Turkcell Iletisim Hizmetleri A.S. Third Quarter 2009 Results

"Continued Solid Operational Performance"

ISTANBUL, November 12 /PRNewswire-FirstCall/ -- Turkcell (NYSE:TKC,
ISE:TCELL), the leading communications and technology company, today
announced results for the third quarter ended September 30, 2009. All
financial results in this press release are unaudited, prepared in accordance
with International Financial Reporting Standards ("IFRS") and expressed in
dollars unless otherwise stated.
Please note that all financial data is consolidated and comprises
Turkcell Iletisim Hizmetleri A.S., (the "Company", or "Turkcell") and its
subsidiaries and its associates (together referred to as the "Group"). All
non-financial data is unconsolidated and comprises Turkcell only. The terms
"we", "us", and "our" in this press release refer only to the Company, except
in discussions of financial data, where such terms refer to the Group, and
where context otherwise requires.
Highlights of the quarter

- Turkcell Group continued its solid performance in the third
quarter of 2009 despite the tough macroeconomic environment and intense
competition.

- Group revenue for the third quarter was TRY2,368.0 million
(TRY2,458.4 million) declining by 3.7% yoy and increasing by 7.4%
compared to the last quarter. Compared to last year, revenue was
negatively impacted by decreasing revenues from outgoing calls and the
declining contribution of our consolidated subsidiaries, particularly
Astelit and Inteltek.

- Group EBITDA** came in at TRY813.7 million (TRY1,001.8
million). EBITDA margin was 34.4% in the third quarter representing a
6.4pp year on year decrease and a 2.2pp quarter on quarter increase.
In addition to the decline in our revenue, the reason for the
year-on-year decrease in EBITDA margin was the 4.4 pp increase in
interconnection costs, 1.3 pp increase in network expenses, 0.4 pp
increase in selling and marketing expenses, and 0.2 pp increase in
other items.

- Group net income decreased by 31.4% year on year to TRY496.8
million (TRY724.2 million) but increased by 27.6% compared to the
previous quarter in line with the EBITDA trend.

- In Turkey mobile communication revenues continued to grow in
the first nine months of 2009. However, mobile line penetration in the
market decreased due to the declining multiple SIM card usage. In the
third quarter, our postpaid subscriber base grew to 9.1 million with
482,000 net additions, while the total net subscriber loss was 338,500
compared to the last quarter.

- MoU increased by 36.1% to 148.6 minutes and ARPU in TRY
terms decreased by 4.4% year-on-year to TRY19.7.

- The performance of Turkcell Group Companies improved in the third
quarter with Superonline recording positive EBITDA for the second
consecutive quarter, Astelit improving its EBITDA margin and Inteltek
improving its performance compared to a quarter ago.

- TRY depreciated by 24.7% year-on-year against the US Dollar,
leading to a 22.8% decrease in Group revenue in US dollar terms to
$1,587.9 million ($2,055.9 million), a 34.9% decrease in EBITDA to
$545.4 million ($837.8 million), and a decrease in net income of 44.9%
to $332.9 million ($603.8 million) in the third quarter.

* Authority: Turkey's Information and Communication Technologies
Authority will be referred to as Authority hereafter.
**EBITDA is a non-GAAP financial measure. See pages 13-14 for the
reconciliation of EBITDA to net cash from operating activities.
à In this press release, a year on year comparison of our key indicators
is provided and figures in parentheses following the operational and
financial results for the third quarter 2009 refer to the same item in the
third quarter of 2008. For further details, please refer to our consolidated
financial statements and notes as at and for the nine months ended September,
2009 which can be accessed via our web site in the investor relations section
(www.turkcell.com.tr).
Comments from the CEO, Sureyya Ciliv
"In the third quarter of 2009, we delivered solid operational results in
a challenging environment: Turkcell Group revenue was TRY 2,368 million, with
an EBITDA of TRY 814 million and net income of TRY 497 million.
In Turkey, we strengthened our competitive position through successful
launch of Turkcell 3G network offering the fastest mobile broadband and the
widest coverage. We are very pleased with the high level customer interest
ahead of our expectations and excited about offering innovative mobile
services to our consumer and corporate customers. We believe, going forward,
our 3G business model will derive the growth in our VAS revenues through
increased penetration of mobile broadband and services in this new 3G era.
In 2009, Turkish market was negatively impacted due to higher
interconnection costs resulting from the unlimited flat rate offers triggered
by competition. We have taken actions to minimize the impact of these
challenges and are content to see signs of more rational behaviour beginning
at the end of the quarter. During the third quarter, we also saw an
improvement in operational results from our consolidated local and
international subsidiaries.
Overall, I am satisfied with our performance so far in 2009 and we remain
confident and optimistic about 2010. Next year, we expect our revenues and
EBITDA to benefit from improvements in the economic environment and consumer
confidence combined with growth in our mobile broadband business, a more
rational market, and the increasing profitability of our subsidiaries.
I would like to thank all of our customers, employees, business partners,
and shareholders for their continued support in such a challenging
environment."
OVERVIEW OF THE QUARTER
Following GDP contraction of 10.6% in the first half of the year, the
difficult macroeconomic environment in Turkey continued into the third
quarter. This, coupled with unlimited flat rate offers introduced in our
market, along with mobile number portability, led to a decline in multiple
SIM card usage resulting in lower mobile line penetration rate. Mobile line
penetration is around 88% as of September 30, 2009 and we expect year end
mobile line penetration rate to stay aroundthese levels.
Competition in the third quarter remained intense, particularly due to
the continuing unlimited flat rate offers for all directions, which resulted
in a change in traffic trends towards off-net. Driven by competition, this
trend led to reduced profitability across our sector in 2009. However, we
have seen some upward revisions in monthly flat rate package pricing,
limitations to the minute incentives on so called unlimited offers, and start
up package pricing towards the end of the quarter, in an attempt to increase
profitability. Including the recent price increases, our cumulative price
increase totaled 9.9% so far in 2009. We view these developments as positive
for the sector, although they are yet to translate into a long term trend.
During the third quarter, we sustained our strong operational performance
in the Turkish Mobile market through our unique value propositions. The
strong uptake in postpaid subscriptions and usage continued despite Ramadan
thanks to our segmented offers and strong sales efforts.
As for 3G implementation, we have ensured the best coverage and fastest
3G network in Turkey from day one. Our superior service and network quality,
coupled with a comprehensive service portfolio and the best mobile broadband
offer in the market, created higher than expected demand for our services,
resulting in a strong rise in data usage. Our VAS revenues comprised 15% of
our consolidated revenue in the third quarter of 2009, compared to 14% a year
ago.
In Turkey, going forward we will maintain our focus on primary drivers of
top line growth with an emphasis on increasing postpaid subscriptions and
usage. In addition, we will capitalize on opportunites in mobile broadband
and innovative mobile services, which we see as key drivers of future market
growth in Turkey. Overview of the Macroeconomic Environment

