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Telecom watchdog fines Turk Telekom's internet unit EUR 11mn and asks to repay EUR 40mn to customers. [IntelliNews - Weekly Reports]
[September 08, 2014]

Telecom watchdog fines Turk Telekom's internet unit EUR 11mn and asks to repay EUR 40mn to customers. [IntelliNews - Weekly Reports]


(IntelliNews - Weekly Reports Via Acquire Media NewsEdge) The information and communication technologies authority (BTK) informed in a written statement that it asked Turkey's largest telecommunication company Turk Telekom's internet unit TTnet to pay a TRY 30.47mn (EUR 11mn) in administrative fees for overbilling its broadband service subscribers between May 2006 and December 2013, and also to repay a total of TRY 111.9mn overcharged amount to its subscribers.



Turk Telekom should make the payments within six months, however, the company said in a filing with the Bourse Istanbul that the fines will not negatively affect its net profit since it has already made provisions. Turk Telekom will also decide later on following legal procedure, the statement detailed.

In H1, the company's consolidated revenues remained almost unchanged at TRY 6.5bn and the company managed to increase its consolidated net profit by 47% y/y to TRY 1.18bn in the first half.


Turk Telekom informed in February that it targeted to increase its consolidated revenues by 4-5% y/y this year while targeting a consolidated EBITDA of TRY 5bn-5.2bn. Turk Telekom also said it plans to make investments worth TRY 2.1bn this year. Turk Telekom reported a consolidated net income of TRY 1.3bn in 2013, representing a 51% y/y decline from TRY 2.6bn in 2012, driven by depreciation of TRY. The company's consolidated turnover rose by 4% y/y to TRY 13.2bn in the year from TRY 12.71bn in 2012.

Turk Telekom (consolidated) Financials (bn TRY) 2013/H1 2014/H1  (y/y) Revenues 6,47 6,49 0% Gross Margin 3,14 3,23 3% Operating Income 1,49 1,37 -8% Net Income 0,81 1,18 47% Source: PDP         (c) 2014 Emerging Markets Direct Media Holdings LLC Provided by SyndiGate Media Inc. (Syndigate.info).

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