Turkcell Iletisim Hizmetleri AS Annual Report 2018

FY2018 Annual Report · Turkcell Iletisim Hizmetleri AS
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Turkcell 
the Digital Operator

Turkcell Annual Report 2018

About Turkcell

Turkcell is a digital operator headquartered in Turkey, serving 

its customers with its unique portfolio of digital services 

along with voice, messaging, data and IPTV services on its 

mobile and fixed networks. 

Turkcell Group companies operate in 5 countries – Turkey, 

Ukraine, Belarus, Northern Cyprus, Germany.

Turkcell launched LTE services in its home country on April 
1st, 2016, employing LTE-Advanced and 3 carrier aggregation 
technologies in 81 cities. Turkcell offers up to 10 Gbps fiber 

internet speed with its FTTH services. Turkcell Group reported 

TRY 21.3 billion revenue in FY18 with total assets of TRY 42.8 

billion as of December 31, 2018.

It has been listed on the NYSE and the BIST since July 2000, 

and is the only NYSE-listed company in Turkey. Read more at 

www.turkcell.com.tr/english-support

All financial results in this annual report are prepared in accordance with International Financial Reporting Standards (IFRS) and 
expressed in Turkish Lira (TRY or TL) unless otherwise stated.

TRY  
21.3 
billion 
REVENUES 

41.3%

EBITDA 
MARGIN

49 
million 
GROUP 
SUBSCRIBERS

86

million

DIGITAL  
SUBSCRIBERS

TABLE OF CONTENTS

Turkcell Group
16 
20 
22 
26 
28 
30 
31 
32 
34 
36 
37 

Chairman’s Message
Board of Directors
Message from the CEO
Executive Officers
Top Management of Subsidiaries
Turkcell Group
Our Vision, Target, Strategy and Approach
2018 at a Glance
2018 Highlights
The World’s 1st Digital Operator Brand: Lifecell
Turkcell’s Digital Services

2018 Operations
38 
40 
46 
52 
56 
60 
76 
78 
79 
83 
84 
94 
98 
106 
112 
118 

Exemplary Digital Operator
Our Superior Technology
Our Consumer Business
Our Corporate Business
Turkcell on Communication
Our Digital Services
Turkcell Sales Channels
Carrier Relations and Wholesale
Customer Experience Focus
Successful Finance Management
Social Responsibility
Sponsorships
Human Resources
Turkcell Academy
Our Subsidiaries
Awards

Corporate Governance
123 
126 
127 
130 
142 
143 

Investor Relations
Credit Ratings
Important Developments after the Reporting Period 
2018 Financial Year Corporate Governance Principles Compliance Report 
Other Issues Regarding Corporate Governance
Conclusion of the Subsidiary Report 

Sectoral and Financial Information
144 
145 
150 
154 
155 
157 
278 
279 

Telecommunications Sector in Turkey 
Developments in Our Companies
Turkcell Group: 2018 Financial & Operational Review
Forward Looking Statements
Review of Risk Assessment
Independent Auditor’s Report and Consolidated Financial Statements
Our Offices
Glossary

You can have access to 
the Digital Annual Report with 
the QR Code.

This is what drives the technology we have developed 
over the last 25 years:

#senyapdiye

(for you to DO it)

The world’s 

first digital 

operator

The world’s 
first digital 
operator

We have concluded a quarter century on our journey we 
embarked on by introducing Turkey to first mobile phone 
call. Through our investments and digital transformation 
strategy, we have transformed ourselves from a traditional 
telecom operator into the first Digital Operator in the world. 
Working passionately for 25 years and achieving many industry 
firsts, we offer globally innovative products and services that 
enable our customers to make the most of the communication 
and digital solutions of the modern era.

TRY

21.3

billion

Record revenue 
with 49% two-year 
cumulative growth 

15%

Strong mobile 
ARPU* growth 
*Excluding M2M

TRY

8.8

billion

Record EBITDA 
with 90% two-year 
cumulative growth

Strong growth 
through digital 
transformation

We became the world’s first digital operator thanks 
to our digital transformation strategy. We continued 
our strong growth and achieved record results, 
despite significant macroeconomic volatility. 
We inspired our global competitors with our digital 
services, which enrich the lives of our customers, and 
with our innovative approach.

6

TURKCELL ANNUAL REPORT 20187
The relationship of a telecom operator with its 
customers is limited to 31 minutes of inbound/outbound 
calls in a day… We, on the other hand, take important 
steps to be relevant to our customers at every one 
of 1440 minutes each day with our products and 
services. For example, currently, in addition to an 
average 31 minutes of inbound/outbound calls, we touch 
our customers’ lives each day for 81 minutes with TV+, 48 
minutes with fizy, and 18 minutes with Dergilik.

Adding value 
to every 
minute of life

8 GB

Average data 
consumption per 
4.5G user

86million

Digital 
subscribers

TURKCELL ANNUAL REPORT 2018Digital 
exports 
to the entire 
world

192

Number of countries 
where our digital 
services are downloaded

169million

Downloads of our 
digital services

As a company innovation underscores what we are. 
We have begun to export our digital services and 
knowledge in this key area to the entire world with 
our lifecell Ventures subsidiary. Thus, we contribute to 
our country’s goal of ranking among the world’s 10 largest 
economies working towards the vision of developing 
Turkey into a globally respected technology producer.

10
Our new generation payment platform, Paycell, has 
brought a breath of fresh air to payment systems. 
We deliver fast and easy payment services to over 
3 thousand member-merchants and more than 
5 million users. Facilitating the lives of our customers with 
innovative solutions such as Paycell card, mobile wallet 
and direct billing, Paycell continues to enjoy steady growth. 
Meanwhile, Financell, our other brand in techfin solutions, 
makes our customers’ lives easier enabling them to access 
all kinds of technology products by supporting them with 
the loans it provides.

+5million

Paycell users

TRY 4.2

billion

Financell loan 
portfolio

Techfin 
solutions 
that make a 
difference

TURKCELL ANNUAL REPORT 201811

Techfin 

solutions 

that make a 

difference

TURKCELL ANNUAL REPORT 201812

A major 
step in social 
responsibility 
with Turkcell 
Foundation

TURKCELL ANNUAL REPORT 2018Each year, we allocate 1% of our revenues to corporate 
social responsibility activities that invest in society. 
We established Turkcell Foundation to focus our efforts 
in this area under a single roof and enable our social 
responsibility projects to create stronger, more effective, 
efficient, transparent and higher social benefit.

13

TURKCELL ANNUAL REPORT 201814
We maintained our leadership of the Net Promoter Score thanks 
to our efforts focused on customer satisfaction. The quality 
of our 4.5G network played an important role in our high Net 
Promoter Score. In the report published by the Global Mobile 
Suppliers Association, we ranked among the best in the 
world with our 4.5G network.

Leadership 
continues in 
Net Promoter 
Score 

25  

points

Turkcell score

13points

Over the next 
best competitor

23points

Over the third 
best competitor

TURKCELL ANNUAL REPORT 201815

TURKCELL ANNUAL REPORT 201816

CHAIRMAN’S MESSAGE

We continued to enrich our customers’ lives through our 
telecommunications and digital services, and to create value 
for them, through our investments during the year.

The high-quality 
standards we have 
achieved and the firm 
steps we have taken 
in line with our targets 
confirm that we have 
successfully met the 
responsibility of “being 
the first” and “being 
a brand born of this 
country.”

Dear Shareholders, 

FOR TURKEY’S DATA TO REMAIN IN TURKEY…

We concluded a year shaped by challenging 

As Turkcell, we have always embraced the 

macroeconomic developments on both global and 

responsibility of being Turkey’s first mobile operator, 

local fronts. In 2018, we witnessed conflicts between 

and a group that introduces customers living in our 

Atlantic and Pacific regions, acceleration in trade 

countries of operation to the advantages of the 

wars to an extent that raised concerns over the 

communication world. And so, over the past 24 years, 

future of global trade and capital outflows from the 

we have continued to introduce our customers to 

emerging markets. While Turkey, as one of the world’s 

innovative products and services by deepening and 

20 largest economies, had its share of this economic 

diversifying our expertise based upon the latest 

and political volatility, which impacted global trade 

technologies. The high-quality standards we have 

in general, it also continued its struggle to eliminate 

achieved and the firm steps we have taken in line 

the regional terrorism threat triggered by external 

with our targets confirm that we have successfully 

interventions. These developments led to significant 

met the responsibility of “being the first” and “being a 

economic fragility in the second half of 2018. With 

brand born of this country.”

sound and timely steps taken by the government, a 

new economic route has been established focused 

Today, we are entering a new era, named Industry 

on increasing savings and exports, and the fight 

4.0, through digital transformation taking place on 

against inflation. Thus, began the stabilization period 

a global scale. As Turkcell, we continuously work 

in the economy, with critical and positive results being 

to position ourselves in the best possible manner 

achieved towards the end of the year. 

during this transformation process, and to offer our 

customers a rich customer experience. In addition 

As Turkcell, we continued to work passionately to 

to traditional telecommunication services, today, 

serve our country and our shareholders to the best 

we offer digital services meeting customer needs in 

extent possible, leveraging our group synergy and 

almost all fields, from messaging to entertainment, 

investing great effort, without succumbing to difficult 

from music to publishing, from payment systems to 

conditions. We are proud to sustain our commitment 

search engine, and from e-commerce solutions to 

to creating value for our shareholders, a result of our 

online storage solutions, leveraging our strength in R&D 

successful operations in 2018.

and our innovative vision. Most importantly, we keep 

the data of all these services in Turkey in line with 

Through our investments in 2018, we supported the 

our goal of ensuring that “Turkey’s data remains in 

journey of Turkey and the countries in which we operate 

Turkey.” As may be recalled, we previously established 

towards embracing the future with technology. We 

our world-class data center in Gebze equipped with 

continued to enrich our customers’ lives through our 

the latest technology and security facilities in 2016. 

telecommunications and digital services, and to create 

Meanwhile, the data center we opened in İzmir last 

value for them, through our investments during the 

year gave us the ability to provide resilient services 

year. As Turkcell Group, we took firm steps towards 

addressing needs for geographical redundancy and 

strengthening corporate credibility further, based on trust 

capacity.

and financial success. In the upcoming period, we will 

continue to develop innovative products and services 

We started to achieve the position that we deserve in 

that will fully reflect the message and responsibilities 

the digital world with services that run on this robust 

of the Turkcell brand from the perspective of our 

infrastructure. We now export this model, which has 

customers, and will continue our investments to make our 

recently made a strong contribution to our growth, to 

competitive advantage sustainable on a global scale.

the world with our lifecell Ventures subsidiary. Over 

the coming period, we will expand our digital export 

efforts, which we started in early 2018, and continue 

to contribute to growth of our country through our 

digital services.

TURKCELL ANNUAL REPORT 201817

One of the most 
important developments 
of 2018 was the 
establishment of Turkcell 
Foundation to bring 
our social responsibility 
projects to a point where 
they create stronger, 
more effective, efficient, 
transparent and higher 
social benefit.

WE INTRODUCE VALUE-ADD FOCUSED 

TECHNOLOGIES TO THE PEOPLE.

technologies infrastructure of which was provided by 

Turkcell, was registered as the first and only “Level 7 Fully 

Digital Hospital” in Europe in 2018.

Our 4.5G network, one of the key components of 

our digital transformation process, continued to 

demonstrate its quality both locally and internationally. 