Q3 2008 Q2 Q3 2009 Q3 Q3 2009-Q2
2009-Q3 2009
2009 2008
% Chg
% Chg
TRY / $ rate
Closing Rate 1.2316 1.5301 1.4820 20.3% (3.1%)
Average Rate 1.1959 1.5801 1.4910 24.7% (5.6%)
INFLATION
Consumer Price 0.8% 0.8% 0.3% (0.5 pp) (0.5 pp)
Index
GDP Growth 1.0% (7.0%) n/a - -
UAH/$
Average Rate 4.85 7.66 7.84 61.6% 2.3%

The data released in the third quarter of the year pointed to some
improvement in the rate of GDP contraction, which slowed to 7% in the second
quarter from 14.3% in the first quarter of the year. TRY continued its
appreciation against the US dollar. However, it remained 24.7% weaker
compared to the same period in 2008, which adversely impacted our financial
results in US dollar terms. In addition, we have seen a decline in consumer
confidence since June.
During the third quarter of 2009 the Ukrainian Hryvnia devalued by 62%
against the US dollar year-on-year.
Financial and Operational Review of the Third Quarter 2009
The following discussion focuses principally on the developments and
trends in our business in the third quarter of 2009. Selected financial
information for the third quarter of 2008, second quarter of 2009 and third
quarter of 2009 is also included at the end of this press release.
For your convenience, selected financial information in TRY prepared in
line with IFRS and the Capital Markets Board of Turkey's standards is also
included at the end of this press release. Financial Review

(million $)
Profit & Loss Statement Q308 Q209 Q309 Q309-Q308 Q309-Q209
(million $) % Chg % Chg

Total Revenue 2,055.9 1,398.0 1,587.9 (22.8%) 13.6%
Direct cost of revenues (935.5) (741.4) (836.4) (10.6%) 12.8%
Depreciation and (172.0) (132.8) (150.5) (12.5%) 13.3%
amortization
Administrative expenses (87.9) (63.6) (67.6) (23.1%) 6.3%
Selling and marketing (366.8) (277.0) (289.0) (21.2%) 4.3%
expenses
EBITDA 837.8 448.8 545.4 (34.9%) 21.5%
EBITDA Margin 40.8% 32.1% 34.3% (6.5 pp) 2.2 pp
Net finance income / 67.0 (38.3) (1.2) (101.8%) (96.9%)
(expense)
Finance expense (16.7) (69.0) (70.5) 322.2% 2.2%
Finance income 83.7 30.7 69.3 (17.2%) 125.7%
Share of profit of 25.1 15.1 27.2 8.4% 80.1%
associates
Income tax expense (160.3) (47.4) (93.8) (41.5%) 97.9%
Net Income 603.8 245.8 332.9 (44.9%) 35.4%

(table continued)

(million TRY)
Profit & Loss Statement Q309 Q309-Q308 Q309-Q209
(million $) % Chg % Chg

Total Revenue 2,368.0 (3.7%) 7.4%
Direct cost of revenues (1,246.9) 11.5% 6.8%
Depreciation and (224.2) 8.9% 7.1%
amortization
Administrative expenses (100.8) (4.1%) 0.6%
Selling and marketing (430.9) (1.8%) (1.4%)
expenses
EBITDA 813.7 (18.8%) 14.7%
EBITDA Margin 34.4% (6.4 pp) 2.2 pp
Net finance income / (1.8) (102.2%) (97.0%)
(expense)
Finance expense (103.0) 415.0% (3.8%)
Finance income 101.2 0.9% 115.8%
Share of profit of 40.5 26.6% 69.5%
associates
Income tax expense (139.9) (27.0%) 85.8%
Net Income 496.8 (31.4%) 27.6%

