencies are translated into the functional currency using the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency using the exchange rates at that date. Non-monetary available-for-sale Foreign exchange gains and losses are recognized in profit or loss, except: • For capitalized foreign exchange differences relating to borrowings to the extent that they are regarded as an adjustment to interest costs eligible for capitalization. Foreign exchange differences that are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. Foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within finance income or finance costs. (ii) Foreign operations The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet • income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average monthly exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and • all resulting exchange differences are recognized in other comprehensive income and accumulated in the foreign currency translation reserve, in equity. On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are recognized in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. |
Use of estimates and judgments | (d) Use of estimates and judgments The preparation of the consolidated financial statements requires the use of accounting estimates. Management also needs to exercise judgement in applying the Group’s accounting policies. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are described below: Allowance for doubtful receivables The Group maintains an allowance for doubtful receivables for estimated losses resulting from the inability of the Group’s subscribers and customers to make required payments. The Group bases the allowance on the likelihood of recoverability of trade and other receivables based on the aging of the balances, historical collection trends and general economic conditions. The allowance is periodically reviewed. The allowance charged to expenses is determined in respect of receivable balances, calculated as a specified percentage of the outstanding balance in each aging group, with the percentage of the allowance increasing as the aging of the receivable becomes older. Capitalization and useful lives of assets The useful lives and residual values of the Group’s assets are estimated by management at the time the asset is acquired and regularly reviewed for appropriateness. The Group defines useful life of its assets in terms of the assets’ expected utility to the Group. This judgment is based on the experience of the Group with similar assets. In determining the useful life of an asset, the Group also follows technical and/or commercial obsolescence arising on changes or improvements from a change in the market. The useful lives of the telecommunication licenses are based on the duration of the license agreements. Belarusian Telecom has 10 years of special GSM and UMTS services licenses acquired on 26 August 2008. In addition, the license period has been committed and signed for an additional 10 years for an insignificant fee. The amortization on the consolidated financial statements has been recognized on the assumption that the duration of the license would be extended. Gross versus net presentation of revenue When the Group acts as principal in sale of goods or rendering of services, revenue from customers and costs with suppliers are reported on a gross basis. When the Group acts as agent in sale of goods or rendering of services, revenue from customer and costs with suppliers are reported on a net basis, representing the net margin earned. Whether the Group is acting as principal or agent depends on management’s analysis of both legal form and substance of the agreement between the Group and its business partners; such judgements impact the amount of reported revenue and costs but do not impact reported assets, liabilities or cash flows. Multiple element arrangements In arrangements which include multiple elements where the Group acts as principal, the Group considers the elements to be separate units of accounting in the arrangement. Total arrangement consideration relating to the bundled contracts is allocated among the different units according the following criteria: • the component has standalone value to the customer; and • the fair value of the component can be measured reliably. The arrangement consideration is allocated to each deliverable in proportion to the fair value of the individual deliverables. If a delivered element of a transaction is not a separately identifiable component, then it is accounted for as an integrated part of the remaining components of the transaction. Income taxes The calculation of income taxes involves a degree of estimation and judgment in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through formal legal process. As part of the process of preparing the consolidated financial statements, the Group is required to estimate the income taxes in each of the jurisdictions and countries in which they operate. This process involves estimating the actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as deferred revenue and reserves for tax and accounting purposes. The Group management assesses the likelihood that the deferred tax assets will be recovered from future taxable income and to the extent the recovery is not considered probable the deferred asset is adjusted accordingly. The recognition of deferred tax assets is based upon whether it is probable that future taxable profits will be available, against which the temporary differences can be utilized. Recognition, therefore, involves judgment regarding the future financial performance of the particular legal entity in which the deferred tax asset has been recognized. Provisions, contingent liabilities and contingent assets As detailed and disclosed in Note 36, the Group is involved in a number of investigations and legal proceedings (both as a plaintiff and as a defendant) during the year arising in the ordinary course of business. All of these investigations and litigations are evaluated by the Group Management in accordance with IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” Annual impairment review The Group tests annually whether goodwill and intangible asset not yet available for use have suffered any impairment in accordance with IAS 36 “Impairment of Assets” As at 31 December 2014, the Group has impaired its assets in Crimea region amounting to TL 19,897. As at 31 December 2017, the Group has impaired its assets in Luhansk and Donetsk regions amounting to TL 10,872. Current and potential future political and economic changes in Belarus and Ukraine could have an adverse effect on the subsidiaries operating in these countries. The economic stability of Belarus and Ukraine depends on the economic measures that will be taken by the governments and the outcomes of the legal, administrative and political processes in these countries. These processes are beyond the control of the subsidiaries established in these countries. Consequently, the subsidiaries operating within Belarus and Ukraine may subject to foreign currency and interest rate risks related to borrowings, the subscriber’s purchasing power, liquidity and increase in corporate and personal insolvencies, that may not necessarily be observable in other markets. The accompanying consolidated financial statements contain the Group management’s estimations on the economic and financial positions of its subsidiaries operating in Belarus and Ukraine. The future economic situation of Belarus and Ukraine might differ from the Group’s expectations. As at 31 December 2017, the Group’s management believes that their approach is appropriate in taking all the necessary measures to support the sustainability of these subsidiaries’ businesses in the current circumstances and the achievability of the financials projections used in the impairment assessments. Fair value measurements and valuation processes Some of the Group’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where Level 1 and 2 inputs are not available, the Group can engage third party qualified valuers to perform the valuation, if necessary. The management works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model. Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in Note 33. Contracted handset sales The Company, the distributors and dealers offer joint campaigns to the subscribers which may include the sale of device by the dealer and/or distributor and a communication service to be provided by the Company. The Company does not recognize any revenue for the device in these transactions by considering the below factors: - the Company is not primary obligor for the sale of handset, - the Company does not have control over the sale prices of handsets, - the Company has no inventory risk, - the Company has no responsibility on technical compability of equipment delivered to customers - the responsibility after sale belongs to the distributor and - the Company does not make any modification on the equipment. |
Changes in accounting policies | (e) Changes in accounting policies Other than the adoption of the new and revised standards as explained in Note 2(af), the Group did not make any significant changes to its accounting policies during the current year. |
Changes in accounting estimates | (f) Changes in accounting estimates If the application of changes in the accounting estimates affects the financial results of a specific period, the changes in the accounting estimates are applied in that specific period, if they affect the financial results of current and following periods; the accounting estimate is applied prospectively in the period in which such change is made. A change in the measurement basis applied is a change in an accounting policy, and is not a change in an accounting estimate. The Company does not have significant changes in accounting estimates during the year. |
Comparative information and revision of prior period financial statements | (g) Comparative information and revision of prior period financial statements The consolidated financial statements of the Group have been prepared consistent with prior periods. |
Principles of consolidation and equity accounting | (h) Principles of consolidation and equity accounting (i) Business combinations Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination comprises: • the fair value of the assets transferred • liabilities incurred to the former owners of the acquired business • equity interests issued by the Group • the fair value of any asset or liability resulting from a contingent consideration arrangement, and • the fair value of any pre-existing Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. Goodwill is measured as the excess of the consideration transferred, amount of any non-controlling non-controlling acquisition-by-acquisition non-controlling Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in profit or loss.canc Contingent consideration classified as equity is not subject to remeasurement. Instead, any gain or loss at settlement is recorded as an adjustment to equity through other comprehensive income. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquire is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in profit or loss. (ii) Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling Non -controlling interest has not been attributed to Belarus Telekom on the grounds that net assets of Belarus Telekom is negative, Belarus Telekom is financed solely by the Company and management’s assessment of relevant articles of the share purchase agreement with the non-controlling Turkcell Finansman A.Ş. (“Turkcell Finansman”) sold financial loans amounting to TL 87,589 to Aktif Yatırım Bankası A.Ş. Turkcell Varlık Finansmanı Fund (“Fund”) founded by Aktif Yatırım Bankası A.Ş. on 14 April 2017 in order to create funds for issuance of Asset Backed Securities (“ABS”) which will be issued by the Fund in a structure where Turkcell Finansman will act as the source organization. Turkcell Finansman sold second financial loans amounting to TL 89,607 to Aktif Yatırım Bankası A.Ş. Turkcell Varlık Finansmanı Fund (“Fund”) founded by Aktif Yatırım Bankası A.Ş. on 22 August 2017. Turkcell Finansman transferred its contractual rights to receive cash flows from the financial loans that have been sold to the Fund resulting in de-recognition (iii) Changes in ownership interests The Group treats transactions with non-controlling non-controlling non-controlling non-controlling When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate. (iv) Business combinations under common control Business combinations between entities or businesses under common control are excluded from the scope of IFRS 3. In a business combination under common control, assets and liabilities of the acquired entity are stated at predecessor carrying values. Any difference between the consideration given and the aggregate book value of the assets and liabilities of the acquired entity at the date of the transaction is recognized in equity. The acquired entity’s results and financial position are incorporated as if both entities (acquirer and acquiree) had always been combined, or using the results from the date when either entity joined the Group, where such a date is later. (vi) Put option over shares relating to non-controlling Where a put option is written by the Group on shares in an existing subsidiary held by non-controlling non-controlling non-controlling Reserve for put option over shares relating to non-controlling non-controlling non-controlling (vii) Investments in associates An associate is an entity over which the Group has significant influence, but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting after initially being recognized at cost. Under the equity method of accounting, an investment in an associate is initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates are recognized as a reduction in the carrying amount of the investment. When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in that entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. On acquisition of an associate, any excess of the cost of the investment over the Group’s share of the net fair values of the associate’s identifiable assets and liabilities is recognized as goodwill, which is included in the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the associate’s identifiable assets and liabilities over the cost of the investment is included as part of the Group’s share of the associate profit or loss in the period in which the investment is acquired. The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in (Note 15). The Group measures an associate that is classified as held for sale at the lower of its carrying amount at the date of classification as held for sale and fair value less costs of disposal. Equity accounting ceases once an associate is classified as held for sale. |
Financial instruments | (i) Financial instruments (i) Classification The Group classifies its financial assets in the following categories: • financial assets at fair value through profit or loss, • loans and receivables, • held-to-maturity • available-for-sale The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluates (ii) Reclassification The Group may choose to reclassify a non-derivative available-for-sale Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortized cost as applicable, and no reversals of fair value gains or losses recorded before reclassification date are subsequently made. Effective interest rates for financial assets reclassified to loans and receivables and held-to-maturity (iii) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on trade date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When securities classified as available-for-sale (iv) Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Loans and receivables and held-to-maturity Available-for-sale • for ‘financial assets at fair value through profit or loss’ – in profit or loss • for available-for-sale • for other monetary and non-monetary available-for-sale Dividends on financial assets at fair value through profit or loss and available-for-sale Details on how the fair value of financial instruments is determined are disclosed in Note 33. (iv) Impairment The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. In the case of equity investments classified as available-for-sale, For loans and receivables, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in profit or loss. If a loan or held-to-maturity If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (such as an improvement in the debtor’s credit rating), the reversal of the previously recognized impairment loss is recognized in profit or loss. Impairment testing of trade receivables is described in Note 33. If there is objective evidence of impairment for available-for-sale Impairment losses on equity instruments that were recognised in profit or loss are not reversed through profit or loss in a subsequent period. If the fair value of a debt instrument classified as available-for-sale (v) Derecognition of financial assets The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. (vi) Income recognition Interest income is recognised using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans is recognised using the original effective interest rate. Dividends are recognised as revenue when the right to receive payment is established. This applies even if they are paid out of pre-acquisition (vii) Derivative financial instruments Forward foreign exchange, interest rate and foreign exchange swaps (IRS, Cross Currency Swaps etc.) and option transaction fair values are calculated with market levels of interest rates and Central Bank of Republic of Turkey (CBRT) exchange rates via Bloomberg financial terminal. If market levels are not available for valuation date, fair value for forward contracts will be value of discounted future value of difference between contract price level and forward value of CBRT exchange rate with risk fee rates for the period. Interest rate and currency swaps will be valued with the difference of discounted cash flows of each leg of the swaps using risk free rates and CBRT exchange rates. Option transactions will be valued with option pricing models using risk free rates and CBRT exchange rates. (viii) Offsetting financial assets and financial liabilities Financial assets and liabilities are offset and the net amount presented in the statement of financial position where the Group has a legally enforcable right to offset the recognized amounts, and there is an intention to settle on a net basis or to realize the asset and settle the liability simultaneously. |
Cash and cash equivalents | (j) Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. |
Trade receivables | (k) Trade receivables Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. If collection of the amounts is expected in one year or less they are classified as current assets. If not, they are presented as non-current Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. See Note 33 for a description of the Group’s impairment policies. |
Property, plant and equipment | (l) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are stated at historical cost less depreciation and impairment losses. Property, plant and equipment related to the Company and its subsidiaries operating in Turkey are adjusted for the effects of inflation during the hyperinflationary period ended on 31 December 2005. Since the inflation accounting commenced on 1 January 2011, property, plant and equipment related to the subsidiaries operating in Belarus are adjusted for the effects of inflation. However, decrease in inflation rate in subsequent years led the three-year cumulative rate as of the end of 2014 to decrease to 65%. Accordingly, the economy of Belarus was considered to transit out of hyperinflationary status and 2015 is determined to be appropriate to cease applying IAS 29. Therefore, subsidiaries operating in Belarus ceased applying IAS 29 in 2015. Historical cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes cost of materials and direct labor, any other costs directly attributable to bringing the asset to a working condition for its intended use and the costs of dismantling and removing the items and restoring the site on which they are located, if any. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. There are recognized included in profit or loss. Changes in the obligation to dismantle, remove assets on sites and to restore sites on which they are located, other than changes deriving from the passing of time, are added or deducted from the cost of the assets in the period in which they occur. The amount deducted from the cost of the asset shall not exceed the balance of the carrying amount on the date of change, and any excess balance is recognized immediately in profit or loss. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. (ii) Subsequent costs Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. (iii) Depreciation Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives. The property, plant and equipment acquired under finance leases is depreciated over the asset’s useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the group will obtain ownership at the end of the lease term. Land is not depreciated. The estimated useful lives are as follows: Buildings 21 – 25 years Mobile network infrastructure 4 – 20 years Fixed network infrastructure 3 – 25 years Call center equipment 4 – 8 years Equipment, fixtures and fittings 2 – 10 years Motor vehicles 4 – 6 years Central betting terminals 5 – 10 years Leasehold improvements 3 – 5 years Depreciation methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of each reporting period. (iv) Borrowing costs General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred. |
Intangible assets | (m) Intangible assets (i) Telecommunication licenses Separately acquired telecommunication licenses are stated at historical cost adjusted for the effects of inflation during the hyperinflationary period, where applicable, less amortization and impairment losses. Amortization Amortization is recognized in the statement of profit or loss on a straight-line basis by reference to the license period. The useful lives for telecommunication licenses are as follows: Telecommunications licenses 3 – 25 years (ii) Computer software Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software programmes are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the group are recognised as intangible assets when the following criteria are met: • it is technically feasible to complete the software so that it will be available for use • management intends to complete the software and use or sell it • there is an ability to use or sell the software • it can be demonstrated how the software will generate probable future economic benefits • adequate technical, financial and other resources to complete the development and to use or sell the software are available, and • the expenditure attributable to the software during its development can be reliably measured. Directly attributable costs that are capitalized as part of the software include employee costs and an appropriate portion of relevant overheads. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Capitalized development costs are recorded as intangible assets and amortized from the point at which the asset is ready for use. Amortization Amortization is recognized in the statement of profit or loss on a straight-line basis over the estimated useful lives. The useful lives for computer software are as follows: Computer software 3 – 8 years (iii) Other intangible assets Other intangible assets that are acquired by the Group which have finite useful lives are stated at historical cost adjusted for the effects of inflation during the hyperinflationary period, where applicable, less amortization and impairment losses. Indefeasible Rights of Use (“IRU”) are rights to use a portion of an asset’s capacity granted for a fixed period of time. IRUs are recognized as intangible asset when the Group has specific indefeasible rights to use an identified portion of an underlying asset and the duration of the right is for the major part of the underlying asset’s useful economic life. IRUs are amortized over the shorter of the underlying asset’s useful economic life and the contract term. Amortization The Group amortizes intangible assets with a limited useful life using the straight-line method over the following periods: Transmission line software 5 – 10 years Central betting system operating right 7 – 10 years Customer base 2 – 15 years Brand name 9 – 10 years Indefeasible right of use 15 years Amortization methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of each reporting period. Goodwill Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortized but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes, being the operating segments. |
Investment properties | (n) Investment properties Recognition and measurement Investment properties are properties held for rental yields and/or for capital appreciation (including property under construction for such purposes). Investment properties are stated at historical cost less depreciation and impairment losses. An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized. Depreciation Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives. The estimated useful lives are as follows: Investment Property 25 – 45 years Depreciation methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of each reporting period. |
Inventories | (o) Inventories Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale. Cost of inventory is determined using the weighted average method and comprises all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. Costs of purchased inventory are determined after deducting rebates and discounts. At 31 December 2017 and 2016, inventories mainly consisted of mobile phones, sim-cards, |
Impairment of assets | (p) Impairment of assets Goodwill and intangible assets that have an indefinite useful life are not subject to amortization which are tested annually for impairment and reviewed at each reporting date and if triggering events occur, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial |
Employee benefits | (r) Employee benefits (i) Short-term obligations Liabilities for salaries including non-monetary (ii) Termination benefits In accordance with the labor law in Turkey, the Company and its subsidiaries in Turkey are required to make lump-sum (iii) Defined contribution plans For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. (iv) Share-based payments The Group provides a cash-settled share-based payment plan for selected employees in return for their services. For cash-settled share-based payment transactions, the Group measures services acquired and the liability incurred at the fair value of the liability. Liabilities for cash-settled share-based payment plan are recognized as employee benefit expense over the relevant service period. The fair value of the liability is re-measured (v) Personnel bonus Provision for bonus is provided when the bonus is a legal obligation, or past practice would make the bonus a constructive obligation and the Group is able to make a reliable estimate of the obligation. |
Provisions | (s) Provisions A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of resources will be required to settle the obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax Onerous contracts Present obligation arising under an onerous contract is recognized and measured as a provision. An onerous contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. Dismantling, removal and restoring sites obligation The Group is required to incur certain costs in respect of a liability to dismantle and remove assets and to restore sites on which the assets were located. The dismantling costs are calculated according to best estimate of future expected payments discounted at a pre-tax |