Turkcell was named one of the best in the world for 

its 4.5G network, in May 2018 Global Status Report 

published by the GSA (Global Mobile Suppliers 

Association). According to the May 2018 report, where 

Gigabit LTE networks were taken as a reference point 

and the fastest download networks were announced, 

Turkcell, the world’s first digital operator, was 

presented as one of the world’s two fastest operators, 

with a connection speed of 1.2 Gbps. 

In order to replicate the success achieved on our 4.5G 

network in 5G, we continued our activities throughout 

the year launching local and international alliances. In 

the tests that we conducted this year, we achieved 

a download speed of 70 Gbps, which is difficult to 

reach given today’s technologies. 5G technologies will 

allow numerous services in various sectors from smart 

cities to agriculture, and from transportation to health 

services, and I believe that as Turkcell we will maintain 

our leadership in the provision of these services with our 

digital capabilities.

We continued to offer end-to-end solutions to our 

corporate customers, meeting all their technological 

needs through Digital Integration and IT solutions 

within the scope of our digital operator vision. While 

we implemented 200 projects in this area last year, 

the number of projects in 2018 exceeded 550. We 

maintained our support for the City Hospitals project with 

the same degree of dedication under the same roof. 

We note that Elazığ and Eskişehir City Hospitals started 

to accept patients in 2018. In this respect, we were 

also proud that Yozgat City Hospital, the information 

As Turkcell, we will continue to introduce our consumer 

and corporate customers across diverse geographies 

in Turkey and the world, to new products and services 

aimed at bringing added value in accordance 

with our target of supporting Turkey’s sustainable 

development journey. In addition to carrying out the 

transition to 5G with great determination, we will 

continue to offer valuable contributions to a diversity 

of sectors, from healthcare to automotive, in the light 

of integrated communication solutions to make Turkey 

and the Turkish people more prominent worldwide. 

IN ACCORDANCE WITH SOCIAL RESPONSIBILITY 

THAT BEFITS TURKCELL…

In 2018, as Turkcell Group, we took pride in 

implementing many results-oriented social 

responsibility and sponsorship activities, in the light of 

our approach to widely contributing to Turkish society.

In this context, one of the most important 

developments of 2018 was the establishment of 

Turkcell Foundation to bring our social responsibility 

projects to a point where they create stronger, more 

effective, efficient, transparent and higher social 

benefit. Going forward, as well as our other donations, 

we will also make an annual donation to the Turkcell 

Foundation within the framework determined by 

our shareholders. We will continue to serve both our 

country and the humanity with Turkcell Foundation, 

supported by the strength and credibility of the 

Turkcell brand. Under its roof, we will work to ensure 

economic, social and cultural support for scientists 

and a skilled labor force that will play a crucial role in 

developing Turkey into a technology producer, rather 

solely a consumer of it.

TURKCELL GROUPTURKCELL ANNUAL REPORT 201818

CHAIRMAN’S MESSAGE

We will continue to offer solutions for all aspects of life in 
accordance with our long-term goals, leveraging the strength 
of our solid technological infrastructure and qualified human 
capital.

We set out to explore 
the sporting talents and 
potential of 2 million 500 
thousand children through 
the Turkey Athletic Talent 
Screening and Orientation 
to Sports Project, which 
we supported under the 
auspices of the Ministry 
of Youth and Sports and 
the Ministry of National 
Education.

Within the scope of the Whiz Kids Project that we 

Following the Hello Hope Mobile Application, which 

initiated in the education field, which is among the key 

we developed to meet our Syrian guests’ social needs, 

focus areas of our social investments, the number of 

particularly language learning, and to support their 

laboratories that we established in 27 provinces has 

adaptation to social life, we launched the Hello Hope 

reached 33, and the total number of students reached 

Technology Center at the Kahramanmaraş Temporary 

during the three-year period exceeded 30 thousand. 

Housing Center. Thanks to the free of charge fiber 

The project is conducted under the auspices of 

internet connection service at the center, our Syrian 

the Ministry of National Education with the aim 

guests have the opportunity to access various Turkcell 

of introducing students with special talent to new 

services, in addition to learning Turkish.

generation technology and training. 

Through the Education without Boundaries Program 

DETERMINATION FOR OUR PEOPLE AND OUR 

WE WILL CONTINUE TO WORK WITH THE SAME 

that we have been conducting since 2015, we have 

COUNTRY. 

reached out to over 10 thousand disabled students 

in need of special education at 84 schools in 45 

As the Board of Directors and Management Team, 

provinces. We encouraged the development of 

we are aware of the significance of Turkcell’s 

our disabled citizens’ social skills, and their greater 

innovative products and services for the sustainable 

participation in social life through our “Academy 

development of our country, and for our customers’ 

without Boundaries” and “Turkcell Dialog Museum” 

access to communication and the digital solutions 

projects. We enabled our disabled citizens to establish 

of the modern era. In this respect, we will continue 

a stronger bond through the excitement and joy of 

to offer solutions for all aspects of life in accordance 

sports, providing sponsorships again in 2018 to the 

with our long-term goals, leveraging the strength of 

Blind Sports Federation, the Hearing-Impaired Sports 

our solid technological infrastructure and qualified 

Federation, the Physically Disabled Sports Federation 

human capital.

and the Special Athletes Federation, both at national 

team and league level.

I would like to thank all our business partners and 

employees, and particularly our shareholders, who 

We set out to explore the sporting talents and 

became part of the achievements registered by 

potential of 2 million 500 thousand children through 

Turkey’s pride, Turkcell, in 2018 with their effort 

the Turkey Athletic Talent Screening and Orientation 

and support. We will continue to work with full 

to Sports Project, which we supported under the 

determination in the upcoming periods to make our 

auspices of the Ministry of Youth and Sports and 

shareholders’ savings more valuable, and to support 

the Ministry of National Education. We offered our 

the sustainable development of our country, and the 

technological strength to serve Turkey, in the area of 

welfare of our people.

sports with the aim of investing in the future of Turkish 

sports, strengthening its infrastructure, and ensuring 

Respectfully yours...

that youth grow up in touch with sporting activity.

Through the “Women Developers of the Future” 

project, which we initiated together with the TOBB 

Women Entrepreneurs Council, seeking to contribute 

to Turkey’s digital transformation through women’s 

AHMET AKÇA

employment in line with our 2023 targets, we 

Chairman of the Board of Directors

provided mobile application development training to 

approximately 1,400 women across 18 provinces in 

Turkey. I can proudly state that, as the first tangible 

output of the project, we employed 100 women, who 

attended these trainings, as remote testing experts.

TURKCELL ANNUAL REPORT 2018TURKCELL GROUP20

BOARD OF DIRECTORS

4

3

1

2

6

5

AHMET AKÇA (1), ATİLLA KOÇ (2), MEHMET HİLMİ GÜLER (3)  MUSTAFA KIRAL (4), 
HASAN TUVAN YALIM (5) , INGRID MARIA STENMARK (6) 

TURKCELL ANNUAL REPORT 201821

Ahmet Akça 
Chairman of the Board and Independent Board Member*
Ahmet Akça was appointed as an independent member to the 
Turkcell Board of Directors by Capital Markets Board in March 
2013. Since August 2013, he has been serving as the Chairman of 
the Turkcell Board of Directors. From 1981 to 1988, Mr. Akça served 
as a Foreign Trade Manager in two reputable companies in glass 
and food industry. In 1988, he became the CEO of an international 
trade company, a position he held until 1992. He later started his 
own business, Akça Lojistik Hizmetleri ve Tic. A.Ş and Tedarik Lojistik 
Hizmetleri A.Ş. which he still runs as the Chairman. Mr. Akça also 
serves as an independent member at the Board of Directors at 
BİM A.Ş. since May 2018. Mr. Akça studied Mathematics at Middle 
East Technical University and Sociology at Istanbul University for a 
certain period, and graduated from the Department of Economics 
at Bursa Economics and Commercial Sciences Academy.

Atilla Koç
Independent Board Member*
Atilla Koç was appointed as an independent member to the 
Turkcell Board of Directors by Capital Markets Board in March 2013. 
Having worked as an Undersecretary at the Ministry of Interior, and 
as Chief of Police in Konya, he served as the District Governor of 
the Ulubey, Nusaybin and Bayındır districts, and as the Governor of 
Siirt and Giresun provinces. He has also been the Prime Minister’s 
Undersecretary, the General Secretary of Ankara Metropolitan 
Municipality, and the Central Governor. Then, Mr. Koç served as 
AKP Aydın Deputy in the 22nd and 23rd period of the Grand National 
Assembly of Turkey and as Minister of Culture and Tourism in the 
59th Government. Atilla Koç graduated from Ankara University’s 
Faculty of Political Science.

Mehmet Hilmi Güler
Independent Board Member*
Mehmet Hilmi Güler was appointed as an independent member 
to the Turkcell Board of Directors by Capital Markets Board 
in March 2013. He formerly worked as a Project Engineer and 
Group Chairman at TUSAŞ Aerospace Industries. Mr. Güler also 
served as Vice President and Board Member of the Scientific and 
Technological Research Council of Turkey (TUBİTAK), as Chairman 
and General Manager of the Machines and Chemical Industries 
Board (MKEK), as the General Manager and Chairman of Etibank, 
as the Chief Undersecretary to the Prime Minister, and as Board 
Member and Executive Director at ERDEMİR and İGDAŞ. Mr. Güler 
also served as Minister of Energy and Natural Resources in the 
58th, 59th and 60th Governments. Mehmet Hilmi Güler graduated 
from Middle East Technical University’s Department of Metallurgical 
and Materials Engineering where he obtained his Master’s and 
Doctorate degrees.

Mustafa Kıral
Board Member**
Mustafa Kıral was appointed to the Turkcell Board of Directors by 
the General Assembly decision in 2018. During his career, he served in 
Altimo, responsible for overseeing mergers and acquisitions. He has 
advised on some of the company’s key deals in recent years. He also 
served in various offices of McKinsey & Company. Prior to McKinsey, 
Mr. Kıral was a market maker in the Pacific Stock Exchange in San 
Francisco, trading technology options. He is currently a Senior Partner 
at LetterOne Technology in London, UK. Mustafa Kıral received a BS in 
Mechanical Engineering from the University of Texas at Austin and an 
MS in Biomedical Engineering from University of California at Berkeley.

Hasan Tuvan Yalım
Board Member**
Hasan Tuvan Yalım was appointed to the Turkcell Board of Directors 
by the General Assembly decision in 2018. From 2004 to 2009, Mr. 
Yalım served as an attorney at the U.S. law firm Cravath, Swaine 
& Moore where he led various finance and merger & acquisition 
transactions in Europe, Asia and the U.S. He worked as international 
general counsel of the Çukurova Group from 2010 to 2014 and led 
Çukurova’s legal team in many complex multinational arbitration 
and litigation cases which resulted in landmark decisions in several 
jurisdictions, including the U.K., U.S. and Switzerland. As the partner of 
the Kabine Law Office, Mr. Yalım continues to serve as an attorney at 
law and legal counsel specializing in international arbitration, finance 
and corporate law. He currently represents numerous corporates and 
individuals in international commercial and investment arbitration 
proceedings. Hasan Tuvan Yalım graduated from Galatasaray High 
School and subsequently obtained a Bachelor of Laws degree (LL.B.) 
from Galatasaray University and a Master of Laws degree (LL.M.) 
from Harvard Law School.

Ingrid Maria Stenmark
Board Member**
Ingrid Maria Stenmark was appointed to the Turkcell Board of 
Directors by the General Assembly decision in 2018. Ms. Stenmark is 
responsible for Group Strategy, Enterprise Risk Management, Ethics 
and Compliance and overseeing Internal Audit at Telia Company. In 
addition, she has the responsibility for the associate operations in 
Turkcell and Latvia. Since joining Telia Company in 1994, Ms. Stenmark 
has held a number of senior positions in the Group, including Head 
of Group Regulatory affairs, acting General Counsel, and responsible 
for the associates Turkcell and MegaFon. Ms. Stenmark served as a 
board member of Kcell and MegaFon. Ms. Stenmark holds a Master 
of law from the University of Stockholm.