Revenue: In the third quarter of 2009, revenue contracted by 3.7%
year-on-year to TRY2,368.0 million as a result of the declining revenue from
outgoing calls due to the unlimited offers in the market and the lower
contribution of our consolidated subsidiaries. The contribution from
Turkcell's consolidated subsidiaries was adversely affected by two key
developments: the volatile macroeconomic environment in Ukraine which
continued to have a negative impact on Astelit mainly due to the 62%
depreciation of the Hryvnia against the US dollar, resulting in a 27.1%
revenue decrease in US dollar terms to $93.2 million from $127.8 million at
the same time in 2008; and a decrease in the revenue contribution of our
betting business, Inteltek, due to the lower commission rates compared to the
same period of last year. Inteltek recorded revenues of TRY10.5 million
compared to TRY38.4 million in the third quarter of 2008.
In US dollar terms, Turkcell recorded revenue of $1,587.9 million for the
third quarter, down 22.8% compared to the third quarter of 2008, mainly due
to the 24.7% depreciation of the TRY against the US dollar.
Quarter-on-quarter, revenue increased by 7.4% in TRY terms mainly due to
seasonally higher usage in Turkey, despite the month of Ramadan which
generally adversely impacts usage.
Direct cost of revenues: Direct cost of revenues including depreciation
and amortization decreased by 10.6% to $836.4 million in the third quarter of
2009. During the same period, direct cost of revenues as a percentage of
total revenues increased to 52.7% from 45.5%. This was due to the increase in
interconnection costs (4.4 pp) as a result of increasing off-net traffic,
network related expenses (1.3 pp), higher depreciation and amortization
expenses (1.1 pp), and other expenses (0.4 pp) as a percentage of revenues.
Compared to the previous quarter, direct cost of revenues including
depreciation and amortization increased by 12.8%. However, as a proportion of
revenues it remained almost flat mainly due to higher interconnection costs
(0.2 pp) netted off with decreasing costs from handsets (0.6 pp) bundled for
the loyalty programs.
Administrative expenses: General and administrative expenses as a
percentage of revenue remained flat year-on-year at 4.3%.
Selling and marketing expenses: Selling and marketing expenses increased
slightly by 0.4 pp to 18.2% as a percentage of revenue in the third quarter
of 2009 mainly due to higher advertising expenses with the launch of 3G and a
higher frequency usage fee due to higher fee per subscriber compared to the
third quarter of the previous year.
Compared to the previous quarter, selling and marketing expenses as a
percentage of revenue decreased by 1.6 pp mainly due to declining selling
expenses as a result of our efficiency efforts.
EBITDA[1]: EBITDA, in nominal terms, decreased by 34.9% to $545.4 million
and the EBITDA margin by 6.5 pp to 34.3%. This was mainly due to the decline
in our revenue coupled with the 4.4 pp increase in interconnection costs,
higher network related expenses by 1.3 pp, slight increase in selling and
marketing expenses by 0.4 pp, and increase in other items by 0.4pp as a
percentage of revenues,
EBITDA in TRY terms decreased by 18.8% to TRY813.7 million compared to
the third quarter of 2008.
Compared to the second quarter of 2009, EBITDA margin increased by 2.2
pp. This was mainly due to absence of litigation provision set in the second
quarter of 2009 related to Turkcell's ongoing dispute in regards to
international voice traffic and the decrease in selling and marketing
expenses as a percentage of revenues partially netted off with the increasing
interconnect costs as a result of increasing off-net traffic.
Share of profit of equity accounted investees: In the third quarter of
2009, our share in the net income of unconsolidated investees, consisting of
the net income/(expense) impact of Fintur and A-Tel, increased by 8.4% to
$27.2 million due to better contribution of Fintur.
The results of our 50% owned subsidiary A-Tel impacted two items in our
financial statements. A-Tel's revenue generated from Turkcell, amounting to
$10.0 million, is netted out from the selling and marketing expenses in our
consolidated financial statements in proportion to our ownership. The
difference between the total net impact of A-Tel and the amount netted out
from selling and marketing expenses amounted to $13.9 million and is recorded
in the 'share of profit of equity accounted investees' line of our financial
statements in the third quarter of 2009.
Net finance income/(expense): In the third quarter of 2009, we recorded a
net finance expense of $1.2 million compared to a net finance income of $67.0
million in the same period of 2008, mainly due to a decrease in interest
income as a result of a decrease in our cash balance and declining interest
rates and the higher translation loss. During the quarter, we recorded a
translation loss of $46.6 million mainly due to the exchange rate
fluctuations between TRY and the US dollar on Turkcell's long foreign
exchange position and Hryvnia and the US dollar on Astelit's foreign currency
debt.
Compared to the previous quarter, the finance income increased to $69.3
million from $30.7 million mainly due to decrease in translation loss. The
finance expense remained almost stable at $70.5 million due to increase in
translation loss and loan interest expense netted off with the absence of the
interest component of the litigation provisions recorded during the second
quarter which amounted to $62.0 million.
Income tax expense: The total taxation charge in the third quarter of
2009 decreased to $93.8 million, from $160.3 million in the same quarter of
last year.
The total tax charge of $94.4 million was related to current tax charges
while deferred tax income of $0.6 million was recorded.
(million $) Q308 Q209 Q309 Q309-Q308 Q309-Q209
% Chg % Chg
Current tax expense (172.5) (83.6) (94.4) (45.3%) 12.9%
Deferred Tax income 12.2 36.2 0.6 (95.1%) (98.3%)
/ (expense)
Income Tax expense (160.3) (47.4) (93.8) (41.5%) 97.9%

Net income: Net income decreased by 44.9% year-on-year to $332.9 million
and net income margin by 8.4 pp to 21.0% mainly due to lower EBITDA.
Compared to the second quarter, net income increased by 35.4% due to
increase in EBITDA and the absence of litigation provisions negatively
impacting results in the second quarter of 2009.
Total Debt: Consolidated debt amounted to $1,162.2 million as of
September 30, 2009 increasing from $776.2 million as of June 30, 2009. $533.3
million of this was related to Turkcell's Ukrainian operations. $982.9
million of our consolidated debt is at a floating rate and $601.7 million
will mature in less than a year. We believe that we have maintained a strong
balance sheet throughout the financial crisis with a solid cash position and
a debt/annual EBITDA ratio of 58%.
Consolidated Cash Flow (million $) Q308 Q209 Q309

EBITDA 837.8 448.8 545.4
LESS:
Capex and License (175.7) (789.5) (326.1)
Turkcell (80.8) (670.8) (196.4)
Ukraine (47.7) (35.1) (31.9)
Investment & Marketable Securities (300.0) - 30.6
Net Interest Income/Expense 101.6 5.8 45.4
Other (256.3) 166.7 (25.5)
Net Change in Debt 73.2 1.8 409.0
Dividend paid - (713.3) -
Cash Generated 280.6 (879.7) 678.8
Cash Balance 3,156.8 1,963.5 2,642.3

Cash Flow Analysis: Capital expenditures in the third quarter of 2009
amounted to $326.1 million of which $31.9 million was related to our
Ukrainian operations, $32.7 million to our Belarusian operations and $43.5
million to our Superonline operations.
Capital expenditures year to date totalled $1,367.6 million of which
$1,048.8 million (including 3G license fee) was related to Turkcell Turkey,
$109.2 million to our Ukranian operations, $69.6 million to our Belarusian
operations and $92.1 million to our Superonline operations.
Turkcell recorded free cash flow (cash flow from operating activities
minus capital expenditure) of $191.2 million, compared to $478.3 million in
the same period of 2008, primarily due to an increase in capital expenditure
and a decrease in EBITDA.
The increase in our cash balance to $2.6 billion from $2.0 billion a
quarter ago was mainly due to the increase in cash flow from operating
activities and lower capital expenditures related with the absence of 3G
license fee payment in the third quarter of 2009. Operational Review