Revenue | (t) Revenue Revenue is recognized at the fair value of the consideration received or receivable, net of returns, trade allowances and rebates. The Group recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities as described below. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Revenue from telecommunication services includes postpaid and prepaid revenue from voice, data, messaging and value added services, interconnect revenue, monthly fixed fees, SIM card sales and roaming revenue. Revenue from telecommunication services are recognized at the time services are rendered. With respect to prepaid revenue, the Group generally collects cash in advance by selling prepaid top up to distributors. In such cases, the Group does not recognize revenue until subscribers use the telecommunication services. Deferred revenue is recorded under current liabilities. Services may be bundled with other products and services and these bundled elements involve consideration in the form of a fixed fee or a fixed fee coupled with a continuing payment stream. Total arrangement consideration relating to a bundled contract is allocated to different units of accounting if: • each element in the arrangement has standalone value to the customer; and • fair value of each element can be measured reliably. The arrangement consideration is allocated to each element based upon their relative fair values. If an element of a transaction is not a separately identifiable component, then it is accounted for as an integral part of the remaining elements of the transaction. Revenue allocated to products where the Group acts as principal is recognized when significant risks and rewards of ownership are transferred to the buyer, collection is probable, associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the products and the amount of revenue can be measured reliably. Revenue from device sales is recognized when the device is delivered to the end customer and significant risks and rewards of ownership are transferred. For device sales made to intermediaries, revenue is recognized if significant risks and rewards of ownership associated with the device are transferred to the intermediary and the intermediary has no general right to return the device to receive a refund. If significant risks and rewards of ownership are not transferred, revenue is deferred until sale of the device to an end customer by the intermediary or expiry of any right of return. The Company, the distributors and dealers offer joint campaigns to the subscribers which may include the sale of device by the dealer and/or the distributor and the sale of communication service by the Company. In certain campaigns, dealers make the handset sale to the subscribers instalments of which will be collected by the Company based on the letters of undertaking signed by the subscribers. With the letter of undertaking, the dealer assigns its receivables from handset sale to the distributor and the distributor assigns its receivables to the Company. The Company pays the distributor net present value of the instalments to be collected from the subscribers and recognizes contracted receivables in its statement of financial position. The undue portion of assigned receivables from the distributors which were paid upfront by the Company is classified as “undue assigned contracted receivables” in trade receivables (Note 19). When monthly installment is invoiced to the subscriber, related portion is presented as “receivables from subscribers”. The Company collects the contracted receivables in installments during the contract period and does not recognize any revenue for the handset in these transactions as the Company does not act as principal for the sale of handset. Starting from 2014, the subscribers has an option to buy handsets using bank loans instalments of which are collected by the Company on behalf of the bank. The Company does not bear any credit risk in these transactions. Since the Company collects receivables during the contract period and acts as agent for the sale of handset, the Company does not recognize any revenue for the handset in these transactions. Starting from 2016 the Company and distributors started to offer the option to buy a device through Turkcell Financing loan, which will be collected by the Company. The Group carries a risk of collection in these transactions. Turkcell Finansman collects the purchased credit from the subscriber during the contract period, and does not record revenue related to the device since it is not the main contractor in the device sale. Revenue from financial services comprise of interest income generated from consumer financing activities. Interest income is recognized as it accrues, using the effective interest method. Monthly fixed fees represent a fixed amount charged to postpaid subscribers on a monthly basis without regard to the level of usage. Fixed fees are recognized on a monthly basis when billed. Monthly fixed fees are included telecommunication services revenues. Revenues from betting business mainly comprise of net takings earned to a maximum of 1.4% of gross takings as the head agent of fixed odds betting games and mobile agent revenues of 7.25% of mobile agency turnover after deducting VAT and gaming tax as the head agent. Revenues from betting business are recognized at the time all services related to the games are fully rendered. Under the agreement signed with Spor Toto Teşkilat Müdürlüğü A.Ş. (“Spor Toto”), Inteltek Internet Teknoloji Yatırım ve Danışmanlık A.Ş. (“Inteltek”) is obliged to undertake any excess payout, which is presented on a net basis. Azerinteltek received authorization from Azeridmanservis Limited Liability Company set under the Ministry of Youth and Sport of the Republic of Azerbaijan to organize, operate, manage and develop the fixed odds and paramutual sports betting business. Since Azerinteltek acts as principal, total consideration received from the player less payout (distribution to players) and amounts collected from players on behalf of Ministry of Sports is recognized at the time all services related to the games are fully rendered. Azerinteltek has been authorized for the Lottery games by Azerlotereya. Azerinteltek has been generating commission revenue over Lottery games turnover through its own agencies by applying 15% commission rate according to agreement between Azerinteltek and Azerlotereya. Commission revenues are recognized at the time all services related to the games are fully rendered. SIM card sales are recognized upon delivery to distributors, net of returns, discounts and rebates. SIM card costs are also recognized upon sale of the SIM card to the distributors. SIM card sales are included telecommunication services revenues. Call center revenues are recognized at the time services are rendered. When the Group sells goods or services as a principal, revenue and operating costs are recorded on a gross basis. When the Group sells goods or services as an agent, revenue and operating costs are recorded on a net basis, representing the net margin earned. Whether the Group is considered to be acting as principal or agent in the transaction depends on management’s analysis of both the legal form and substance of the agreement between the Group and its business partners; such judgements impact the amount of reported revenue and operating costs but do not impact reported assets, liabilities or cash flows. The Company and the Ministry of Transport, Maritime Affairs and Communications, Directorate General of Communications signed a contract to continue the contract to establish and operate mobile communication infrastructure and operation in uncovered areas, (Phase 1) until 31 December 2018 and to add mobile broadband services to the existing infrastructure providing GSM services under Universal Service Law and to operate the new and existing networks together. Mobile broadband services will be added to the existing infrastructure established in accordance with Phase 1 in 1,799 rural locations. The new and the existing infrastructure will be operated together. As of 31 December 2017, the Company has recognized TL 257,866 revenue from its operations related to this contract. Since the Company acts as principal, revenue and operating costs are reported on a gross basis in these consolidated financial statements. The revenue recognition policy for other revenues is to recognize revenue as services are provided. Volume rebates or discounts and other contractual changes in the prices of roaming and other services are anticipated, as both the payer and the recipient, if it is probable that they have been earned or will take effect. Thus, contractual rebates and discounts are anticipated, but discretionary rebates and discounts are not anticipated because the definitions of asset and liability would not be met. |
Leases | (u) Leases At inception of an arrangement, the Group determines whether such an arrangement is or contains a lease. A specific asset is the subject of a lease if fulfillment of the arrangement is dependent on the use of that specified asset. An arrangement conveys the right to use the asset if the arrangement conveys to the Group the right to control the use of the underlying asset. At inception or upon reassessment of the arrangement, the Group separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. Leases of property, plant and equipment where the Group, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease’s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in payables. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the asset’s useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the group will obtain ownership at the end of the lease term. Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. Lease income from operating leases where the Group is a lessor is recognized as income on a straight-line basis over the lease term. The respective leased assets are included in the statement of financial position based on their nature. |
Trade and other payables | (v) Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. |
Borrowings | (w) Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates. Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash |
Income taxes | (x) Income taxes The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Income tax expense is recognized in the statement of profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company’s subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amount and tax bases of investments in foreign operations where the company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Companies within the Group may be entitled to claim special tax deductions for investments in qualifying assets or in relation to qualifying expenditure (e.g., the Research and Development Tax Incentive regime in Turkey or other investment allowances). The Group accounts for such allowances as tax credits, which means that the allowance reduces income tax payable and current tax expense. A deferred tax asset is recognized for unclaimed tax credits that are carried forward as deferred tax assets. |
Earnings per share | (y) Earnings per share The Group does not have any potential ordinary shares in issue, therefore basic and diluted earnings per share (“EPS”) are equal. Since basic and diluted EPS are equal, the Group presents both basic and diluted EPS on one line described as “Basic and diluted EPS”. Basic EPS is calculated by dividing the profit attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the financial year, excluding treasury shares. In Turkey, entities can increase their share capital by distributing “Bonus share” to shareholders from retained earnings. In computing earnings per share, such “Bonus share” distributions are treated as issued shares. Accordingly, the retrospective effect for such share distributions is taken into consideration when determining the weighted-average number of shares outstanding. |
Subscriber acquisition costs | (z) Subscriber acquisition costs The Group capitalizes directly attributable subscriber acquisition costs when the following conditions are met: • the capitalized costs can be measured reliably; • there is a contract binding the customer for a specific period of time; and • it is probable that the amount of the capitalized costs will be recovered through revenue generated by the service contract, or, where the customer withdraws from the contract in advance, through the collection of the penalty. Capitalized subscriber acquisition costs are amortized on a straight-line basis over the minimum period of the underlying contract. In all other cases, subscriber acquisition costs are expensed when incurred. |
Government grants | (aa) Government grants Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to costs are deferred and recognized in profit or loss over the period necessary to match them with the costs that they are intended to compensate. Government grants relating to property, plant and equipment are included in non-current |
Non-current asset held for sale and discontinued operations | (ab) Non-current Non-current An impairment loss is recognized for any initial or subsequent write-down of the asset to fair value less costs of disposal. A gain is recognized for any subsequent increases in fair value less costs of disposal of an asset, but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current An associate must meet the conditions to be classified as held for sale. It is first measured in accordance with applicable standards. Such standard is IAS 28, and so the share of profits and remeasurement of carrying amounts are done in accordance with normal associate rules up to the point of classification as held for sale. The associate or joint venture is then measured in accordance with IFRS 5. It is measured at the lower of carrying amount and fair value less costs of disposal. Equity accounting is ceased from the date the held for sale criteria are met. Non-current A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated |
Equity | (ac) Equity Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Where any Group company purchases the Company’s equity instruments, for example as the result of a share buy-back |
Dividends | (ad) Dividends Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the Company, on or before the end of the reporting period but not distributed at the end of the reporting period. |
Subsequent events | (ae) Subsequent events Events after the reporting date; Includes all events between the reporting date and the date on which the financial statements are authorized for issue, even if any announcement of profit or other selected financial information has been made publicly disclosed. In case of events requiring correction after the reporting date, corrects this new situation accordingly. Events that are not required to be adjusted subsequent to the reporting date are disclosed in the notes to the financial statements in the consolidated financial statements. |
New standards and interpretations | (af) New standards and interpretations i) Amendments to IFRSs affecting amounts reported and/or disclosures in the consolidated financial statements None. ii) Standards, amendments and interpretations applicable as at 31 December 2017 - Amendments to IAS 7, ‘Statement of cash flows’; on disclosure initiative effective from annual periods beginning on or after 1 January 2017. These amendments introduce an additional disclosure that will enable users of financial statements to evaluate changes in liabilities arising from financing activities. The amendment is part of the IASB’s Disclosure Initiative, which continues to explore how financial statement disclosure can be improved. - Amendments IAS 12, ‘Income Taxes’; effective from annual periods beginning on or after 1 January 2017. The amendments clarify the accounting for deferred tax where an asset is measured at fair value and that fair value is below the asset’s tax base. It also clarify certain other aspects of accounting for deferred tax assets. - Annual improvements 2014-2016, effective from annual periods beginning on or after 1 January 2017: • IFRS 12, ‘Disclosure of interests in other entities’; regarding clarification of the scope of the standard. These amendments should be applied retrospectively for annual periods beginning on or after 1 January 2017. This amendment clarifies that the disclosures requirement of IFRS 12 are applicable to interest in entities classified as held for sale except for summarized financial information. iii) Standards, amendments and interpretations effective on or after 1 January 2018 - IFRS 9, ‘Financial instruments’; effective from annual periods beginning on or after 1 January 2018. This standard replaces the guidance in IAS 39. It includes requirements on the classification and measurement of financial assets and liabilities; it also includes an expected credit losses model that replaces the current incurred loss impairment model. - IFRS 15, ‘Revenue from contracts with customers’; effective from annual periods beginning on or after 1 January 2018. IFRS 15, ‘Revenue from contracts with customers’ is a converged standard from the IASB and FASB on revenue recognition. The standard will improve the financial reporting of revenue and improve comparability of the top line in financial statements globally. - Amendment to IFRS 15, ‘Revenue from contracts with customers’, effective from annual periods beginning on or after 1 January 2018. These amendments comprise clarifications of the guidance on identifying performance obligations, accounting for licences of intellectual property and the principal versus agent assessment (gross versus net revenue presentation). New and amended illustrative examples have been added for each of those areas of guidance. The IASB has also included additional practical expedients related to transition to the new revenue standard. - Amendments to IFRS 4, ‘Insurance contracts’ regarding the implementation of IFRS 9, ‘Financial Instruments’; effective from annual periods beginning on or after 1 January 2018. These amendments introduce two approaches: an overlay approach and a deferral approach. The Group does not expect material impact on its financial statements. The amended standard will: - give all companies that issue insurance contracts the option to recognize in other comprehensive income, rather than profit or loss, the volatility that could arise when IFRS 9 is applied before the new insurance contracts standard is issued; and - give companies whose activities are predominantly connected with insurance an optional temporary exemption from applying IFRS 9 until 2021. The entities that defer the application of IFRS 9 will continue to apply the existing financial instruments standard IAS 39. - Amendment to IAS 40, ‘Investment property’ relating to transfers of investment property; effective from annual periods beginning on or after 1 January 2018. These amendments clarify that to transfer to, or from, investment properties there must be a change in use. To conclude if a property has changed use there should be an assessment of whether the property meets the definition. This change must be supported by evidence. The Group does not expect material impact on its financial statements. - Amendments to IFRS 2, ‘Share based payments’ on clarifying how to account for certain types of share-based payment transactions; effective from annual periods beginning on or after 1 January 2018. This amendment clarifies the measurement basis for cash-settled, share-based payments and the accounting for modifications that change an award from cash-settled to equity-settled. It also introduces an exception to the principles in IFRS 2 that will require an award to be treated as if it was wholly equity-settled, where an employer is obliged to withhold an amount for the employee’s tax obligation associated with a share-based payment and pay that amount to the tax authority. The Group does not expect material impact on its financial statements. - Annual improvements 2014-2016; effective from annual periods beginning on or after 1 January 2018. These amendments impact 2 standards: • IFRS 1, ‘First time adoption of IFRS’, regarding the deletion of short-term exemptions for first-time adopters regarding IFRS 7, IAS 19 and IFRS 10, • IAS 28, ‘Investments in associates and joint venture’ regarding measuring an associate or joint venture at fair value. - IFRIC 22, ‘Foreign currency transactions and advance consideration’; effective from annual periods beginning on or after 1 January 2018. This IFRIC addresses foreign currency transactions or parts of transactions where there is consideration that is denominated or priced in a foreign currency. The interpretation provides guidance for when a single payment/receipt is made as well as for situations where multiple payments/receipts are made. The guidance aims to reduce diversity in practice. The Group does not expect material impact on its financial statements. iii) Standards, amendments and interpretations effective on or after 1 January 2019 - Amendment to IFRS 9, ‘Financial instruments’; effective from annual periods beginning on or after 1 January 2019. This amendment confirm that when a financial liability measured at amortised cost is modified without this resulting in de-recognition, - Amendment to IAS 28, ‘Investments in associates and joint venture’; effective from annual periods beginning on or after 1 January 2019. These amendments clarify that companies account for long-term interests in associate or joint venture to which the equity method is not applied using IFRS 9. - IFRS 16, ‘Leases’; effective from annual periods beginning on or after 1 January 2019, this standard replaces the current guidance in IAS 17 and is a far reaching change in accounting by lessees in particular. Under IAS 17, lessees were required to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet). IFRS 16 now requires lessees to recognise a lease liability reflecting future lease payments and a ‘right of use asset’ for virtually all lease contracts. The IASB has included an optional exemption for certain short-term leases and leases of low-value - IFRIC 23, ‘Uncertainty over income tax treatments’; effective from annual periods beginning on or after 1 January 2019. This IFRIC clarifies how the recognition and measurement requirements of IAS 12 ‘Income taxes’, are applied where there is uncertainty over income tax treatments. The IFRS IC had clarified previously that IAS 12, not IAS 37 ‘Provisions, contingent liabilities and contingent assets’, applies to accounting for uncertain income tax treatments. IFRIC 23 explains how to recognise and measure deferred and current income tax assets and liabilities where there is uncertainty over a tax treatment. An uncertain tax treatment is any tax treatment applied by an entity where there is uncertainty over whether that treatment will be accepted by the tax authority. For example, a decision to claim a deduction for a specific expense or not to include a specific item of income in a tax return is an uncertain tax treatment if its acceptability is uncertain under tax law. IFRIC 23 applies to all aspects of income tax accounting where there is an uncertainty regarding the treatment of an item, including taxable profit or loss, the tax bases of assets and liabilities, tax losses and credits and tax rates. The Group assesses of impact on an ongoing basis. iv) Status of adoption of significant new or amended IFRS standards or interpretations The adoption of new or amended standards and interpretations that are effective for the financial year beginning on January 1, 2018, did not have a material impact on the Group’s consolidated financial statements. The following new IFRS standards will, based on the Company analysis, be of significance to the Group, but have not yet been early adopted: IFRS 15 Revenue from Contracts with Customers IFRS 15 was issued in May 2014, and amended in April 2016, and establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under IFRS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1 January 2018. Early adoption is permitted. The Group plans to adopt the new standard on the required effective date using the modified retrospective method which requires the recognition of the cumulative effect of initially applying IFRS 15, as at January 1, 2018, to retained earnings and not restate prior years. During 2017, the Group performed a detailed assessment of IFRS 15. The Group is mainly in the business of providing telecommunication services. The goods and services are sold both on their own in separate identified contracts with customers and together as a bundled package of goods and/or services. Sale of goods For contracts with customers and intermediaries in which the sale of device or equipment is generally expected to be a performance obligation, adoption of IFRS 15 is not expected to have significant impact on the Group’s revenue and profit or loss because sale of goods were already recognised as a distinct performance obligation at fair value under current accounting treatment. The Group expects the revenue recognition to occur at a point in time when control of the asset is transferred to the customer, generally on delivery of the goods. Rendering of services The Group mainly provides telecommunication services. Services are generally bundled with other products/services and these bundled services and products involve consideration in the form of fixed fee or a fixed fee coupled with a continuing payment stream or discount. The Company’s current accounting treatment in allocating total consideration to the performance obligations is inline with the requirements of IFRS 15. The Group do not expect IFRS 15 to significantly change the timing or amount of revenue recognized under these arrangements. Contract costs Under IFRS 15, certain incremental costs incurred in acquiring a contract with a customer will be deferred on the consolidated statement of financial position and amortised as revenue is recognised under the related contract; this will generally lead to the later recognition of charges for some commissions payable to third party dealers and employees. The Group expect IFRS 15 to significantly change the timing of costs recognized under these arrangements resulting in a significant cumulative adjustment to increase retained earnings will be made. Presentation and disclosure requirements The presentation and disclosure requirements in IFRS 15 are more detailed than under current IFRS. The presentation requirements represent a significant change from current practice and significantly increases the volume of disclosures required in the Group’s financial statements. Many of the disclosure requirements in IFRS 15 are new and the Group has assessed that the impact of some of these disclosures requirements will be significant. IFRS 9 Financial instruments The last version of IFRS 9, issued in July 2014, replaces the existing guidance in IAS 39 “Financial Instruments: Recognition and Measurement”. It also carries forward the guidance on recognition, classification, measurement and derecognition of financial instruments from IAS 39 to IFRS 9. The last version of IFRS 9 includes a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements and also includes guidance issued in previous versions of IFRS 9. IFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018. Classification and measurement – Financial assets IFRS 9 contains a new classification and measurement approach for financial assets that reflects the business model in which assets are managed and their cash flow characteristics. IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, FVOCI and FVTPL. The standard eliminates the existing IAS 39 categories of held to maturity, loans and receivables and available for sale. The new classification requirements would have had a impact on its accounting for consumer financing loans, trade receivables, investments in debt securities, cash and cash equivalents and other financial assets. Since Turkcell Finansman A.S. may sale and derecognizes some portion of its loans depending on the management assessment, the related portion may be assessed in “hold and sell” business model and may require fair value measurement. Impairment – Financial assets and contract assets IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with a forward looking ‘expected credit loss’ (ECL) model. This will require considerable judgement about how changes in economic factors affect ECLs, which will be determined on a probability-weighted basis. The new impairment model will apply to financial assets measured at amortised cost or FVOCI, except for investments in equity instruments, and to contract assets. Under IFRS 9, loss allowances will be measured on either the following bases. • 12 month ECLs: these are ECLs that result from possible default events within the 12 months after the reporting date; and • lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial instrument. Lifetime ECL measurement applies if the credit risk of a financial asset at the reporting date has increased significantly since initial recognition and 12 month ECL measurement applies if it has not. An entity may determine that a financial asset’s credit risk has not increased significantly if the asset has low credit risk at the reporting date. However lifetime ECL measurement (simplified approach) always apply for trade receivables and contract assets without a significant financing component. The Group will apply lifetime ECL measurement for all group companies except Turkcell Finansman A.S. which will apply both 12 month and lifetime ECL (general approach) since it is a financing company. Transition The Group will take advantage of the exemption allowing it not to restate comparative information for prior periods with respect to classification and measurement (including impairment) changes. Differences in the carrying amounts of financial assets and financial liabilities resulting from the adoption of IFRS 9 will generally be recognized in retained earnings and reserves as at 1 January 2018. Based on its assessment, The Group does not expect material impact on its financial statements. |
Basis of preparation and summ48
Basis of preparation and summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Estimated Useful Lives for the Current and Comparative | The estimated useful lives are as follows: Buildings 21 – 25 years Mobile network infrastructure 4 – 20 years Fixed network infrastructure 3 – 25 years Call center equipment 4 – 8 years Equipment, fixtures and fittings 2 – 10 years Motor vehicles 4 – 6 years Central betting terminals 5 – 10 years Leasehold improvements 3 – 5 years |
Disclosure of Useful Lives for the Intangible Assets | The Group amortizes intangible assets with a limited useful life using the straight-line method over the following periods: Transmission line software 5 – 10 years Central betting system operating right 7 – 10 years Customer base 2 – 15 years Brand name 9 – 10 years Indefeasible right of use 15 years |
Disclosure of Estimated Useful Lives for Investment Properties | The estimated useful lives are as follows: Investment Property 25 – 45 years |
GSM and other telecommunication operating licenses [member] | |
Disclosure of Useful Lives for the Intangible Assets | The useful lives for telecommunication licenses are as follows: Telecommunications licenses 3 – 25 years |
Computer software [member] | |