* The Board Members who were appointed by the Capital Markets Board as “Independent Board Members” pursuant to Article 17, second paragraph, of the Capital Markets Law
No.6362. The CMB decision was dated March 11, 2013.
** With the scope of the decision taken at Ordinary General Assembly Meeting dated 29th of March 2018, they were appointed as Board Members to serve for 3 years.

TURKCELL GROUPTURKCELL ANNUAL REPORT 201822

MESSAGE FROM THE CEO

While our digital transformation has reached its 4th year, our 
1440 strategy focused on creating value for every minute of 
our customers’ lives, has led to superior performance, both in 
operational and financial terms. 

In 2018, we continued to 
expand and enrich our 
digital services portfolio 
with new features, a 
key pillar of our digital 
operator transition. We 
saw 169 million downloads 
of our digital services, 
receiving a higher share 
from our customers’  
1440 minutes and creating 
greater value for them 
within those minutes. 

TRY 8.8 billion
Turkcell Group’s total 
revenues grew 20.8% 
to TRY21.3 billion, while 
EBITDA rose 41.1% to 
TRY8.8 billion leading to an 
EBITDA margin of 41.3%. 

Dear Shareholders,

Our digital communication and experience platform BiP has 

been equipped with two important capabilities this year. BiP 

As Turkcell Group, we have concluded another successful 

now allows the use of two numbers on a single handset 

year of operations, having taken firm steps in accordance 

and money transfer in addition to its enriched messaging 

with our digital business model. While our digital 

experience, multiuser video and voice call capability and 

transformation has reached its 4th year, our 1440 strategy 

subscription to service provider channels. We reached 34.6 

focused on creating value for every minute of our customers’ 

million downloads and 11.5 million active users of BiP on the 

lives, has led to superior performance, both in operational and 

back of rising customer appreciation in 2018.

financial terms. I am delighted that we have accomplished 

the vision that we set as the “Digital Operator”, having fulfilled 

fizy, over which 7 million songs were streamed daily as 

the very definition of being a “Digital Operator”, creating new 

of the year end, reached 3.2 million customers, while TV+ 

business areas in a challenging environment, and reaching a 

became one of Turkey’s largest digital TV platforms with 

point where this model is now extended to the wider world.

its users reaching 3.4 million. Dergilik, now with international 

2018 was a year where challenging macroeconomic 

to be published once again in Turkey. Reaching 12.5 million 

conditions shaped global and local markets, where global 

active users, Dergilik continued to transform the publishing 

magazines in its portfolio, led evening editions of newspapers 

trade decelerated, the emerging markets saw capital 

sector.

outflows, and the Turkish Lira depreciated against foreign 

currencies. And yet, we delivered a strong performance, 

Turkey’s search engine, Yaani, which we launched by the 

actually exceeding our initial targets. Turkcell Group’s total 

end of 2017, has been downloaded 7.6 million times to date, 

revenues grew 20.8% to TRY 21.3 billion, while EBITDA rose 

while its active users reached 3 million. Over Yaani, the web 

41.1% to TRY 8.8 billion leading to an EBITDA margin of 

version of which we now also offer to our customers, 2.7 

41.3%. 2-year cumulative growth in revenues reached 49% 

million searches were performed on average every day. We 

while EBITDA grew 90.2%. Despite the challenging macro 

launched Copilot, our service offering safe driving experience 

environment, we reported a net income above that of 2017 

and vehicle security, and Supercam, through which we took 

at TRY 2 billion. Our capital expenditures were in line with our 

an important step in the field of smart home technologies.

plans, at 18.5% of revenues. 

As reflected by this solid set of results, our digital operator 

growth on multiple platforms including Playcell, BiP Gaming 

model and strong balance sheet and business model hedging 

and TavlaGo. Playcell, a safe-zone for kids offering a variety 

strategies have successfully passed a significant stress test. 

of educational and entertaining games, had 18.7 million total 

I would like to share with you the main components of our 

visitors in 2018, while BiP Gaming users have reached 4.8 

In the attractive gaming market, we are committed to 

strategy that have made this performance possible, and the 

million as at the end of 2018. 

progress we have achieved throughout the year.

We improved our applications and digital capabilities to 

WE INCREASED OUR SHARE OF 1440 MINUTES WITH 

serve corporate customers in private sector as well as public 

OUR DIGITAL SERVICES.

institutions and municipalities; we embedded our offerings on 

this front into attractive business models. Along with business 

In 2018, we continued to expand and enrich our digital 

efficiency applications, we facilitated institutions’ access to 

services portfolio with new features, a key pillar of our digital 

the end users through the “Discover in BiP” feature of BiP.

operator transition. We saw 169 million downloads of our 

digital services, receiving a higher share from our customers’ 

WE TOOK EFFECTIVE STEPS TO GROW THE DIGITAL 

1440 minutes and creating greater value for them within those 

ECONOMY.

minutes. 

Our Fast Login application, which enables secure and fast 

login experience to mobile applications, and mobile and 

online websites, has been used 232 million times to date by 

TURKCELL ANNUAL REPORT 2018 
 
23

We continued our 
leadership in net promoter 
score with increasing 
appreciation of customers 
thanks to our attractive 
digital services portfolio, 
strong infrastructure and 
successful campaigns. 

In an announcement 
made in May by the 
Global Mobile Suppliers 
Association (GSA), Turkcell 
was cited as one of the 
two fastest operators in 
the world.

its 15.3 million registered users. Thanks to Fast Login, Turkey 

became the first market to meet the commercial sustainability 

criteria set by the GSMA (Global Mobile Operators 

Association) in digital authentication, an area we consider the 

cornerstone of the digital economy.

In techfin solutions, we strengthened the foundations of our 

business, deepened our competencies, and increased our 

customer interaction. One key focus, Paycell, continues its firm 

progress towards becoming one of the strongest players in 

the mobile payment world. The Paycell application has been 

downloaded 2.6 million times and more than 1 million Paycell 

Cards have been issued. Financell, our consumer finance 

company, continued to facilitate our customers’ access to 

smart devices supporting them with the loans it provided. This 

year, we expanded our competencies in financial services 

establishing Güvencell Sigorta that engages in insurance 

agency activities; the first insurance product offered to our 

customers was a health insurance package aimed at women.

Our traffic management, digital authentication and mobile 

payment solutions introduced for online and mobile content 

and service providers to grow e-commerce, offered a 

seamless digital experience to numerous entrepreneurs 

this year. One of the start-ups that we support through 

our services, “Hadi” Live Quiz, led to a revolution in the 

entertainment sector in Turkey. Hadi attracted 1.2 million people 

to their phone screens during the live broadcast on December 

31, the last day of the year. 

We have supported the digital transformation of sectors 

ranging from agriculture to health, and from smart cities 

to transportation. We increased the number of projects to 

which we provided digital integration services to 550. We feel 

proud that Yozgat City Hospital, the information technology 

infrastructure of which was established and operated by 

Turkcell, is the first and only hospital in Europe to have received 

“Level 7 Fully Digital Hospital” certification, considered the peak 

of HIMSS (Healthcare Information and Management Systems 

Society), the world’s most respected society for health 

technologies.

OUR CUSTOMERS INCREASINGLY BENEFITED FROM 

OUR PRODUCTS AND SERVICES. WE RAISED THE 

BAR IN 4.5G.

The average data consumption of 4.5G users reached 8 GB 

in December on the back of our innovative mobile services. 

Turkcell Turkey’s multiplay customers ratio on the mobile front 

reached 66.7% with a 10.9 percentage point increase, while 

the ratio of multiplay with TV+ users reached 48.6% in the 

fixed segment. We continued our leadership in net promoter 

score with increasing appreciation of customers thanks to our 

attractive digital services portfolio, strong infrastructure and 

successful campaigns. 

Our infrastructure investments enable our customers to take 

full advantage of the digital world. In April, we reached a new 

milestone by serving at speeds in excess of 1 Gbps on our 

4.5G network. Following this development, we were named 

among the world’s leading 4.5G operators by the Global 

Mobile Suppliers Association (GSA). In an announcement 

made in May by the Global Mobile Suppliers Association 

(GSA), Turkcell was cited as one of the two fastest operators 

in the world.

We initiated our NB-IoT services, deploying our products on 

our infrastructure. We started to serve our customers with 

our NB-IoT featured device, Filiz, together with its application 

aimed at increasing agricultural productivity through remote 

monitoring.

As part of steps taken to ensure seamless and high-speed 

communication, we launched Superbox, our FWA (Fixed 

Wireless Access) product, to great appreciation from our 

customers. Moreover, we developed Dronecell, which will 

enable us to provide 4.5G services in areas where intensive 

data traffic is likely to be experienced. Dronecell, Turkey’s first 

flying base station, will play an important role in ensuring 

uninterrupted communication to save lives particularly in 

emergencies and disasters. 

TURKCELL GROUPTURKCELL ANNUAL REPORT 201824

MESSAGE FROM THE CEO

In accordance with our vision of globalization, we aim to 
expand our digital footprint not only in the countries where 
we have operations, but throughout the wider world, by 
cooperating with other operators.

Strong operational 
performance combined 
with our Business Model 
Hedging strategy, 
enabled us to achieve 
strong profitability and 
create shareholder value, 
despite macroeconomic 
headwinds. 

WE ACCELERATED THE DIGITAL TRANSFORMATION OF 

OUR COMPANY AND OUR SALES CHANNEL.

We accelerated the digital transformation also within our 

Company which enabled us to achieve all these. Today, we 

monitor more than 4 thousand metrics, from the utilization 

rate of our products, to the competitive analysis, from 

network data, to the sales performance in our stores, in real 

time through RTM and Digital Cockpit platforms developed 

in-house. We completed the digital and visual transformation 

of our stores; we introduce our rich portfolio of application, 

tariff and handset offerings to our customers with most up-

to-date information and environment-friendly methods via 

digital tools we provided to our sales staff. We transformed 

customer satisfaction management via our My Account 

application, which is one of the most crucial interfaces for our 

interactions with our customers.

WE OPENED UP OUR DIGITAL MODEL TO THE WORLD, 

LAUNCHING THE DIGITAL EXPORT ERA.

In 2018, we also transferred our digital competencies to the 

countries where Turkcell Group operates. lifecell, the first 

operator to implement 4.5G in Ukraine, is taking firm steps 

towards becoming the national digital operator. Following the 

launch on 2600 MHz on March 30, lifecell also started 4.5G 

services on 1800 MHz, on July 1. This development, which is an 

important milestone in our journey to offer digital experience 

in Ukraine with all means, allowed us to take a further 

step and enable widespread use of our digital products 

and services with all their features. As one of the most 

important foreign investors in the country, we joined National 

Investment Council of Ukraine, which has a critical role in the 

development of Ukraine’s economy. 

In accordance with our vision of globalization, we aim to 

expand our digital footprint not only in the countries where 

we operate, but throughout the wider world, by cooperating 

with other operators. Established for this purpose, our 

subsidiary lifecell Ventures was introduced to the international 

audience at the GSMA Mobile World Congress, the most 

prestigious event of our industry, in Barcelona in February 2018. 

lifecell Ventures conducted its first service export to Moldcell 

with BiP and lifebox. Negotiations that are carried out with 

numerous operators from the Caribbean to South Asia, 

encourage us for the rapid rise potential in the number of 

markets to become digitized by lifecell over the coming 

years. While we provide consultancy services to operators 

from all over the world with respect to digitalization via these 

meetings, we also offer our products and services, such as 

BiP, fizy, TV+, lifebox, RTM, My Account to global users. 