Summary of Q308 Q209 Q309 Q309-Q308 Q309-Q209

Operational Data (Turkcell) % Chg % Chg

Number of total subscribers 36.3 36.3 36.0 (0.8%) (0.8%)
(million)
Number of postpaid subscribers 7.2 8.6 9.1 26.4% 5.8%

(million)
Number of prepaid subscribers 29.1 27.7 26.9 (7.6%) (2.9%)

(million)

ARPU (Average Monthly Revenue per 17.3 11.8 13.2 (23.7%) 11.9%
User), blended ($)
ARPU, postpaid ($) 41.9 26.5 28.1 (32.9%) 6.0%
ARPU, prepaid ($) 11.2 7.5 8.4 (25.0%) 12.0%

ARPU, blended (TRY) 20.6 18.6 19.7 (4.4%) 5.9%
ARPU, postpaid (TRY) 50.1 41.8 41.8 (16.6%) 0.0%
ARPU, prepaid (TRY) 13.4 11.8 12.5 (6.7%) 5.9%

Churn (%) 6.2% 9.0% 10.2% 4.0 pp 1.2 pp

MOU (Average Monthly Minutes of 109.2 127.9 148.6 36.1% 16.2%
usage per subscriber), blended

Subscribers: Our subscriber base totaled 36.0 million as of September 30,
2009 slightly down by 0.8% compared to the third quarter of 2008 and the
second quarter of 2009. However, in the third quarter, we successfully grew
our postpaid subscriber base by 26.4% to 9.1 million from 7.2 million a year
ago. The share of the postpaid subscriber base improved to 25.3% from 19.8%
in the same period last year.
In the third quarter of 2009, the number of prepaid subscribers decreased
by 7.6% to 26.9 million as a result of market contraction due to declining
multiple SIM card usage as a result of mobile number portability. Our
postpaid subscriber base grew to 9.1 million with 482,000 net additions while
we recorded a net subscriber loss of 338,500 stemming from the greater churn
in a highly competitive market.
Churn Rate: Churn refers to voluntarily and involuntarily disconnected
subscribers. In the third quarter of 2009, we recorded a churn rate of 10.2%
mainly due to prepaid involuntary churn.
MoU: In the third quarter of 2009, our blended minutes of usage per
subscriber ("MoU") increased by 36.1% to 148.6 minutes compared to the same
period of last year. Our successful campaigns and tariffs resulted in the
highest usage levels since 2001, despite the negative impact of Ramadan in
the third quarter.
ARPU: In the third quarter of 2009, our blended average revenue per user
("ARPU") in TRY terms decreased by 4.4% to TRY19.7 compared to the same
period of last year with increasing subscriptions to minute packages and
lower mobile termination rates. However, the 24.7% depreciation of the TRY
against the US dollar resulted in a 23.7% decline in blended ARPU in US
dollar terms to $13.2.
Postpaid ARPU in TRY terms was TRY41.8, a 16.6% decrease year-on-year.
This mainly stemmed from the subscriptions to tariffs in the form of minute
packages, the adverse impact of the worsening macroeconomic conditions.
However, postpaid ARPU remained flat compared to the last quarter, thanks to
our segmented offers.
Prepaid ARPU in TRY terms decreased by 6.7% to TRY12.5 in the third
quarter of 2009, mainly due to the effects of new tariffs and campaigns in a
highly competitive market.
Regulatory and Legal Issues
On 27 April 2009, the Authority notified upper ceiling for onnet and
offnet calling prices. On 20 October 2009, the Authority stated that the
Company applied tariffs above upper ceiling and requested the Company to
reimburse overcharged amounts to subscribers within one month. The
calculation methodology for overcharged amounts and reimbursement method are
not clarified by the Authority as of 12 November 2009 and negotiations
between the Company Management and the Authority on this issue are
continuing. Based on the management's estimation, an accrual amounting to TRY
23,7 million (equivalent to $16,0 million as at 30 September 2009) is set for
the possible reimbursement to compensate the aforementioned issue and other
complaints of the subscribers and deducted from revenues in the consolidated
interim financial statements as at and for the nine months ended 30 September
2009.
We received another notification, based on the Tax Investigation Reports
dated 2 October, 2009 from the Presidency of Large Taxpayers Office, Audit
Group Management, on a different matter on 21 October, 2009 indicating that:
We should calculate Value Added Tax ("VAT") and Special Communication Tax
("SCT") on charges paid to international Mobile operators for the calls
initiated by our subscribers abroad (roaming), charge VAT and SCT to and
collect them from our subscribers. Based on this notification, we have been
asked to provide collateral for the principal of VAT and SCT amounting to
TRY258 million for the period from April 2005 to July 2009, and for an
interest to be calculated until the day of payment.
Based on the ruling dated 9 February, 2005 from the Ministry of Finance,
Presidency of Revenue Administration, we did not charge our subscribers any
VAT and SCT related to roaming charges paid to international Mobile operators
on the calls initiated abroad from April 2005 onwards.
The aforementioned VAT and SCT are collected and passed on to the
government by Turkcell, which carries out all tax applications in accordance
with the views and directives of the Ministry of Finance and related
government bodies.
Our Company will cooperate with the representatives of the Presidency of
Revenue Administration at the Ministry of Finance in an effort to eliminate
all discrepancies to resolve this issue in a manner that is fair to both the
government and our subscribers.
Our company provided the requested collateral and filed a lawsuit for the
cancellation of the decision of Tax Authority requesting collateral.
Additionally, there is a development about the court case initiated by
Turk Telekom due to international interconnection agreement for carrying the
voice traffic through Milleni.com GMbH. The international interconnection
agreement signed between our Company and Milleni.com GMbH for carrying voice
traffic has been signed with the permission and the approval of the Ministry
of Transportation and Information and Communication Technologies Authority
(formerly known as Telecommunications Authority). Accordingly, the
aforementioned agreement and the commercial activities conducted with this
regard is legal; thus this court decision is not fair and in contradiction
with the law and the practice. We are confident and maintain our view that
this case has no legal basis. We, therefore, will appeal this decision once
we receive the court decision.
As we have stated in our notes to our previous financial statements;
following two expertise reports and taking into consideration the
developments in the related case, a provision totaling to a nominal amount of
TRY 122.3 million, including TRY44.9 million in principal and TRY 77.4
million in accrued interest, was provisioned in our consolidated interim
financial statements dated June 30, 2009. Notwithstanding our constitution of
a provision, we continue to disagree with the alleged legal basis on which
Turk Telekom's claim has been made. We are not planning to set aside any
additional provisions other than the one in our financial statements.
International Operations
Astelit
Astelit, in which we hold a 55% stake through Euroasia, has operated in
Ukraine since February 2005 under the brand "life:)".
- The volatile political and macro-economic environment in Ukraine
continued to have an adverse impact on the local currency. The
year-on-year depreciation of Hryvnia against the US dollar was
approximately 62% in the third quarter of 2009.