Disclosure of Useful Lives for the Intangible Assets | The useful lives for computer software are as follows: Computer software 3 – 8 years |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Reconciliation of Adjusted EBITDA to Consolidated Profit Before Income Tax and Profit | Reconciliation of Adjusted EBITDA to the consolidated profit for the year is included in the accompanying notes. Turkcell Turkey Turkcell International All other segments Intersegment Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Total segment revenue 15,450,136 12,787,592 1,067,078 874,692 1,187,454 661,923 (72,604 ) (38,646 ) 17,632,064 14,285,561 Inter-segment revenue (31,690 ) (19,680 ) (40,897 ) (18,964 ) (17 ) (2 ) 72,604 38,646 — — Revenues from external customers 15,418,446 12,767,912 1,026,181 855,728 1,187,437 661,921 — — 17,632,064 14,285,561 Adjusted EBITDA 5,593,837 4,160,861 263,962 235,348 374,314 222,849 (3,859 ) 451 6,228,254 4,619,509 Bad debt expense 49,468 (195,472 ) (6,070 ) (5,956 ) (79,676 ) (9,956 ) — — (36,278 ) (211,384 ) Turkcell Turkey Turkcell International All other segments Intersegment Consolidated 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 Total segment revenue 12,787,592 11,480,890 874,692 856,147 661,923 458,563 (38,646 ) (26,185 ) 14,285,561 12,769,415 Inter-segment revenue (19,680 ) (14,608 ) (18,964 ) (11,731 ) (2 ) 154 38,646 26,185 — — Revenues from external customers 12,767,912 11,466,282 855,728 844,416 661,921 458,717 — — 14,285,561 12,769,415 Adjusted EBITDA 4,160,861 3,759,590 235,348 245,959 222,849 134,484 451 511 4,619,509 4,140,544 Bad debt expense (195,472 ) (187,963 ) (5,956 ) (8,292 ) (9,956 ) (333 ) — — (211,384 ) (196,588 ) 2017 2016 2015 Profit for the period 2,037,759 1,543,803 1,903,551 Add(Subtract): Profit/(loss) from discontinued operations — 42,164 (367,336 ) Profit from continuing operations 2,037,759 1,585,967 1,536,215 Income tax expense 571,758 423,160 667,112 Finance income (1,090,449 ) (1,064,794 ) (756,039 ) Finance costs 1,413,315 1,237,593 799,514 Other income (74,438 ) (78,569 ) (44,454 ) Other expenses 773,329 312,801 270,446 Depreciation and amortization 2,596,980 2,203,351 1,667,750 Consolidated adjusted EBITDA 6,228,254 4,619,509 4,140,544 |
Summary of Geographical Information | In presenting the information on the basis of geographical segments, segment revenue is based on the geographical location of operations and segment assets are based on the geographical location of the assets. 2017 2016 2015 Revenues Turkey 16,431,863 13,321,503 11,779,345 Ukraine 664,643 573,951 571,630 Belarus 209,884 149,005 141,219 Azerbaijan 174,021 108,329 145,654 Turkish Republic of Northern Cyprus 148,637 129,785 125,668 Germany 3,016 2,988 5,899 17,632,064 14,285,561 12,769,415 Non-current 31 December 31 December Turkey 18,098,228 16,548,162 Ukraine 1,408,783 1,211,789 Turkish Republic of Northern Cyprus 141,802 117,243 Belarus 138,371 291,498 Azerbaijan 13,663 13,563 Unallocated non-current 112,516 67,057 19,913,363 18,249,312 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Revenue | 2017 2016 2015 Telecommunication services 15,115,816 12,883,974 11,972,443 Equipment revenues 1,159,500 624,352 254,582 Revenue from financial services 605,663 184,698 — Revenue and commission fees on betting business 355,907 284,496 277,525 Call center revenues 232,679 198,564 187,840 Other 162,499 109,477 77,025 17,632,064 14,285,561 12,769,415 |
Employee benefit expenses (Tabl
Employee benefit expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Employee Benefit Expenses | 2017 2016 2015 Wages and salaries (*) 1,746,147 1,450,262 1,317,655 Employee termination benefits (**) 32,862 32,977 30,593 Defined contribution plans 8,107 7,722 8,364 1,787,116 1,490,961 1,356,612 (*) Wages and salaries include compulsory social security contributions and bonuses. (**) Remeasurements of employee termination benefits for the years ended 31 December 2017, 2016 and 2015 amounting to TL 3,738, TL 34,532 and TL 13,466 respectively are reflected in other comprehensive income. |
Finance income and costs (Table
Finance income and costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Statement of Profit or Loss | Recognized in the statement of profit or loss: 2017 2016 2015 Fair value gains on derivative financial instruments 589,555 385,560 1,070 Interest income on bank deposits 278,599 158,206 303,221 Interest income on financial assets measured at amortized cost 185,004 445,943 436,024 Credit finance income 36,186 74,522 13,865 Other 1,105 563 1,859 Finance income 1,090,449 1,064,794 756,039 Net foreign exchange losses (718,501 ) (782,463 ) (489,320 ) Interest expenses for financial liabilities measured at amortized cost (385,386 ) (343,290 ) (224,724 ) Interest expenses for derivative financial instruments (244,841 ) (93,038 ) — Late payment interest expense (29,115 ) — (68,083 ) Option premium charges (27,172 ) (10,114 ) (2,290 ) Other (8,300 ) (8,688 ) (15,097 ) Finance costs (1,413,315 ) (1,237,593 ) (799,514 ) Net finance costs (322,866 ) (172,799 ) (43,475 ) |
Income tax expense (Tables)
Income tax expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Income Tax Expense | 2017 2016 2015 Current income tax expense (437,967 ) (200,663 ) (591,297 ) Deferred income tax expense (133,791 ) (222,497 ) (75,815 ) Total income tax expense (571,758 ) (423,160 ) (667,112 ) |
Summary of Income Tax Recognized Directly in Equity | Income tax relating to each component of other 2017 Before tax Tax (expense)/ credit Net of tax Foreign currency translation differences 100,149 (107,299 ) (7,150 ) Remeasurements of employee termination benefits (3,738 ) 748 (2,990 ) 96,411 (106,551 ) (10,140 ) 2016 Foreign currency translation differences 218,472 (87,381 ) 131,091 Remeasurements of employee termination benefits (34,532 ) 7,066 (27,466 ) 183,940 (80,315 ) 103,625 2015 Foreign currency translation differences (384,466 ) (5,749 ) (390,215 ) Changes in cash flow hedge reserve 719 — 719 Remeasurements of employee termination benefits (13,466 ) 2,563 (10,903 ) (397,213 ) (3,186 ) (400,399 ) |
Summary of Reconciliation of Effective Income Tax Expense | Reconciliation of income tax expense 2017 2016 2015 Profit from continuing operations before income tax expense 2,609,517 2,009,127 2,203,327 Profit from discontinued operations before income tax expense — (42,164 ) 367,336 Profit before income tax expense 2,609,517 1,966,963 2,570,663 Tax at the Turkey’s tax rate (521,903 ) (393,393 ) (514,133 ) Difference in overseas tax rates 4,133 (15,935 ) (52,688 ) Effect of exemptions (*) 73,916 104,244 62,163 Effect of amounts which are not deductible (102,102 ) (78,571 ) (16,104 ) Utilization of previously unrecognized tax losses — 1,253 22,863 Change in unrecognized deferred tax assets (**) (41,340 ) (30,616 ) (198,364 ) Adjustments for current tax of prior years 11,280 (8,176 ) — Tax effect of investment in associate — — 32,926 Other 4,258 (1,966 ) (3,775 ) Total income tax expense (571,758 ) (423,160 ) (667,112 ) (*) Mainly comprises of research and development tax credit. (**) Mainly comprises of tax losses for which no deferred tax asset has been recognized. |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Expenses by Cost of Sales | Breakdown of expenses by nature for the years ended 31 December 2017, 2016 and 2015 is as follows: Cost of revenue: 2017 2016 2015 Depreciation and amortization (*) (2,596,980 ) (2,203,351 ) (1,667,750 ) Treasury share (1,669,807 ) (1,491,503 ) (1,418,683 ) Interconnection and termination expenses (1,607,079 ) (1,420,233 ) (1,326,990 ) Radio expenses (1,123,668 ) (1,057,618 ) (911,454 ) Employee benefit expenses (1,046,544 ) (859,143 ) (734,725 ) Cost of goods sold (870,226 ) (551,656 ) (250,779 ) Cost of revenue from financial services (270,366 ) (68,546 ) — Universal service fund (221,431 ) (192,045 ) (182,508 ) Transmission expenses (218,221 ) (139,185 ) (113,574 ) Roaming expenses (177,258 ) (128,429 ) (108,102 ) Billing and archiving expenses (55,185 ) (61,647 ) (55,056 ) Others (1,493,409 ) (1,063,251 ) (999,862 ) (11,350,174 ) (9,236,607 ) (7,769,483 ) (*) As at 31 December 2017, depreciation and amortization expenses includes depreciation and amortization expenses related to the financial services amounting to TL 6,343 (31 December 2016: 1.677 TL). |
Summary of Expenses by Nature Selling and Marketing Expenses | Selling and marketing expenses: 2017 2016 2015 Selling expenses (898,936 ) (757,869 ) (783,234 ) Marketing expenses (532,989 ) (518,382 ) (428,596 ) Employee benefit expenses (394,421 ) (354,380 ) (381,582 ) Frequency usage fees related to prepaid subscribers (82,994 ) (186,530 ) (191,408 ) Others (96,080 ) (93,786 ) (117,039 ) (2,005,420 ) (1,910,947 ) (1,901,859 ) |
Summary of Expenses by Nature Administrative Expenses | Administrative expenses: 2017 2016 2015 Employee benefit expenses (346,151 ) (277,438 ) (240,305 ) Consultancy expenses (50,247 ) (54,315 ) (43,995 ) Rent expenses (36,280 ) (30,314 ) (23,924 ) Net impairment expense recognized on receivables (36,278 ) (211,384 ) (196,588 ) Travel and entertainment expenses (30,957 ) (18,913 ) (13,484 ) Maintenance and repair expenses (24,342 ) (20,315 ) (23,424 ) Collection expenses (20,415 ) (20,827 ) (17,533 ) Other (100,526 ) (88,343 ) (66,026 ) (645,196 ) (721,849 ) (625,279 ) |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Property, Plant and Equipment | Balance as at Additions Disposals Transfers Impairment Effects of Transfer Balance as at Network infrastructure (All operational) 13,897,308 574,301 (1,009,922 ) 1,907,022 — 111,419 — 15,480,128 Land and buildings 519,702 162,206 (1,340 ) 39,130 — 1,766 64,594 786,058 Equipment, fixtures and fittings 617,732 117,087 (10,854 ) 2,209 — 2,028 — 728,202 Motor vehicles 34,136 4,415 (1,719 ) — — 384 — 37,216 Leasehold improvements 311,761 7,400 (5,041 ) 486 — 261 — 314,867 Construction in progress 566,523 2,063,329 — (1,949,000 ) (14,535 ) 5,977 — 672,294 Total 15,947,162 2,928,738 (1,028,876 ) (153 ) (14,535 ) 121,835 64,594 18,018,765 Accumulated depreciation Network infrastructure (All operational) 6,843,580 1,353,419 (990,719 ) — 23,589 96,690 — 7,326,559 Land and buildings 159,351 26,295 (221 ) — 1,482 645 22,366 209,918 Equipment, fixtures and fittings 497,606 48,393 (8,202 ) — 115 1,915 — 539,827 Motor vehicles 30,252 2,276 (1,642 ) — — 420 — 31,306 Leasehold improvements 220,668 29,138 (4,417 ) — — 358 — 245,747 Total 7,751,457 1,459,521 (1,005,201 ) — 25,186 100,028 22,366 8,353,357 Net book amount 8,195,705 1,469,217 (23,675 ) (153 ) (39,721 ) 21,807 42,228 9,665,408 Depreciation expenses for the years ended 31 December 2017, 2016 and 2015 amounting to TL 1,499,242, TL 1,278,009 and TL 1,112,039, respectively include impairment losses and are recognized in cost of revenue. Impairment losses on property, plant and equipment for the years ended 31 December 2017, 2016 and 2015 are TL 39,721, TL 43,198 and TL 18,567, respectively and are recognized in depreciation expenses. Capitalization rates and amounts other than borrowings made specifically for the purpose of acquiring a qualifying asset are 10.0%, 9.9% and 9.7%, TL 66,513 and TL 76,899 and TL 75,315 for the years ended 31 December 2017, 2016 and 2015 respectively. Impaired network infrastructure mainly consists of damaged or technologically inadequate mobile and fixed network infrastructure investments. The network infrastructure mainly consists of mobile and fixed network infrastructure investments. Cost Balance as at Additions Disposals Transfers Impairment (reversals) Effects of Balance as at Network infrastructure (all operational) 11,302,326 615,041 (518,827 ) 2,312,011 — 186,757 13,897,308 Land and buildings 389,366 26,603 (32 ) 102,311 — 1,454 519,702 Equipment, fixtures and fittings 586,463 37,545 (19,291 ) 10,079 — 2,936 617,732 Motor vehicles 33,676 2,710 (2,946 ) 71 — 625 34,136 Leasehold improvements 306,176 5,663 (374 ) — — 296 311,761 Construction in progress 1,005,358 1,979,449 (454 ) (2,426,303 ) — 8,473 566,523 Total 13,623,365 2,667,011 (541,924 ) (1,831 ) — 200,541 15,947,162 Accumulated depreciation Network infrastructure (all operational) 5,976,699 1,139,343 (501,719 ) — 42,682 186,575 6,843,580 Buildings 140,627 17,395 — — 488 841 159,351 Equipment, fixtures and fittings 462,618 47,001 (15,229 ) — 28 3,188 497,606 Motor vehicles 29,704 2,723 (2,926 ) — — 751 30,252 Leasehold improvements 192,223 28,349 (374 ) — — 470 220,668 Total 6,801,871 1,234,811 (520,248 ) — 43,198 191,825 7,751,457 Net book amount 6,821,494 1,432,200 (21,676 ) (1,831 ) (43,198 ) 8,716 8,195,705 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Intangible Assets and Goodwill | Cost Balance at Additions Disposals Transfers Impairment Effects of movements Balance at 31 December Telecommunication licenses 8,039,431 10,154 — 69,945 — 20,098 8,139,628 Computer software 6,076,405 470,457 (8,624 ) 569,153 — 9,725 7,117,116 Transmission line software 71,602 218 — — — — 71,820 Central betting system operating right 11,981 — — — — — 11,981 Indefeasible right of usage 46,017 66,539 — — — — 112,556 Brand name 7,040 — — — — — 7,040 Customer base 15,512 — — — — — 15,512 Goodwill 32,834 — — — — — 32,834 Other 38,321 5,016 — (588 ) — — 42,749 Construction in progress 142,875 620,463 — (638,357 ) — 2,656 127,637 Total 14,482,018 1,172,847 (8,624 ) 153 — 32,479 15,678,873 Accumulated amortization Telecommunication licenses 1,878,895 537,162 — — — 3,173 2,419,230 Computer software 4,237,996 537,805 (8,120 ) — 1,219 1,980 4,770,880 Transmission line software 58,203 3,498 — — 767 — 62,468 Central betting system operating right 10,588 903 — — — — 11,491 Indefeasible right of usage 18,785 4,489 — — — — 23,274 Brand name 5,808 704 — — — — 6,512 Customer base 11,286 488 — — — — 11,774 Other 24,468 8,366 — — — — 32,834 Total 6,246,029 1,093,415 (8,120 ) — 1,986 5,153 7,338,463 Net book amount 8,235,989 79,432 (504 ) 153 (1,986 ) 27,326 8,340,410 Amortization expenses for the years ended 31 December 2017, 2016 and 2015 amounting to TL 1,095,401, TL 921,812 and TL 549,251, respectively include impairment losses and are recognized in cost of revenue. Impairment losses on intangible assets for the years ended 31 December 2017, 2016 and 2015 are TL 1,986, TL 3,181 and nil respectively and are recognized in amortization expenses. Computer software includes capitalized software development costs that meet the definition of an intangible asset. The amount of capitalized development costs is TL 124,504 for the year ended 31 December 2017 (31 December 2016: TL 126,916). The amortization expenses related to capitalized software development costs for the years ended 31 December 2017, 2016 and 2015 amounting to TL 37,532, TL 30,148 and TL 28,560, respectively are recognized in cost of revenue. Cost Balance at Additions Disposals Transfers Impairment Effects of Balance at Telecommunication licenses 3,950,729 34,494 (4 ) 4,021,090 — 33,122 8,039,431 Computer software 5,342,056 329,836 (6,444 ) 390,248 — 20,709 6,076,405 Transmission line software 71,506 96 — — — — 71,602 Central betting system operating right 11,907 — — 74 — — 11,981 Indefeasible right of usage 42,132 3,885 — — — — 46,017 Brand name 7,040 — — — — — 7,040 Customer base 15,512 — — — — — 15,512 Goodwill 32,834 — — — — — 32,834 Other 29,713 8,607 (184 ) 185 — — 38,321 4.5G license not yet available for use 3,984,954 33,316 — (4,018,270 ) — — — Construction in progress 52,597 478,179 — (391,496 ) — 3,595 142,875 Total 13,540,980 888,413 (6,632 ) 1,831 — 57,426 14,482,018 Accumulated amortization Telecommunication licenses 1,429,944 445,069 (4 ) — — 3,886 1,878,895 Computer software 3,771,710 454,111 (2,972 ) — — 15,147 4,237,996 Transmission line software 52,058 3,615 — — 2,530 — 58,203 Central betting system operating right 9,663 925 — — — — 10,588 Indefeasible right of usage 15,446 3,339 — — — — 18,785 Brand name 5,104 704 — — — — 5,808 Customer base 10,111 1,175 — — — — 11,286 Other 14,307 9,693 (183 ) — 651 — 24,468 Total 5,308,343 918,631 (3,159 ) — 3,181 19,033 6,246,029 Net book amount 8,232,637 (30,218 ) (3,473 ) 1,831 (3,181 ) 38,393 8,235,989 |
Investment properties (Tables)
Investment properties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Increase (Decrease) in Fair Value | 31 December 2017 31 December 2016 Cost Opening balance 165,472 164,467 Addition — 1,005 Disposal (940 ) — Transfer to property, plant and equipment (*) (64,594 ) — Closing balance 99,938 165,472 Accumulated depreciation Opening balance (119,202 ) (114,895 ) Transfer to property, plant and equipment 22,366 — Depreciation and impairment charges during the year (2,337 ) (3,530 ) Disposal 215 — Other — (777 ) Closing balance (98,958 ) (119,202 ) Net book amount 980 46,270 (*) During the year, the Group transferred its building located in Istanbul, Tepebası from investment properties to property, plant and equipment due to the change in purpose of use. |
Summary of Investment Properties and Information About Fair Value Hierarchy | The Group’s investment properties and their fair values at 31 December 2017 and 2016 are as follows: 31 December 2017 Level 1 Level 2 Level 3 Valuation Method Investment properties in Izmir — — 52,110 Replacement cost approach Investment properties in Gebze — — 16,690 Income capitalization approach Investment properties in Ankara — — 15,160 Market approach Investment properties in Istanbul — — 13,000 Market approach Investment properties in Adana — — 3,150 Replacement cost approach Investment properties in Balıkesir — — 3,112 Replacement cost approach Other investment properties — — 3,970 Replacement cost approach Other investment properties — — 2,146 Market approach — — 109,338 31 December 2016 Level 1 Level 2 Level 3 Valuation Method Investment properties in İstanbul: – Istanbul Tepebasi — — 321,835 Direct capitalization approach – Kucukcekmece — — 12,890 Replacement cost approach Investment properties in Gebze — — 12,558 Income capitalization approach Investment properties in Izmir — — 42,315 Replacement cost approach Other investment properties — — 17,419 Market approach Other investment properties — — 8,946 Replacement cost approach Other investment properties — — 2,410 Direct capitalization approach Total — — 418,373 |
Investments accounted for usi58
Investments accounted for using the equity method (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary Financial Information for Equity Accounted Investees | The tables below provide summarised financial information for the Group’s associate. The information disclosed reflects the amounts presented in the financial statement of the associate and not the Group’s share of those amounts. They have been amended to reflect adjustments made by the Group when using the equity method, including modifications for differences in accounting policy. (The summarised financial information is presented in USD): Ownership Current Non-current Total assets Current Non-current Non-controlling Equity attributable Total liabilities 31 December 2015 Fintur (associate) 41.45 % 770,402 923,237 1,693,639 316,504 482,668 189,441 705,026 1,693,639 Revenue Profit for the Other comprehensive Total comprehensive 2015 Fintur (associate) 1,325,535 327,194 (592,741 ) (265,547 ) (*) Attributable to the parent. |
Reconciliation of Summarized Financial Information to the Carrying Amount | Reconciliation of the summarized financial information to the carrying amount in the consolidated financial statements: 2015 Net assets of Fintur 2,049,934 The Group’s share 849,697 Goodwill 132,242 Carrying amount 981,939 |
Asset held for sale and disco59
Asset held for sale and discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Asset held for sale and discontinued operations | The reconciliation of statement of profit or loss statement of Fintur is listed below (The financial statements are presented in USD); 1 January - 30 September 2016 1 January- 31 December 2015 Revenue 617,214 1,325,535 Cost of sales (369,104 ) (674,334 ) Gross profit 248,110 651,201 Selling and marketing expenses (69,983 ) (123,244 ) General and administrative expenses (69,818 ) (95,380 ) Other operating (expenses), net (31,258 ) (23,850 ) Operating profit 77,051 408,727 Finance (expense)/income, net (61,203 ) 162,357 Profit before income tax 15,848 571,084 Total income tax (30,947 ) (128,121 ) (Loss)/profit for period (15,099 ) 442,963 Attributable to: -owners of the parent (28,695 ) 327,194 -non-controlling 13,596 115,769 (Loss)/profit for period (15,099 ) 442,963 |
Other non-current assets (Table
Other non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Other Non-Current Assets | 2017 2016 Prepaid expenses 197,431 183,029 Receivables from the Public Administration 72,848 72,848 Deposits and guarantees given 23,999 29,201 VAT receivable 4,429 28,772 Advances given for property, plant and equipment 12,078 217,658 Others 45,835 43,726 356,620 575,234 |
Deferred tax assets and liabi61
Deferred tax assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Recognized Deferred Tax Assets and Liabilities | Recognized deferred tax assets and liabilities Deferred tax assets and liabilities at 31 December 2017 and 2016 are attributable to the following: Assets Liabilities Net 2017 2016 2017 2016 2017 2016 Property, plant and equipment and intangible assets 41,903 3,516 (680,134 ) (532,547 ) (638,231 ) (529,031 ) Investment 32,926 33,242 — — 32,926 33,242 Reserve for employee termination benefits and provisions (*) 202,112 55,288 (64 ) — 202,048 55,288 Asset classified as held for sale — — (92,327 ) (90,209 ) (92,327 ) (90,209 ) Trade and other payables 11,717 57,686 (26,091 ) — (14,374 ) 57,686 Tax losses carried forward — 1,508 — 1,508 Tax allowances 10,775 32,200 — — 10,775 32,200 Other assets and liabilities 31,916 65,905 (87,795 ) (33,494 ) (55,879 ) 32,411 Deferred tax assets/(liabilities) 331,349 249,345 (886,411 ) (656,250 ) (555,062 ) (406,905 ) Offsetting (235,289 ) (198,090 ) 235,289 198,090 — — Net deferred tax assets/ (liabilities) 96,060 51,255 (651,122 ) (458,160 ) (555,062 ) (406,905 ) (*) The Company has treated provisions recognized for legal claims (Note 36) as being deductible for tax purposes and recognized deferred tax assets amounting to TL 74,975 in the consolidated financial statements. |
Summary of Movement in Temporary Differences | Movement in deferred tax assets/(liabilities) for the years ended 31 December 2017 and 2016 were as follows: 2017 2016 Opening balance (406,905 ) (64,822 ) Income statement charge (133,791 ) (222,497 ) Tax charge relating to components of other comprehensive income (6,449 ) (7,066 ) Prior year corporate tax base differences (2,729 ) (109,640 ) Exchange differences (5,188 ) (2,880 ) Closing balance, net (555,062 ) (406,905 ) |
Summary of Expiration of Unrecognized Tax Losses | Unused tax losses will expire at the following dates: Expiration Date Amount 2018 8,911 2019 9,394 2020 8,775 2021 4,467 2022 3,506 2023 281 2024 128,314 2025 803,533 Indefinite 1,731,067 Total 2,698,248 |
Trade receivables and accrued62
Trade receivables and accrued revenue (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Trade Receivables and Accrued Income | 31 December 2017 31 December 2016 Receivables from subscribers 1,369,948 1,223,183 Undue assigned contracted receivables 347,596 1,215,314 Accrued revenue 632,631 558,169 Accounts and notes receivable 498,397 293,238 2,848,572 3,289,904 |
Receivables from financial se63
Receivables from financial services (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Receivables From Financial Services | 31 December 2017 31 December 2016 Current receivables from financial services 2,950,523 1,486,906 Non-current 1,297,597 909,466 4,248,120 2,396,372 |
Other current assets (Tables)
Other current assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Other Current Assets | 31 December 2017 31 December 2016 Prepaid expenses 322,388 294,540 Restricted cash 183,806 289 Receivables from the Ministry of Transport, Maritime Affairs and Communications 143,669 32,299 Subscriber acquisition costs 138,177 108,628 Receivables from tax office 93,917 52,561 Advances given to suppliers 55,754 57,020 VAT receivable 38,934 49,211 Special communication tax to be collected from subscribers 38,318 36,941 Other 145,642 138,646 1,160,605 770,135 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Cash and Cash Equivalents | 31 December 31 December Cash in hand 192 223 Banks 4,712,141 6,051,472 – Demand deposits 603,553 569,826 – Time deposits 4,108,588 5,481,646 Other cash and cash equivalents — 657 Cash and cash equivalents 4,712,333 6,052,352 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Shareholding Percentage | Companies with their shareholding percentage are as follows: 31 December 2017 31 December 2016 (%) TL (%) TL Turkcell Holding A.Ş. (“Turkcell Holding”) 51,00 1.122.000 51,00 1.122.000 Public Share 48,95 1.077.004 48,95 1.077.004 Other 0,05 996 0,05 996 Total 100,00 2.200.000 100,00 2.200.000 Inflation adjustment to share capital (52.352 ) (52.352 ) Inflation adjusted capital 2.147.648 2.147.648 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Disclosure of Calculations of Basic Earnings Per Share | 2017 2016 2015 Numerator: Profit attributable to owners of the Company 1,979,129 1,492,088 2,067,654 Denominator: Weighted average number of shares (*) 2,193,184,437 2,193,184,437 2,200,000,000 Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) 0.90 0.68 0.94 (*) Refer to Note 24 – Treasury shares 2017 2016 2015 Numerator: Profit from continuing operations attributable to owners of the Company 1,979,129 1,534,252 1,700,318 Denominator: Weighted average number of shares (*) 2,193,184,437 2,193,184,437 2,200,000,000 Basic and diluted earnings per share for profit from continuing operations attributable to owners of the Company (in full TL) 0.90 0.70 0.77 (*) Refer to Note 24 – Treasury shares |
Other non-current liabilities (
Other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Disclosure of Other Non-Current Liabilities | 2017 2016 Consideration payable in relation to the acquisition of Belarusian Telecom 323,691 295,062 Deferred revenue 85,646 74,241 Deposits and guarantees received from dealers — 58,244 409,337 427,547 |
Loans and borrowings (Tables)
Loans and borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Borrowings | 31 December 31 December Non-current liabilities Unsecured bank loans 6,376,981 5,300,756 Debt securities issued 1,770,482 1,589,227 Finance lease liabilities 108,164 41,539 Secured bank loans 2,368 3,580 8,257,995 6,935,102 Current liabilities Unsecured bank loans 2,643,112 1,581,135 Current portion of unsecured bank loans 1,513,425 922,867 Current portion of secured bank loans 2,022 2,054 Current portion of finance lease liabilities 14,556 6,575 Current portion of long-term debt securities issued 105,039 94,473 Debt securities issued — 238,956 4,278,154 2,846,060 |
Summary of Terms and Conditions of Outstanding Loans | Terms and conditions of outstanding loans are as follows: 31 December 2017 31 December 2016 Currency Interest Nominal interest rate Payment Carrying Nominal interest Rate Payment Carrying Unsecured bank loans (*) USD Floating Libor+2.0%-Libor+3.3% 2018-2020 2,880,615 Libor+2.0%-Libor+2.6% 2017-2020 1,984,533 Unsecured bank loans (*) EUR Floating Euribor+1.2%-Euribor+2.2% 2018-2026 5,511,579 Euribor+1.2%-Euribor+2.2% 2017-2025 3,593,110 Unsecured bank loans TL Fixed 11.1%-15.5% 2018-2019 1,620,391 10.4%-12.6% 2017-2018 1,819,944 Unsecured bank loans UAH Fixed 11%-14.5% 2018 520,933 13.5%-18.6% 2017 407,171 Secured bank loans (**) BYN Fixed 12%-16% 2018-2020 4,390 12%-16% 2017-2020 5,634 Debt securities issued USD Fixed 5.8% 2018-2025 1,875,521 5.8% 2017-2025 1,683,700 Debt securities issued TL Fixed — — — 10.7% 2017 238,956 Finance lease liabilities EUR Fixed 3.4% 2018-2024 116,797 3.4% 2017-2024 48,034 Finance lease liabilities USD Fixed 22.5% 2018 41 18%-28% 2017-2018 80 Finance lease liabilities TL Fixed 27.5%-27.7% 2018-2020 5,882 — — — 12,536,149 9,781,162 (*) Secured by blocked deposit amounting to EUR 26,350 and USD 17,100 (equivalent to TL 183,483 as at 31 December 2017), in connection with the foreign currency loans utilized by Turkcell Finansman. (**) Belarusian Telecom pledged its certain property, plant and equipment to secure these bank loans. Also, these bank loans are secured by the Government of the Republic of Belarus (Note 33). |
Summary of Finance Lease Liabilities Payable | Finance lease liabilities are payable as follows: 31 December 2017 31 December 2016 Future Future finance Recognized as Future Future finance Recognized as Within one year 17,447 2,891 14,556 7,908 1,333 6,575 Between 1-5 years 55,722 5,541 50,181 26,506 3,752 22,754 More than 5 years 60,401 2,418 57,983 19,859 1,074 18,785 133,570 10,850 122,720 54,273 6,159 48,114 |
Employee benefits (Tables)
Employee benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Employee Benefits Provisions | 31 December 31 December Retirement pay liability provision 149,449 120,755 Unused vacation provision 48,217 43,798 197,666 164,553 |
Summary of Movement in Provision for Employee Termination Benefits | Movements in provision for employee termination benefits are as follows: 2017 2016 1 January 120,755 74,435 Service cost 32,696 25,933 Remeasurements 3,738 34,532 Interest expense 13,877 8,361 Benefit payments (21,617 ) (22,506 ) 31 December 149,449 120,755 |
Summary of Sensitivity of Provision for Employee Termination Benefits to Changes in the Significant Actuarial Assumptions | The sensitivity of provision for employee termination benefits to changes in the significant actuarial assumptions is: 31 December 2017 Discount Rate Inflation Rate Sensivity Level 1% increase 1% decrease 1% increase 1% decrease Change in assumption (14.6% ) 18.1 % 18.3 % (14.3% ) Impact on provision for employee termination benefits (21,820 ) 27,050 27,349 (21,371 ) 31 December 2016 Discount Rate Inflation Rate Sensivity Level 1% increase 1% decrease 1% increase 1% decrease Change in assumption (14.7% ) 18.1 % 18.6 % (15.1% ) Impact on provision for employee termination benefits (17,751 ) 21,857 22,460 (18,234 ) |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Non-current provision [member] | |