Another important development of 2018 was the sale of Fintur 

subsidiaries, and ultimately the agreement to sell our stake in 

Fintur to Telia, signed in December. This transaction enhances 

our efficient balance sheet management and focus on 

growth through digital services, and will result in a cash inflow 

of EUR 350 million upon completion.

WE CREATED VALUE FOR OUR INVESTORS WITH OUR 

DIGITAL MODEL AND BUSINESS MODEL HEDGING 

STRATEGY.

Strong operational performance combined with our 

Business Model Hedging strategy, enabled us to achieve 

strong profitability and create shareholder value, despite 

macroeconomic headwinds. 

In a landmark development, with our 10-year, USD 500 

million Eurobond issuance in April, we became the first 

Turkish company to issue a 10-year bond since 2015. This has 

strengthened our balance sheet under favorable financing 

conditions, while confirming market confidence in Turkcell. 

Going forward, we plan to keep the average tenure of our 

debt portfolio at 4-5 years. In addition to the bond issuance, 

we continued to strengthen our liquidity and diversify 

financing sources, while registering firsts for the market with 

vendor financing, lease certificates, asset-backed securities 

and other debt instruments.

On the back of hedging instruments, we maintained FX 

risk at a minimum level, generating solid profits, despite 

TL depreciation. Moreover, hedge accounting principles 

minimized volatility, allowing for predictable quarterly net 

profits throughout the year.

Including the TRY 1.9 billion dividend paid out in 2018 with a 

yield of 7.2%, we have distributed nearly 60% of net profit 

recorded since 2010 to our shareholders. 

TURKCELL ANNUAL REPORT 2018In accordance with 
our motto “Turkey’s 
data should remain in 
Turkey,” we took steps to 
increase the competence 
of our country to store 
and process data, and 
transform processed 
data into meaningful 
insight which will enable 
economic growth.

We will continue to 
leverage our technology 
for the benefit of those 
who most need it.

WE HAVE INVESTED IN TURKEY’S FUTURE WITH OUR 

TECHNOLOGY, SOCIAL RESPONSIBILITY AWARENESS 

AND NOW, OUR FOUNDATION. 

We utilized our technology and strength to contribute to the 

growth of the countries in which we operate, primarily of 

Turkey also in 2018. In accordance with our motto “Turkey’s 

data should remain in Turkey”, we took steps to increase the 

competence of our country to store and process data, and 

transform processed data into meaningful insight which will 

enable economic growth. We became Turkey’s largest data 

center operator in June with the opening of our new data 

center in Izmir.

We have equipped new Istanbul Airport, which ranks among 

the major projects to support Turkish economy, with the latest 

technology. We feel proud of putting first local base station 

ULAK, developed with our contribution, into service in various 

regions of our country within the scope of the Universal 

Project.

We believe that enabling fiber internet access to every 

household will be key to Turkey’s economic growth in the 

upcoming period, and we continue to work by all means 

towards joint infrastructure. We consider the infrastructure 

sharing protocol signed this year with the support of the 

Ministry of Transportation and the ICTA, and which united all 

sector players, a positive step in this direction.

We believe that investing in future means investing in human 

capital. Accordingly, we welcomed 232 young friends 

to the Turkcell family within the scope of our GNCYTNK 

Project. Moreover, with the Whiz Kids project, we support 

the education of our gifted children, while also supporting 

education of children overcoming obstacles through the 

Education without Boundaries Project. We cooperate with 

DQ Institute in the area of DQ - Digital Intelligence, and 

we help children to develop digital awareness in order to 

become confident digital citizens.

We support entrepreneurship through various projects and 

applications, primarily Beehive, our crowd funding platform. 

This year, we launched a separate program for our female 

entrepreneurs as part of our “Developers of the Future” 

platform and provided mobile application development 

training to 1,400 women across Turkey. While a number of 

the participants progressed towards entrepreneurship, 100 

participants joined our workforce, as user experience testers 

of Turkcell’s 10 most popular applications.

25

roof and work to increase the employment opportunities by 

supporting scientists and the qualified labor force required 

across all fields of endeavor.

THE FUTURE IS ALREADY HERE AND WE ARE READY FOR IT.

The near future will be shaped by technologies such as 5G, 

artificial intelligence, blockchain, and augmented and virtual 

reality all over the world. As Turkcell, we have launched strategic 

alliances with leading technology companies and universities 

domestically and abroad for the past two years with respect 

to our studies into 5G. Related activities continued in 2018. By 

bringing the necessary infrastructure in the open source test 

area of 5G Valley established with the leadership of the ICTA 

in Ankara, we completed the initial tests in September at the 

Hacettepe University Campus.

With 5G technology, through which we achieved a speed of 70 

Gbps in the tests that we conducted with our suppliers, it will 

be critical to develop new business models in vertical sectors. 

I believe that the distance we have covered over the past few 

years towards the digitization of sectors will have a catalytic 

effect on the emergence of use cases, and on their efficient 

implementation.

The primary tool for processing the data generated by 5G 

will be artificial intelligence/machine learning technologies. As 

Turkcell, we are currently utilizing these technologies to enrich 

our applications, to make more effective and efficient contact 

with our customers, and to prevent identity fraud through image 

processing. Through our R&D Center and creative human capital, 

we will continue to employ artificial intelligence internally to the 

highest ethical standards in deploying our services. 

We also continue our studies in blockchain field, which is 

another emerging technology. In 2018, we joined the Carrier 

Blockchain Study Group, which brings together the leading 

players of various markets to develop a blockchain platform 

and ecosystem that will work on a global network. The know-

how that we will gain will play an important role in Turkcell’s 

future.

OUR DIGITAL TRANSFORMATION PROCESS WILL KEEP UP 

THE PACE.

I would like to thank all our stakeholders, primarily our 

shareholders, for their unyielding support during 2018, where we 

crowned our transformation process into a digital operator with 

notable achievements. I sincerely believe that our success story 

will continue with the trust and support of all our stakeholders in 

“Hello Hope”, our application dedicated to serving our Syrian 

guests in Turkey, has reached nearly 1 million downloads. We 

will continue to leverage our technology for the benefit of 

those who most need it.

the upcoming period.

Yours Sincerely,

In this respect, we took another important step by establishing 

Turkcell Foundation. With a vision of developing Turkey into 

a technology producer, Turkcell Foundation aims to gather 

Turkcell’s corporate social responsibility activities under one 

KAAN TERZİOĞLU

Chief Executive Officer

TURKCELL GROUPTURKCELL ANNUAL REPORT 201826

EXECUTIVE OFFICERS

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5

11

9

10

2

8

1

7

6

4

Kaan Terzioğlu (1) 
Chief Executive Officer
Kaan Terzioğlu was appointed as Turkcell Group’s Chief Executive Officer as 
of April, 2015. Kaan Terzioğlu leads the digital transformation of Turkcell Group 
companies. Mr. Terzioğlu serves as board member of several international 
institutions and organizations. He is at the board of GSMA, the leading 
international mobile communication organization, and advisory board of World 
Economic Forum Center for Fourth Industrial Revolution. Mr. Terzioğlu also serves 
as a board member for “Turkey’s Car” Initiative and he assumes the presidency 
of Mobile Telecommunications Operators Association (m-TOD). Terzioğlu is 
also at the board of Turkcell Foundation and as well as at GSMA Foundation 
focusing on “Mobile Communications for Development”. Kaan Terzioğlu began 
his professional life in 1990 at Arthur Andersen Turkey. From 1990 to 1998, he 
undertook several roles on information technologies at Arthur Andersen in 
the USA, Belgium and Turkey. From 1999 to 2012, he held global managerial 
roles at the Cisco Systems Brussels office. From 2012 to 2015, Kaan Terzioğlu 
served as member of board of directors at Akbank, Aksigorta A.Ş., Teknosa 
İç ve Dış Ticaret A.Ş. and Carrefoursa A.Ş. Kaan Terzioğlu graduated from the 
Department of Business Administration at Boğaziçi University.

Osman Yılmaz (2)
Executive Vice President - Finance (CFO)
Osman Yılmaz was appointed as the Chief Financial Officer on August 1, 
2018. Mr. Yılmaz started his professional career at Türkiye İş Bankası Treasury 
Department in 2006. In 2007, he worked at BNP/TEB Treasury Department. 
From 2008 to 2016, he served as Senior Fund Manager in Structured Products 
and Group Head of Fixed Income and Multi Asset Funds at HSBC Global Asset 
Management. In August 2016, he joined Turkcell family as Director of Treasury, 
Risk and Collection Management. Mr. Yılmaz holds a dual BSc degree in 
Economics and Management from London School of Economics and Istanbul 
Bilgi University, MSc in Financial Engineering from Boğaziçi University and a PhD 
in Finance from Ozyegin University.

TURKCELL ANNUAL REPORT 201827

Ayşem Ertopuz (8)
Executive Vice President - Digital Services and Solutions
Ayşem Ertopuz joined Turkcell in January 2016 as Strategic Planning Director. In 
November 2016, she was appointed as the Executive Vice President of Digital 
Services and Solutions. She started her career in 1993 at Arçelik A.Ş. as Quality 
System Engineer. She served as Strategic Consultancy Services Manager at 
Arthur Andersen in 1997. Joining Cisco’s EMEA Region Organization in 2001 in 
Belgium, Ayşem Ertopuz took managerial roles in several functions including 
Strategic Planning, Business Intelligence, Operations and Global Customer 
Management. She served as the manager of Business Intelligence Group 
within Cisco’s New York based Global Sales Strategy and Planning organization 
between 2006 and 2015, focusing on the fields of service providers sector, 
market and competition dynamics, business strategy and performance, 
utilization of digital services in new business models. Ayşem Ertopuz graduated 
from Middle East Technical University Industrial Engineering Department and 
received her MBA degree from New York University, Stern School of Business.

Serkan Öztürk (9)
Executive Vice President - Customer Experience and Information 
Technologies
Serkan Öztürk joined Turkcell in 2000 as a Project Supervisor. In August 2017, 
he was appointed as the Executive Vice President of Customer Experience 
and Information Technologies. Previously, he worked as project supervisor and 
manager at Turkcell Project Management office between 2000 and 2009. 
He served as Chief Information Technologies Officer in life-Ukraine between 
2009 and 2010 and in Turkcell Superonline between 2010 and 2011. From 2011 
to 2015 he served as Turkcell Customer Relations Management and Business 
Intelligence Solutions (CRM & BIS) Director. Prior his to his last appointment, he 
was Executive Vice President of Information and Communication Technologies. 
Serkan Öztürk graduated from Middle East Technical University Electrical and 
Electronics Engineering department. He received his MBA degree from Istanbul 
University.

Gediz Sezgin (10)
Executive Vice President - Network Technologies
Gediz Sezgin joined Turkcell as Network Engineer in 1995. In October 
2015, he was appointed as the Executive Vice President of Network 
Technologies. Previously, he served as Senior Vice President of Information 
and Communication Technologies, Chief Information and Communication 
Technologies Officer, Director of Application Operations, Director of Service 
Network under the ICT Function and held various executive positions in the 
Technology Function. Mr. Sezgin started his career at Alcatel Teletaş in 1991. He 
graduated from İstanbul Technical University Electronics and Communication 
Engineering Department and received his Master’s degree from the same 
university.

