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Turk Telekom's internet unit pays EUR 8mn discounted fine to telecom watchdog. [IntelliNews - Weekly Reports]
[October 22, 2014]

Turk Telekom's internet unit pays EUR 8mn discounted fine to telecom watchdog. [IntelliNews - Weekly Reports]


(IntelliNews - Weekly Reports Via Acquire Media NewsEdge) Turkey's largest telecommunications company Turk Telekom informed in a filing with Bourse Istanbul that it's internet unit TTnet paid on October 21 a discounted fine of TRY 22.8mn (EUR 8mn) to the Turkish information and communication technologies authority (BTK) in order to clear a TRY 30.5mn of administrative fine imposed last month by the BTK to TTnet. Turk Telekom will still file an appeal to the court, the statement detailed. TTnet benefited from an early payment discount, Turk Telekom explained.  Last month, BTK informed that it asked TTnet to pay a TRY 30.47mn 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 was obliged to make the payments within six months. The company said that the fines would not negatively affect its net profit since it had already made provisions.



Turk Telekom said 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.

Turkish Treasury holds a 31.68% stake in Turk Telekom and finance minister Mehmet Simsek said earlier this week, without providing details, that the government was considering selling stakes in Turk Telekom and Turkish Airlines via secondary public offerings.


  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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