Summary of Current Provisions | Non - current provisions: Legal claims Obligations for Total Balance at 1 January 2017 6,889 180,652 187,541 Provisions recognized/(reversed) 4,256 (8,461 ) (4,205 ) Unwinding of discount — 15,328 15,328 Transfer to current provisions (2,258 ) — (2,258 ) Effect of changes in exchange rates — 1,012 1,012 Balance at 31 December 2017 8,887 188,531 197,418 Legal claims Obligations for Total Balance at 1 January 2016 4,103 126,516 130,619 Provisions recognized/(reversed) 4,312 52,031 56,343 Unwinding of discount — (1,308 ) (1,308 ) Transfer to current provisions (1,526 ) — (1,526 ) Effect of changes in exchange rates — 3,413 3,413 Balance at 31 December 2016 6,889 180,652 187,541 |
Current provision [member] | |
Summary of Current Provisions | Current provisions: Legal claims Bonus Other Total Balance at 1 January 2016 10,260 141,855 — 152,115 Provisions recognized/(reversed) 140,457 251,005 785 392,247 Amounts used (134,019 ) (220,269 ) — (354,288 ) Transfers from non-current provisions 1,526 — — 1,526 Effect of changes in exchange rates 42 800 — 842 Balance at 31 December 2016 18,266 173,391 785 192,442 Legal claims Bonus (*) Other Total Balance at 1 January 2017 18,266 173,391 785 192,442 Provisions recognized/(reversed) (**) 583,788 318,603 (785 ) 901,606 Amounts used (1,188 ) (263,080 ) — (264,268 ) Transfer from non-current provisions 2,258 — — 2,258 Unwinding of discount 2,531 — — 2,531 Effect of changes in exchange rates 24 606 — 630 Balance at 31 December 2017 605,679 229,520 — 835,199 (*) Includes share-based payment (Note 28). (**) Refer to Note 36.1 and 36.3. |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Trade and Other Payables | 2017 2016 Payable to suppliers 2,527,152 1,718,788 Taxes payable 415,650 302,346 Accrued treasury share, universal service fund contribution and contributions to the ICTA’s expenses 305,208 262,748 Accrued selling and marketing expenses 79,011 58,879 4.5G license fees payable — 1,522,615 Other 369,445 236,615 3,696,466 4,101,991 |
Derivative financial instrume73
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Details of Currency and Interest Swap Contracts | Participating cross currency swap and FX swap contracts at 31 December 2017 Buy Sell Currency Notional Currency Notional Fair Maturity USD 47,304 EUR 39,835 1,005 02 January 2018 TL 69,680 USD 20,000 6,554 27 August 2018 TL 81,480 EUR 20,000 9,965 14 December 2018 TL 95,550 USD 25,000 72 24 January 2019 TL 67,410 USD 18,000 1,498 28 January 2019 TL 98,625 EUR 25,000 17,354 13 June 2019 TL 52,164 USD 14,620 4,465 16 July 2019 TL 69,744 USD 19,780 6,996 22 July 2019 TL 203,600 EUR 50,000 27,198 23 July 2019 TL 435,000 USD 150,000 142,085 16 September 2020 TL 386,500 USD 100,000 (4,645 ) 16 September 2020 TL 293,500 USD 100,000 90,071 16 September 2020 TL 242,873 USD 70,500 33,535 16 September 2020 TL 194,000 USD 50,000 (2,951 ) 16 September 2020 TL 1,650,000 EUR 500,000 627,385 25 October 2025 TL 275,850 EUR 60,000 1,078 22 April 2026 Total 961,665 At 31 December 2017, total derivative financial assets of TL 981,396 also include accrued interest income of TL 19,731. Participating cross currency swap and FX swap contracts at 31 December 2016 Buy Sell Currency Notional Currency Notional Fair Maturity TL 18,455 EUR 5,000 86 3 January 2017 TL 73,400 EUR 20,000 598 24 Mar 2017 TL 824,750 EUR 250,000 116,674 12 April 2021 TL 328,600 EUR 100,000 47,949 12 April 2021 TL 495,000 EUR 150,000 81,534 12 April 2021 TL 435,000 USD 150,000 84,416 16 September 2020 TL 293,500 USD 100,000 51,481 16 September 2020 Total 382,738 At 31 December 2016, total derivative financial assets of TL 390,958 also include accrued interest income of TL 8,220. Derivative financial liabilities: Participating cross currency swap and FX swap contracts at 31 December 2017 Buy Sell Currency Notional Currency Notional Fair value (TL) Maturity TL 470,232 USD 122,680 (2,465 ) 2 January 2018 TL 180,023 USD 47,250 (545 ) 2 January 2018 TL 141,001 USD 36,786 (726 ) 3 January 2018 TL 219,162 USD 57,245 (1,043 ) 4 January 2018 TL 115,022 USD 30,150 (435 ) 5 January 2018 TL 17,204 USD 4,500 (284 ) 10 January 2018 TL 15,916 EUR 3,500 (157 ) 10 January 2018 TL 91,556 EUR 20,140 (620 ) 22 January 2018 TL 137,834 EUR 30,400 (601 ) 05 February 2018 TL 82,013 EUR 17,860 (1,413 ) 19 February 2018 TL 1,143 EUR 250 (25 ) 5 March 2018 TL 97,997 EUR 21,500 (2,154 ) 19 December 2019 TL 269,451 USD 70,500 (5,010 ) 22 December 2020 Total (15,478 ) Participating cross currency swap and FX swap contracts at 31 December 2016 Buy Sell Currency Notional Currency Notional Fair value Maturity TL 21,009 USD 5,960 (55 ) 3 January 2017 TL 7,050 USD 2,000 (18 ) 3 January 2017 Total (73 ) |
Details of Currency Forward Contracts | Currency forward contracts at 31 December 2017 Buy Currency Notional amount Fair value (TL) Maturity USD 50,000 (2,246 ) 30 January 2018 Total (2,246 ) At 31 December 2017, total derivative financial liabilities of TL 110,108 also include accrued interest expense of TL 92,384. Currency forward contracts at 31 December 2016 Buy Currency Notional amount Fair value Maturity USD 30,071 (1,286 ) 28 February 2017 Total (1,286 ) |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of credit risk | The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is: 2017 2016 Trade receivables 19 3,004,206 3,525,297 Receivables from financial services 20 4,248,120 2,396,372 Cash and cash equivalents* 23 4,712,141 6,052,129 Participating cross currency swap and FX swap contracts 32 981,396 390,958 Other current assets** 22 316,042 93,376 Held to maturity investments 11,992 — Due from related parties 37 5,299 5,861 13,279,196 12,463,993 * Cash in hand is excluded from cash and cash equivalents. ** Prepaid expenses and advances given are excluded from other current assets and other non-current assets. |
Summary of Maximum Exposure to Credit Risk for Trade Receivables and Receivables from Financial Services Arising from Sales Transactions | The maximum exposure to credit risk for trade receivables and receivables from financial services arising from sales transactions including those classified as due from related parties at the reporting date by type of customer is: 2017 2016 Receivable from subscribers 2,472,596 3,061,130 Receivables from financial services 4,248,120 2,396,372 Receivables from distributors and other operators 516,352 376,204 Other 20,557 93,824 7,257,625 5,927,530 |
Aging of Receivables from Financial Operations, Trade Receivables and Due from Related Parties | The aging of trade receivables and due from related parties at 31 December 2017 and 2016: 2017 2016 Not past due 2,124,719 3,138,043 Past due up to 3 months 317,649 285,561 Past due 3 to 6 months 95,738 48,775 Past due over 6 months 471,399 58,779 3,009,505 3,531,158 The aging of receivables from financial services at 31 December 2017 and 2016: 2017 2016 Not past due 3,659,521 2,350,375 Past due up to 3 months 513,925 16,533 Past due 3 to 6 months 39,233 20,227 Past due over 6 months 35,441 9,237 4,248,120 2,396,372 |
Summary of Movements in Provision for Impairment of Receivables from Financial Services, Trade Receivables and Due from Related Parties | Movements in the provision for impairment of trade receivables and due from related parties are as follows: 31 December 31 December Opening balance 964,311 816,373 Provision for impairment recognized during the year 180,948 452,767 Amounts collected (224,460 ) (251,553 ) Exchange differences 3,128 5,038 Receivables written off during the year as uncollectible (138,529 ) (58,314 ) Unused amount reversed (*) (79,958 ) — Closing balance 705,440 964,311 (*) The Company signed a transfer of claim agreement with a debt management company to transfer some of its doubtful receivables stemming from the years between 1998 to 2016. Transferred doubtful receivables comprise of balances that the Company started legal proceedings. Movements in the provision for impairment of receivables from financial services are as follows: 31 December 31 December Opening 10,170 — Provision for impairment recognized during the year 117,293 11,593 Amounts collected (37,503 ) (1,423 ) Unused amount reversed (*) (16,968 ) — Closing balance 72,992 10,170 (*) The Company signed a transfer of claim agreement with a debt management company to transfer some of its doubtful receivables stemming from the year 2017. Transferred doubtful receivables comprise of balances that the Company started legal proceedings. |
Summary of Analysis of Group's Financial Liabilities into Relevant Maturity Groupings Based on Contractual Maturities | The table below analyses the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities for: - all non-derivative financial liabilities, and - gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows. 31 December 2017 31 December 2016 Carrying Contractual 6 months or less 6-12 Months 1-2 years 2-5 years More than 5 Carrying Contractual 6 months or less 6-12 months 1-2 years 2-5 years More than 5 Non-derivative financial liabilities Secured bank loans 4,390 (5,011 ) — (1,117 ) (2,045 ) (1,849 ) — 5,634 (7,691 ) (1,123 ) (1,077 ) (2,015 ) (3,476 ) — Unsecured bank loans 10,533,518 (11,094,697 ) (3,275,230 ) (955,637 ) (2,575,807 ) (3,035,914 ) (1,252,109 ) 7,804,758 (8,458,901 ) (1,332,478 ) (1,330,322 ) (1,433,790 ) (3,187,687 ) (1,174,624 ) Finance lease liabilities 122,720 (133,570 ) (18 ) (17,429 ) (16,789 ) (38,933 ) (60,401 ) 48,114 (54,273 ) (70 ) (7,837 ) (6,648 ) (19,859 ) (19,859 ) Debt securities issued 1,875,521 (2,753,486 ) (54,221 ) (54,221 ) (108,442 ) (325,326 ) (2,211,276 ) 1,922,656 (2,824,066 ) (298,767 ) (48,767 ) (97,535 ) (292,604 ) (2,086,393 ) Trade and other payables* 2,527,152 (2,548,365 ) (2,548,365 ) — — — — 3,241,403 (3,266,123 ) (3,266,123 ) — — — — Due to related parties 6,980 (6,980 ) (6,980 ) — — — — 11,201 (11,201 ) (11,201 ) — — — — Consideration payable in relation to acquisition of Belarusian Telecom (Note 31) 323,691 (377,190 ) — — — (377,190 ) — 295,062 (351,920 ) — — — (351,920 ) — Derivative financial liabilities Participating Cross Currency Swap and FX swap contracts 107,862 23,428 18,982 — 4,446 — — 40,440 46 46 — — — — Buy 1,838,554 1,471,106 — 367,448 — — — 28,059 28,059 — — — — Sell (1,815,126 ) (1,452,124 ) — (363,002 ) — — — (28,013 ) (28,013 ) — — — — Currency forward contracts 2,246 (2,246 ) (2,246 ) — — — — 1,286 (1,286 ) (1,286 ) — — — — Buy 190,185 190,185 — — — — — 105,826 105,826 — — — — Sell (192,431 ) (192,431 ) — — — — — (107,112 ) (107,112 ) — — — — TOTAL 15,504,080 (16,898,117 ) (5,868,078 ) (1,028,404 ) (2,698,637 ) (3,779,212 ) (3,523,786 ) 13,370,554 (14,975,415 ) (4,911,002 ) (1,388,003 ) (1,539,988 ) (3,855,546 ) (3,280,876 ) * Advances received, license fee accruals, taxes and withholding taxes payable are excluded from trade and other payables. |
Summary of Group's Exposure to Foreign Exchange Risk Based Notional Amounts | The Group’s exposure to foreign exchange risk at the end of the reporting period, based on notional amounts, was as follows: 31 December 2016 USD EUR Foreign currency denominated assets Other non-current assets 244 2,131 Due from related parties 1,210 388 Trade receivables and accrued income 14,178 61,841 Other current assets 19,929 7,144 Cash and cash equivalents 807,372 378,057 842,933 449,561 Foreign currency denominated liabilities Loans and borrowings-non-current (483,910 ) (959,482 ) Debt securities issued-non-current (451,588 ) — Other non-current liabilities (99,273 ) — Loans and borrowings-current (80,029 ) (21,985 ) Debt securities issued-current (26,845 ) — Trade and other payables-current (175,083 ) (425,992 ) Due to related parties (398 ) (334 ) (1,317,126 ) (1,407,793 ) Derivative financial instruments Participating cross currency swap and FX swap contracts 257,960 525,000 Currency forward contracts (30,071 ) — Net exposure (246,304 ) (433,232 ) 31 December 2017 USD EUR Foreign currency denominated assets Other non-current assets 72 2,681 Due from related parties 571 407 Trade receivables and accrued income 18,890 57,283 Other current assets 43,039 35,049 Cash and cash equivalents 688,717 237,697 751,289 333,117 Foreign currency denominated liabilities Loans and borrowings-non-current (557,180 ) (960,629 ) Debt securities issued-non-current (469,387 ) — Other non-current liabilities (85,816 ) — Loans and borrowings-current (206,535 ) (285,827 ) Debt securities issued-current (27,848 ) — Trade and other payables-current (328,323 ) (29,442 ) Due to related parties (1,172 ) (394 ) (1,676,261 ) (1,276,292 ) Derivative financial instruments Participating cross currency swap and FX swap contracts 937,011 748,650 Currency forward contracts 50,000 — Net exposure 62,039 (194,525 ) |
Summary of Cash Flow Sensitivity Analysis for Variable Rate Instruments | An increase/decrease of interest rates by 100 basis points would have (decreased)/increased equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign exchange rates, remain constant. The analysis is performed on the same basis at 31 December 2017 and 2016: Profit or loss Equity 100 bps 100 bps 100 bps 100 bps 31 December 2017 Variable rate instruments (financial liability) (83,922 ) 83,922 — — Cash flow sensitivity (net) (83,922 ) 83,922 — — 31 December 2016 Variable rate instruments (financial liability) (55,776 ) 55,776 — — Cash flow sensitivity (net) (55,776 ) 55,776 — — |
Summary of Fair Value of Financial Assets and Financial Liabilities | This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value in the financial statements. An explanation of each level is as follows: Fair values 31 December 31 December Fair value Valuation techniques FX swap contracts (4,675 ) 611 Level 2 Present value of the estimated future cash flows based on observable yield curves and end period FX rates Participating cross currency swap contracts (*) 950,862 382,054 Level 3 Present value of the estimated future cash flows based on unobservable yield curves and end period FX rates Currency forward contracts (2,246 ) (1,286 ) Level 2 Forward exchange rates at the balance sheet date (*) Participating cross currency swap contracts include EUR-TL interest and currency swap contracts, EUR put and call options, amounting to nominal value of EUR 560,000 and also USD-TL interest and currency swap contracts and put and call options amounting to nominal value of USD 400,000 in total. The EUR-TL participating cross currency swap contracts, which are EUR 100,000, EUR 150,000 and EUR 250,000, was combined into one contract as of 26 May 2017 and the maturity of the contracts was extended to 23 October 2025. Additionally, cross currency swap contracts include EUR-TL interest and currency swap contracts nominal value of EUR 43,585 and USD-TL interest and currency swap contracts amounting to nominal value of USD 298,611 in total. Cross currency swap contracts include EUR-TL, cross currency swap contracts nominal value of EUR 184,900 and USD-TL currency swap contracts amounting to nominal value of USD 238,400 in total. Regarding these contracts, TL 92,384 accrual of interest expense and TL 19,731 accrual of interest income has been reflected to consolidated financial statements as at 31 December 2017 (31 December 2016: TL 40,367 and TL 8,220 respectively). Since bid-ask spread is unobservable input; in valuation of participating cross currency swap contracts, prices in bid- ask price range which were considered the most appropriate were used instead of mid prices. If mid prices were used in the valuation the fair value of participating cross currency swap contracts would have been TL 129,870 lower as at 31 December 2017 (31 December 2016: TL 23,291). |
Summary of Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurement of Contingent Consideration | Fair value at Inputs 31 December 31 December Unobservable Inputs 31 December 31 December Relationship of unobservable Contingent consideration 323,691 295,062 Risk-adjusted 4.8% 5.6% A change in the discount rate by 100 bps would increase/decrease FV by TL (9,834) and TL 10,241 respectively. Expected first first If expected settlement date changes by 1 year FV would increase/decrease by TL (14,884) and TL 15,602 respectively. |
Interest rate risk [member] | |
Summary of Interest-Bearing Financial Instruments | As at 31 December 2017 and 2016 the interest rate profile of the Group’s interest-bearing financial instruments was as follows: 31 December 2017 31 December 2016 Note Effective Interest Rate Carrying Effective rate Carrying Fixed rate instruments Time deposits 23 USD 5.8 % 2,590,025 3.6 % 2,817,650 EUR 2.2 % 1,069,303 2.0 % 1,383,978 TL 14.3 % 436,224 11.0 % 1,243,843 Other 12.9 % 13,036 11.1 % 36,175 Restricted cash 22 USD — 64,503 — — EUR — 118,983 — — TL — — — — Other — 320 — — Finance lease obligations 27 USD 28.1 % (41 ) 20.7 % (80 ) EUR 3.4 % (116,797 ) 3.4 % (48,034 ) TL 27.6 % (5,882 ) — — Unsecured bank loans 27 TL fixed rate loans 14.7 % (1,620,391 ) 12.1 % (1,819,944 ) UAH fixed rate loans 13.9 % (520,933 ) 15.0 % (407,171 ) Secured bank loans BYN fixed rate loans 11.6 % (4,390 ) 11.9 % (5,634 ) Trade and other payables EUR fixed rate payables 31 — — 2.6 % (1,522,615 ) Debt securities issued 27 USD 5.8 % (1,875,521 ) 5.8 % (1,683,700 ) TL — — 10.7 % (238,956 ) Variable rate instruments 27 USD floating rate loans 3.2 % (2,880,615 ) 3.2 % (1,984,533 ) EUR floating rate loans 2.1 % (5,511,579 ) 2.3 % (3,593,110 ) (*) Includes 4.5G license payables related to the frequency bands which the Company has been awarded with. The last instalment of 4.5G license payable amounting to TL 1,534,702 was paid on 26 April 2017. |
Sensitivity analysis [member] | |
Summary of Exchange Rates | 10% strengthening of the TL, UAH, BYN against the following currencies at 31 December 2017 and 31 December 2016 would have increased/(decreased) profit or loss before by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. Profit or loss 31 December 31 December USD (23,400 ) 86,679 EUR 87,838 160,725 10% weakening of the TL, UAH, BYN against the following currencies at 31 December 2017 and 31 December 2016 would have increased/(decreased) profit or loss before tax by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. Profit or loss 31 December 31 December USD 23,400 (86,679 ) EUR (87,838 ) (160,725 ) |
Participating cross currency swap contracts [member] | |
Summary of Fair Value of Financial Assets and Financial Liabilities | Movements in the participating cross currency swap contracts for the years ended 31 December 2017 and 31 December 2016 are stated below: 31 December 31 December Opening balance 382,054 — Fair value gains recognized in profit or loss 568,808 382,054 Closing balance 950,862 382,054 |
Consideration payable in relation to acquisition of Belarusian telecom [member] | |
Summary of Fair Value of Financial Assets and Financial Liabilities | Changes in the consideration payable in relation to acquisition of Belarusian Telecom for the years ended 31 December 2017 and 31 December 2016 are stated below: 2017 2016 Opening balance 295,062 235,281 Gains recognized in profit or loss 28,629 59,781 Closing balance 323,691 295,062 |
Operating leases (Tables)
Operating leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases | Commitments for minimum lease payments in relation to non-cancellable 2017 2016 Within one year 144,424 163,336 Later than one year but not later than five years 346,832 345,374 Later than five years 167,227 101,328 658,483 610,038 |
Schedule of Payments Recognized | Rental expense relating to operating leases are as follows: 2017 2016 2015 Minimum lease payments 812,385 837,575 751,816 Contingent rentals — — 1,733 Total 812,385 837,575 753,549 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Lawsuits Disputes | Based on the management opinion, an outflow of resources embodying economic benefits is deemed to be less than probable, thus, no provision is recognized in the consolidated financial statements as at and for the period ended 31 December 2017 (31 December 2016: None). Subject 31 December 2017 31 December 2016 31 December 2017 31 December 2016 Disputes related with ICTA 13,367 22,544 — — |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Total Compensation Provided to Key Management Personnel | 31 December 31 December 31 December Short-term benefits (*) 74,696 50,001 52,767 Termination benefits 604 10,064 13,454 Long-term benefits 548 479 655 75,848 60,544 66,876 (*) Includes share-based payment. |
Schedule of Short Term Dues from Related Parties | The following balances are outstanding at the end of the reporting period in relation to transactions with related parties: 31 December 31 December Due from related parties Telia Sonera International Carrier AB (“Telia”) 1,256 607 Kyivstar GSM JSC (“Kyivstar”) 1,061 75 GSM Kazakhstan Ltd (“Kazakcell”) 830 937 Azercell Telekom MMC (“Azercell”) 364 446 MegaFon OJSC (“Megafon”) 281 1,387 Hobim Bilgi Islem Hizmetleri AS (“Hobim”) (*) — 1,223 Vimpelcom OJSC (“Vimpelcom”) — 586 Other 1,507 600 5,299 5,861 (*) Hobim is not a related party effective from 20 June 2017. |
Schedule of Short Term Due to Related Parties | 31 December 31 December Due to related parties Kyivstar GSM JSC (“Kyivstar”) 2,346 2,382 Wind Telecomunicazioni S.P.A. 1,738 — Vimpelcom (Bvı) Ltd. 1,552 100 Geocell LLC (“Geocell”) 447 445 Megafon 17 892 Hobim (*) — 6,260 Other 880 1,122 6,980 11,201 (*) Hobim is not a related party effective from 20 June 2017. |
Schedule of Transactions with Related Parties | The following transactions occurred with related parties: 2017 2016 2015 Revenue from related parties Sales to Kyivstar Telecommunications services 30,875 30,964 41,728 Sales to Telia Telecommunications services 10,020 15,761 16,955 Sales to Vimpelcom Telecommunications services 7,230 20,775 20,489 Sales to Megafon Telecommunication services 6,362 11,773 14,958 Sales to Azercell Telecommunication services 1,583 2,585 4,183 Sales to Krea (*) Call center services, fixed line services, rent and interest charges — 3,422 4,831 Sales to Millenicom (**) Telecommunication services — 997 8,861 Sales to KVK Teknoloji (***) Simcard SIM card and prepaid card sales — — 217,080 Sales to other related parties 4,962 3,149 6,049 61,032 89,426 335,134 Transactions with related parties 2017 2016 2015 Related party expenses Charges from Kyivstar Telecommunications services 49,178 47,595 49,608 Charges from Hobim (****) Invoicing and archiving services 16,993 31,832 29,570 Charges from Vimpelcom Telecommunications services 10,853 2,721 4,348 Charges from Megafon Telecommunications services 5,169 3,162 4,342 Charges from Telia Telecommunications services 3,120 2,499 3,409 Charges from Azercell Telecommunications services 734 1,361 28 Charges from Krea Digital television broadcasting services — 5,975 15,826 Charges from KVK Teknoloji Dealer activation fees and others — — 76,743 Charges from other related parties 11,832 8,497 15,151 97,879 103,642 199,025 (*) Transactions with Krea include transactions until 26 August 2016. (**) Transactions with Millenicom include transactions until 21 January 2016. (***) KVK Teknoloji is not a related party effective from 6 July 2015. Transactions with KVK Teknoloji include transactions until that date. (****) Transactions with Hobim include transactions until 20 June 2017. |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Subsidiaries | Subsidiaries Name Country of Business 31 December 31 December Kibris Telekom Turkish Republic of Northern Cyprus Telecommunications 100 100 Turkcell Global Bilgi Turkey Customer relations management 100 100 Turktell Turkey Information technology, value added GSM services and entertainment investments 100 100 Turkcell Superonline Turkey Telecommunications, television services and content services 100 100 Turkcell Satis Turkey Sales and delivery 100 100 Eastasia Netherlands Telecommunications investments 100 100 Turkcell Teknoloji Turkey Research and development 100 100 Global Tower Turkey Telecommunications infrastructure business 100 100 Financell Netherlands Financing business 100 100 Rehberlik Turkey Directory Assistance 100 100 Lifecell Ventures Netherlands Telecommunications investments 100 100 Beltel Turkey Telecommunications investments 100 100 Turkcell Gayrimenkul Turkey Property investments 100 100 Global LLC Ukraine Customer relations management 100 100 UkrTower Ukraine Telecommunications infrastructure business 100 100 Turkcell Europe Germany Telecommunications 100 100 Turkcell Odeme (1) Turkey Payment services and e-money licence 100 100 Lifecell Ukraine Telecommunications 100 100 Turkcell Finansman Turkey Consumer financing services 100 100 Beltower Republic of Belarus Telecommunications Infrastructure business 100 100 Turkcell Enerji (2) Turkey Electricity energy trade and wholesale and retail electricity sales 100 — Paycell (3) Ukraine Payment services and e-money licence 100 — Lifecell Digital (4) Turkish Republic of Northern Cyprus Telecommunications 100 — Belarusian Telecom Republic of Belarus Telecommunications 80 80 Lifetech Republic of Belarus Research and development 80 80 Inteltek Turkey Information and Entertainment Services 55 55 Azerinteltek Azerbaijan Information and Entertainment Services 28 28 (1) Turkcell Odeme operating under “Paycell” brand has been authorized by the Banking Regulation and Supervision Agency (“BRSA”) to operate as an “electronic money institution” and to provide intermediation service for invoice payments. The decision was published in the Official Gazette on 22 July 2017. (2) Turkcell Enerji that will be engaged in electricity energy trade, wholesale sales and retail sales was incorporated on 20 February 2017. The Company is a wholly owned subsidiary of Turktell and has obtained its electricity supply license upon approval from Energy Market Regulatory Authority (“EMRA”) as at 11 May 2017. (3) The company “Paycell LLC” which is established in Ukraine by lifecell and wholly owned by the company granted the “financial company” status on September 21, 2017. Paycell LLC will apply for financial services and local money transfer licenses to provide digital payment services to customers via credit device sales and e-money. (4) The transactions in relation to the incorporation of Lifecell Digital Limited in the Turkish Republic of Northern Cyprus (“TRNC”), which will offer services as an internet service provider, by our wholly-owned subsidiary Kıbrıs Mobile Telekomünikasyon Limited based in TRNC is completed as at 14 December 2017. |
Schedule of Non-Wholly Owned Subsidiaries That Have Material Non-Controlling Interests | Details of non-wholly owned subsidiaries that have material non-controlling interests to the Company are disclosed below: Name of subsidiary Place of Proportion of ownership Profit/(loss) allocated to Accumulated non- 31 December 31 December 31 December 31 December 31 December 31 December Inteltek Turkey 45.00 % 45.00 % 35,924 39,346 46,072 50,863 Individually immaterial subsidiaries with non – controlling interest 22,706 12,369 9,855 5,769 58,630 51,715 55,927 56,632 |
Schedule of Financial Information of Subsidiaries | Summarized financial information in respect of Inteltek is set out below. The summarized financial information below represents amounts before intragroup eliminations. Inteltek 31 December 31 December Current assets 223,119 191,199 Non-current assets 9,290 17,367 Current liabilities 125,286 30,516 Non-current liabilities 4,742 65,020 Equity attributable to owners 102,381 113,030 2017 2016 Revenue 184,025 178,408 Expenses (104,194 ) (90,973 ) Profit for the year 79,831 87,435 Other comprehensive income/(loss) for the year 172 (618 ) Dividend paid to non-controlling interests (46,582 ) (44,888 ) Net cash inflow from operating activities 73,575 69,497 Net cash inflow from investing activities 19,930 17,470 Net cash outflow from financing activities (75,113 ) (119,751 ) Effects of foreign exchange rate fluctuations on cash and cash equivalents 8,574 18,213 Net cash outflow/(inflow) 26,966 (14,571 ) |
Cash flow information (Tables)
Cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Reconciliation of Net Cash Flow to Movement in Net Debt | Net debt reconciliation: Debt securities issued Loans Financial Leasings Total Balance at 1 January 2017 1,922,656 7,810,392 48,114 9,781,162 Cash inflows 209,808 24,030,222 72,421 24,312,451 Cash outflows (503,391 ) (22,768,911 ) (1,068 ) (23,273,370 ) Other non-cash 246,448 1,466,205 3,253 1,715,906 Balance at 31 December 2017 1,875,521 10,537,908 122,720 12,536,149 Cash and cash equivalents 4,712,333 Net debt (7,823,816 ) |
Reporting Entity - Additional I
Reporting Entity - Additional Information (Detail) - 12 months ended Dec. 31, 2017 € in Thousands, $ in Thousands | USD ($) | EUR (€) |
Disclosure of Description Of Reporting Entity [line items] | ||
Payment through treasury shares, percentage of gross revenue | 15.00% | 15.00% |
Turkish treasury [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
Percentage of treasury shares transferred as universal service fund | 90.00% | 90.00% |
Turkish ministry [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
Percentage of treasury shares transferred as universal service fund | 10.00% | 10.00% |
Turkcell holding A.S. [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
Ownership interest by parent | 51.00% | 51.00% |
2G license [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
License contract period | 25 years | 25 years |
License fee | $ | $ 500,000 | |
Payment through treasury shares, percentage of gross revenue | 15.00% | 15.00% |
3G license [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
License fee | € 358,000 | |
4.5G license tender [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