Ali Türk (11)
Executive Vice President - Supply Chain Management
Ali Türk joined Turkcell as the Senior Vice President of Supply Chain 
Management in May 2016. He was appointed as the Executive Vice President of 
Supply Chain Management in March 2017. Mr. Türk started his career at Başak 
Hayat Sigorta in 1999. From 2002 to 2007, he held various managerial positions 
responsible for logistics planning, warehouse and supply chain management 
processes at Ülker Group. From 2007 to 2011, he worked at Ceva Lojistik as 
Warehouse and Value Added Operations Group Manager. Mr. Turk joined 
Turkish Airlines in 2011 as Cargo Operations Vice President. He was appointed 
as Turkish Airlines Cargo Operations President in 2012. Ali Türk graduated from 
Istanbul Technical University Industrial Engineering Department and completed 
Executive MBA program of Istanbul Technical University.

Ömer Barbaros Yiş (3)
Acting Executive Vice President - Marketing
Ömer Barbaros Yiş joined Turkcell in 2017. Mr. Yiş continues to serve as 
Consumer Marketing Director after holding Strategic and Focused Marketing 
Director role. Ömer Barbaros Yiş was appointed as acting Executive Vice 
President of Marketing on December 18, 2018, in addition to his existing role 
in Turkcell. Having started his career in 2006 as Corporate and Consumer 
Pricing Specialist in Turkcell, he held various Senior Product Manager roles in 
the marketing department. From 2010 to 2013, he continued his career as the 
Global Telecom Industry Director in Peppers & Rogers Group. In 2013, he served 
as Existing Customer Management Director, Premium Segment Customer 
Management Director and Fixed Products Revenue Management Director at 
Turk Telekom. Ömer Barbaros Yiş graduated from Koç University with a double 
major in Business Administration and Economics and received his master’s 
degree in Economics from Universitat Autonoma De Barcelona.

Serhat Demir (4)
Executive Vice President - Legal and Regulation
Serhat Demir joined Turkcell as the Executive Vice President of Legal and 
Regulation Function in May 2015. Mr. Demir started his professional career in 1997 
at Dun&Bradstreet Turkey office. From 2003 to 2007 he worked at Yıldız Holding 
Legal Department and in 2007 he served as the Legal Counsel at Çalık Holding A.Ş. 
Between 2009 and 2015, Mr. Demir undertook Çalık Holding Legal Affairs Director 
role and in the meantime he also served as member of Board of Directors at 
holding level and at group companies that operated in telecom and finance fields. 
Serhat Demir graduated from the Faculty of Law at Istanbul University.

Murat Erkan (5)
Executive Vice President - Sales
Murat Erkan joined Turkcell Group in June 2008 as the General Manager 
of Turkcell Superonline and in December 2015 he was appointed as the 
Executive Vice President of Sales. Mr. Erkan, who started his professional life 
at Toshiba, worked as an Application Engineer at Biltam Mühendislik and then 
served as the first “System Engineer” of Turkey at Cisco Turkey. He served 
as Chief Officer at Cisco Systems in charge of Technology, Sales, Business 
Development and Channel Management. As from 2006, Mr. Erkan served 
as the Business Unit Manager at Aneltech responsible for solutions related 
to telecommunications, mobile, ICT, defense industry and industrial products 
sectors. Murat Erkan graduated from the Yıldız Technical University Electronics 
and Telecommunication Engineering Department. He completed the Strategic 
Marketing Program at Harvard Business School in 2010.

Seyfettin Sağlam (6)
Executive Vice President - Human Resources
Seyfettin Sağlam joined Turkcell in July 2014 and undertook the Chief Officer 
roles in charge of Procurement, Real Estate and Construction and Human 
Resources. Mr. Sağlam currently serves as the Executive Vice President 
responsible for Turkcell Group Human Resources. He is also a member of 
the Board of Directors of PERYÖN. He started his professional career at MSC 
Consulting. He held managerial roles at various levels in charge of Human 
Resources at Tekstilbank, Yıldız Holding, T.C. Ziraat Bankası, Rixos Hotels & 
Sembol İnşaat A.Ş. and Borsa İstanbul. Seyfettin Sağlam graduated from the 
Department of Sociology at Middle East Technical University and he received 
his master’s degree from the Marmara University in International Quality 
Management. He completed the HR Management & Leadership Program at 
INSEAD and Executive Education Program at Harvard Business School. 

İlter Terzioğlu (7)
Executive Vice President - Strategy
İlter Terzioğlu joined Turkcell in 2003 as Business Strategies, Regulation and 
Risk Consolidation Division Head. In October 2015, he was appointed as the 
Executive Vice President of Strategy. Prior to this appointment, he served as 
Senior Vice President of International Business under the Strategy Function. 
Previously at Turkcell, he undertook the roles of acting Chief of International 
Business, Chief Strategic Projects Officer and Chief Network Operations 
Officer. He also had worked as Assistant General Manager at Turkcell Group 
companies, including Show TV and Superonline. He had worked for Ericsson 
Turkey as the Assistant General Manager responsible for Turkcell between 1994 
and 2002. He graduated from Istanbul University Department of Econometrics.

TURKCELL GROUPTURKCELL ANNUAL REPORT 201828

TOP MANAGEMENT OF SUBSIDIARIES

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2

4

5

1

Kaan Terzioğlu (1)
Chief Executive Officer
Please see page 26 for detailed CV.

İsmet Yazıcı (2)
General Manager of lifecell Ukraine
İsmet Yazıcı joined Turkcell in 2009. Mr. Yazıcı has been serving as the General 
Manager of lifecell, Turkcell’s subsidiary in Ukraine since May 2017. Prior to 
this position, Yazıcı worked as the Deputy General Manager of Sales and 
Business Development at Global Tower between 2009 and 2010 and as the 
General Manager between 2010 and 2011 at Global Tower. From 2011 to 2015, 
he served as the General Manager at BeST, Turkcell’s subsidiary in Belarus and 
as General Manager at Kuzey Kıbrıs Turkcell between 2015 and 2017. Beginning 
his professional career in 1993, Yazıcı served as the Research & Development 
Engineer, International Sales Engineer, Romania Country Manager, Product 
Marketing Manager, EMEA Region CDMA Business Development Director, 
and Enterprise Leader, respectively, at the Turkey and USA offices of Nortel 
until 2009. İsmet Yazıcı received his bachelor’s degree in Electric-Electronic 
Engineering at Hacettepe University in 1992, and postgraduate degrees in 
Political Science at Marmara University in 1998 and in International Marketing 
and Management at the University of Texas in 2001. In 2011, he had obtained his 
second undergraduate degree from Istanbul University, Faculty of Law.

Erdal Yayla (3)
BeST, CFO (Acting General Manager)
Erdal Yayla joined Turkcell İletişim Hizmetleri A.Ş. as a financial controller & 
reporting specialist in 2003. He served as the manager of financial accounting, 
control and reporting department (2004-2010), deputy general manager of 
finance (2010-2016) and acting general manager (2014-2015), respectively 
at lifecell in Ukraine. He has been serving as the deputy general manager 
of finance at BeST, our subsidiary in Belarus since March 2016, and he has 
been assuming the acting general manager since November 2018. Mr. Yayla 
started his career as a senior auditor at PricewaterhouseCoopers in 1999, and 
then worked as a financial controller at LafargeHolcim in 2002. Erdal Yayla 
graduated from Marmara University Faculty of Economics and Administrative 
Sciences in 1999 and completed the Executive Development Program at 
Wharton School in 2016. 

Barbaros Özdemir (4)
General Manager of lifecell Ventures & Turkcell Europe
Barbaros Özdemir serves as General Manager of lifecell Ventures and Turkcell 
Europe. Mr. Özdemir joined Superonline in 2008 as Deputy General Manager 
of Sales, Marketing and Wholesale and then held Fixed Solutions Sales 
Director role. Prior to his current role, he undertook Medium Business Sales 
Director position between 2015 and 2016. Mr. Özdemir began his career as 
a System Analyst at an IBM SoftwareHouse Step Reseller. Barbaros worked 
as a Sales Director at Borusan Telecom and BMC Software, Corporate 
Solutions Sales Manager at HP Turkey. Barbaros has 26 years of experience in 
digital transformation, marketing and sales. He is a member of IMD Business 
School International Leaders Program. He is also a senior trainer for Digital 
Transformation Leadership Program at Turkcell Academy. Barbaros graduated 
from Bilkent University Computer Technology and Programming Department in 
1990.

Nihat Narin (5)
General Manager of Global Tower  
Nihat Narin was appointed as General Manager of Global Tower in June 2016. 
He also serves as Board Member at Inteltek Technology and Investments Co. 
and UkrTower LLC. Mr. Narin began his career in investment banking in 1996 and 
worked in various roles including corporate finance and research analyst. During 
his position at Ata Invest as Telecom Analyst, he worked in various IPO projects, 
including IPO of Turkcell. He joined Turkcell in 2000 and worked as senior 
specialist at Investor Relations Department until 2004. Subsequently, he served 
as Director of Internal Audit, Director of Investor Relations & International Media 
and Group M&A Director at Turkcell. Mr. Narin received his BA degree from 
the Faculty of Economics and Administrative Sciences at Marmara University 
and MBA degree from Middlesex University while completing his graduation 
project on Capital Markets of UK. Mr. Narin also holds Turkish Capital Markets 
Advanced Degree License and Corporate Governance Licenses.

TURKCELL ANNUAL REPORT 201829

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Çağatay Aynur (6)
General Manager of Turkcell Global Bilgi  
Çağatay Aynur joined Turkcell Group in 2000 as an Account Manager. In July 
2015, he was appointed as the General Manager of Turkcell Global Bilgi. Prior 
to his appointment to this position, he had served as the Regional Manager in 
Charge of Strategic Customers and Public Affairs, Sales Manager in Charge 
of Large Scale Businesses, Corporate Sales Director in Charge of Large Scale 
Businesses and Corporate Sales Director in Charge of Mid-Scale Businesses. 
Beginning his professional career at Erkunt Döküm Sanayi, Çağatay Aynur 
served as the Sales Manager at Martı Ltd. Çağatay Aynur graduated from 
Department of Metallurgical Engineering at Middle East Technical University in 
1993.

Adem Duman (7)
General Manager of Turkcell Finansman
Adem Duman was appointed as the General Manager of Turkcell Finansman 
A.Ş. as of September, 2018. He is also the chairman of the Association of 
Financial Institutions and board member of the Federation of European Finance 
Corporation Association (Eurofinance). Duman started his banking career as a 
management trainee at Interbank in 1996. From 2000 to 2005, he worked as 
the Head of Corporate Banking at BNP AK Dresdner Bank. From 2005 to 2014, 
Duman served as the Manager and Director of the Foreign Capital Firms Desk, 
Structured Finance and BNP Paribas Synergy Director and then as the Large 
Corporate Customers Director at Turkish Economy Bank. In 2015, he joined Vakıf 
Emeklilik A.Ş. and served as Deputy General Manager in charge of Finance, 
Marketing and Human Resources Transformation Project and in addition to 
his role, he was also responsible for the Actuarial, Risk Management, Law and 
Internal Control functions for one year period. Adem Duman graduated from 
Boğaziçi University Political Science and International Relations department and 
received his Executive MBA degree from the same university.

Melike Kara (8)
General Manager of Turkcell Payment and Electronic Money Services  
Melike Kara, worked as a manager in Turkcell Mobile Financial Services 
Department from 2011 to 2015. In February 2015, Ms. Kara was appointed as 
Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş. General Manager. Kara 
graduated from the Middle East Technical University Department of Business 
Administration in 2004 and began working at PricewaterhouseCoopers Istanbul 
Office the same year. After 2 years of PwC experience, she held various 
positions in the field of marketing and business development within Garanti 
Bank Payment Services business line.