- Astelit's revenue decreased by 27.1% to $93.2 million compared to the
third quarter of last year mainly due to the depreciation effect of
the local currency against the US dollar.

- Astelit recorded positive EBITDA[2] of $7.4 million during
the third quarter. The EBITDA margin decreased slightly to 7.9% from
8.8% in the same period of 2008. EBITDA margin improved by 5.2pp from
2.7% compared to a quarter ago.

- Astelit's net loss increased by 75.6% to $42.5 million
compared to the third quarter of last year mainly due to higher
translation loss.

- Astelit's number of subscribers grew by 10.3% on an annual
basis to 11.8 million. In the third quarter of 2009:

- The 3 month active subscriber base grew 23.8%
year-on-year, reaching 66% of the total subscriber base.

- The 3 month active ARPU decreased by 45.7% on an annual
basis.

- Astelit's capital expenditure amounted to $31.9 million in
the third quarter of the year.

To ensure effective cash management, our 100% subsidiary Financell B.V
signed a vendor financing agreement for up to approximately US$75 million for
Astelit LLC's 2G infrastructure investments on July 16, 2009. Our commitment
to the Ukrainian market remains strong.
Summary Data for Q308 Q209 Q309 Q309-Q308 Q309-Q209
Astelit
% Chg % Chg
Number of subscribers
(million)
Total 10.7 11.7 11.8 10.3% 0.9%
Active (3 months)[3] 6.3 8.0 7.8 23.8% (2.5%)

Average Revenue per
User

(ARPU) in $
Total 4.1 2.5 2.6 (36.6%) 4.0%
Active (3 months) 7.0 3.5 3.8 (45.7%) 8.6%

Revenue 127.8 85.9 93.2 (27.1%) 8.5%
EBITDA 11.3 2.3 7.4 (34.5%) 221.7%
Net Loss (24.2) (19.6) (42.5) 75.6% 116.8%
Capex 47.7 35.1 31.9 (33.1%) (9.1%)

Fintur
Turkcell holds a 41.45% stake in Fintur and through Fintur has interests
in Mobile operations in Kazakhstan, Azerbaijan, Moldova, and Georgia.
FINTUR Q308 Q209 Q309 Q309-Q308 Q309-Q209

% Chg % Chg
Subscriber (million)
Kazakhstan 7.0 7.1 7.1 1.4% 0.0%
Azerbaijan 3.4 3.6 3.7 8.8% 2.8%
Moldova 0.5 0.6 0.6 20.0% 0.0%
Georgia 1.5 1.6 1.6 6.7% 0.0%
TOTAL 12.4 12.9 13.0 4.8% 0.8%
Revenue
Kazakhstan 276 210 223 (19.2%) 6.2%
Azerbaijan 148 124 132 (10.8%) 6.5%
Moldova 17 16 17 0.0% 6.3%
Georgia 59 42 47 (20.3%) 11.9%
Other* - 1 1 - 0.0%
TOTAL 500 393 420 (16.0%) 6.9%

(*)includes intersegment eliminations
Fintur's subscriber base continued to grow in the third quarter despite
continuing economic challenges in the countries where Fintur operates. The
total number of subscribers increased by 4.8% to 13.0 million compared to the
same period last year. Consolidated revenue decreased by 16.0% compared to
the same period last year but grew by 6.9% compared to the second quarter
mainly due to seasonality.
We account for our investment in Fintur using the equity pick up method.
Fintur's contribution to our net income increased to $41.1 million in the
third quarter of 2009 compared to the third quarter of 2008.
Reconciliation of Non-GAAP Financial Measures
We believe that EBITDA is a measure commonly used by companies, analysts
and investors in the telecommunications industry, which enhances the
understanding of our cash generation ability and liquidity position and
assists in the evaluation of our capacity to meet our financial obligations.
We also use EBITDA as an internal measurement tool and, accordingly, we
believe that the presentation of EBITDA provides useful and relevant
information to analysts and investors.
Beginning from the 2006 fiscal year, we have revised the definition of
EBITDA which we use and we report EBITDA using this new definition starting
from the first quarter of 2006 results announcement to provide a new measure
to reflect solely cash flow from operations.
The EBITDA definition used in our previous press releases and
announcements had included Revenue, Direct Cost of Revenue excluding
depreciation and amortization, Selling and Marketing expenses, Administrative
expenses, translation gain/(loss), finance income, share of profit of equity
accounted investees, gain on sale of investments, income/(loss) from related
parties, minority interest and other income/(expense). Our new EBITDA
definition includes Revenue, Direct Cost of Revenue excluding depreciation
and amortization, Selling and Marketing expenses and Administrative expenses,
but excludes translation gain/(loss), finance income, share of profit of
equity accounted investees, gain on sale of investments, income/(loss) from
related parties, minority interest and other income/(expense).
EBITDA is not a measure of financial performance under IFRS and should
not be construed as a substitute for net earnings (loss) as a measure of
performance or cash flow from operations as a measure of liquidity.
The following table provides a reconciliation of EBITDA, which is a
non-GAAP financial measure, to net cash from operating activities, which we
believe is the most directly comparable financial measure calculated and
presented in accordance with IFRS.
TURKCELL Q308 Q209 Q309 Q309-Q308 Q309-Q209