License contract period | 13 years | 13 years |
Value added tax percentage | 18.00% | 18.00% |
Tender price (excludes VAT of 18%) | € 1,623,460 |
Basis of Preparation and Summ81
Basis of Preparation and Summary of Significant Accounting Policies - Additional Information (Detail) - TRY (₺) | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 22, 2017 | Apr. 14, 2014 | |
Disclosure of basis of preparation and summary of significant accounting policies [line items] | ||||||
Impairment of assets | ₺ 19,897,000 | |||||
Financial loan sold | ₺ 89,607,000 | ₺ 87,589,000 | ||||
Acquisition of shares | ₺ (267,920,000) | |||||
Depreciation method property plant and equipment | Decrease in inflation rate in subsequent years led the three-year cumulative rate as of the end of 2014 to decrease to 65%. | |||||
Three-year cumulative inflation rate | 65.00% | |||||
Salary calculation period | 30 days | |||||
Employee payments | ₺ 1,787,116,000 | ₺ 1,490,961,000 | 1,356,612,000 | |||
Percentage of net earnings to gross earning | 1.40% | |||||
Percentage of revenues comprised | 7.25% | |||||
Revenue commission percentage | 15.00% | |||||
Revenue from operations | ₺ 15,115,816,000 | ₺ 12,883,974,000 | 11,972,443,000 | |||
Expected credit loss period | 12 months | |||||
Top of range [member] | ||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | ||||||
Percentage of voting rights in associates | 20.00% | |||||
Bottom of range [member] | ||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | ||||||
Percentage of voting rights in associates | 50.00% | |||||
Employee payments | ₺ 6,000,000 | |||||
Maritime Affairs and Communications [member] | ||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | ||||||
Revenue from operations | ₺ 257,866,000 | |||||
Belarusian Telecom [member] | Special GSM and UMTS services licenses [member] | ||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | ||||||
Service licenses acquired, life | 10 years | |||||
Additional contractual life of service license | 10 years | |||||
Donetsk and Luhansk [member] | ||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | ||||||
Impairment Loss | ₺ 10,872,000 | |||||
Retained earnings [member] | ||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | ||||||
Acquisition of shares | ₺ (929,013,000) | |||||
Lifecell [member] | ||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | ||||||
Ownership interest percentage | 100.00% |
Basis of Preparation and Summ82
Basis of Preparation and Summary of Significant Accounting Policies - Disclosure of Estimated Useful Lives for the Current and Comparative (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Bottom of range [member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 21 Years |
Bottom of range [member] | Network infrastructure [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 4 Years |
Bottom of range [member] | Fixed network infrastructure [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 3 Years |
Bottom of range [member] | Call center equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 4 Years |
Bottom of range [member] | Equipment, fixtures and fittings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 2 Years |
Bottom of range [member] | Motor vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 4 Years |
Bottom of range [member] | Central betting terminals [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 5 Years |
Bottom of range [member] | Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 3 Years |
Top of range [member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 25 years |
Top of range [member] | Network infrastructure [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 20 years |
Top of range [member] | Fixed network infrastructure [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 25 years |
Top of range [member] | Call center equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 8 years |
Top of range [member] | Equipment, fixtures and fittings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 10 years |
Top of range [member] | Motor vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 6 years |
Top of range [member] | Central betting terminals [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 10 years |
Top of range [member] | Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 5 years |
Significant Accounting Policies
Significant Accounting Policies - Disclosure of Estimated Useful Lives for Intangible Asset (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Indefeasible right of use [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 15 years |
Bottom of range [member] | Transmission line software [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 5 years |
Bottom of range [member] | Central betting system operating right [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 7 years |
Bottom of range [member] | Customer base [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 2 years |
Bottom of range [member] | Brand name [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 9 years |
Bottom of range [member] | Telecommunication licenses [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 3 years |
Bottom of range [member] | Computer software [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 3 years |
Top of range [member] | Transmission line software [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 10 years |
Top of range [member] | Central betting system operating right [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 10 years |
Top of range [member] | Customer base [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 15 years |
Top of range [member] | Brand name [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 10 years |
Top of range [member] | Telecommunication licenses [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 25 years |
Top of range [member] | Computer software [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 8 years |
Significant Accounting Polici84
Significant Accounting Policies - Disclosure of Estimated Useful Lives for Investment Properties (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Bottom of range [member] | |
Disclosure of detailed information about investment property [line items] | |
Estimated useful lives, Investment Property | 25 years |
Top of range [member] | |
Disclosure of detailed information about investment property [line items] | |
Estimated useful lives, Investment Property | 45 years |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | ||
Guarantees outstanding | ₺ 3,720,954 | ₺ 1,409,749 |
Deposits at call | ₺ 603,553 | ₺ 569,826 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segments | |
Disclosure of operating segments [abstract] | |
Number of reportable segments | 2 |
Segment Information - Reconcili
Segment Information - Reconciliation of Adjusted EBITDA to Consolidated Profit Before Income Tax and Profit (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Total revenue | ₺ 17,632,064 | ₺ 14,285,561 | ₺ 12,769,415 |
Adjusted EBITDA | 6,228,254 | 4,619,509 | 4,140,544 |
Bad debt expense | (36,278) | (211,384) | (196,588) |
Profit for the period | 2,037,759 | 1,543,803 | 1,903,551 |
Profit/(loss) from discontinued operations | 42,164 | (367,336) | |
Profit from continuing operations | 2,037,759 | 1,585,967 | 1,536,215 |
Income tax expense | 571,758 | 423,160 | 667,112 |
Finance income | (1,090,449) | (1,064,794) | (756,039) |
Finance costs | 1,413,315 | 1,237,593 | 799,514 |
Other income | (74,438) | (78,569) | (44,454) |
Other expenses | 773,329 | 312,801 | 270,446 |
Depreciation and amortization | 2,596,980 | 2,203,351 | 1,667,750 |
Consolidated adjusted EBITDA | 6,228,254 | 4,619,509 | 4,140,544 |
Operating segments [member] | Turkey segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 15,418,446 | 12,767,912 | 11,466,282 |
Adjusted EBITDA | 5,593,837 | 4,160,861 | 3,759,590 |
Bad debt expense | 49,468 | (195,472) | (187,963) |
Consolidated adjusted EBITDA | 5,593,837 | 4,160,861 | 3,759,590 |
Operating segments [member] | International segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 1,026,181 | 855,728 | 844,416 |
Adjusted EBITDA | 263,962 | 235,348 | 245,959 |
Bad debt expense | (6,070) | (5,956) | (8,292) |
Consolidated adjusted EBITDA | 263,962 | 235,348 | 245,959 |
Operating segments [member] | All other segments [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 1,187,437 | 661,921 | 458,717 |
Adjusted EBITDA | 374,314 | 222,849 | 134,484 |
Bad debt expense | (79,676) | (9,956) | (333) |
Consolidated adjusted EBITDA | 374,314 | 222,849 | 134,484 |
Intersegment eliminations [member] | |||
Disclosure of operating segments [line items] | |||
Adjusted EBITDA | (3,859) | 451 | 511 |
Consolidated adjusted EBITDA | (3,859) | 451 | 511 |
Reportable segments [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 17,632,064 | 14,285,561 | 12,769,415 |
Reportable segments [member] | Operating segments [member] | Turkey segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 15,450,136 | 12,787,592 | 11,480,890 |
Reportable segments [member] | Operating segments [member] | International segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 1,067,078 | 874,692 | 856,147 |
Reportable segments [member] | Operating segments [member] | All other segments [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 1,187,454 | 661,923 | 458,563 |
Reportable segments [member] | Intersegment eliminations [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | (72,604) | (38,646) | (26,185) |
Intersegment eliminations [member] | Operating segments [member] | Turkey segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | (31,690) | (19,680) | (14,608) |
Intersegment eliminations [member] | Operating segments [member] | International segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | (40,897) | (18,964) | (11,731) |
Intersegment eliminations [member] | Operating segments [member] | All other segments [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | (17) | (2) | 154 |
Intersegment eliminations [member] | Intersegment eliminations [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | ₺ 72,604 | ₺ 38,646 | ₺ 26,185 |
Segment Information - Summary o
Segment Information - Summary of Geographical Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of geographical areas [line items] | |||
Total revenue | ₺ 17,632,064 | ₺ 14,285,561 | ₺ 12,769,415 |
Non-current assets | 19,913,363 | 18,249,312 | |
Turkey [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 16,431,863 | 13,321,503 | 11,779,345 |
Non-current assets | 18,098,228 | 16,548,162 | |
Ukraine [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 664,643 | 573,951 | 571,630 |
Non-current assets | 1,408,783 | 1,211,789 | |
Belarus [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 209,884 | 149,005 | 141,219 |
Non-current assets | 138,371 | 291,498 | |
Azerbaijan [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 174,021 | 108,329 | 145,654 |
Non-current assets | 13,663 | 13,563 | |
Turkish Republic of Northern Cyprus [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 148,637 | 129,785 | 125,668 |
Non-current assets | 141,802 | 117,243 | |
Germany [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 3,016 | 2,988 | ₺ 5,899 |
Non-current assets | ₺ 112,516 | ₺ 67,057 |
Revenue - Summary of Revenue (D
Revenue - Summary of Revenue (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue [abstract] | |||
Telecommunication services | ₺ 15,115,816 | ₺ 12,883,974 | ₺ 11,972,443 |
Equipment revenues | 1,159,500 | 624,352 | 254,582 |
Revenue from financial services | 605,663 | 184,698 | |
Revenue and commission fees on betting business | 355,907 | 284,496 | 277,525 |
Call center revenues | 232,679 | 198,564 | 187,840 |
Other | 162,499 | 109,477 | 77,025 |
Total revenue | ₺ 17,632,064 | ₺ 14,285,561 | ₺ 12,769,415 |
Other Income and Expense - Addi
Other Income and Expense - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of other income (expense) [Abstract] | |||
Other income | ₺ 74,438 | ₺ 78,569 | ₺ 44,454 |
Other expenses | ₺ 773,329 | ₺ 312,801 | ₺ 270,446 |
Employee Benefit Expenses - Sum
Employee Benefit Expenses - Summary OF Employee Benefit Expenses (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Employee Benefit Expenses [Abstract] | |||
Wages and salaries | ₺ 1,746,147 | ₺ 1,450,262 | ₺ 1,317,655 |
Employee termination benefits | 32,862 | 32,977 | 30,593 |
Defined contribution plans | 8,107 | 7,722 | 8,364 |
Employee benefit expenses | ₺ 1,787,116 | ₺ 1,490,961 | ₺ 1,356,612 |
Employee Benefit Expenses - S92
Employee Benefit Expenses - Summary OF Employee Benefit Expenses (Parenthetical) (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Employee Benefit Expenses [Abstract] | |||
Remeasurements of employee termination benefit losses | ₺ 3,738 | ₺ 34,532 | ₺ 13,466 |
Finance Income and Costs - Summ
Finance Income and Costs - Summary of Finance Income and Costs (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Finance Income And Costs [abstract] | |||
Fair value gains on derivative financial instruments | ₺ 589,555 | ₺ 385,560 | ₺ 1,070 |
Interest income on bank deposits | 278,599 | 158,206 | 303,221 |
Interest income on financial assets measured at amortized cost | 185,004 | 445,943 | 436,024 |
Credit finance income | 36,186 | 74,522 | 13,865 |
Other | 1,105 | 563 | 1,859 |
Finance income | 1,090,449 | 1,064,794 | 756,039 |
Net foreign exchange losses | (718,501) | (782,463) | (489,320) |
Interest expenses for financial liabilities measured at amortized cost | (385,386) | (343,290) | (224,724) |
Interest expenses for derivative financial instruments | (244,841) | (93,038) | |
Litigation late payment interest expense | (29,115) | (68,083) | |
Option premium charges | (27,172) | (10,114) | (2,290) |
Other | (8,300) | (8,688) | (15,097) |
Finance costs | (1,413,315) | (1,237,593) | (799,514) |
Net finance costs | ₺ (322,866) | ₺ (172,799) | ₺ (43,475) |
Finance Income and Costs - Addi
Finance Income and Costs - Additional Information (Detail) ₺ in Thousands | 12 Months Ended |
Dec. 31, 2017TRY (₺) | |
Borrowings 1 [member] | |
Disclosure Of Finance Income And Costs [Line Items] | |
Net foreign exchange loss on borrowings | ₺ 920,862 |
Bonds [member] | |
Disclosure Of Finance Income And Costs [Line Items] | |
Net foreign exchange loss on bonds issued | ₺ 113,081 |
Income Tax Expense - Summary of
Income Tax Expense - Summary of Income Tax Expense (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major components of tax expense (income) [abstract] | |||
Current income tax expense | ₺ (437,967) | ₺ (200,663) | ₺ (591,297) |
Deferred income tax expense | (133,791) | (222,497) | (75,815) |
Total income tax expense | ₺ (571,758) | ₺ (423,160) | ₺ (667,112) |
Income Tax Expense - Summary 96
Income Tax Expense - Summary of Income Tax Relating to Each component of Other Comprehensive Income (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major components of tax expense (income) [abstract] | |||
Foreign currency translation differences | ₺ 100,149 | ₺ 218,472 | ₺ (384,466) |
Changes in cash flow hedge reserve | 719 | ||
Remeasurements of employee termination benefits | (3,738) | (34,532) | (13,466) |
Total, Before tax | 96,411 | 183,940 | (397,213) |
Foreign currency translation differences | (107,299) | (87,381) | (5,749) |
Changes in cash flow hedge reserve | 0 | ||
Remeasurements of employee termination benefits | 748 | 7,066 | 2,563 |
Total, Tax (expense)/benefit | (106,551) | (80,315) | (3,186) |
Foreign currency translation differences | (7,150) | 131,091 | (390,215) |
Changes in cash flow hedge reserve | 719 | ||
Remeasurements of employee termination benefits | (2,990) | (27,466) | (10,903) |
Other comprehensive (loss)/income for the year, net of income tax | ₺ (10,140) | ₺ 103,625 | ₺ (400,399) |
Income Tax Expense - Summary 97
Income Tax Expense - Summary of Reconciliation of Effective Income Tax Expense (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Profit from continuing operations before income tax expense | ₺ 2,609,517 | ₺ 2,009,127 | ₺ 2,203,327 |
Profit from discontinued operations before income tax expense | (42,164) | 367,336 | |
Profit before income tax expense | 2,609,517 | 1,966,963 | 2,570,663 |
Tax at the Turkey's tax rate | (521,903) | (393,393) | (514,133) |
Difference in overseas tax rates | 4,133 | (15,935) | (52,688) |
Effect of exemptions | 73,916 | 104,244 | 62,163 |
Effect of amounts which are not deductible | (102,102) | (78,571) | (16,104) |
Utilization of previously unrecognized tax losses | 1,253 | 22,863 | |
Change in unrecognized deferred tax assets | (41,340) | (30,616) | (198,364) |
Adjustments for current tax of prior years | 11,280 | (8,176) | |
Tax effect of investment in associate | 32,926 | ||
Other | 4,258 | (1,966) | (3,775) |
Total income tax expense | ₺ (571,758) | ₺ (423,160) | ₺ (667,112) |
Income Tax Expense - Additional
Income Tax Expense - Additional information (Detail) - TRY (₺) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Income Tax Expense [Line Items] | ||||
Corporate tax rate | 20.00% | |||
Allowed Percentage deduction of research and development expenses | 100.00% | |||
Dividend payments, withholding tax | ₺ 0.15 | |||
Percentage of the profits arising from sale of affiliate shares, founders' shares, redeemed shares and preemptive rights held by entities for corporate tax exception | 75.00% | |||
Tax exception minimum withhold period from sale of affiliate shares, founders' shares, redeemed shares and preemptive rights | 2 years | |||
Percentage of profits arising from sale of immovable properties included in assets entities for corporate tax exception | 50.00% | |||
Tax exception minimum withhold period from sale of immovable properties | 2 years | |||
Percentage of income tax exemption | 75.00% | |||
Minimum term for profits recorded under passive fund account without withdrawal for tax exception | 5 years | |||
Changes in tax rates or tax laws enacted or announced [member] | ||||
Disclosure of Income Tax Expense [Line Items] | ||||
Corporate tax rate | 22.00% | 22.00% | 22.00% |
Expenses by Nature - Summary of
Expenses by Nature - Summary of Expenses by Cost of Sales (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | ₺ (11,073,465) | ₺ (9,166,384) | ₺ (7,769,483) |
Cost of sales net | (11,350,174) | (9,236,607) | (7,769,483) |
Treasury share [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | (1,669,807) | (1,491,503) | (1,418,683) |
Accumulated amortization [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | (2,596,980) | (2,203,351) | (1,667,750) |
Interconnection and Termination Cost [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | (1,607,079) | (1,420,233) | (1,326,990) |
Radio Cost [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | (1,123,668) | (1,057,618) | (911,454) |
Employee benefit expense [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | (1,046,544) | (859,143) | (734,725) |
Cost of goods sold [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | (870,226) | (551,656) | (250,779) |
Direct cost of revenue from financial services [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | (270,366) | (68,546) | |
Universal service fund [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | (221,431) | (192,045) | (182,508) |
Transmission costs [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | (218,221) | (139,185) | (113,574) |
Roaming expenses [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | (177,258) | (128,429) | (108,102) |
Billing and archiving cost [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | (55,185) | (61,647) | (55,056) |
Other [member] | |||
Summary of expenses by nature cost of sales [Line Items] | |||
Cost of sales net | ₺ (1,493,409) | ₺ (1,063,251) | ₺ (999,862) |
Expenses by Nature - Summary100
Expenses by Nature - Summary of Expenses by Cost of Sales (Parenthetical) (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of expenses by nature cost of sales [abstract] | ||
Depreciation and amortization expenses related to financial services | ₺ 6,343 | ₺ 1,677 |
Expenses by Nature - Summary101
Expenses by Nature - Summary of Expenses by Nature Selling and Marketing Expenses (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Expenses By Nature Selling And Marketing Expenses [Line Items] | |||
Selling and marketing expenses | ₺ (2,005,420) | ₺ (1,910,947) | ₺ (1,901,859) |
Selling expenses [member] | |||
Summary Of Expenses By Nature Selling And Marketing Expenses [Line Items] | |||
Selling and marketing expenses | (898,936) | (757,869) | (783,234) |
Marketing expenses [member] | |||
Summary Of Expenses By Nature Selling And Marketing Expenses [Line Items] | |||
Selling and marketing expenses | (532,989) | (518,382) | (428,596) |
Employee benefit expense [member] | |||
Summary Of Expenses By Nature Selling And Marketing Expenses [Line Items] | |||
Selling and marketing expenses | (394,421) | (354,380) | (381,582) |
Frequency usage fees related to prepaid subscribers [member] | |||
Summary Of Expenses By Nature Selling And Marketing Expenses [Line Items] | |||
Selling and marketing expenses | (82,994) | (186,530) | (191,408) |
Other [member] | |||
Summary Of Expenses By Nature Selling And Marketing Expenses [Line Items] | |||
Selling and marketing expenses | ₺ (96,080) | ₺ (93,786) | ₺ (117,039) |
Expenses by Nature - Summary102
Expenses by Nature - Summary of Expenses by Nature Administrative Expenses (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Expenses By Nature Administrative Expenses [Line Items] | |||
Administrative expenses | ₺ (645,196) | ₺ (721,849) | ₺ (625,279) |
Employee benefits expenses [member] | |||
Summary Of Expenses By Nature Administrative Expenses [Line Items] | |||
Administrative expenses | (346,151) | (277,438) | (240,305) |
Consultancy expense [member] | |||
Summary Of Expenses By Nature Administrative Expenses [Line Items] | |||
Administrative expenses | (50,247) | (54,315) | (43,995) |
Rent expense [member] | |||
Summary Of Expenses By Nature Administrative Expenses [Line Items] | |||
Administrative expenses | (36,280) | (30,314) | (23,924) |
Impairment expense recognized on receivables [member] | |||
Summary Of Expenses By Nature Administrative Expenses [Line Items] | |||
Administrative expenses | (36,278) | (211,384) | (196,588) |
Travel and entertainment expenses [member] | |||
Summary Of Expenses By Nature Administrative Expenses [Line Items] | |||
Administrative expenses | (30,957) | (18,913) | (13,484) |
Maintenance and repair expenses [member] | |||
Summary Of Expenses By Nature Administrative Expenses [Line Items] | |||
Administrative expenses | (24,342) | (20,315) | (23,424) |
Collection expense [member] | |||
Summary Of Expenses By Nature Administrative Expenses [Line Items] | |||
Administrative expenses | (20,415) | (20,827) | (17,533) |
Other [member] | |||
Summary Of Expenses By Nature Administrative Expenses [Line Items] | |||
Administrative expenses | ₺ (100,526) | ₺ (88,343) | ₺ (66,026) |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | ₺ 8,195,705 | ₺ 6,821,494 | |
Additions | 1,469,217 | 1,432,200 | |
Disposals | (23,675) | (21,676) | |
Transfers | (153) | (1,831) | |
Impairment expenses/(reversals) | (39,721) | (43,198) | ₺ (18,567) |
Effects of movements in exchange rates | 21,807 | 8,716 | |
Transfer from investment property | 42,228 | ||
Balance at end of year | 9,665,408 | 8,195,705 | 6,821,494 |
Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 15,947,162 | 13,623,365 | |
Additions | 2,928,738 | 2,667,011 | |
Disposals | (1,028,876) | (541,924) | |
Transfers | (153) | (1,831) | |
Impairment expenses/(reversals) | (14,535) | ||
Effects of movements in exchange rates | 121,835 | 200,541 | |
Transfer from investment property | 64,594 | ||
Balance at end of year | 18,018,765 | 15,947,162 | 13,623,365 |
Cost [member] | Network infrastructure [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 13,897,308 | 11,302,326 | |
Additions | 574,301 | 615,041 | |
Disposals | (1,009,922) | (518,827) | |
Transfers | 1,907,022 | 2,312,011 | |
Effects of movements in exchange rates | 111,419 | 186,757 | |
Balance at end of year | 15,480,128 | 13,897,308 | 11,302,326 |
Cost [member] | Land and Buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 519,702 | 389,366 | |
Additions | 162,206 | 26,603 | |
Disposals | (1,340) | (32) | |
Transfers | 39,130 | 102,311 | |
Effects of movements in exchange rates | 1,766 | 1,454 | |
Transfer from investment property | 64,594 | ||
Balance at end of year | 786,058 | 519,702 | 389,366 |
Cost [member] | Equipment, fixtures and fittings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 617,732 | 586,463 | |
Additions | 117,087 | 37,545 | |
Disposals | (10,854) | (19,291) | |
Transfers | 2,209 | 10,079 | |
Effects of movements in exchange rates | 2,028 | 2,936 | |
Balance at end of year | 728,202 | 617,732 | 586,463 |
Cost [member] | Motor vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 34,136 | 33,676 | |
Additions | 4,415 | 2,710 | |
Disposals | (1,719) | (2,946) | |
Transfers | 71 | ||
Effects of movements in exchange rates | 384 | 625 | |
Balance at end of year | 37,216 | 34,136 | 33,676 |
Cost [member] | Leasehold improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 311,761 | 306,176 | |
Additions | 7,400 | 5,663 | |
Disposals | (5,041) | (374) | |
Transfers | 486 | ||
Effects of movements in exchange rates | 261 | 296 | |
Balance at end of year | 314,867 | 311,761 | 306,176 |
Cost [member] | Construction in progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 566,523 | 1,005,358 | |
Additions | 2,063,329 | 1,979,449 | |
Disposals | (454) | ||
Transfers | (1,949,000) | (2,426,303) | |
Impairment expenses/(reversals) | (14,535) | ||
Effects of movements in exchange rates | 5,977 | 8,473 | |
Balance at end of year | 672,294 | 566,523 | 1,005,358 |
Accumulated Depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 7,751,457 | 6,801,871 | |
Additions | 1,459,521 | 1,234,811 | |
Disposals | (1,005,201) | (520,248) | |
Impairment expenses/(reversals) | 25,186 | 43,198 | |
Effects of movements in exchange rates | 100,028 | 191,825 | |
Transfer from investment property | 22,366 | ||
Balance at end of year | 8,353,357 | 7,751,457 | 6,801,871 |
Accumulated Depreciation [member] | Network infrastructure [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 6,843,580 | 5,976,699 | |
Additions | 1,353,419 | 1,139,343 | |
Disposals | (990,719) | (501,719) | |
Impairment expenses/(reversals) | 23,589 | 42,682 | |
Effects of movements in exchange rates | 96,690 | 186,575 | |
Balance at end of year | 7,326,559 | 6,843,580 | 5,976,699 |
Accumulated Depreciation [member] | Land and Buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 159,351 | 140,627 | |
Additions | 26,295 | 17,395 | |
Disposals | (221) | ||
Impairment expenses/(reversals) | 1,482 | 488 | |
Effects of movements in exchange rates | 645 | 841 | |
Transfer from investment property | 22,366 | ||
Balance at end of year | 209,918 | 159,351 | 140,627 |
Accumulated Depreciation [member] | Equipment, fixtures and fittings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 497,606 | 462,618 | |
Additions | 48,393 | 47,001 | |
Disposals | (8,202) | (15,229) | |
Impairment expenses/(reversals) | 115 | 28 | |
Effects of movements in exchange rates | 1,915 | 3,188 | |
Balance at end of year | 539,827 | 497,606 | 462,618 |
Accumulated Depreciation [member] | Motor vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 30,252 | 29,704 | |
Additions | 2,276 | 2,723 | |
Disposals | (1,642) | (2,926) | |
Effects of movements in exchange rates | 420 | 751 | |
Balance at end of year | 31,306 | 30,252 | 29,704 |
Accumulated Depreciation [member] | Leasehold improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 220,668 | 192,223 | |
Additions | 29,138 | 28,349 | |
Disposals | (4,417) | (374) | |
Effects of movements in exchange rates | 358 | 470 | |
Balance at end of year | ₺ 245,747 | ₺ 220,668 | ₺ 192,223 |
Property, Plant and Equipmen104
Property, Plant and Equipment - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |||
Depreciation expenses | ₺ 1,499,242 | ₺ 1,278,009 | ₺ 1,112,039 |
Impairment losses on property, plant and equipment | ₺ (39,721) | ₺ (43,198) | ₺ (18,567) |
Capitalization rate for acquisition of qualifying asset | 10.00% | 9.90% | 9.70% |
Borrowing costs capitalized | ₺ 66,513 | ₺ 76,899 | ₺ 75,315 |
Assets acquired under finance leases | 170,249 | 89,425 | |
Share option to purchase property, plant and equipment and intangible assets | ₺ 0 | ₺ 36,322 |
Intangible Assets - Turkcell 2G
Intangible Assets - Turkcell 2G License - Additional Information (Detail) ₺ in Thousands, $ in Thousands | Apr. 27, 1998USD ($) | Dec. 31, 2017TRY (₺) | Dec. 31, 2016TRY (₺) | Dec. 31, 2015TRY (₺) |
Disclosure of detailed information about intangible assets [line items] | ||||
Carrying amount of intangible asset | ₺ 8,340,410 | ₺ 8,235,989 | ₺ 8,232,637 | |
Turkcell 2G license [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Amortization period of intangible asset | 25-year | |||
Carrying amount of intangible asset | ₺ 241,407 | ₺ 287,390 | ||
Consideration paid for acquiring license | $ | $ 500,000 |
Intangible Assets - Turkcell 3G
Intangible Assets - Turkcell 3G License - Additional Information (Detail) ₺ in Thousands, $ in Thousands | Apr. 30, 2009USD ($) | Dec. 31, 2017TRY (₺) | Dec. 31, 2016TRY (₺) | Dec. 31, 2015TRY (₺) |
Disclosure of detailed information about intangible assets [line items] | ||||
Carrying amount of intangible asset | ₺ 8,340,410 | ₺ 8,235,989 | ₺ 8,232,637 | |
Turkcell 3G license [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Consideration paid for acquiring license | $ | $ 358,000 | |||
Amortization period of intangible asset | 25 years | 20 years | ||
Carrying amount of intangible asset | ₺ 436,014 | ₺ 474,486 |
Intangible Assets - Turkcell 4.