Ahmet Sezer (9)
General Manager of İnteltek  
Ahmet Sezer joined İnteltek as the General Manager in 2004. Sezer began 
his career at Aselsan. Subsequently, he served as the System Engineer, Senior 
Deputy General Manager, Deputy General Manager and General Manager at 
IBM Turk, Intertech and Vestel Group and Vestel Consulting, respectively and 
as General Manager at Probil. Ahmet Sezer graduated from Istanbul Technical 
University Electronics and Communication Engineering Department in 1982.

Harun Maden (10)
General Manager of Kuzey Kıbrıs Turkcell
Harun Maden was appointed as the General Manager of Kuzey Kıbrıs 
Turkcell as of April 2017. Between 1986 and 1989, he started working as an 
Industrial Control and Automation Engineer at Kerimoğlu Makinacılık ve 
Ticaret. He worked for Datateknik between 1989 and 2002, as a Technical 
Manager (1989-1991), Product Development Director (1991-1993), Sales and 
Marketing Coordinator (1993-1996) and Deputy General Manager (1996-
2002), respectively. Between 2002 and 2006, he served as a Member of 
the Board of Directors and as the General Manager at Hızlı Sistem Bilişim 
and also as a Member of the Board of Directors at Hızlı Sistem Mağazacılık. 
In addition, Mr. Maden served as a Management Consultant at Türk 
Telekom between 2003 and 2004. He worked as the General Manager 
of Teletek Telekomünikasyon and Global İletişim between 2007 and 2009. 
Between 2010 and 2015, he held several executive roles at affiliated 
companies of IBB. Mr. Maden also worked as the acting General Manager 
of IBB Kültür in 2011, Founder and Chairman of the Board of IBB İstelkom 
between 2012 and 2015 and as a Member of the Board of Directors and 
General Manager of İBB Belbim between 2010 and 2015. Mr. Maden 
worked as the General Manager, as the Chairman of the Board and as an 
Advisor at PTT between 2015 and 2017. He is also a Member of the Board 
of Directors of Turing and Automobile Association of Turkey since 2012. 
Harun Maden completed his undergraduate study at Istanbul Technical 
University Faculty of Electrics, Department of Electronic Communication in 
1982.

Erkin Kılınç (11)
General Manager of Turkcell Energy Solutions  
Erkin Kılınç joined Turkcell Energy Solutions as the General Manager in 
2017. Kılınç began his career at Ode Insulation as Sales Specialist in 1998. 
Subsequently, he served as Sales Specialist at Doğan Foreign Trade&Agency 
Operations (2001-2003), as Energy Trade Group Manager at Akenerji (2003-
2009), as Energy Projects Coordinator at Akfel Group (2009-2011), as Turkey 
Sales Director at RWE (2011-2015) and as Assistant General Manager at Limak 
Energy (2015-2017). Erkin Kılınç received his bachelor’s degree in Mechanical 
Engineering at Istanbul Technical University in 1998, and Executive MBA degree 
at Işık University in 2003.

TURKCELL GROUPTURKCELL ANNUAL REPORT 201830

TURKCELL GROUP

Turkcell Group companies operate in 5 countries including 
Turkey, Ukraine, Belarus, TRNC and Germany.

BELARUS - BeST 

TURKEY - TURKCELL 

Mobile Customers 1.6 million 
Revenues TRY 293 million

Mobile Customers 33.8 million
Fixed Customers 2.3 million
IPTV Customers 613 thousand
Revenues TRY 18.3 billion

GERMANY - TURKCELL EUROPE 

Mobile Customers 0.2 million

TRNC - KUZEY KIBRIS TURKCELL 

Mobile Customers 0.5 million
Revenues TRY 180 million

UKRAINE - lifecell 

Mobile Customers 9.9 million
Revenues TRY 924 million

Note: On March 5, 2018, Fintur transferred its 51.3% total shareholding in Azertel Telekomunikasyon Yatirim Diş Ticaret A.Ş to Azerbaijan International Telecom LLC, a fully state-owned company 
of the Republic of Azerbaijan.
On March 20, 2018, Fintur completed the transfer of its 99.99% total shareholding in Geocell LLC to Silknet JSC, a joint stock company organized under the laws of Georgia.
On December 12, 2018, Fintur signed a binding agreement and on December 21, 2018 completed the transfer of its 51% total shareholding in Kcell JSC to Kazakhtelecom JSC, a fixed line 
operator controlled by the government of the Republic of Kazakhstan through the sovereign wealth fund Samruk-Kazyna.
On December 12, 2018, Turkcell signed a binding agreement with respect to the transfer of its shares in Fintur to Sonera Holding B.V., the majority shareholder of Fintur.

TURKCELL ANNUAL REPORT 2018 
 
 
 
 
OUR VISION, TARGET, STRATEGY AND APPROACH

31

Our Vision
Digital Operator Turkcell

Our Target
Global leadership in digital services by 
reaching 1 billion downloads in 3 years

Our Strategy: 1440’
To strengthen our relationship with our customers and 
increase loyalty by providing products and services that 
include value proposition for each of 1440 minutes

Our Approach
Leading brand Turkcell in delivering technological, 
economic and social benefits to all of its stakeholders.

TURKCELL GROUPTURKCELL ANNUAL REPORT 201832

2018 AT A GLANCE

Remarkable results with digital 
transformation…

RECORD 
REVENUE 
AND  
EBITDA

Group revenues increased by 
20.8% to TRY 21.3 billion, while 
EBITDA rose by 41.1% to 
TRY 8.8 billion.

15%

MOBILE ARPU* 
GROWTH

Mobile ARPU rose 15%.

*Excluding M2M

41.3%

 EBITDA 
MARGIN 

90.2% two-year cumulative 
EBITDA growth, led to an 
EBITDA margin of 41.3%.

NPS

According to Net Promoter Score, 
which reflects customer satisfaction, 
Turkcell has the highest level of 
customer satisfaction in the industry 
in 2018.

66.7%

MOBILE MULTIPLAY 
SUBSCRIBER  
RATIO

The mobile multiplay subscriber 
ratio reached 66.7%, up 10.9 pp 
year-on-year; and multiplay with TV 
subscribers reached 48.6%, up 4.2 pp 
year-on-year.

91%

4.5G SUBSCRIBER  
PENETRATION

74% smartphone penetration, 
80% are 4.5G compatible 
smartphones.

1.2

Gpbs 
THE FASTEST  
4.5G
Turkcell was cited as one 
of the world’s two fastest 
operators.

8 GB

DATA 
USAGE

STRONG 
SHAREHOLDER 
RETURN

The average monthly data usage 
of 4.5G users rose to 
8 GB as of December 2018.

We have distributed nearly 
60% of our net income 
registered since 2010.

TURKCELL ANNUAL REPORT 2018Following its launch 
in Turkey, BiP accelerated 
its communications activities 
abroad. The first address of the 
application preparing to appear 
in the most important medium 
of global media was US, the 
country of its closest 
competitor.

TURKCELL GROUP34

2018 HIGHLIGHTS

Turkcell Group continued its strong financial 
performance in 2018 by reaching TRY 21.3 
billion revenue on 20.8% growth and 8.8 
billion EBITDA on 41.1% rise. 

FINANCIAL HIGHLIGHTS

Turkcell Group Revenues (TRY million)

Turkcell Group EBITDA(1) (TRY million)

Turkcell Group Net Income (TRY million)

2
9
2

,
1
2

8
1
0
2

2
3
6

,

7
1

7
1
0
2

20.8% 
GROWTH

8
8
7

,

8

8
1
0
2

8
2
2

,

6

7
1
0
2

41.1% 
GROWTH

9
7
9
,
1

7
1
0
2

1
2
0
2

,

8
1
0
2

2.1% 
GROWTH

Turkcell Group Financial Indicators

Turkcell Turkey (TRY million)
Revenues

EBITDA

EBITDA Margin

Turkcell International (TRY million)
Revenues

EBITDA

EBITDA Margin

Turkcell Other Subsidiaries(2) (TRY million)
Revenues

EBITDA

EBITDA Marginı

2017

15,450

5,594

36.2%

1,067

264

24.7%

1,115

370

33.2%

2018

Change

18,266

7,534

41.2%

1,457

613

42.1%

1,570

641

40.8%

18.2%

34.7%

5.0 pp

36.5%

132.1%

17.4 pp

40.8%

73.0%

7.6 pp

(1) EBITDA is a non-GAAP financial measure.
(2) “Other subsidiaries” is mainly comprised of our information and entertainment services, call center business revenues, financial services revenues and inter-business eliminations.

In the tables totals may not foot due to rounding differences. The same applies to the percentage comparisons.

TURKCELL ANNUAL REPORT 2018 
35

In 2018, the total number of customers was 
48.9 million, of which 36.7 million in Turkey. 

OPERATIONAL INDICATORS

Mobile ARPU* (TRY)

On the mobile front, the number of our mobile 

postpaid customers increased to 18.8 million with 

347 thousand net postpaid subscriber additions 

annually. Our fiber subscriber base reached 1.4 

million on 181 thousand annual net additions. 

IPTV subscribers exceeded 613 thousand on 108 

thousand annual net additions.

2017

36.7

18.5

15.6

1,204.3

921.4

505.9

2018

36.7

18.8

14.9

1,385.6

905.6

613.4

Change 

-

1.6%

(4.5%)

15.1%

(1.7%)

21.2%

2

.

6
3

8
1
0
2

6

.
1
3

7
1
0
2

15% 
GROWTH

Turkcell Turkey Operational Indicators

Number of Subscribers (million)

Mobile Postpaid (million)

Mobile Prepaid (million)

Fiber (thousand)

ADSL (thousand)

IPTV subscribers (thousand)

** excluding M2M

TURKCELL GROUPTURKCELL ANNUAL REPORT 201836

THE WORLD’S 1ST DIGITAL OPERATOR
BRAND: LIFECELL
Lifecell, offering customized packages, facilitated the lives of 
our customers, who prefer to do everything online, with its new 
digital services and continued to meet all of their communication 
needs also in 2018.

8.6 GB

Average 
Data Usage

Lifecell Has a 
Package for 
Everyone!

2.5 
million
Lifecell 
Customers

~30

Digital 
Services

TURKCELL ANNUAL REPORT 2018TURKCELL’S DIGITAL SERVICES

37

Download(1)

3 month active users

Service KPIs

Instant 
Messaging

34.6M

11.5M

Digital 
Publishing(2)

10.5M

12.5M

148M

messages per day

522K

copies read per day

20.9M

3.2M

7.0M

songs streamed per day

11.8M

3.1M

Personal Cloud
(lifebox)

10.1M

2.6M

Digital 
Operator(4)

38.8M

19.2M

7.6M

3.0M

3.4M

TV sessions per day

41

docs uploaded per  
person/day

27% 

more ARPU

2.7M

search per day

2.6M

15.3M

registered users

5.2M

8.2M

TRY 5.8 billion

transactions in 2018

232M

logins to date 

Music

TV(3)

Yaani

Payment 
Platform(5)

Fast Login

(1)  Refers to downloads as of February 15, 2019
(2) Includes users who utilized the zero rating benefit of Dergilik magazines and newspapers via browser
(3) 3-Month active users also include IPTV users
(4) My Account is renamed as Digital Operator
(5) Transactions include subsidiary revenues. Active users include DCB, app and Paycell card customers

TURKCELL GROUPTURKCELL ANNUAL REPORT 201838

EXEMPLARY DIGITAL OPERATOR

As Turkey’s Turkcell, we have been cited as one of the 
exemplary companies of the telecom and technology sector 
in international platforms in 2018.