$ million % Chg % Chg

EBITDA 837.8 448.8 545.4 (34.9%) 21.5%
Income Tax Expense (160.3) (47.4) (93.8) (41.5%) 97.9%
Other operating 3.7 (2.7) 7.0 89.2% (359.3%)
income/(expense)
Finance income 2.0 3.6 (0.5) (125.0%) (113.9%)
Finance expense (8.4) (68.5) (26.9) 220.2% (60.7%)
Net (20.8) 3.7 86.1 (513.9%) 2227.0%
increase/(decrease)
in assets and
liabilities
Net cash from 654.0 337.5 517.3 (20.9%) 53.3%
operating
activities

EUROASIA (Astelit) Q308 Q209 Q309 Q309-Q308 Q309-Q209

$ million % Chg % Chg

EBITDA 11.3 2.3 7.4 (34.5%) 221.7%
Other operating 0.6 (0.9) 2.1 250.0% (333.3%)
income/(expense)
Finance income 2.0 0.5 0.2 (90.0%) (60.0%)
Finance expense (8.5) (6.9) (0.2) (97.6%) (97.1%)
Net 36.4 27.2 13.2 (63.7%) (51.5%)
increase/(decrease)
in assets and
liabilities
Net cash from 41.8 22.2 22.7 (45.7%) 2.3%
operating
activities

Turkcell Group Subscribers
We had approximately 61.9 million subscribers as of September 30, 2009.
This figure is calculated by taking the number of subscribers in Turkcell and
each of our subsidiaries and unconsolidated investees. This figure includes
the total number of subscribers in Astelit, BeST, in our operations in the
Turkish Republic of Northern Cyprus ("Northern Cyprus") and Fintur. In the
past, when presenting our total group subscribers, we have presented this
figure on a proportional basis, adjusted to reflect our ownership interest in
each subsidiary. We believe that the method of calculation given above is a
good indicator of our Group's reach and intend to use this new method of
calculation going forward.
Turkcell Q308 Q209 Q309 Q309-Q308 Q309-Q209
Group
Subscribers % Chg % Chg

(million)

Turkcell 36.3 36.3 36.0 (0.8%) (0.8%)
Ukraine 10.7 11.7 11.8 10.3% 0.9%
Fintur 12.4 12.9 13.0 4.8% 0.8%
Northern 0.3 0.3 0.3 0.0% 0.0%
Cyprus
Belarus 0.2 0.6 0.8 300.0% 33.3%
TURKCELL 59.9 61.8 61.9 3.3% 0.2%
GROUP

Forward-Looking Statements
This release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934 and the Safe Harbor provisions of the US Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts included in this press release, including,
without limitation, certain statements regarding our operations, financial
position and business strategy may constitute forward-looking statements. In
addition, forward-looking statements generally can be identified by the use
of forward-looking terminology such as, among others, "may," "will,"
"expect," "intend," "plan," "estimate," "anticipate," "believe" or "continue."
Although Turkcell believes that the expectations reflected in such
forward-looking statements are reasonable at this time, it can give no
assurance that such expectations will prove to be correct. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements particularly in the current operating and macro
environment. All subsequent written and oral forward-looking statements
attributable to us are expressly qualified in their entirety by reference to
these cautionary statements.
For a discussion of certain factors that may affect the outcome of such
forward looking statements, see our Annual Report on Form 20-F for 2008 filed
with the U.S. Securities and Exchange Commission, and in particular the risk
factor section therein.
We undertake no duty to update or revise any forward looking statements,
whether as a result of new information, future events or otherwise.
http://www.turkcell.com.tr
ABOUT TURKCELL
Turkcell is the leading Mobile operator in Turkey with 36.0 million
postpaid and prepaid customers as of September 30, 2009 operating in a three
player market with a market share of approximately 56% as of September 30,
2009 (Source: operators' announcements). Turkcell, is the technology leader
providing EDGE technology across the country. Turkcell also provides high
quality data and voice services to 65% of the population (as at 30 September
2009) through the implementation of its 3G technology. Turkcell provides
roaming with 628 operators in 206 countries as of September 18, 2009. Serving
a large subscriber base in Turkey with its high-quality wireless telephone
network, Turkcell reported $1.6 billion net revenue for the quarter ended
September 30, 2009 as per IFRS financial statements. Turkcell has interests
in international Mobile operations in Azerbaijan, Belarus, Georgia,
Kazakhstan, Moldova, Northern Cyprus and Ukraine and together with Turkey had
approximately 61.9 million subscribers as of September 30, 2009. Turkcell has
been listed on the NYSE ("New York Stock Exchange") and the ISE ("Istanbul
Stock Exchange") since July 2000 and is the only NYSE listed company in
Turkey. 51.00% of Turkcell's share capital is held by Turkcell Holding, 0.05%
by Cukurova Group, 13.07% by Sonera Holding, 2.32% by M.V. Group and 0.08% by
others while the remaining 33.48% is free float.
---------------------------------
[1] EBITDA is a non-GAAP financial measure. See pages 13 for the
reconciliation of EBITDA to net cash from operating activities.
[2] EBITDA is a non-GAAP financial measure. See pages 14 for the
reconciliation of Euroasia's EBITDA to net cash from operating activities.
Euroasia holds a 100% stake in Astelit.
[3] Active subscribers are those who in the past three months made a
transaction which brought revenue to the Company.
TURKCELL ILETISIM HIZMETLERI A.S.
IFRS SELECTED FINANCIALS (US$ MILLION)

Quarter Quarter Quarter
Ended Ended Ended
September June 30, September
30, 2008 2009 30, 2009