Intangible Assets - Turkcell 4.5G License - Additional Information (Detail) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017EUR (€) | Dec. 31, 2017TRY (₺) | Dec. 31, 2016TRY (₺) | |
Disclosure of detailed information about intangible assets [line items] | |||
Tender payment description | Semi-annually by four equal installments | ||
Trade and other payables | ₺ | ₺ 3,696,466,000 | ₺ 4,101,991,000 | |
Turkcell 4.5G license [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization period of intangible asset | 13 years | ||
Consideration paid for acquiring license | € 1,623,460 | ||
Expiration year of intangible asset | 2,029 | ||
Tender price | € 1,623,460 | ||
VAT amount | 18.00% | ||
Net tender price | € 1,655,290 | ||
Turkcell 4.5G license [member] | Current liabilities [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Trade and other payables | ₺ | ₺ 0 | ₺ 1,522,615,000 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets and Goodwill (Detail) (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | ₺ 8,235,989 | ₺ 8,232,637 |
Additions | 79,432 | (30,218) |
Disposals | (504) | (3,473) |
Transfers | 153 | 1,831 |
Impairment | (1,986) | (3,181) |
Effects of movements in exchange rates | 27,326 | 38,393 |
Balance at end of year | 8,340,410 | 8,235,989 |
Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 14,482,018 | 13,540,980 |
Additions | 1,172,847 | 888,413 |
Disposals | (8,624) | (6,632) |
Transfers | 153 | 1,831 |
Effects of movements in exchange rates | 32,479 | 57,426 |
Balance at end of year | 15,678,873 | 14,482,018 |
Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 6,246,029 | 5,308,343 |
Additions | 1,093,415 | 918,631 |
Disposals | (8,120) | (3,159) |
Impairment | 1,986 | 3,181 |
Effects of movements in exchange rates | 5,153 | 19,033 |
Balance at end of year | 7,338,463 | 6,246,029 |
Construction in progress [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 142,875 | 52,597 |
Additions | 620,463 | 478,179 |
Transfers | (638,357) | (391,496) |
Effects of movements in exchange rates | 2,656 | 3,595 |
Balance at end of year | 127,637 | 142,875 |
GSM and other telecommunication operating licenses [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 8,039,431 | 3,950,729 |
Additions | 10,154 | 34,494 |
Disposals | (4) | |
Transfers | 69,945 | 4,021,090 |
Effects of movements in exchange rates | 20,098 | 33,122 |
Balance at end of year | 8,139,628 | 8,039,431 |
GSM and other telecommunication operating licenses [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 1,878,895 | 1,429,944 |
Additions | 537,162 | 445,069 |
Disposals | (4) | |
Effects of movements in exchange rates | 3,173 | 3,886 |
Balance at end of year | 2,419,230 | 1,878,895 |
Computer software [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 6,076,405 | 5,342,056 |
Additions | 470,457 | 329,836 |
Disposals | (8,624) | (6,444) |
Transfers | 569,153 | 390,248 |
Effects of movements in exchange rates | 9,725 | 20,709 |
Balance at end of year | 7,117,116 | 6,076,405 |
Computer software [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 4,237,996 | 3,771,710 |
Additions | 537,805 | 454,111 |
Disposals | (8,120) | (2,972) |
Impairment | 1,219 | |
Effects of movements in exchange rates | 1,980 | 15,147 |
Balance at end of year | 4,770,880 | 4,237,996 |
Transmission lines [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 71,602 | 71,506 |
Additions | 218 | 96 |
Balance at end of year | 71,820 | 71,602 |
Transmission lines [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 58,203 | 52,058 |
Additions | 3,498 | 3,615 |
Impairment | 767 | 2,530 |
Balance at end of year | 62,468 | 58,203 |
Central betting system operating right [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 11,981 | 11,907 |
Transfers | 74 | |
Balance at end of year | 11,981 | 11,981 |
Central betting system operating right [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 10,588 | 9,663 |
Additions | 903 | 925 |
Balance at end of year | 11,491 | 10,588 |
Indefeasible right of usage [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 46,017 | 42,132 |
Additions | 66,539 | 3,885 |
Balance at end of year | 112,556 | 46,017 |
Indefeasible right of usage [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 18,785 | 15,446 |
Additions | 4,489 | 3,339 |
Balance at end of year | 23,274 | 18,785 |
Brand name [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 7,040 | 7,040 |
Balance at end of year | 7,040 | 7,040 |
Brand name [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 5,808 | 5,104 |
Additions | 704 | 704 |
Balance at end of year | 6,512 | 5,808 |
Customer base [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 15,512 | 15,512 |
Balance at end of year | 15,512 | 15,512 |
Customer base [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 11,286 | 10,111 |
Additions | 488 | 1,175 |
Balance at end of year | 11,774 | 11,286 |
Goodwill [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 32,834 | 32,834 |
Balance at end of year | 32,834 | 32,834 |
Other [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 38,321 | 29,713 |
Additions | 5,016 | 8,607 |
Disposals | (184) | |
Transfers | (588) | 185 |
Balance at end of year | 42,749 | 38,321 |
Other [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 24,468 | 14,307 |
Additions | 8,366 | 9,693 |
Disposals | (183) | |
Impairment | 651 | |
Balance at end of year | ₺ 32,834 | 24,468 |
4.5g license not yet available for use [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 3,984,954 | |
Additions | 33,316 | |
Transfers | ₺ (4,018,270) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about intangible assets [line items] | |||
Amortization expenses on intangible assets other than goodwill | ₺ 1,095,401 | ₺ 921,812 | ₺ 549,251 |
Impairment losses on intangible assets | 1,986 | 3,181 | 0 |
Internally generated [member] | Computer software [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Capitalized cost | 124,504 | 126,916 | |
Amortization expense | ₺ 37,532 | ₺ 30,148 | ₺ 28,560 |
Impairment of Assets - Lifecell
Impairment of Assets - Lifecell - Additional Information (Detail) - Lifecell [member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Actuarial assumption of weighted average cost of capital [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 0.50% | 0.50% |
Percentage of reasonably possible decrease in actuarial assumption | (0.50%) | (0.50%) |
Individual assets or cash-generating units [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Terminal growth rate | 6.00% | 6.00% |
Description on key assumptions | Post-tax WACC rate of 26.5% for the period from 2018 to 2022, a post-tax WACC rate of 25.9% for the period after 2022 and a terminal growth rate of 6.0% were used to extrapolate cash flows beyond the 6-year forecasts period based on the business plans. | Post-tax WACC rate of 28.7% for the period from 2017 to 2021, a post-tax WACC rate of 27.9% for the period after 2021 and a terminal growth rate of 6.0% were used to extrapolate cash flows beyond the 5-year forecasts period based on the business plans |
Pre-tax rate | 30.00% | |
Individual assets or cash-generating units [member] | 2018 to 2022 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 26.50% | |
Individual assets or cash-generating units [member] | After 2022 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 25.90% | |
Individual assets or cash-generating units [member] | 2017 To 2021 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 28.70% | |
Individual assets or cash-generating units [member] | After 2021 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 27.90% |
Impairment of Assets - Belarusi
Impairment of Assets - Belarusian Telecom - Additional Information (Detail) - Belarusian Telecom [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about intangible assets [line items] | ||
Impairment loss recognized | ₺ 228,774 | |
Actuarial assumption of weighted average cost of capital [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 0.50% | 0.50% |
Percentage of reasonably possible decrease in actuarial assumption | (0.50%) | (0.50%) |
Individual assets or cash-generating units [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Terminal growth rate | 8.00% | 10.00% |
Description on key assumptions | Post-tax WACC rate of 25.4% for the period from 2018 to 2022, a post-tax WACC rate of 24.9% for the period after 2022, and a terminal growth rate of 8.0% were used to extrapolate cash flows beyond the 5-year forecast period based on the business plan. | Post-tax WACC rate of 29.4% for the period from 2017 to 2021, a post-tax WACC rate of 28.7% for the period after 2021 and a terminal growth rate of 10.0% were used to extrapolate cash flows beyond the 5-year forecast period based on the business plan. |
Pre-tax rate | 30.90% | |
Individual assets or cash-generating units [member] | 2018 to 2022 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 25.40% | 29.40% |
Individual assets or cash-generating units [member] | After 2022 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 24.90% | |
Individual assets or cash-generating units [member] | After 2021 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 28.70% |
Impairment of assets - Turkcell
Impairment of assets - Turkcell Superonline -Additional Information (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Turkcell Superonline [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Aggregate carrying amount of goodwill | ₺ 32,834 | ₺ 32,834 |
Investment Properties - Summary
Investment Properties - Summary of Increase (Decrease) in Fair Value (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about investment property [line items] | ||
Opening balance | ₺ 46,270 | |
Closing balance | 980 | ₺ 46,270 |
Net book amount | 980 | 46,270 |
Accumulated amortization [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Opening balance | (119,202) | (114,895) |
Transfer to property, plant and equipment | 22,366 | |
Depreciation and impairment charges during the year | (2,337) | (3,530) |
Disposal | 215 | |
Other | (777) | |
Closing balance | (98,958) | (119,202) |
Cost value [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Opening balance | 165,472 | 164,467 |
Transfer to property, plant and equipment | (64,594) | |
Addition | 1,005 | |
Disposal | (940) | |
Closing balance | ₺ 99,938 | ₺ 165,472 |
Investment Property - Additiona
Investment Property - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about investment property [abstract] | |||
Rental income | ₺ 2,821 | ₺ 2,317 | ₺ 1,836 |
Direct operating expense from investment property | ₺ 22 | ₺ 22 | ₺ 126 |
Investment Properties - Summ115
Investment Properties - Summary of Investment Properties and Information About Fair Value Hierarchy (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | ₺ 33,982,469 | ₺ 31,600,158 |
Level 3 [member] | Fair Value [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 109,338 | 418,373 |
Level 3 [member] | Fair Value [Member] | Investment properties in Izmir [member] | Replacement cost approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 52,110 | 42,315 |
Level 3 [member] | Fair Value [Member] | Investment properties in Gebze [member] | Income approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 16,690 | 12,558 |
Level 3 [member] | Fair Value [Member] | Investment properties in Ankara [member] | Market approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 15,160 | |
Level 3 [member] | Fair Value [Member] | Investment properties in Istanbul [member] | Market approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 13,000 | |
Level 3 [member] | Fair Value [Member] | Investment properties in adana [member] | Replacement cost approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 3,150 | |
Level 3 [member] | Fair Value [Member] | Investment properties in Balikesir [member] | Replacement cost approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 3,112 | |
Level 3 [member] | Fair Value [Member] | Other investment properties [member] | Replacement cost approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 3,970 | 8,946 |
Level 3 [member] | Fair Value [Member] | Other investment properties [member] | Market approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | ₺ 2,146 | 17,419 |
Level 3 [member] | Fair Value [Member] | Other investment properties [member] | Direct capitalization [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 2,410 | |
Level 3 [member] | Fair Value [Member] | Investment properties in Istanbul Tepebasi [member] | Direct capitalization [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 321,835 | |
Level 3 [member] | Fair Value [Member] | Investment properties in Istanbul Kucukcekmece [member] | Replacement cost approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | ₺ 12,890 |
Investments Accounted for Us116
Investments Accounted for Using the Equity Method - Summary of Financial Information for Equity Accounted Investees (Detail) - Fintur [member] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Disclosure of associates [line items] | |
Ownership | 41.45% |
Current assets | $ 770,402 |
Non-current assets | 923,237 |
Total assets | 1,693,639 |
Current liabilities | 316,504 |
Non-current liabilities | 482,668 |
Non-controlling interest | 189,441 |
Equity attributable to parent | 705,026 |
Total liabilities and equity | 1,693,639 |
Revenue | 1,325,535 |
Profit for the year | 327,194 |
Other comprehensive loss for the year | (592,741) |
Total comprehensive loss for the year | $ (265,547) |
Investments Accounted for Us117
Investments Accounted for Using the Equity Method - Reconciliation of Summarized Financial Information to the Carrying Amount (Detail) - Fintur [member] ₺ in Thousands | Dec. 31, 2015TRY (₺) |
Disclosure of associates [line items] | |
Net assets of Fintur | ₺ 2,049,934 |
The Group's share | 849,697 |
Goodwill | 132,242 |
Carrying amount | ₺ 981,939 |
Asset Held for Sale and Disc118
Asset Held for Sale and Discontinued Operations - Additional Information (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Asset held for sale and discontinued operations [Line Items] | ||
Carrying value of investment held for sale | ₺ 1,294,938 | ₺ 1,222,757 |
Fintur [member] | ||
Asset held for sale and discontinued operations [Line Items] | ||
Carrying value of investment held for sale | ₺ 1,294,938 | ₺ 1,222,757 |
Asset Held for Sale and Disc119
Asset Held for Sale and Discontinued Operations - Summary of Reconciliation of Profit and Loss Statement (Detail) ₺ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016TRY (₺) | Sep. 09, 2016USD ($) | Dec. 31, 2015TRY (₺) | Dec. 31, 2015USD ($) | |
Asset held for sale and discontinued operations [Line Items] | ||||
Profit before income tax | ₺ | ₺ (42,164) | ₺ 367,336 | ||
(Loss)/profit for period | ₺ | (42,164) | 367,336 | ||
(Loss)/profit for period | ₺ | ₺ (42,164) | ₺ 367,336 | ||
Fintur [member] | ||||
Asset held for sale and discontinued operations [Line Items] | ||||
Revenue | $ 617,214 | $ 1,325,535 | ||
Cost of sales | (369,104) | (674,334) | ||
Gross profit | 248,110 | 651,201 | ||
Selling and marketing expenses | (69,983) | (123,244) | ||
General and administrative expenses | (69,818) | (95,380) | ||
Other operating (expenses), net | (31,258) | (23,850) | ||
Operating profit | 77,051 | 408,727 | ||
Finance (expense)/income, net | (61,203) | 162,357 | ||
Profit before income tax | 15,848 | 571,084 | ||
Total income tax | (30,947) | (128,121) | ||
(Loss)/profit for period | (15,099) | 442,963 | ||
Attributable to owners of the parent | (28,695) | 327,194 | ||
Attributable to non controlling interests | 13,596 | 115,769 | ||
(Loss)/profit for period | $ (15,099) | $ 442,963 |
Other Non-Current Assets - Summ
Other Non-Current Assets - Summary of Other Non-Current Assets (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Non-current assets [abstract] | ||
Prepaid expenses | ₺ 197,431 | ₺ 183,029 |
Receivables from the Public Administration | 72,848 | 72,848 |
Deposits and guarantees given | 23,999 | 29,201 |
VAT receivable | 4,429 | 28,772 |
Advances given for property, plant and equipment | 12,078 | 217,658 |
Others | 45,835 | 43,726 |
Other Non-current assets | ₺ 356,620 | ₺ 575,234 |
Deferred Tax Assets and Liab121
Deferred Tax Assets and Liabilities - Summary of Recognized Deferred Tax Assets and Liabilities (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | ₺ 331,349 | ₺ 249,345 |
Offsetting | (235,289) | (198,090) |
Net deferred tax assets/(liabilities) | 96,060 | 51,255 |
Deferred tax liabilities | (886,411) | (656,250) |
Offsetting | 235,289 | 198,090 |
Net deferred tax assets/(liabilities) | (651,122) | (458,160) |
Net deferred tax asset/liabilities | (555,062) | (406,905) |
Offsetting | 0 | 0 |
Net deferred tax assets/(liabilities) | (555,062) | (406,905) |
Provision for legal claims [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 74,975 | |
Property, plant & equipment and intangible assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 41,903 | 3,516 |
Deferred tax liabilities | (680,134) | (532,547) |
Net deferred tax asset/liabilities | (638,231) | (529,031) |
Investment [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 32,926 | 33,242 |
Net deferred tax asset/liabilities | 32,926 | 33,242 |
Reserve for employee termination benefits and provisions [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 202,112 | 55,288 |
Deferred tax liabilities | (64) | |
Net deferred tax asset/liabilities | 202,048 | 55,288 |
Assets classified as held for sale [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (92,327) | (90,209) |
Net deferred tax asset/liabilities | (92,327) | (90,209) |
Trade and other payables [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 11,717 | 57,686 |
Deferred tax liabilities | (26,091) | |
Net deferred tax asset/liabilities | (14,374) | 57,686 |
Tax credit carry forwards (investment tax credit) [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 1,508 | |
Net deferred tax asset/liabilities | 1,508 | |
Tax allowance [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 10,775 | 32,200 |
Net deferred tax asset/liabilities | 10,775 | 32,200 |
Other items [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 31,916 | 65,905 |
Deferred tax liabilities | (87,795) | (33,494) |
Net deferred tax asset/liabilities | ₺ (55,879) | ₺ 32,411 |
Deferred Tax Assets and Liab122
Deferred Tax Assets and Liabilities - Summary of Movement in Temporary Differences (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||
Opening balance | ₺ (406,905) | ₺ (64,822) |
Income statement charge | (133,791) | (222,497) |
Tax charge relating to components of other comprehensive income | (6,449) | (7,066) |
Prior year corporate tax base differences | (2,729) | (109,640) |
Exchange differences | (5,188) | (2,880) |
Closing balance, net | ₺ (555,062) | ₺ (406,905) |
Deferred Tax Assets and Liab123
Deferred Tax Assets and Liabilities - Additional Information (Detail) ₺ in Thousands | 12 Months Ended |
Dec. 31, 2017TRY (₺) | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
Unrecognized deferred income tax assets | ₺ 502,523 |
Loss carried forward | ₺ 2,698,248 |
Deferred Tax Assets and Liab124
Deferred Tax Assets and Liabilities - Summary of Expiration of Unrecognized Tax Losses (Detail) ₺ in Thousands | Dec. 31, 2017TRY (₺) |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
2,018 | ₺ 8,911 |
2,019 | 9,394 |
2,020 | 8,775 |
2,021 | 4,467 |
2,022 | 3,506 |
2,023 | 281 |
2,024 | 128,314 |
2,025 | 803,533 |
Indefinite | 1,731,067 |
Total | ₺ 2,698,248 |
Trade Receivables and Accrued I
Trade Receivables and Accrued Income - Summary of Trade Receivables and Accrued Income (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Trade Receivables And Accrued Income [Line Items] | ||
Trade receivables and accrued revenue | ₺ 2,848,572 | ₺ 3,289,904 |
Trade receivables and accrued income [member] | ||
Trade Receivables And Accrued Income [Line Items] | ||
Receivables from subscribers | 1,369,948 | 1,223,183 |
Undue assigned contracted receivables | 347,596 | 1,215,314 |
Accrued revenue | 632,631 | 558,169 |
Accounts and notes receivable | 498,397 | 293,238 |
Trade receivables and accrued revenue | ₺ 2,848,572 | ₺ 3,289,904 |
Trade Receivables and Accrue126
Trade Receivables and Accrued Income - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Trade Receivables And Accrued Income [Line Items] | ||
Letters of guarantee received | ₺ 339,543 | ₺ 156,647 |
Trade receivables [member] | ||
Trade Receivables And Accrued Income [Line Items] | ||
Allowance for doubtful debts related to outstanding balances | 705,213 | 964,080 |
Contracted receivables [member] | ||
Trade Receivables And Accrued Income [Line Items] | ||
Non-current Undue assigned contracted receivables | ₺ 131,392 | ₺ 217,492 |
Receivables from Financial S127
Receivables from Financial Services - Schedule of Receivables from Financial Services (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables from financial services [abstract] | ||
Current receivables from financial services | ₺ 2,950,523 | ₺ 1,486,906 |
Non-current receivables from financial services | 1,297,597 | 909,466 |
Net receivables from financial services | ₺ 4,248,120 | ₺ 2,396,372 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories [abstract] | ||
Inventories | ₺ 104,102 | ₺ 131,973 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Current Assets [Line Items] | ||
Other current assets | ₺ 1,160,605 | ₺ 770,135 |
Prepaid expenses [member] | ||
Other Current Assets [Line Items] | ||
Other current assets | 322,388 | 294,540 |
Restricted cash [member] | ||
Other Current Assets [Line Items] | ||
Other current assets | 183,806 | 289 |
Receivables from the Ministry of Transport, Maritime Affairs and Communications [member] | ||
Other Current Assets [Line Items] | ||
Other current assets | 143,669 | 32,299 |
Subscriber acquisition cost [member] | ||
Other Current Assets [Line Items] | ||
Other current assets | 138,177 | 108,628 |
Receivables from tax office [Member] | ||
Other Current Assets [Line Items] | ||
Other current assets | 93,917 | 52,561 |
Advances given to suppliers [member] | ||
Other Current Assets [Line Items] | ||
Other current assets | 55,754 | 57,020 |
VAT receivable [member] | ||
Other Current Assets [Line Items] | ||
Other current assets | 38,934 | 49,211 |
Special communication tax to be collected from subscribers [member] | ||
Other Current Assets [Line Items] | ||
Other current assets | 38,318 | 36,941 |
Other [member] | ||
Other Current Assets [Line Items] | ||
Other current assets | ₺ 145,642 | ₺ 138,646 |
Other Current Assets - Addition
Other Current Assets - Additional Information (Detail) - Time deposits [member] ₺ in Thousands | Dec. 31, 2017TRY (₺) |
Other Current Assets [Line Items] | |
Restricted Cash | ₺ 183,483 |
Azerinteltek [member] | |
Other Current Assets [Line Items] | |
Restricted Cash | ₺ 323 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents [abstract] | ||||
Cash in hand | ₺ 192 | ₺ 223 | ||
Banks | 4,712,141 | 6,051,472 | ||
Demand deposits | 603,553 | 569,826 | ||
Time deposits | 4,108,588 | 5,481,646 | ||
Other cash and cash equivalents | 657 | |||
Cash and cash equivalents | ₺ 4,712,333 | ₺ 6,052,352 | ₺ 2,918,796 | ₺ 9,031,881 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and cash equivalents1 [line items] | ||
Average maturity of time deposits | 32 days | 49 days |
TL [member] | ||
Cash and cash equivalents1 [line items] | ||
Effective tax rate | 14.30% | 11.00% |
USD [member] | ||
Cash and cash equivalents1 [line items] | ||
Effective tax rate | 5.80% | 3.60% |
EUR [member] | ||
Cash and cash equivalents1 [line items] | ||
Effective tax rate | 2.20% | 2.00% |
Equity - Additional Information
Equity - Additional Information (Detail) | May 25, 2017TRY (₺)₺ / shares | May 25, 2017TRY (₺)$ / shares | Dec. 31, 2017TRY (₺)InstallmentVote₺ / sharesshares | Dec. 31, 2017USD ($)InstallmentVoteshares | Dec. 31, 2016TRY (₺)₺ / sharesshares | Dec. 31, 2016TRY (₺)$ / sharesshares | Dec. 31, 2015TRY (₺) | Dec. 31, 2017AZN (₼)shares | Sep. 30, 2017TRY (₺) | Sep. 30, 2017AZN (₼) | May 25, 2017USD ($) | Mar. 31, 2017TRY (₺) | Dec. 31, 2016USD ($)shares | Jun. 30, 2016TRY (₺) |
Disclosure of classes of share capital [line items] | ||||||||||||||
Share capital represents | shares | 2,200,000,000 | 2,200,000,000 | 2,200,000,000 | 2,200,000,000 | 2,200,000,000 | |||||||||
Share capital, issued and fully paid shares | shares | 2,200,000,000 | 2,200,000,000 | 2,200,000,000 | 2,200,000,000 | 2,200,000,000 | |||||||||
Share capital, par value | ₺ / shares | ₺ 1 | |||||||||||||
Number of votes at a meeting in person or by proxy | Vote | 1 | 1 | ||||||||||||
Number of shares pledged as security | shares | 995,509 | 995,509 | 995,509 | |||||||||||
First level legal reserves as percentage of distributable income per statutory accounts each year | 5.00% | 5.00% | ||||||||||||
Ceiling on the first legal reserves as percentage of paid-up capital | 20.00% | 20.00% | ||||||||||||
Second legal reserves | 10.00% | 10.00% | ||||||||||||
Minimum obligatory dividend pay-out as percentage of paid-up capital | 5.00% | 5.00% | ||||||||||||
Ceiling on the second legal reserves as percentage of paid-up capital | 50.00% | 50.00% | ||||||||||||
Repurchase of treasury shares | shares | 6,815,563 | |||||||||||||
Purchase of treasury shares | ₺ 65,607,000 | |||||||||||||
Dividends paid | ₺ 3,050,928,000 | 51,416,000 | ₺ 4,025,515,000 | |||||||||||
Turkcell [member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Dividend distribution proposed | ₺ 3,000,000,000 | ₺ 3,000,000,000 | ₺ 1,200,000 | ₺ 1,200,000 | $ 841,633,000 | $ 340,987 | ||||||||
Gross cash dividend proposed | (per share) | ₺ 1.3636364 | ₺ 0.3825604 | ₺ 0.5454545 | ₺ 0.15 | ||||||||||
Net cash dividend proposed | (per share) | ₺ 0.4636364 | ₺ 0.13 | ||||||||||||
Dividends paid | ₺ 3,000,000,000 | |||||||||||||
Number of installments of dividend | Installment | 3 | 3 | ||||||||||||
Inteltek [member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Dividends paid | $ | $ 28,402,000 | |||||||||||||
Dividend payables | ₺ 63,528,000 | ₺ 20,455,000 | ||||||||||||
Inteltek [member] | Legal Reserve [Member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Dividend payables | ₺ 11,585,000 | ₺ 11,585,000 | ||||||||||||
Azerinteltek [member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Dividend payables | ₺ 11,620 | ₼ 5,288 | ₺ 27,838,000 | ₼ 13,131,000 | ||||||||||
Bottom of range [member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Weighted average share price | 8.92 | |||||||||||||
Top of range [member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Weighted average share price | ₺ 9.99 |
Equity - Summary of Shareholdin
Equity - Summary of Shareholding Percentage (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of classes of share capital [line items] | ||
Shareholding percentage | 100.00% | 100.00% |
Share capital | ₺ 2,200,000 | ₺ 2,200,000 |
Inflation adjustment to share capital | (52,352) | (52,352) |
Inflation adjusted capital | ₺ 2,147,648 | ₺ 2,147,648 |
Turkcell Holding [member] | ||
Disclosure of classes of share capital [line items] | ||
Shareholding percentage | 51.00% | 51.00% |
Share capital | ₺ 1,122,000 | ₺ 1,122,000 |
Public share [member] | ||
Disclosure of classes of share capital [line items] | ||
Shareholding percentage | 48.95% | 48.95% |
Share capital | ₺ 1,077,004 | ₺ 1,077,004 |
Other [member] | ||
Disclosure of classes of share capital [line items] | ||
Shareholding percentage | 0.05% | 0.05% |
Share capital | ₺ 996 | ₺ 996 |
Earnings Per Share - Disclosure
Earnings Per Share - Disclosure of Calculations of Basic Earnings Per Share (Detail) - TRY (₺) ₺ / shares in Units, ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share [abstract] | |||
Profit attributable to owners of the Company | ₺ 1,979,129 | ₺ 1,492,088 | ₺ 2,067,654 |
Weighted average number of shares | 2,193,184,437 | 2,193,184,437 | 2,200,000,000 |
Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) | ₺ 0.90 | ₺ 0.68 | ₺ 0.94 |
Profit from continuing operations attributable to owners of the Company | ₺ 1,979,129 | ₺ 1,534,252 | ₺ 1,700,318 |
Weighted average number of shares | 2,193,184,437 | 2,193,184,437 | 2,200,000,000 |
Basic and diluted earnings per share for profit from continuing operations attributable to owners of the Company | ₺ 0.90 | ₺ 0.70 | ₺ 0.77 |
Other Non-Current Liabilities -
Other Non-Current Liabilities - Disclosure of Other Non-Current Liabilities (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Provisions and other non-current liabilities [Line Items] | ||
Other non-current liabilities | ₺ 409,337 | ₺ 427,547 |
Non-Current Liabilities [member] | ||
Provisions and other non-current liabilities [Line Items] | ||
Consideration payable in relation to the acquisition of Belarusian Telecom | 323,691 | 295,062 |
Deferred revenue | 85,646 | 74,241 |
Deposits and guarantees received from dealers | 58,244 | |
Other non-current liabilities | ₺ 409,337 | ₺ 427,547 |
Other Non-Current Liabilitie137
Other Non-Current Liabilities - Additional Information (Detail) ₺ in Thousands, $ in Thousands | Dec. 31, 2017TRY (₺) | Dec. 31, 2017USD ($) | Dec. 31, 2016 |
Other non-current liabilities [abstract] | |||
Contingent payment | ₺ 377,190 | $ 100,000 | |
Discount rate | 4.80% | 4.80% | 5.60% |
Loans and Borrowings - Summary
Loans and Borrowings - Summary of Borrowings (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Non-current liabilities | ||
Unsecured bank loans | ₺ 6,376,981 | ₺ 5,300,756 |
Debt securities issued | 1,770,482 | 1,589,227 |
Finance lease liabilities | 108,164 | 41,539 |
Secured bank loans | 2,368 | 3,580 |
Total non-current liabilities | 8,257,995 | 6,935,102 |
Current liabilities | ||
Unsecured bank loans | 2,643,112 | 1,581,135 |
Current portion of unsecured bank loans | 1,513,425 | 922,867 |
Current portion of secured bank loans | 2,022 | 2,054 |
Current portion of finance lease liabilities | 14,556 | 6,575 |
Current portion of long-term debt securities issued | 105,039 | 94,473 |
Debt securities issued | 238,956 | |
Total current liabilities | ₺ 4,278,154 | ₺ 2,846,060 |
Loans and borrowings - Summa139
Loans and borrowings - Summary of Terms and Conditions of Outstanding Loans (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [line items] | ||
Carrying amount | ₺ 12,536,149 | ₺ 9,781,162 |
Unsecured bank loans [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | USD | |
Interest rate type | Floating | |
Nominal interest rate basis | Libor+2.0%-Libor+3.3% | Libor+2.0%-Libor+2.6% |
Carrying amount | ₺ 2,880,615 | ₺ 1,984,533 |
Unsecured bank loans [member] | EUR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | EUR | |
Interest rate type | Floating | |
Nominal interest rate basis | Euribor+1.2%-Euribor+2.2% | Euribor+1.2%-Euribor+2.2% |
Carrying amount | ₺ 5,511,579 | ₺ 3,593,110 |
Unsecured bank loans [member] | TL [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | TL | |
Interest rate type | Fixed | |
Carrying amount | ₺ 1,620,391 | ₺ 1,819,944 |
Unsecured bank loans [member] | UAH [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | UAH | |
Interest rate type | Fixed | |
Payment period | 2,018 | 2,017 |
Carrying amount | ₺ 520,933 | ₺ 407,171 |
Unsecured bank loans [member] | Bottom of range [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Payment period | 2,018 | 2,017 |
Unsecured bank loans [member] | Bottom of range [member] | EUR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Payment period | 2,018 | 2,017 |
Unsecured bank loans [member] | Bottom of range [member] | TL [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal interest rate | 11.10% | 10.40% |
Payment period | 2,018 | 2,017 |
Unsecured bank loans [member] | Bottom of range [member] | UAH [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal interest rate | 11.00% | 13.50% |
Unsecured bank loans [member] | Bottom of range [member] | LIBOR [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable interest rate | 2.00% | 2.00% |
Unsecured bank loans [member] | Bottom of range [member] | EURIBOR [member] | EUR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable interest rate | 1.20% | 1.20% |
Unsecured bank loans [member] | Top of range [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Payment period | 2,020 | 2,020 |
Unsecured bank loans [member] | Top of range [member] | EUR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Payment period | 2,026 | 2,025 |
Unsecured bank loans [member] | Top of range [member] | TL [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal interest rate | 15.50% | 12.60% |
Payment period | 2,019 | 2,018 |
Unsecured bank loans [member] | Top of range [member] | UAH [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal interest rate | 14.50% | 18.60% |
Unsecured bank loans [member] | Top of range [member] | LIBOR [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable interest rate | 3.30% | 2.60% |
Unsecured bank loans [member] | Top of range [member] | EURIBOR [member] | EUR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable interest rate | 2.20% | 2.20% |
Secured bank loans [member] | New Belarusian Ruble | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | BYN | |
Interest rate type | Fixed | |
Carrying amount | ₺ 4,390 | ₺ 5,634 |
Secured bank loans [member] | Bottom of range [member] | New Belarusian Ruble | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal interest rate | 12.00% | 12.00% |
Payment period | 2,018 | 2,017 |
Secured bank loans [member] | Top of range [member] | New Belarusian Ruble | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal interest rate | 16.00% | 16.00% |
Payment period | 2,020 | 2,020 |
Debt securities issued [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Carrying amount | ₺ 1,875,521 | ₺ 1,922,656 |
Debt securities issued [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | USD | |
Interest rate type | Fixed | |
Nominal interest rate | 5.80% | 5.80% |
Carrying amount | ₺ 1,875,521 | ₺ 1,683,700 |
Debt securities issued [member] | TL [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | TL | |
Interest rate type | Fixed | |
Nominal interest rate | 10.70% | |
Payment period | 2,017 | |
Carrying amount | ₺ 238,956 | |
Debt securities issued [member] | Bottom of range [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Payment period | 2,018 | 2,017 |
Debt securities issued [member] | Top of range [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Payment period | 2,025 | 2,025 |
Finance lease liabilities [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Carrying amount | ₺ 122,720 | ₺ 48,114 |
Finance lease liabilities [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | USD | |
Interest rate type | Fixed | |
Nominal interest rate | 22.50% | |
Payment period | 2,018 | |
Carrying amount | ₺ 41 | ₺ 80 |
Finance lease liabilities [member] | EUR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | EUR | |
Interest rate type | Fixed | |
Nominal interest rate | 3.40% | 3.40% |