As Turkcell, we made our 
mark with our
469 m2 booth at the 
Mobile World Congress 
(MWC) in Barcelona, 
Spain in 2018.

As Turkey’s Turkcell, we have been cited 
as one of the exemplary companies of the 
telecom and technology sector in international 
platforms in 2018. Having actively participated 
on international platforms, we succeeded in 
becoming the focus of international media with 
the new projects we implemented.

lifecell MARK AT MOBILE WORLD CONGRESS

As Turkcell, we made our mark with our 469 m2 
booth at the Mobile World Congress (MWC) 
in 2018. MWC was organized by GSMA, which 
guides the mobile communication sector, in 
Barcelona, Spain between February 26-March 1. 
At our booth, where digital transformation 
of Turkcell was showcased, visitors had the 
opportunity to experience the full range of 
Turkcell solutions. The press meeting held at 
our booth, during which we launched lifecell 
Ventures, attracted great attention from both 
the national and international press. As a result 
of the communication efforts within the scope 
of the Mobile World Congress, we appeared on 
international mainstream media, primarily NY 
Times, Financial Times and Wall Street Journal, 
and in industry publications with various news 
items. Additionally, due to exclusive interviews 
and informative activities that we conducted 
during the event, our news and images were 
featured on the CNBC, BBC, TVE and TV3 
television channels.

WE INTRODUCED lifecell IN GERMANY.

Germany was one of our first routes in exporting 
of our products and services. Right after lifecell 
Ventures’ launch in Barcelona, we introduced 
lifecell to our users in Germany at a press 
conference organized in April. The launch grabbed 
interest from national media and media sources 
followed by Turkish people living in Germany. 
Turkcell’s digital transformation story was reflected 
at Handelsblatt, Germany’s leading daily economy 
newspaper, with an exclusive interview with our 
CEO Kaan Terzioğlu. 

WORLD ECONOMIC FORUM (WEF)

The annual meeting of the World Economic 
Forum (WEF), which brings together leaders of 
global society, took place in Davos with the theme 
of “Creating a Shared Future in a Fractured World.” 
The refugee crisis was one of the key topics of 
the meeting. In his speech on the “Reconnecting 
Refugees” panel organized within this context, 
our CEO Kaan Terzioğlu outlined Turkey’s efforts 
to enable Syrians to regain humanitarian living 
standards. Having also addressed Turkcell’s Hello 
Hope application, which reached approximately 1 
million users, Terzioğlu underlined that we should 
benefit from the opportunities created by digital 
technology in order to produce effective solutions 
for the future.

UNITED NATIONS 

Our CEO Kaan Terzioğlu was one of the guests of 
the CEO Roundtable organized by GSMA, during 
the week of 73rd session of the United Nations 
(UN) General Assembly this year. At the event, the 
contribution of the telecommunications sector to 
the Global Sustainable Development Goals set by 
the United Nations to achieve the 2030 targets, 
was discussed.

In addition, the interview with “Our Children 
and the Digital World” theme, conducted by the 
social media team of the UN with our CEO Kaan 
Terzioğlu, was broadcast live from UN social 
media accounts.

The Foreign Economic Relations Board of Turkey 
(DEIK), held the 9th Turkey Investment Conference 
in New York also within the scope of UN Week 
events. Our President Recep Tayyip Erdoğan, 
our ministers Berat Albayrak, Ruhsar Pekcan, 
Mustafa Varank and Fahrettin Koca attended 
the meeting, where numerous foreign investors 
were welcomed. CEO Kaan Terzioğlu represented 
Turkcell at the meeting.

TURKCELL ANNUAL REPORT 201839

Turkcell’s leadership 
in the digital 
transformation journey 
has been published as 
an international case 
study by IMD Business 
School, the world’s leading 
school of strategy and 
management.

ALLIANCE OF CIVILIZATIONS FORUM 2018

Turkcell participated as a private sector 
representative at the forum organized under the 
roof of the United Nations Alliance of Civilizations, 
launched in 2005 at the initiative of then Prime 
Minister of Spain, Jose Luis Rodriguez Zapatero, 
and President Recep Tayyip Erdoğan. At the forum, 
in its 8th outing this year, our chairman Ahmet Akça 
attended the panel with “Productive Cooperation: 
Using the Power of Private Sector and Civil Society 
in the Foundation of Peace” theme and informed 
the audience on Turkcell’s projects focused on 
investments in society and humanity.

The forum, held at the United Nations Headquarters 
in New York on November 19-20, 2018, was 
attended by the Foreign Minister Mevlüt Çavuşoğlu 
on behalf of Turkey. Our Chairman Ahmet Akça, 
who attended the event as a private sector 
representative on behalf of Turkey, gave a speech 
on the efforts of Turkey and Turkcell to establish 
and sustain peace in the world and in our country 
within the scope of the forum.

MOBILES FOR EDUCATION ALLIANCE –  
HELLO HOPE 

The Mobiles for Education Alliance, formed with 
the partnership of internationally respected 
organizations such as the World Bank, UNESCO, 

UNICEF, USAID and the key institutions of the 
mobile communication world such as GSMA, 
ITU, selected Turkcell’s “Hello Hope” project as an 
exemplar among 160 projects. Upon the invitation 
of the Association, Turkcell participated in the 
closed symposium organized for the purpose of 
articulating exemplary projects and shared the 
story of “Hello Hope” and the benefit it provided 
to humanity by leveraging mobile technology, 
with officials of Mobile Education Association and 
participants.

IMD BUSINESS SCHOOL EXAMINED TURKCELL.

Turkcell’s leadership in the digital transformation 
journey has been published as an international 
case study by IMD Business School, the world’s 
leading school of strategy and management. This 
case study examined in detail Turkcell’s journey of 
transformation from a traditional telecom operator 
to an experience provider, and indeed, the world’s 
first digital operator. It also looked at its strategies 
and practices, how the Company adapted to 
the speed of the change, met the expectations 
of our customers, how our management, and 
our business manners and capabilities were 
developed, transformed, as well as Turkcell’s 
leadership plans in international markets with OTT 
services.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201840

OUR SUPERIOR TECHNOLOGY

Turkcell was named among the best in the world for its 
4.5G (LTE) network, in May 2018 Global Status Report 
published by Global Mobile Suppliers Association (GSA).

According to the May 
2018 report, where 
Gigabit LTE networks 
were taken as a reference 
point and the fastest 
download networks were 
announced, Turkcell, 
the world’s first digital 
operator, was presented 
as one of the world’s two 
fastest operators with a 
speed of 1.2 Gbps.

THE WORLD’S FASTEST 4.5G NETWORK IS AT 
TURKCELL.

We continue to offer the best services to 
our subscribers with our superior network 
technologies. As a result of our efforts in this 
context, Turkcell was named among the best in 
the world for its 4.5G (LTE) network, in May 2018 
Global Status Report published by the Global 
Mobile Suppliers Association (GSA). According to 
the May 2018 report, where Gigabit LTE networks 
were taken as a reference point and the fastest 
download networks were announced, Turkcell, 
the world’s first digital operator, was presented 
as one of the world’s two fastest operators with 
a speed of 1.2 Gbps. Utilizing all three main LTE-
Advanced features, Turkcell ranked at the very top 
among the fastest networks in the GSA database.

With the Technology Transformation Program, 
we modernized our 2G and 3G sites to 
make them ready for new technologies. As 
a result, with new generation products, we 

achieved both energy savings of up to 35% 
and increased capacity, as well as improved 
customer experience in these sites. During the 
transformation, we also increased investment 
efficiency by reutilizing existing equipment.

As part of this modernization, with actions taken 
to enable more efficient use of our frequency 
resources, we continued our preparations that will 
ensure utilization of our existing frequencies in new 
generation technologies. Thus, we increased the 
service quality provided to our subscribers, while 
using our frequency resources more efficiently.

WE INTRODUCED MOBILE BROADBAND IN 
RURAL SETTLEMENTS THROUGH LOCAL BASE 
STATIONS.

Within the scope of the “Addition of Mobile 
Broadband Internet Services to the Existing GSM 
Infrastructure Under the Universal Service Law” 
Project, carried out by the Ministry of Transport, 
Maritime Affairs and Communications, Directorate 
General of Communications, and of which we 

TURKCELL ANNUAL REPORT 201841

WE ARE LEADING 5G IN TURKEY.

We conducted the first live 5G experience in Turkey 
with end-to-end real 5G equipment. We provided 
a smooth and high-quality experience environment 
through 5G network infrastructure, for applications 
requiring resolution and high-speed such as Cloud 
Gaming, Virtual Reality, 4K video streaming and 
360-degree camera image transmission.

Our cooperation with standardization institutions, 
universities, government agencies, suppliers and 
SMEs, and our R&D activities continue at full speed 
in line with our vision of being a “technology 
producing/developing” company, not only a 
“technology user.”

Within the scope of 5G R&D studies, our project 
proposal regarding 5G vehicle communication 
was approved by the European Union research 
fund Horizon 2020. We will also implement the 
truck platooning, a vital scenario for the use of 5G, 
together with national and international partners 
in Turkey’s first H2020-supported 5G vehicle 
communication project.

As Turkcell, we continued R&D activities in 5G in our 
focus areas such as SON (Self Organizing Networks), 
Network Slicing, physical network security and 
health.

As the leading operator, we organized the “Digital 
Journey with 5G” conference at the Haliç Congress 
Center, during which we addressed technological 
developments of 5G, business opportunities to be 
created by 5G all over the World and particularly 
in Turkey, and the digital transformation. The 
conference attended by leading national and 
international speakers with expertise in their fields 
attracted great attention. While over 350 listeners 
participated in the conference, it was followed by 
thousands of people online.

Within the scope of 5G Valley studies, we supported 
the establishment of test infrastructures in Ankara. 
In order to educate human resources for the sector, 
by incorporating postgraduate students of Bilkent, 
Middle East Technical and Hacettepe Universities, 
we enriched cooperation with our universities. By 
working with local R&D teams of global suppliers 
in Turkey such as Ericsson and Huawei, we support 
them utilizing their potential in Turkey efficiently.

We continue software development studies 
with global telecom suppliers in an attempt to 
develop new technologies and become one of 
the first operators in the world to utilize them. 
Accordingly, we are constantly developing the 
network architecture that models the expectations 
of our customers in the best possible manner. This 

With the contribution of 
Turkcell, the development 
and testing processes 
ongoing for over 3 years 
for Turkey’s first local 4.5G 
base station, ULAK, have 
reached its final stage. 
As Turkcell, we started 
to provide our customers 
with the first live service 
through the local base 
station in the city center 
of Rize.

are the prime contractor, we completed the 
4.5G installations that had begun in 2017, on time, 
successfully in 2018 by using also ULAK local 
base stations. Our Minister of Transport, Maritime 
Affairs and Communications, and our CEO Kaan 
Terzioğlu, made the first video call via BiP during 
the “Commissioning of ULAK Base Stations” launch 
in Kars province on May 17, 2018. As a result of the 
successful completion of the Project, we brought 
the mobile broadband service over 4.5G to 1,623 
villages.

OUR SUPPORT FOR LOCAL AND NATIONAL 
TECHNOLOGIES CONTINUES AT FULL SPEED.