Consolidated Statement of Operations Data
Revenues
Communication fees 1,963.9 1,359.5 1,536.3
Commission fees on betting business 37.1 (5.2) 7.0
Monthly fixed fees 17.6 10.3 10.2
Simcard sales 9.4 6.7 6.6
Call center revenues and other revenues 27.9 26.7 27.8
Total revenues 2,055.9 1,398.0 1,587.9
Direct cost of revenues (935.5) (741.4) (836.4)
Gross profit 1,120.4 656.6 751.5
Administrative expenses (87.9) (63.6) (67.6)
Selling & marketing expenses (366.8) (277.0) (289.0)
Other Operating Income / (Expense) 3.7 (3.0) 7.0

Operating profit before financing costs 669.4 313.0 401.9
Finance expense (16.7) (69.0) (70.5)
Finance income 83.7 30.7 69.3
Share of profit of equity
accounted investees 25.1 15.1 27.2
Income before taxes and minority
interest 761.5 289.8 427.9
Income tax expense (160.3) (47.4) (93.8)
Income before minority interest 601.2 242.4 334.1
Minority interest 2.6 3.4 (1.2)
Net income 603.8 245.8 332.9

Net income per share 0.274451 0.111719 0.151330

Other Financial Data

Gross margin 54% 47% 47%
EBITDA(*) 837.8 448.8 545.4
Capital expenditures 175.7 789.5 326.1

Consolidated Balance Sheet Data
(at period end)
Cash and cash equivalents 3,156.8 1,963.5 2,642.3
Total assets 9,570.3 7,876.3 8,875.2
Long term debt 151.0 168.5 560.5
Total debt 738.3 776.2 1,162.2
Total liabilities 2,918.7 2,603.7 3,107.9
Total equity 6,651.5 5,272.5 5,767.3

(table continued)

Nine Months Nine Months
Ended Ended
September 30, September 30,
2008 2009

Consolidated Statement of Operations Data
Revenues
Communication fees 5,119.1 4,101.2
Commission fees on betting business 131.8 27.1
Monthly fixed fees 52.5 31.7
Simcard sales 21.1 18.2
Call center revenues and other revenues 60.9 90.7
Total revenues 5,385.4 4,268.9
Direct cost of revenues (2,607.6) (2,208.4)
Gross profit 2,777.8 2,060.5
Administrative expenses (233.5) (191.1)
Selling & marketing expenses (1,025.5) (804.7)
Other Operating Income / (Expense) (16.5) 5.3

Operating profit before financing costs 1,502.3 1,070.0
Finance expense (48.0) (173.1)
Finance income 394.8 242.2
Share of profit of equity
accounted investees 74.4 52.0
Income before taxes and minority
interest 1,923.5 1,191.1
Income tax expense (405.5) (261.4)
Income before minority interest 1,518.0 929.7
Minority interest (1.0) (6.8)
Net income 1,517.0 922.9

Net income per share 0.689558 0.419515

Other Financial Data

Gross margin 52% 48%
EBITDA(*) 2,055.8 1,466.3
Capital expenditures 597.5 1,367.6

Consolidated Balance Sheet Data
(at period end)
Cash and cash equivalents 3,156.8 2,642.3
Total assets 9,570.3 8,875.2
Long term debt 151.0 560.5
Total debt 738.3 1,162.2
Total liabilities 2,918.7 3,107.9
Total equity 6,651.5 5,767.3

* Please refer to the notes on reconciliation of Non-GAAP Financial
measures on page 13-14
** For further details, please refer to our consolidated financial
statements and notes as at 30 September 2009 on our web site.
TURKCELL ILETISIM HIZMETLERI A.S.
IFRS SELECTED FINANCIALS (TRY Million)

Quarter Quarter Quarter
Ended Ended Ended
September June 30, September
30,2008 2009 30, 2009

Consolidated Statement of Operations Data
Revenues
Communication fees 2,348.2 2,144.2 2,291.0
Commission fees on betting business 44.2 (8.8) 10.5
Monthly fixed fees 21.0 16.3 15.2
Simcard sales 11.3 10.6 9.9
Call center revenues and other revenues 33.7 42.1 41.4
Total revenues 2,458.4 2,204.4 2,368.0
Direct cost of revenues (1,118.7) (1,167.6) (1,246.9)
Gross profit 1,339.7 1,036.8 1,121.1
Administrative expenses (105.1) (100.2) (100.8)
Selling & marketing expenses (438.6) (436.8) (430.9)
Other Operating Income / (Expense) 4.4 (4.5) 10.4

Operating profit before financing costs 800.4 495.3 599.8
Finance expense (20.0) (107.1) (103.0)
Finance income 100.3 46.9 101.2
Share of profit of equity accounted investees 32.0 23.9 40.5
Income before taxes and minority interest 912.7 459.0 638.5
Income tax expense (191.7) (75.3) (139.9)
Income before minority interest 721.0 383.7 498.6
Minority interest 3.2 5.6 (1.8)
Net income 724.2 389.3 496.8

Net income per share 0.329127 0.176918 0.225890

Other Financial Data

Gross margin 54% 47% 47%
EBITDA(*) 1,001.8 709.2 813.7
Capital expenditures 219.7 1,168.2 433.2

Consolidated Balance Sheet Data (at period end)
Cash and cash equivalents 3,887.9 3,004.3 3,915.9
Total assets 11,786.7 12,051.5 13,153.0
Long term debt 186.0 257.9 830.7
Total debt 909.3 1,187.7 1,722.4
Total liabilities 3,594.7 3,984.0 4,605.9
Total shareholders' equity / Net Assets 8,192.0 8,067.5 8,547.1

(table continued)

Nine Months Nine Months
Ended Ended
September September
30, 2008 30, 2009

Consolidated Statement of Operations Data
Revenues
Communication fees 6,190.7 6,411.5
Commission fees on betting business 159.6 43.1
Monthly fixed fees 63.6 49.9
Simcard sales 25.4 28.4
Call center revenues and other revenues 73.7 142.9
Total revenues 6,513.0 6,675.8
Direct cost of revenues (3,154.0) (3,448.1)
Gross profit 3,359.0 3,227.7
Administrative expenses (282.2) (299.2)
Selling & marketing expenses (1,241.2) (1,259.4)
Other Operating Income / (Expense) (20.1) 7.9