Carrying amount | ₺ 116,797 | ₺ 48,034 |
Finance lease liabilities [member] | TL [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Currency | TL | |
Interest rate type | Fixed | |
Carrying amount | ₺ 5,882 | |
Finance lease liabilities [member] | Bottom of range [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal interest rate | 18.00% | |
Payment period | 2,017 | |
Finance lease liabilities [member] | Bottom of range [member] | EUR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Payment period | 2,018 | 2,017 |
Finance lease liabilities [member] | Bottom of range [member] | TL [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal interest rate | 27.50% | |
Payment period | 2,018 | |
Finance lease liabilities [member] | Top of range [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal interest rate | 28.00% | |
Payment period | 2,018 | |
Finance lease liabilities [member] | Top of range [member] | EUR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Payment period | 2,024 | 2,024 |
Finance lease liabilities [member] | Top of range [member] | TL [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal interest rate | 27.70% | |
Payment period | 2,020 |
Loans and borrowings - Summa140
Loans and borrowings - Summary of Terms and Conditions of Outstanding Loans (Parenthetical) (Detail) - Dec. 31, 2017 ₺ in Thousands, € in Thousands, $ in Thousands | TRY (₺) | USD ($) | EUR (€) |
Foreign Currency Loans [member] | Lifecell LLC [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Deposit amount | ₺ 183,483 | $ 17,100 | € 26,350 |
Loans and Borrowings - Summa141
Loans and Borrowings - Summary of Finance Lease Liabilities Payable (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of finance lease and operating lease by lessee [line items] | ||
Future minimum lease payments | ₺ 133,570 | ₺ 54,273 |
Future Finance charges | 10,850 | 6,159 |
Recognized as a liability | 122,720 | 48,114 |
Less Than One Year [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Future minimum lease payments | 17,447 | 7,908 |
Future Finance charges | 2,891 | 1,333 |
Recognized as a liability | 14,556 | 6,575 |
Between One and Five Years [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Future minimum lease payments | 55,722 | 26,506 |
Future Finance charges | 5,541 | 3,752 |
Recognized as a liability | 50,181 | 22,754 |
More than 5 years [member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Future minimum lease payments | 60,401 | 19,859 |
Future Finance charges | 2,418 | 1,074 |
Recognized as a liability | ₺ 57,983 | ₺ 18,785 |
Employee benefits - Summary of
Employee benefits - Summary of Employee Benefits Provisions (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Classes of employee benefits expense [abstract] | |||
Retirement pay liability provision | ₺ 149,449 | ₺ 120,755 | ₺ 74,435 |
Unused vacation provision | 48,217 | 43,798 | |
Total | ₺ 197,666 | ₺ 164,553 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - TRY (₺) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Classes of employee benefits expense [abstract] | |||
Provision for annual leave | ₺ 48,217,000 | ₺ 43,798,000 | |
Defined contribution retirement plan | 8,107,000 | 7,722,000 | ₺ 8,364,000 |
Expense from share-based payments | ₺ 29,413,000 | ₺ 0 |
Employee Benefits - Summary 144
Employee Benefits - Summary of Movement in Reserve for Employee Termination Benefits (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [abstract] | ||
Employee termination benefits,beginning balance | ₺ 120,755 | ₺ 74,435 |
Service cost | 32,696 | 25,933 |
Remeasurements | 3,738 | 34,532 |
Interest expense | 13,877 | 8,361 |
Benefit payments | (21,617) | (22,506) |
Employee termination benefits,ending balance | ₺ 149,449 | ₺ 120,755 |
Employee Benefits - Summary 145
Employee Benefits - Summary of Sensitivity of Provision for Employee Termination Benefits to Changes in the Significant Actuarial Assumptions (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Discount Rate [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
1% increase | (14.60%) | (14.70%) |
1% decrease | 18.10% | 18.10% |
1% increase | ₺ (21,820) | ₺ (17,751) |
1% decrease | ₺ 27,050 | ₺ 21,857 |
Inflation Rate [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
1% increase | 18.30% | 18.60% |
1% decrease | (14.30%) | (15.10%) |
1% increase | ₺ 27,349 | ₺ 22,460 |
1% decrease | ₺ (21,371) | ₺ (18,234) |
Deferred Revenue - Additional I
Deferred Revenue - Additional Information (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accruals and deferred income [abstract] | ||
Deferred revenue | ₺ 193,831 | ₺ 93,800 |
Provisions - Summary of Non-Cur
Provisions - Summary of Non-Current Provisions (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of other provisions [line items] | ||
Beginning balance for the period | ₺ 187,541 | |
Ending balance for the period | 197,418 | ₺ 187,541 |
Non-current provision [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 187,541 | 130,619 |
Provisions recognized/(reversed) | (4,205) | 56,343 |
Unwinding of discount | 15,328 | (1,308) |
Transfer to current provisions | (2,258) | (1,526) |
Effect of changes in exchange rates | 1,012 | 3,413 |
Ending balance for the period | 197,418 | 187,541 |
Non-current provision [member] | Legal [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 6,889 | 4,103 |
Provisions recognized/(reversed) | 4,256 | 4,312 |
Transfer to current provisions | (2,258) | (1,526) |
Ending balance for the period | 8,887 | 6,889 |
Non-current provision [member] | Obligations for dismantling,removing and site restoration [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 180,652 | 126,516 |
Provisions recognized/(reversed) | (8,461) | 52,031 |
Unwinding of discount | 15,328 | (1,308) |
Effect of changes in exchange rates | 1,012 | 3,413 |
Ending balance for the period | ₺ 188,531 | ₺ 180,652 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Provisions [abstract] | ||
Rate used for provision | 5.60% | 5.40% |
Provisions - Summary of Current
Provisions - Summary of Current Provisions (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of other provisions [line items] | ||
Beginning balance for the period | ₺ 192,442 | |
Ending balance for the period | 835,199 | ₺ 192,442 |
Current provision [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 192,442 | 152,115 |
Provisions recognized/(reversed) | 901,606 | 392,247 |
Amounts used | (264,268) | (354,288) |
Transfer from non-currentprovisions | 2,258 | 1,526 |
Unwinding of discount | 2,531 | |
Effect of changes in exchange rates | 630 | 842 |
Ending balance for the period | 835,199 | 192,442 |
Current provision [member] | Legal [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 18,266 | 10,260 |
Provisions recognized/(reversed) | 583,788 | 140,457 |
Amounts used | (1,188) | (134,019) |
Transfer from non-currentprovisions | 2,258 | 1,526 |
Unwinding of discount | 2,531 | |
Effect of changes in exchange rates | 24 | 42 |
Ending balance for the period | 605,679 | 18,266 |
Current provision [member] | Bonus [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 173,391 | 141,855 |
Provisions recognized/(reversed) | 318,603 | 251,005 |
Amounts used | (263,080) | (220,269) |
Effect of changes in exchange rates | 606 | 800 |
Ending balance for the period | 229,520 | 173,391 |
Current provision [member] | Other [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 785 | |
Provisions recognized/(reversed) | ₺ (785) | 785 |
Ending balance for the period | ₺ 785 |
Trade and Other Payables - Summ
Trade and Other Payables - Summary of Trade and Other Payables (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other payables [abstract] | ||
Payable to suppliers | ₺ 2,527,152 | ₺ 1,718,788 |
Taxes payable | 415,650 | 302,346 |
Accrued treasury share, universal service fund contribution and contributions to the ICTA's expenses | 305,208 | 262,748 |
Accrued selling and marketing expenses | 79,011 | 58,879 |
4.5G license fees payable | 1,522,615 | |
Other | 369,445 | 236,615 |
Trade and other payables | ₺ 3,696,466 | ₺ 4,101,991 |
Trade and Other Payables - Addi
Trade and Other Payables - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017TRY (₺) | |
Trade and other payables [abstract] | |
Payment through treasury shares percentage of gross revenue | 15.00% |
Percentage of gross revenue fee paid for universal service fund | 10.00% |
Payment of annaual contributions, percentage of gross revenue to ICTA's expenses | ₺ 0.0035 |
Derivative Financial Instrum152
Derivative Financial Instruments - Details of Participating Cross Currency Swap and FX Swap Contracts (Detail) | Dec. 31, 2017TRY (₺) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016TRY (₺) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) |
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | ₺ (15,478,000) | |||||
Cross currency swap and fx swap contracts one [member] | 27 August 2018 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | $ 20,000,000 | |||||
Cross currency swap and fx swap contracts one [member] | 02 January 2018 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | € 39,835,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 1,005,000 | |||||
Cross currency swap and fx swap contracts two [member] | 27 August 2018 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 69,680,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 6,554,000 | |||||
Cross currency swap and fx swap contracts two [member] | 24 January 2019 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 25,000,000 | |||||
Cross currency swap and fx swap contracts two [member] | 02 January 2018 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 470,232,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 122,680,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (2,465,000) | |||||
Cross currency swap and fx swap contracts three [member] | 28 January 2019 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 18,000,000 | |||||
Cross currency swap and fx swap contracts three [member] | 02 January 2018 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 180,023,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 47,250,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (545,000) | |||||
Cross currency swap and fx swap contracts three [member] | 14 December 2018 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 81,480,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 20,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 9,965,000 | |||||
Cross currency swap and fx swap contracts four [member] | 24 January 2019 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 95,550,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 72,000 | |||||
Cross currency swap and fx swap contracts four [member] | 16 July 2019 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 14,620,000 | |||||
Cross currency swap and fx swap contracts four [member] | January three two thousand eighteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 141,001,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 36,786,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (726,000) | |||||
Cross currency swap and fx swap contracts five [member] | 28 January 2019 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 67,410,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 1,498,000 | |||||
Cross currency swap and fx swap contracts five [member] | July twenty two two thousand nineteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 19,780,000 | |||||
Cross currency swap and fx swap contracts five [member] | January four two thousand eighteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 219,162,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 57,245,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (1,043,000) | |||||
Cross currency swap and fx swap contracts six [member] | 16 September 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 150,000,000 | |||||
Cross currency swap and fx swap contracts six [member] | January five two thousand eighteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 115,022,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 30,150,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (435,000) | |||||
Cross currency swap and fx swap contracts six [member] | 13 June 2019 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 98,625,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 25,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 17,354,000 | |||||
Cross currency swap and fx swap contracts seven [member] | 16 July 2019 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 52,164,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 4,465,000 | |||||
Cross currency swap and fx swap contracts seven [member] | 16 September 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 100,000,000 | |||||
Cross currency swap and fx swap contracts seven [member] | January ten two thousand eighteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 17,204,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 4,500,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (284,000) | |||||
Cross currency swap and fx swap contracts eight [member] | July twenty two two thousand nineteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 69,744,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 6,996,000 | |||||
Cross currency swap and fx swap contracts eight [member] | 16 September 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 100,000,000 | |||||
Cross currency swap and fx swap contracts eight [member] | January ten two thousand eighteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 15,916,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 3,500,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (157,000) | |||||
Cross currency swap and fx swap contracts nine [member] | 16 September 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 70,500,000 | |||||
Cross currency swap and fx swap contracts nine [member] | January twenty second two thousand eighteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 91,556,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 20,140,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (620,000) | |||||
Cross currency swap and fx swap contracts nine [member] | July twenty three two thousand nineteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 203,600,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 50,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 27,198,000 | |||||
Cross currency swap and fx swap contracts ten [member] | 16 September 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 435,000,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 50,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 142,085,000 | |||||
Cross currency swap and fx swap contracts ten [member] | February five thousand eighteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 137,834,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 30,400,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (601,000) | |||||
Currency and interest swap contracts six [member] | 16 September 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | ₺ 435,000,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | $ 150,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 84,416,000 | |||||
Currency and interest swap contracts seven [member] | 16 September 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 293,500,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 100,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 51,481,000 | |||||
Currency and interest swap contracts one [member] | 3 January 2017 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 18,455,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | € 5,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 86,000 | |||||
Currency and interest swap contracts two [member] | 24 Mar 17 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 73,400,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 20,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 598,000 | |||||
Currency and interest swap contracts three [member] | 12 April 2021 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 824,750,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 250,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 116,674,000 | |||||
Currency and interest swap contracts four [member] | 12 April 2021 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 328,600,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 100,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 47,949,000 | |||||
Currency and interest swap contracts five [member] | 12 April 2021 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 495,000,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | € 150,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 81,534,000 | |||||
Cross currency swap and FX swap contracts [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Fair Value | 961,665,000 | 382,738,000 | ||||
Current Derivative Financial Instruments Liabilities, Fair Value | (73,000) | |||||
Cross currency swap and fx swap contracts fourteen [member] | 16 September 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 194,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | (2,951,000) | |||||
Cross currency swap and fx swap contracts fourteen [member] | 2 December 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 269,451,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | $ 70,500,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (5,010,000) | |||||
Cross currency swap and fx swap contracts eleven [member] | 16 September 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 386,500,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | (4,645,000) | |||||
Cross currency swap and fx swap contracts eleven [member] | February nineteen thousand eighteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 82,013,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 17,860,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (1,413,000) | |||||
Cross currency swap and fx swap contracts twelve [member] | 16 September 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 293,500,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 90,071,000 | |||||
Cross currency swap and fx swap contracts twelve [member] | March five thousand eighteen [member];; | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 1,143,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 250,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (25,000) | |||||
Cross currency swap and fx swap contracts thirteen [member] | 16 September 2020 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 242,873,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 33,535,000 | |||||
Cross currency swap and fx swap contracts thirteen [member] | December nineteen two thousand nineteen [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 97,997,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 21,500,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (2,154,000) | |||||
Cross currency swap and fx swap contracts fifteen [member] | 3 January 2017 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 21,009,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 5,960,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (55,000) | |||||
Cross currency swap and fx swap contracts fifteen [member] | 25 October 2025 [Member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 1,650,000,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 500,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | 627,385,000 | |||||
Cross currency swap and fx swap contracts sixteen [member] | 3 January 2017 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 7,050,000 | |||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | $ 2,000,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | ₺ (18,000) | |||||
Cross currency swap and fx swap contracts sixteen [member] | April twenty two and two thousand twenty six [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 275,850,000 | |||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | € 60,000,000 | |||||
Current Derivative Financial Instruments Assets, Fair Value | ₺ 1,078,000 |
Derivative Financial Instrum153
Derivative Financial Instruments - Additional Information (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [abstract] | ||
Interest income included in current derivative financial instruments assets | ₺ 19,731 | ₺ 8,220 |
Derivative financial assets | 981,396 | 390,958 |
Interest expense accrual included in current derivative financial instruments liabilities | 92,384 | 40,367 |
Derivative financial liabilities | ₺ 110,108 | ₺ 41,726 |
Derivative Financial Instrum154
Derivative Financial Instruments - Details of Currency Forward Contracts (Detail) ₺ in Thousands | Dec. 31, 2017TRY (₺) | Dec. 31, 2017USD ($) | Dec. 31, 2016TRY (₺) | Dec. 31, 2016USD ($) |
Disclosure of detailed information about financial instruments [line items] | ||||
Current Derivative Financial Instruments Liabilities, Fair Value | ₺ 15,478 | |||
Currency forward contracts [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Current Derivative Financial Instruments Liabilities, Fair Value | (2,246) | ₺ (1,286) | ||
Currency forward contracts [member] | 28 February 2017 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | $ | $ 30,071,000 | |||
Current Derivative Financial Instruments Liabilities, Fair Value | ₺ (1,286) | |||
Currency forward contracts [member] | 30 January 2018 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | $ | $ 50,000,000 | |||
Current Derivative Financial Instruments Liabilities, Fair Value | ₺ (2,246) |
Financial Instruments - Disclos
Financial Instruments - Disclosure of credit risk (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | ₺ 13,279,196 | ₺ 12,463,993 |
Trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 3,004,206 | 3,525,297 |
Receivables from financial services [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 4,248,120 | 2,396,372 |
Cash and cash equivalents [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 4,712,141 | 6,052,129 |
Participating cross currency swap and FX swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 981,396 | 390,958 |
Other current assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 316,042 | 93,376 |
Held-to-maturity investments, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 11,992 | |
Due from related parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | ₺ 5,299 | ₺ 5,861 |
Financial Instruments - Summary
Financial Instruments - Summary of Maximum Exposure to Credit Risk for Trade Receivables Arising from Sales Transactions (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk for trade receivables | ₺ 7,257,625 | ₺ 5,927,530 |
Receivable from subscribers [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk for trade receivables | 2,472,596 | 3,061,130 |
Receivables from financial services [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk for trade receivables | 4,248,120 | 2,396,372 |
Receivables from distributors and other operators [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk for trade receivables | 516,352 | 376,204 |
Other [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk for trade receivables | ₺ 20,557 | ₺ 93,824 |
Financial Instruments - Aging o
Financial Instruments - Aging of Receivables from Financial Operations, Trade Receivables and Due from Related Parties (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Trade receivables and due from related parties [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Aging of receivables | ₺ 3,009,505 | ₺ 3,531,158 |
Receivables from financial services [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Aging of receivables | 4,248,120 | 2,396,372 |
Not past due [member] | Trade receivables and due from related parties [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Aging of receivables | 2,124,719 | 3,138,043 |
Not past due [member] | Receivables from financial services [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Aging of receivables | 3,659,521 | 2,350,375 |
Not later than three months [member] | Trade receivables and due from related parties [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Aging of receivables | 317,649 | 285,561 |
Not later than three months [member] | Receivables from financial services [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Aging of receivables | 513,925 | 16,533 |
Later than three months and not later than six months [member] | Trade receivables and due from related parties [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Aging of receivables | 95,738 | 48,775 |
Later than three months and not later than six months [member] | Receivables from financial services [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Aging of receivables | 39,233 | 20,227 |
Later than six months [member] | Trade receivables and due from related parties [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Aging of receivables | 471,399 | 58,779 |
Later than six months [member] | Receivables from financial services [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Aging of receivables | ₺ 35,441 | ₺ 9,237 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) ₺ in Thousands, $ in Thousands | Apr. 26, 2017TRY (₺) | Dec. 31, 2017TRY (₺) | Dec. 31, 2016TRY (₺) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Disclosure of detailed information about financial instruments [line items] | |||||
Strengthening percentage | 10.00% | 10.00% | |||
Weakening percentage | 10.00% | 10.00% | |||
Change in interest rates | 1.00% | 1.00% | |||
Debt instrument amount | ₺ 12,536,149 | ₺ 9,781,162 | |||
Debt securities issued [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Nominal value of debt securities issued | 500,000 | $ 500,000 | $ 500,000 | ||
Debt instrument amount | 1,875,521 | 1,922,656 | |||
Debt securities issued [member] | Fair Value [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Debt instrument amount | 2,063,972 | 1,921,199 | |||
TL [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Payment last installment of 4.5G license payable amounting to TL | ₺ 1,534,702 | ||||
TL [member] | Debt securities issued [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Debt instrument amount | 238,956 | ||||
Trade receivables, due from related parties and receivables from financial services [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Trade receivables, due from related parties and receivables from financial services past due but not impaired | 1,473,385 | 439,112 | |||
Collaterals held | ₺ 339,543 | ₺ 156,647 |
Financial Instruments - Summ159
Financial Instruments - Summary of Movements in Provision for Impairment of Receivables from Financial Services, Trade Receivables and Due from Related Parties (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables from financial services [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Opening | ₺ 10,170 | |
Provision for impairment recognized during the year | 117,293 | ₺ 11,593 |
Amounts collected | (37,503) | (1,423) |
Unused amount reversed | (16,968) | |
Closing balance | 72,992 | 10,170 |
Trade receivables and due from related parties [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Opening | 964,311 | 816,373 |
Provision for impairment recognized during the year | 180,948 | 452,767 |
Amounts collected | (224,460) | (251,553) |
Exchange differences | 3,128 | 5,038 |
Receivables written off during the year as uncollectible | (138,529) | (58,314) |
Unused amount reversed | (79,958) | |
Closing balance | ₺ 705,440 | ₺ 964,311 |
Financial Instruments - Summ160
Financial Instruments - Summary of Analysis of Group's Financial Liabilities into Relevant Maturity Groupings Based on Contractual Maturities (Detail) - Liquidity risk [member] - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
6 months or less [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | ₺ (5,868,078) | ₺ (4,911,002) |
6 months or less [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (1,123) | |
6 months or less [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (3,275,230) | (1,332,478) |
6 months or less [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (18) | (70) |
6 months or less [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (54,221) | (298,767) |
6 months or less [member] | Non-derivative financial liabilities [member] | Trade and other payables [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (2,548,365) | (3,266,123) |
6 months or less [member] | Non-derivative financial liabilities [member] | Due to related parties [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (6,980) | (11,201) |
6 months or less [member] | Participating cross currency swap and FX swap contracts [member] | Currency and interest swap contracts [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 18,982 | 46 |
6 months or less [member] | Derivative financial liabilities [member] | Currency and interest swap contracts buy option [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 1,471,106 | 28,059 |
6 months or less [member] | Derivative financial liabilities [member] | Currency and interest swap contracts sell option [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (1,452,124) | (28,013) |
6 months or less [member] | Derivative financial liabilities [member] | Currency forward contracts [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (2,246) | (1,286) |
6 months or less [member] | Derivative financial liabilities [member] | Currency forward contracts buy option [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 190,185 | 105,826 |
6 months or less [member] | Derivative financial liabilities [member] | Currency forward contracts sell option [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (192,431) | (107,112) |
6-12 months [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (1,028,404) | (1,388,003) |
6-12 months [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (1,117) | (1,077) |
6-12 months [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (955,637) | (1,330,322) |
6-12 months [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (17,429) | (7,837) |
6-12 months [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (54,221) | (48,767) |
1-2 years [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (2,698,637) | (1,539,988) |
1-2 years [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (2,045) | (2,015) |
1-2 years [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (2,575,807) | (1,433,790) |
1-2 years [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (16,789) | (6,648) |
1-2 years [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (108,442) | (97,535) |
1-2 years [member] | Participating cross currency swap and FX swap contracts [member] | Currency and interest swap contracts [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 4,446 | |
1-2 years [member] | Derivative financial liabilities [member] | Currency and interest swap contracts buy option [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 367,448 | |
1-2 years [member] | Derivative financial liabilities [member] | Currency and interest swap contracts sell option [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (363,002) | |
2-5 years [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (3,779,212) | (3,855,546) |
2-5 years [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (1,849) | (3,476) |
2-5 years [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (3,035,914) | (3,187,687) |
2-5 years [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (38,933) | (19,859) |
2-5 years [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (325,326) | (292,604) |
2-5 years [member] | Non-derivative financial liabilities [member] | Consideration payable in relation to acquisition of Belarusian telecom [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (377,190) | (351,920) |
More than 5 years [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (3,523,786) | (3,280,876) |
More than 5 years [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (1,252,109) | (1,174,624) |
More than 5 years [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (60,401) | (19,859) |
More than 5 years [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (2,211,276) | (2,086,393) |
Cost [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 15,504,080 | 13,370,554 |
Cost [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 4,390 | 5,634 |
Cost [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 10,533,518 | 7,804,758 |
Cost [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 122,720 | 48,114 |
Cost [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 1,875,521 | 1,922,656 |
Cost [member] | Non-derivative financial liabilities [member] | Trade and other payables [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 2,527,152 | 3,241,403 |
Cost [member] | Non-derivative financial liabilities [member] | Due to related parties [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 6,980 | 11,201 |
Cost [member] | Non-derivative financial liabilities [member] | Consideration payable in relation to acquisition of Belarusian telecom [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 323,691 | 295,062 |
Cost [member] | Participating cross currency swap and FX swap contracts [member] | Currency and interest swap contracts [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 107,862 | 40,440 |
Cost [member] | Derivative financial liabilities [member] | Currency forward contracts [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 2,246 | 1,286 |
Contractual cash flows [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (16,898,117) | (14,975,415) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (5,011) | (7,691) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (11,094,697) | (8,458,901) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (133,570) | (54,273) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (2,753,486) | (2,824,066) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Trade and other payables [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (2,548,365) | (3,266,123) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Due to related parties [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (6,980) | (11,201) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Consideration payable in relation to acquisition of Belarusian telecom [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (377,190) | (351,920) |
Contractual cash flows [member] | Participating cross currency swap and FX swap contracts [member] | Currency and interest swap contracts [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 23,428 | 46 |
Contractual cash flows [member] | Derivative financial liabilities [member] | Currency and interest swap contracts buy option [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 1,838,554 | 28,059 |
Contractual cash flows [member] | Derivative financial liabilities [member] | Currency and interest swap contracts sell option [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (1,815,126) | (28,013) |