Operating profit before financing costs 1,815.5 1,677.0
Finance expense (58.5) (265.6)
Finance income 478.7 381.0
Share of profit of equity accounted investees 92.3 79.5
Income before taxes and minority interest 2,328.0 1,871.9
Income tax expense (491.8) (412.1)
Income before minority interest 1,836.2 1,459.8
Minority interest (1.5) (11.0)
Net income 1,834.7 1,448.8

Net income per share 0.833997 0.658561

Other Financial Data

Gross margin 52% 48%
EBITDA(*) 2,484.9 2,296.5
Capital expenditures 735.9 2,026.8

Consolidated Balance Sheet Data (at period end)
Cash and cash equivalents 3,887.9 3,915.9
Total assets 11,786.7 13,153.0
Long term debt 186.0 830.7
Total debt 909.3 1,722.4
Total liabilities 3,594.7 4,605.9
Total shareholders' equity / Net Assets 8,192.0 8,547.1

** For further details, please refer to our consolidated financial
statements and notes as at and for the nine months ended 30 September
2009 on our web site.

TURKCELL ILETISIM HIZMETLERI A.S.
CMB SELECTED FINANCIALS (TRY Million)

Quarter Quarter Quarter
Ended Ended Ended
September June 30, September
30, 2008 2009 30, 2009

Consolidated Statement of Operations Data
Revenues
Communication fees 2,348.2 2,144.2 2,291.0
Commission fees on betting business 44.2 (8.8) 10.5
Monthly fixed fees 21.0 16.3 15.2
Simcard sales 11.3 10.6 9.9
Call center revenues and other revenues 33.7 42.1 41.4
Total revenues 2,458.4 2,204.4 2,368.0
Direct cost of revenues (1,114.4) (1,164.0) (1,243.2)
Gross profit 1,344.0 1,040.4 1,124.8
Administrative expenses (105.1) (100.2) (100.8)
Selling & marketing expenses (438.6) (436.8) (430.9)
Other Operating Income / (Expense) 4.5 (4.1) 9.8

Operating profit before financing costs 804.8 499.3 602.9
Finance expense (20.0) (107.1) (103.0)
Finance income 100.3 46.9 101.2
Share of profit of equity accounted investees 32.0 23.9 40.5
Income before taxes and minority interest 917.1 463.0 641.6
Income tax expense (192.6) (76.1) (140.4)
Income before minority interest 724.5 386.9 501.2
Minority interest 3.2 5.5 (1.8)
Net income 727.7 392.4 499.4

Net income per share 0.330752 0.178384 0.226996

Other Financial Data

Gross margin 55% 47% 48%
EBITDA(*) 1,001.8 709.7 813.7
Capital expenditures 219.7 1,168.2 433.2

Consolidated Balance Sheet Data (at period end)
Cash and cash equivalents 3,887.9 3,004.3 3,915.9
Total assets 11,708.9 11,985.7 13,090.4
Long term debt 186.0 257.9 830.7
Total debt 909.3 1,187.7 1,722.4
Total liabilities 3,580.4 3,972.3 4,594.9
Total shareholders' equity / Net Assets 8,128.5 8,013.4 8,495.5

(Table Continued)
Nine Nine
Months Ended Months Ended
September 30, September 30,
2008 2009

Consolidated Statement of Operations Data
Revenues
Communication fees 6,190.7 6,411.5
Commission fees on betting business 159.6 43.1
Monthly fixed fees 63.6 49.9
Simcard sales 25.4 28.4
Call center revenues and other revenues 73.7 142.9
Total revenues 6,513.0 6,675.8
Direct cost of revenues (3,138.3) (3,436.5)
Gross profit 3,374.7 3,239.3
Administrative expenses (282.2) (299.2)
Selling & marketing expenses (1,241.2) (1,259.4)
Other Operating Income / (Expense) (19.8) 8.0

Operating profit before financing costs 1,831.5 1,688.7
Finance expense (58.5) (265.6)
Finance income 478.7 381.0
Share of profit of equity accounted investees 92.3 79.5
Income before taxes and minority interest 2,344.0 1,883.6
Income tax expense (494.9) (414.6)
Income before minority interest 1,849.1 1,469.0
Minority interest (1.5) (11.1)
Net income 1,847.6 1,457.9

Net income per share 0.839800 0.662691

Other Financial Data

Gross margin 52% 49%
EBITDA(*) 2,485.0 2,297.0
Capital expenditures 735.9 2,026.8

Consolidated Balance Sheet Data (at period end)
Cash and cash equivalents 3,887.9 3,915.9
Total assets 11,708.9 13,090.4
Long term debt 186.0 830.7
Total debt 909.3 1,722.4
Total liabilities 3,580.4 4,594.9
Total shareholders' equity / Net Assets 8,128.5 8,495.5

** For further details, please refer to our consolidated financial
statements and notes as at and for the nine months ended 30 September 2009
on our web site.

For further information please contact Turkcell

Corporate Affairs
Koray Ozturkler, Chief Corporate Affairs Officer
Tel: +90-212-313-1500
Email: koray.ozturkler@turkcell.com.tr

Investors:
Nihat Narin, Investor and International
Media Relations
Tel: +90-212-313-1244
Email: nihat.narin@turkcell.com.tr
investor.relations@turkcell.com.tr

Media:
Filiz Karagul Tuzun,
Corporate Communications
Tel: +90-212-313-2304
Email: filiz.karagul@turkcell.com.tr

SOURCE Turkcell

For further information please contact Turkcell: Corporate Affairs, Koray
Ozturkler, Chief Corporate Affairs Officer, Tel: +90-212-313-1500, Email:
koray.ozturkler@turkcell.com.tr; Investors: Nihat Narin, Investor and
International, Media Relations, Tel: +90-212-313-1244, Email:
nihat.narin@turkcell.com.tr, investor.relations@turkcell.com.tr: Media: Filiz
Karagul Tuzun, Corporate Communications, Tel: +90-212-313-2304, Email:
filiz.karagul@turkcell.com.tr