Contractual cash flows [member] | Derivative financial liabilities [member] | Currency forward contracts [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | (2,246) | (1,286) |
Contractual cash flows [member] | Derivative financial liabilities [member] | Currency forward contracts buy option [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | 190,185 | 105,826 |
Contractual cash flows [member] | Derivative financial liabilities [member] | Currency forward contracts sell option [member] | ||
Disclosure of Risks [Line Items] | ||
Financial liabilities | ₺ (192,431) | ₺ (107,112) |
Financial Instruments - Summ161
Financial Instruments - Summary of Group's Exposure to Foreign Currency Risk Based on Notional Amounts (Detail) - Currency risk [member] € in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) |
Disclosure of Risks [Line Items] | ||||
Financial assets | $ 751,289 | € 333,117 | $ 842,933 | € 449,561 |
Financial liabilities | (1,676,261) | (1,276,292) | (1,317,126) | (1,407,793) |
Net exposure | 62,039 | (194,525) | (246,304) | (433,232) |
Other non-current assets [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial assets | 72 | 2,681 | 244 | 2,131 |
Due from related parties-short term [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial assets | 571 | 407 | 1,210 | 388 |
Trade receivables and accrued income [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial assets | 18,890 | 57,283 | 14,178 | 61,841 |
Other current assets [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial assets | 43,039 | 35,049 | 19,929 | 7,144 |
Cash and cash equivalents [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial assets | 688,717 | 237,697 | 807,372 | 378,057 |
Loans and borrowings-long term [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial liabilities | (557,180) | (960,629) | (483,910) | (959,482) |
Debt securities issued-non-current [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial liabilities | (469,387) | (451,588) | ||
Other non-current liabilities [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial liabilities | (85,816) | (99,273) | ||
Loans and borrowings-short term [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial liabilities | (206,535) | (285,827) | (80,029) | (21,985) |
debt securities issued-current [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial liabilities | (27,848) | (26,845) | ||
Trade and other payables-current [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial liabilities | (328,323) | (29,442) | (175,083) | (425,992) |
Due to related parties [member] | ||||
Disclosure of Risks [Line Items] | ||||
Financial liabilities | (1,172) | (394) | (398) | (334) |
Participating cross currency swap and FX swap contracts [member] | ||||
Disclosure of Risks [Line Items] | ||||
Net exposure | 937,011 | € 748,650 | 257,960 | € 525,000 |
Currency forward contracts [member] | ||||
Disclosure of Risks [Line Items] | ||||
Net exposure | $ 50,000 | $ (30,071) |
Financial Instruments - Summ162
Financial Instruments - Summary of 10% Strengthening of Foreign Exchange Rate (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
USD [member] | ||
Disclosure Of Sensitivity Analysis To Measure Foreign Exchange Risk [Line Items] | ||
Foreign exchange profit | ₺ (23,400) | ₺ 86,679 |
EUR [member] | ||
Disclosure Of Sensitivity Analysis To Measure Foreign Exchange Risk [Line Items] | ||
Foreign exchange profit | ₺ 87,838 | ₺ 160,725 |
Financial Instruments - Summ163
Financial Instruments - Summary of 10% Weakening of Foreign Exchange Rate (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Sensitivity Analysis To Measure Foreign Exchange Risk [Line Items] | |||
Foreign exchange loss | ₺ 718,501 | ₺ 782,463 | ₺ 489,320 |
USD [member] | |||
Disclosure Of Sensitivity Analysis To Measure Foreign Exchange Risk [Line Items] | |||
Foreign exchange loss | 23,400 | (86,679) | |
EUR [member] | |||
Disclosure Of Sensitivity Analysis To Measure Foreign Exchange Risk [Line Items] | |||
Foreign exchange loss | ₺ (87,838) | ₺ (160,725) |
Financial Instruments - Summ164
Financial Instruments - Summary of Interest-Bearing Financial Instruments (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | ₺ 12,536,149 | ₺ 9,781,162 |
USD [member] | Time deposits [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 5.80% | 3.60% |
Carrying amount | ₺ 2,590,025 | ₺ 2,817,650 |
USD [member] | Restricted cash [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | ₺ 64,503 | |
USD [member] | Finance lease obligations [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 28.10% | 20.70% |
Carrying amount | ₺ (41) | ₺ (80) |
USD [member] | Debt securities in issue [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 5.80% | 5.80% |
Carrying amount | ₺ (1,875,521) | ₺ (1,683,700) |
USD [member] | Floating rate loans [member] | Variable rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 3.20% | 3.20% |
Carrying amount | ₺ (2,880,615) | ₺ (1,984,533) |
EUR [member] | Time deposits [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 2.20% | 2.00% |
Carrying amount | ₺ 1,069,303 | ₺ 1,383,978 |
EUR [member] | Restricted cash [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | ₺ 118,983 | |
EUR [member] | Finance lease obligations [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 3.40% | 3.40% |
Carrying amount | ₺ (116,797) | ₺ (48,034) |
EUR [member] | Trade and other payables [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 2.60% | |
Carrying amount | ₺ (1,522,615) | |
EUR [member] | Floating rate loans [member] | Variable rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 2.10% | 2.30% |
Carrying amount | ₺ (5,511,579) | ₺ (3,593,110) |
TL [member] | Time deposits [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 14.30% | 11.00% |
Carrying amount | ₺ 436,224 | ₺ 1,243,843 |
TL [member] | Finance lease obligations [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 27.60% | |
Carrying amount | ₺ (5,882) | |
TL [member] | Unsecured bank loans [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 14.70% | 12.10% |
Carrying amount | ₺ (1,620,391) | ₺ (1,819,944) |
TL [member] | Debt securities in issue [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 10.70% | |
Carrying amount | ₺ (238,956) | |
Other [member] | Time deposits [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 12.90% | 11.10% |
Carrying amount | ₺ 13,036 | ₺ 36,175 |
Other [member] | Restricted cash [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | ₺ 320 | |
UAH [member] | Unsecured bank loans [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 13.90% | 15.00% |
Carrying amount | ₺ (520,933) | ₺ (407,171) |
New Belarusian Ruble | Secured bank loans [member] | Fixed rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Effective Interest Rate | 11.60% | 11.90% |
Carrying amount | ₺ (4,390) | ₺ (5,634) |
Financial Instruments - Summ165
Financial Instruments - Summary of Cash Flow Sensitivity Analysis for Variable Rate Instruments (Detail) - Liquidity risk [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||
100 bps increase in Profit or Loss | ₺ (83,922) | ₺ (55,776) |
100 bps decrease in Profit or Loss | 83,922 | 55,776 |
100 bps increase in Equity | 0 | 0 |
100 bps decrease in Equity | 0 | 0 |
Variable Rate Instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
100 bps increase in Profit or Loss | (83,922) | (55,776) |
100 bps decrease in Profit or Loss | 83,922 | 55,776 |
100 bps increase in Equity | 0 | 0 |
100 bps decrease in Equity | ₺ 0 | ₺ 0 |
Financial Instruments - Summ166
Financial Instruments - Summary of Fair Value of Financial Assets and Financial Liabilities (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Participating cross currency swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair values | ₺ 950,862 | ₺ 382,054 |
Level 2 [member] | Currency swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair values | ₺ (4,675) | 611 |
Valuation Techniques | Present value of the estimated future cash flows based on observable yield curves and end period FX rates | |
Level 2 [member] | Currency Forward Contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair values | ₺ (2,246) | (1,286) |
Valuation Techniques | Forward exchange rates at the balance sheet date | |
Level 3 [member] | Participating cross currency swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair values | ₺ 950,862 | ₺ 382,054 |
Valuation Techniques | Present value of the estimated future cash flows based on unobservable yield curves and end period FX rates |
Financial Instruments - Summ167
Financial Instruments - Summary of Fair Value of Financial Assets and Financial Liabilities (Parenthetical) (Detail) - Dec. 31, 2017 € in Thousands, $ in Thousands | USD ($) | EUR (€) |
Participating cross currency swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | $ 238,400 | € 184,900 |
Currency and interest swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | $ 298,611 | 43,585 |
Currency and interest swap contracts [member] | Currency and interest swap contracts three [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 100,000 | |
Currency and interest swap contracts [member] | Currency and interest swap contracts four [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 150,000 | |
Currency and interest swap contracts [member] | Currency and interest swap contracts five [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | € 250,000 |
Financial Instruments - Summ168
Financial Instruments - Summary of Cross Currency Swap Contracts (Detail) - Participating cross currency swap contracts [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||
Opening balance | ₺ 382,054 | |
Fair value gains recognized in profit or loss | 568,808 | ₺ 382,054 |
Closing balance | ₺ 950,862 | ₺ 382,054 |
Financial Instruments - Summ169
Financial Instruments - Summary of Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurement of Contingent Consideration (Detail) ₺ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017TRY (₺) | Dec. 31, 2016TRY (₺) | Dec. 31, 2017USD ($) | |
Disclosure of fair value of contingent consideration [Line Items] | |||
Contingent consideration | ₺ 377,190 | $ 100,000 | |
Level 3 [member] | |||
Disclosure of fair value of contingent consideration [Line Items] | |||
Increase in fair value of change in discount rate by 100 bps | (9,834) | ||
Decrease in fair value of change in discount rate by 100 bps | 10,241 | ||
Increase in fair value of change in expected settlement date changes by 1 year | (14,884) | ||
Decrease in fair value of change in expected settlement date changes by 1 year | 15,602 | ||
Contingent consideration | ₺ 323,691 | ₺ 295,062 | |
Fair value measurement of contingent consideration percentage | 4.80% | 5.60% | |
Relationship of unobservable inputs to fair value | A change in the discount rate by 100 bps would increase/decrease FV by TL (9,834) and TL 10,241 respectively. If expected settlement date changes by 1 year FV would increase/decrease by TL (14,884) and TL 15,602 respectively. |
Financial Instruments - Summ170
Financial Instruments - Summary of Consideration Payable in Relation to Acquisition (Detail) - Consideration payable in relation to acquisition of Belarusian telecom [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||
Opening balance | ₺ 295,062 | ₺ 235,281 |
Gains recognized in profit or loss | 28,629 | 59,781 |
Closing balance | ₺ 323,691 | ₺ 295,062 |
Operating Leases - Schedule of
Operating Leases - Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of finance lease and operating lease by lessee [line items] | ||
Future minimum lease payments | ₺ 658,483 | ₺ 610,038 |
Less Than One Year [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Future minimum lease payments | 144,424 | 163,336 |
Between One and Five Years [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Future minimum lease payments | 346,832 | 345,374 |
More than 5 years [member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Future minimum lease payments | ₺ 167,227 | ₺ 101,328 |
Operating Leases - Schedule 172
Operating Leases - Schedule of Payments Recognized (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of recognised finance lease as assets by lessee [abstract] | |||
Minimum lease payments | ₺ 812,385 | ₺ 837,575 | ₺ 751,816 |
Contingent rentals | 1,733 | ||
Total | ₺ 812,385 | ₺ 837,575 | ₺ 753,549 |
Guarantees and Purchase Obli173
Guarantees and Purchase Obligations - Additional Information (Detail) ₺ in Thousands, ₴ in Thousands | 12 Months Ended | ||
Dec. 31, 2017TRY (₺) | Dec. 31, 2017UAH (₴) | Dec. 31, 2016TRY (₺) | |
Disclosure of guarantees and purchase obligations [Line Items] | |||
Purchase commitments | ₺ 592,956 | ₺ 915,868 | |
Purchase commitments settlement term | 3 years | ||
Guarantees | ₺ 4,926,916 | ₺ 2,370,723 | |
Lifecell 3G License [member] | |||
Disclosure of guarantees and purchase obligations [Line Items] | |||
Purchase commitments | ₺ 29,269 | ₴ 217,793 |
Commitments and Contingencies -
Commitments and Contingencies - Turkcell - Additional Information (Detail) - Turkcell [member] $ in Thousands | Apr. 27, 1998USD ($) |
Disclosure of commitments and contingencies [Line Items] | |
License agreement term | 25 years |
License fee | $ 500,000 |
Commitments and Contingencie175
Commitments and Contingencies - 3G and 4G License - Additional Information (Detail) - EUR (€) € in Thousands | Apr. 01, 2016 | Apr. 30, 2009 |
Turkcell 3G license [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
License fee | € 358,000 | |
License agreement term | 20 years | |
4G License [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
License agreement term | 13 years |
Commitments and Contingencie176
Commitments and Contingencies - Belarusian Telecom - Additional Information (Detail) - Belarusian Telecom [member] | Aug. 28, 2008Settlements |
Disclosure of commitments and contingencies [Line Items] | |
License agreement term | 10 years |
Number of uncovered license settlements | 657 |
Number of license settlements | 22,552 |
Commitments and Contingencie177
Commitments and Contingencies - Lifecell - Additional Information (Detail) - Lifecell [member] | 12 Months Ended |
Dec. 31, 2017License | |
Disclosure of commitments and contingencies [Line Items] | |
License agreement term | 15 years |
Number of license owned | 12 |
International and Long Distance [member] | |
Disclosure of commitments and contingencies [Line Items] | |
Number of license issued | 1 |
Ukraine [member] | |
Disclosure of commitments and contingencies [Line Items] | |
Number of license issued | 8 |
Commitments and Contingencie178
Commitments and Contingencies - Inteltek - Additional Information (Detail) - Inteltek [member] - TRY (₺) ₺ in Thousands | Mar. 01, 2009 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of commitments and contingencies [Line Items] | |||
Commission rate | 1.40% | ||
Commission rate of gross takings | 7.00% | ||
Letter of guarantee provided to Spor Toto | ₺ 159,752 | ₺ 159,752 | |
Mobile Agency Agreement [member] | |||
Disclosure of commitments and contingencies [Line Items] | |||
Letter of guarantee | ₺ 25,000 | ₺ 25,000 | |
Targeted payout percentage | 50.00% |
Commitments and Contingencie179
Commitments and Contingencies - Kibris Telekom - Additional Information (Detail) - Kibris Telekom [member] - USD ($) $ in Thousands | Mar. 14, 2008 | Apr. 27, 2007 |
Disclosure of commitments and contingencies [Line Items] | ||
License agreement term granted | 18 years | |
License cost | $ 10,000 |
Commitments and Contingencie180
Commitments and Contingencies - Azerinteltek - Additional Information (Detail) - Azerinteltek [member] | Jan. 19, 2010 |
Disclosure of commitments and contingencies [Line Items] | |
Percentage of shareholding | 51.00% |
License agreement term | 10 years |
Commitments and Contingencie181
Commitments and Contingencies - Dispute to Treasury Share Amounts - Additional Information (Detail) - TRY (₺) | Apr. 27, 1998 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of commitments and contingencies [Line Items] | |||
Percentage of payment obligation on gross sales per month as treasury share | 13.50% | ||
Percentage of payment obligation on gross sales per month as universal services share | 1.50% | ||
Percentage of payment obligation on annual gross sales as authority contribution share | 0.35% | ||
Provision for litigation settlement amount | ₺ 417,668,000 | ₺ 0 | |
Dispute On Treasury Share Amount [member] | |||
Disclosure of commitments and contingencies [Line Items] | |||
Litigation principal amount | 206,365,000 | ||
Litigation interest amount | 209,159,000 | ||
Litigation settlement amount | ₺ 436,300,000 |
Commitments and Contingencie182
Commitments and Contingencies - Dispute to Special Communication Tax - Additional Information (Detail) - Dispute on Special Communication Tax [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of commitments and contingencies [Line Items] | ||
Additional special communication tax and tax penalty on claim | ₺ 527,639 | |
Additional special communication tax on claim | 211,056 | |
Tax penalty on claim | 316,583 | |
The assessment of the SCT for the year 2011 | 80,355 | |
The restructuring amount of penalties and interest on the SCT | ₺ 117,058 | |
Accrued provisions of restructuring the SCT | ₺ 24,175 | ₺ 14,866 |
Commitments and Contingencie183
Commitments and Contingencies - Investigation Initiated by ICTA on Subscription Numbers and Radio Utilization and Usage Fees - Additional Information (Detail) - TRY (₺) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of commitments and contingencies [Line Items] | ||
Provision for litigation settlement amount | ₺ 417,668,000 | ₺ 0 |
Investigation initiated by ICTA on subscription numbers and radio utilization and usage fees [member] | ||
Disclosure of commitments and contingencies [Line Items] | ||
Administrative fines on radio utilization | ₺ 11,240,000 | |
Early payment Discount on Administrative fines | 25.00% | |
Litigation principal and interest amount | ₺ 156,637,000 | |
Litigation settlement amount | 164,469,000 | |
Provision for litigation settlement amount | ₺ 157,446,000 | ₺ 0 |
Commitments and Contingencie184
Commitments and Contingencies - Disputes Regarding the Law on the Protection of Competition - Additional Information (Detail) - Disputes regarding the law on the protection of competition [member] ₺ in Thousands | 12 Months Ended |
Dec. 31, 2017TRY (₺) | |
Disclosure of commitments and contingencies [Line Items] | |
Administrative fines on protection of competition | ₺ 91,942 |
Litigation settlement amount | ₺ 113,084 |
Commitments and Contingencie185
Commitments and Contingencies - Summary of Lawsuits Disputes (Detail) - Disputes related with ICTA [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of commitments and contingencies [Line Items] | ||
Anticipated Maximum Risk (excluding accrued interest) | ₺ 13,367 | ₺ 22,544 |
Provision for ongoing disputes | ₺ 0 | ₺ 0 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related party transactions [abstract] | ||
Key management executive officers personnel loans | ₺ 0 | ₺ 0 |
Related Parties - Summary of To
Related Parties - Summary of Total Compensation Provided to Key Management Personnel (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of key management personnel compensation [abstract] | |||
Short-term benefits (*) | ₺ 74,696 | ₺ 50,001 | ₺ 52,767 |
Termination benefits | 604 | 10,064 | 13,454 |
Long-term benefits | 548 | 479 | 655 |
Key management personnel compensation | ₺ 75,848 | ₺ 60,544 | ₺ 66,876 |
Related Parties - Schedule of S
Related Parties - Schedule of Short Term Dues from Related Parties (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of transactions between related parties [line items] | ||
Due from related parties | ₺ 5,299 | ₺ 5,861 |
Telia Sonera International Carrier AB [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 1,256 | 607 |
Kyivstar GSM JSC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 1,061 | 75 |
GSM Kazakhstan Ltd [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 830 | 937 |
Azercell Telekom MMC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 364 | 446 |
MegaFon OJSC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 281 | 1,387 |
Hobim Bilgi Islem Hizmetleri AS [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 1,223 | |
Vimpelcom OJSC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 586 | |
Other [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | ₺ 1,507 | ₺ 600 |
Related Parties - Schedule o189
Related Parties - Schedule of Short Term Dues to Related Parties (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of transactions between related parties [line items] | ||
Due to related parties | ₺ 6,980 | ₺ 11,201 |
Kyivstar GSM JSC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 2,346 | 2,382 |
Wind Telecomunicazioni SPA [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 1,738 | |
Vimpelcom OJSC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 1,552 | 100 |
Geocell LLC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 447 | 445 |
MegaFon OJSC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 17 | 892 |
Hobim Bilgi Islem Hizmetleri AS [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 6,260 | |
Other [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | ₺ 880 | ₺ 1,122 |
Related Parties - Schedule of T
Related Parties - Schedule of Transactions with Related Parties (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | ₺ 61,032 | ₺ 89,426 | ₺ 335,134 |
Related party expenses | 97,879 | 103,642 | 199,025 |
Kyivstar GSM JSC [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 30,875 | 30,964 | 41,728 |
Related party expenses | 49,178 | 47,595 | 49,608 |
Hobim Bilgi Islem Hizmetleri AS [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party expenses | 16,993 | 31,832 | 29,570 |
Vimpelcom OJSC [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 7,230 | 20,775 | 20,489 |
Related party expenses | 10,853 | 2,721 | 4,348 |
MegaFon OJSC [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 6,362 | 11,773 | 14,958 |
Related party expenses | 5,169 | 3,162 | 4,342 |
Telia Sonera International Carrier AB [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 10,020 | 15,761 | 16,955 |
Related party expenses | 3,120 | 2,499 | 3,409 |
Azercell Telekom MMC [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 1,583 | 2,585 | 4,183 |
Related party expenses | 734 | 1,361 | 28 |
Krea Icerik Hizmetleri ve Produksiyon AS [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 3,422 | 4,831 | |
Related party expenses | 5,975 | 15,826 | |
KVK Teknoloji [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 217,080 | ||
Related party expenses | 76,743 | ||
Other [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 4,962 | 3,149 | 6,049 |
Related party expenses | ₺ 11,832 | 8,497 | 15,151 |
Millenicom Telekomunikasyon AS [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | ₺ 997 | ₺ 8,861 |
Subsidiaries - Schedule of Subs
Subsidiaries - Schedule of Subsidiaries (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Kibris Telekom [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Kibris Telekom | |
Country of Incorporation | Turkish Republic of Northern Cyprus | |
Business | Telecommunications | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Global Bilgi [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Global Bilgi | |
Country of Incorporation | Turkey | |
Business | Customer relations management | |
Effective Ownership Interest | 100.00% | 100.00% |
Turktell [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turktell | |
Country of Incorporation | Turkey | |
Business | Information technology, value added GSM services and entertainment investments | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Superonline [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Superonline | |
Country of Incorporation | Turkey | |
Business | Telecommunications, television services and content services | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Satis [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Satis | |
Country of Incorporation | Turkey | |
Business | Sales and delivery | |
Effective Ownership Interest | 100.00% | 100.00% |
Eastasia [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Eastasia | |
Country of Incorporation | Netherlands | |
Business | Telecommunications investments | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Teknoloji [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Teknoloji | |
Country of Incorporation | Turkey | |
Business | Research and development | |
Effective Ownership Interest | 100.00% | 100.00% |
Global Tower [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Global Tower | |
Country of Incorporation | Turkey | |
Business | Telecommunications infrastructure business | |
Effective Ownership Interest | 100.00% | 100.00% |
Financell [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Financell | |
Country of Incorporation | Netherlands | |
Business | Financing business | |
Effective Ownership Interest | 100.00% | 100.00% |
Rehberlik [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Rehberlik | |
Country of Incorporation | Turkey | |
Business | Directory Assistance | |
Effective Ownership Interest | 100.00% | 100.00% |
Lifecell Ventures [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Lifecell Ventures | |
Country of Incorporation | Netherlands | |
Business | Telecommunications investments | |
Effective Ownership Interest | 100.00% | 100.00% |
Beltel [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Beltel | |
Country of Incorporation | Turkey | |
Business | Telecommunications investments | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Gayrimenkul [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Gayrimenkul | |
Country of Incorporation | Turkey | |
Business | Property investments | |
Effective Ownership Interest | 100.00% | 100.00% |
Global LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Global LLC | |
Country of Incorporation | Ukraine | |
Business | Customer relations management | |
Effective Ownership Interest | 100.00% | 100.00% |
UkrTower [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | UkrTower | |
Country of Incorporation | Ukraine | |
Business | Telecommunications infrastructure business | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Europe [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Europe | |
Country of Incorporation | Germany | |
Business | Telecommunications | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Odeme [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Odeme | |
Country of Incorporation | Turkey | |
Business | Payment services and e-money licence | |
Effective Ownership Interest | 100.00% | 100.00% |
Lifecell [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Lifecell | |
Country of Incorporation | Ukraine | |
Business | Telecommunications | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Finansman [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Finansman | |
Country of Incorporation | Turkey | |
Business | Consumer financing services | |
Effective Ownership Interest | 100.00% | 100.00% |
Beltower [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Beltower | |
Country of Incorporation | Republic of Belarus | |
Business | Telecommunications Infrastructure business | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Enerji [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Enerji | |
Country of Incorporation | Turkey | |
Business | Electricity energy trade and wholesale and retail electricity sales | |
Effective Ownership Interest | 100.00% | |
Paycell [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Paycell | |
Country of Incorporation | Ukraine | |
Business | Payment services and e-money licence | |
Effective Ownership Interest | 100.00% | |
Lifecell Digital [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Lifecell Digital | |
Country of Incorporation | Turkish Republic of Northern Cyprus | |
Business | Telecommunications | |
Effective Ownership Interest | 100.00% | |
Belarusian Telecom [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Belarusian Telecom | |
Country of Incorporation | Republic of Belarus | |
Business | Telecommunications | |
Effective Ownership Interest | 80.00% | 80.00% |
Lifetech [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Lifetech | |
Country of Incorporation | Republic of Belarus | |
Business | Research and development | |
Effective Ownership Interest | 80.00% | 80.00% |
Inteltek [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Inteltek | |
Country of Incorporation | Turkey | |
Business | Information and Entertainment Services | |
Effective Ownership Interest | 55.00% | 55.00% |
Azerinteltek [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Azerinteltek | |
Country of Incorporation | Azerbaijan | |
Business | Information and Entertainment Services | |
Effective Ownership Interest | 28.00% | 28.00% |
Subsidiaries - Schedule of Non-
Subsidiaries - Schedule of Non-Wholly Owned Subsidiaries That Have Material Non-Controlling Interests (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of subsidiaries [line items] | |||
Profit / (loss) allocated to non-controlling interests | ₺ 58,630 | ₺ 51,715 | ₺ (164,103) |
Accumulated non controlling interests | ₺ 55,927 | ₺ 56,632 | |
Inteltek [member] | |||
Disclosure of subsidiaries [line items] | |||
Place of incorporation and principal place of business | Turkey | ||
Proportion of own interests and voting held by non-controlling interest | 45.00% | 45.00% | |
Profit / (loss) allocated to non-controlling interests | ₺ 35,924 | ₺ 39,346 | |
Accumulated non controlling interests | 46,072 | 50,863 | |
Subsidiaries with immaterial non-controlling interests [member] | |||
Disclosure of subsidiaries [line items] | |||
Profit / (loss) allocated to non-controlling interests | 22,706 | 12,369 | |
Accumulated non controlling interests | ₺ 9,855 | ₺ 5,769 |
Subsidiaries - Schedule of Fina
Subsidiaries - Schedule of Financial Information of Subsidiaries (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of subsidiaries [line items] | |||
Current assets | ₺ 14,069,106 | ₺ 13,350,846 | |
Non-current assets | 19,913,363 | 18,249,312 | |
Current liabilities | 9,223,843 | 7,358,858 | |
Non-current liabilities | 9,713,538 | 8,172,903 | |
Equity attributable to owners | 14,989,161 | 16,011,765 | |
Revenue | 17,026,401 | 14,100,863 | ₺ 12,769,415 |
Profit for the year | 2,037,759 | 1,543,803 | 1,903,551 |
Other comprehensive income/(loss) for the year | (10,140) | 103,625 | (400,399) |
Dividend paid to non-controlling interests | 60,222 | 51,416 | 100,515 |
Net cash inflow from operating activities | 3,101,266 | 607,137 | 1,901,306 |
Net cash inflow from investing activities | (3,304,648) | (2,976,708) | (3,562,960) |
Net cash outflow from financing activities | (1,566,743) | 4,839,031 | (4,887,436) |
Effects of foreign exchange rate fluctuations on cash and cash equivalents | 430,106 | 664,096 | ₺ 436,005 |
Inteltek [member] | |||
Disclosure of subsidiaries [line items] | |||
Current assets | 223,119 | 191,199 | |
Non-current assets | 9,290 | 17,367 | |
Current liabilities | 125,286 | 30,516 | |
Non-current liabilities | 4,742 | 65,020 | |
Equity attributable to owners | 102,381 | 113,030 | |
Revenue | 184,025 | 178,408 | |
Expenses | (104,194) | (90,973) | |
Profit for the year | 79,831 | 87,435 | |
Other comprehensive income/(loss) for the year | 172 | (618) | |
Dividend paid to non-controlling interests | (46,582) | (44,888) | |
Net cash inflow from operating activities | 73,575 | 69,497 | |
Net cash inflow from investing activities | 19,930 | 17,470 | |
Net cash outflow from financing activities | (75,113) | (119,751) | |
Effects of foreign exchange rate fluctuations on cash and cash equivalents | 8,574 | 18,213 | |
Net cash outflow/(inflow) | ₺ 26,966 | ₺ (14,571) |
Cash Flow Information - Summary
Cash Flow Information - Summary of Reconciliation of Net Cash Flow to Movement in Net Debt (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | ₺ 9,781,162 | |||
Cash inflows | 24,312,451 | |||
Cash outflows | (23,273,370) | |||
Other non-cashmovements | 1,715,906 | |||
Borrowings, ending balance | 12,536,149 | |||
Cash and cash equivalents | 4,712,333 | ₺ 6,052,352 | ₺ 2,918,796 | ₺ 9,031,881 |
Net debt | (7,823,816) | |||
Debt securities issued [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | 1,922,656 | |||
Cash inflows | 209,808 | |||
Cash outflows | (503,391) | |||
Other non-cashmovements | 246,448 | |||
Borrowings, ending balance | 1,875,521 | |||
Loans Issued [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | 7,810,392 | |||
Cash inflows | 24,030,222 | |||
Cash outflows | (22,768,911) | |||
Other non-cashmovements | 1,466,205 | |||
Borrowings, ending balance | 10,537,908 | |||
Finance lease liabilities [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | 48,114 | |||
Cash inflows | 72,421 | |||
Cash outflows | (1,068) | |||
Other non-cashmovements | 3,253 | |||
Borrowings, ending balance | ₺ 122,720 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) ₺ in Thousands, ₴ in Thousands, € in Thousands, $ in Thousands | Mar. 20, 2018USD ($) | Mar. 06, 2018UAH (₴) | Mar. 05, 2018EUR (€) | Feb. 15, 2018TRY (₺)Installments | Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016TRY (₺) | Mar. 01, 2018TRY (₺) | Mar. 01, 2018UAH (₴) |
Subsequent event1 [line items] | |||||||||
Payment of license | ₺ 1,522,615 | ||||||||
Lifecell [member] | |||||||||
Subsequent event1 [line items] | |||||||||
Ownership percentage | 100.00% | 100.00% | |||||||
Events after reporting period [member] | |||||||||
Subsequent event1 [line items] | |||||||||
Dividends payable | ₺ 1,239,500 | ||||||||
Percentage of distributable net income | 63.00% | ||||||||
Number of dividend payment installments | Installments | 3 | ||||||||
Events after reporting period [member] | Azerbaijan International Telecom LLC [member] | |||||||||
Subsequent event1 [line items] | |||||||||
Equity interest percentage | 51.30% | ||||||||
Consideration transferred | € | € 221,700 | ||||||||
Events after reporting period [member] | 2600 MHz frequency tender [member] | |||||||||
Subsequent event1 [line items] | |||||||||
License period | 15 years | ||||||||
Payment of license | ₺ 129,155 | ₴ 909,251 | |||||||
Events after reporting period [member] | Fintur [member] | |||||||||
Subsequent event1 [line items] | |||||||||
Ownership percentage | 41.45% | ||||||||
Events after reporting period [member] | Gurtel [member] | |||||||||
Subsequent event1 [line items] | |||||||||
Ownership percentage | 99.99% | ||||||||
Events after reporting period [member] | Geocell LLC [member] | |||||||||
Subsequent event1 [line items] | |||||||||
Percentage of share transfer | 100.00% | ||||||||
Share transfer consideration | $ | $ 153,000 | ||||||||
Events after reporting period [member] | Lifecell [member] | 1800 MHz frequency tender [member] | |||||||||
Subsequent event1 [line items] | |||||||||
License period | 15 years | ||||||||
License fee bid amount | ₴ | ₴ 795,000 |