With the contribution of Turkcell, the development 
and testing processes ongoing for over 3 years for 
Turkey’s first local 4.5G base station, ULAK, have 
reached its final stage. As Turkcell, we started to 
provide our customers with the first live service 
through the local base station in the city center of 
Rize. While increasing the use of local base stations 
on our network, we continue our support for the 
creation of the technical road map of the product 
and the determination of its technical requirements. 

The process of developing the local 4.5G antenna 
and live network tests, which we conducted with 
Aselsan were successfully completed. In 2019, we 
plan to use the first local antennas on our network.

We have not limited our support for local products 
through today’s technologies, having also 
expanded our support for the technology of the 
future, 5G. “The End-to-End Local and National 5G 
Network Project” supported by The Scientific and 
Technological Research Council of Turkey (TUBITAK), 
started with the participation of 16 local companies 
and operators within the Communication 
Technologies Cluster (HTK). Within the scope of the 
Project, as Turkcell, we started to support 8 different 
product groups for the determination of technical 
specifications, as well as laboratory and site testing.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201842

OUR SUPERIOR TECHNOLOGY

As Turkcell, we added the “Dronecell” to our innovative 
solutions. With “Dronecell,” Turkey’s first flying base station, 
4.5G mobile network service can be provided in areas with 
no coverage.

In 2018, Turkcell crowned 
its leadership on Internet 
of Things (IoT) with 2 
awards.

We implemented relay 
technology to provide
4.5G network coverage in 
regions where network 
access was challenging. 
Thanks to the practical 
installation and intelligent 
optimization feature 
through the plug-and-
play method, we increase 
customer satisfaction by 
offering a fast and high 
quality solution.

year, by adding Internet of Things (IoT) studies 
we expanded the scope of Mixed Mode Multi 
Standard software developments, enabling 4.5G, 
3G and all technologies to operate together. In the 
development process of new radio technologies, we 
filed patent applications in 3 separate topics.

WE PLAY AN ACTIVE ROLE IN DETERMINING THE 
STANDARDS OF OUR SECTOR.

In the beginning of 2018, as Turkcell, we became a 
member of the ETSI (European Telecommunication 
Standards Institute) and 3GPP (3rd Generation 
Partnership Project). Within the scope of these 
memberships, we began to participate in ongoing 
standardization studies and related meetings, 
particularly on 5G. Similarly, we take part in 
various working groups within the framework 
of our existing membership at the NGMN (New 
Generation Mobile Networks) alliance. Besides, 
as Turkcell, we also lead a project in the “5G Trial 
and Testing Initiative” working group. We actively 
participate in the studies of the Technology 
Group and Spectrum Group at GSMA and 
closely monitor developments in these areas. We 
are part of the management of a focus group 
called “Machine Learning for Future Networks” 
at ITU-T’s Working Group 13 (SG13). Thus, we 
make significant contributions to studies that also 
include 5G. We take part in the working groups 
within the 5G-PPP (5G Infrastructure Public Private 
Partnership), an outstanding initiative in Europe 
focused on 5G research and development.

WE HAVE CROWNED OUR LEADERSHIP IN THE 
IOT WITH PRESTIGIOUS AWARDS.

In 2018, Turkcell crowned its leadership on Internet of 
Things (IoT) with 2 awards. We have been awarded 
at the IoT World Europe in the Best End-to-End 
IoT Solution category for our “Connected Parking” 
project, and at Telecoms World in the Innovation 
Award category for our “Water Irrigation” project. 

WE ARE OFFERING INNOVATIVE SOLUTIONS TO 
OUR CUSTOMERS.

We implemented relay technology to provide 
4.5G network coverage in regions where network 
access was challenging. Thanks to the practical 
installation and intelligent optimization feature 
through the plug-and-play method, we increase 
customer satisfaction by offering a fast and high 
quality solution. The use of this solution, one of the 
first examples in the world, is becoming increasingly 
widespread.

As Turkcell, we added the “Dronecell” to our 
innovative solutions. With “Dronecell,” Turkey’s first 
flying base station, 4.5G mobile network service 
can be provided in areas with no coverage. 
We developed a solution to support search 
and rescue activities by providing temporary 
coverage to inaccessible areas, in particular, 
during natural disasters and emergencies.

TURKCELL ANNUAL REPORT 201843

After offering households 
1 Gbps internet speed in 
a first for Turkey, we also 
undersigned another first, 
serving our residential 
users with 10 times of 
this speed, at 10 Gbps. 
Accordingly, we gained 
ability to offer high 
quality video-based next 
generation services.

TURKCELL ESTABLISHED THE DIGITAL INDOOR 
SYSTEM NETWORK OF THE WORLD’S LARGEST 
AIRPORT.

As Turkcell, we assumed the task of establishing the 
mobile communication infrastructure of the new 
Istanbul Airport, the world’s largest, with an area 
of 77.5 million m² and an annual accommodation 
capacity of up to 200 million passengers. The 
mobile network infrastructure, which is equipped 
with advanced technology that befits our country 
and is suitable for the density at the new airport, 
was successfully rolled out in time for the launch 
organized on October 29, 2018. In addition to 
pushing the boundaries of today’s technology, 
the infrastructure that we have deployed ensures 
that we look to the future with confidence, thanks 
to its compatibility with 5G. We are proud to 
be providing our customers with Gbps speed 
and the highest quality service through a digital 
infrastructure that possesses all these features.

TURKCELL SERVICE QUALITY IS EVERYWHERE.

 » By expanding our plug-and-play Wi-Fi service 
launched for large enterprises and SMEs, we 
included young people within our field of focus. 
We implemented our new service on university 
campuses through SIM-based authorization.
 » Sharing infrastructure with the leading internet 
service providers of our country to penetrate 
digital services at our focus in accordance 
with our digital operator vision, we aim to 
differentiate ourselves through the digital 
services and experience we provide to our 
customers.

 » We are switching to an IPv6-based structure 
with an innovative solution in our network in 
order to provide segmentation of our customers 
acquired within the scope of infrastructure 
sharing projects. Additionally, we also completed 
our international patent applications for this 
solution.

 » After offering households 1 Gbps internet speed 
in a first for Turkey, we also undersigned another 
first, serving our residential users 10 times of this 
speed, at 10 Gbps. Accordingly, we gained ability 
to offer high quality video-based next generation 
services.

 » We became a member of the Open Network 
Foundation, which aims to accelerate the 
digital transformation of telecom operators in 
the developing world and enrich their business 
models. With this move, aimed at the use of 
open source code and hardware, we aim to 
provide our customers the opportunity to offer 
the latest generation of digital services cost 
effectively.

 » By the end of 2018, we are capable of delivering 

our fiber internet service to 6.44 million 
households in 28 cities with our infrastructure 
and partnership activities. Our fiber infrastructure 
reached 42,700 km at the end of the year.

 » This year, Muğla and Edirne provinces were also 

introduced to Turkcell fiber internet.

CYBER SECURITY SUPPORT FROM TURKCELL TO 
OUR CORPORATE CUSTOMERS AND SUBSIDIARIES

Having pioneered digital transformation in Turkey, 
and become the world’s first digital operator 
through its technology and investments, Turkcell will 
use its technological superiority to ensure cyber 

2018 OPERATIONSTURKCELL ANNUAL REPORT 201844

OUR SUPERIOR TECHNOLOGY

Having pioneered digital transformation in Turkey,
and become the world’s first digital operator through its 
technology and investments, Turkcell will use its technological 
superiority to ensure cyber security.

security. In this respect, Turkcell offers custom 
solutions against threats, through the Cyber 
Defense Center established three years ago, and 
the Cyber Security Operation Center established 
last year.

Our Cyber Defense Center team and Cyber 
Security Operations Center team serve with 
knowledge-based approach with leadership of 
Turkish cyber security experts who are equipped 
with skill set that revolves around knowledge, 
talent and creativity. We have completed the 
transition to the 24/7 working structure aimed 
at real-time detection and prevention of cyber-
attacks. The provision of continuous security 
monitoring of critical and high-value digital 
assets has enabled cyber security incidents to be 
effectively intervened, reported, while supporting 
compatibility.

The Turkcell Cyber 
Defense Center and Cyber 
Security Operation Center 
have been awarded the 
right to participate in, and 
receive the certificate of, 
FIRST (Forum of Incident 
Response and Security 
Teams) organization, 
which has a total of 448 
members including global 
giants, from 90 countries.

THE SYSTEM WILL PERFORM 24/7 ANALYSIS AND 
GENERATE ALARMS.

The Turkcell Cyber Security Operation Center 
developed with international standards to serve 
24/7, will oversee the previously experienced attack 
databases, both internationally and nationally, thanks 
to its superior technological infrastructure. Thus, 
detecting variations in user behavior at institutions 
and it will generate alarms on cyber-attacks and the 
functioning of systems. These alarms will be examined 
in detail by cyber security expert analysts at the 
Center, ensuring the prevention of attacks in advance.

at zero investment cost. In addition to the superior 
technological infrastructure of our center, we will 
avoid system outages by protecting companies 
against cyber-attacks with our professional 
teams working on a 24/7 basis. Therefore, we will 
eliminate the unnecessary losses of our companies 
and prevent possible financial losses.

The Turkcell Cyber Security Operation Center was 
designed with an infrastructure that can develop 
security solutions for corporate companies, as well 
as public institutions.

FIRST CERTIFICATE

The Turkcell Cyber Defense Center and Cyber Security 
Operation Center have been awarded the right to 
participate in and receive the certificate of FIRST 
(Forum of Incident Response and Security Teams) 
organization, which has a total of 448 members 
including global giants, from 90 countries.

The Turkcell Cyber Defense Center team and Cyber 
Security Operations Center achieved a first in the 
private sector in Turkey by having FIRST Certificate 
following the Information and Communication 
Technologies Authority.

With this certification, granting access to the best 
practices and tools in the area of cyber security, and 
establishing reliable communications with member 
teams around the world, it is possible to respond 
to security events aimed at our Company more 
effectively and rapidly. 

TOP-LEVEL CYBER PROTECTION FOR COMPANIES 
AT ZERO INVESTMENT COST

TI MEMBERSHIP

With the digitalization of institutions, the number 
of systems and business processes connected to 
the internet is also increasing rapidly. This brings 
a number of cyber security risks, both globally 
and locally. For various reasons, it is not always 
possible for institutions to have their own cyber 
security experts within their organization, or to 
make investments for anticipation and prevention 
of potential risks. For this reason, we launched 
our new center where we will offer end-to-end 
high-level cyber security services to companies 

Turkcell Cyber Defense Center team became a 
member of the TI (Trusted Introducer) community, 
established in 2000 by the CSIRT (Cyber Security 
Incident Response Teams) in Europe.

TI membership ensures that the operations of the 
Turkcell Cyber Defense Center team comply with 
international standards, enables receipt of support 
through early warning of and urgent informing on 
global cyber threats, and provides the opportunity 
to meet with other CSIRT teams around the world 
on a common platform.

TURKCELL ANNUAL REPORT 2018 
45

MY SECOND NUMBER IS ON BiP

LIFECELL MIX

It is now possible to make and receive calls with 
a second mobile number through BiP. We started 
to offer the world’s second example of this to our 
customers as one of the most important services 
combining our digital and operator services.

We eliminate the issue of carrying two phones by 
integrating our mobile IMS (IP Multimedia Subsystem) 
network with BiP infrastructure. With this service 
allowing the use of a second number via BiP 
downloaded on the first number, the calls coming 
to the second number can be received via BiP 
downloaded on the first number, while calls to be 
made from the second number can also be initiated 
via BiP, on the first number.

HOME AT BiP

It is now possible to make and receive calls using 
the home phone number via BiP. As one of the most 
important service that combines our digital and 
operator services, Home at BiP is among just a few 
such examples in the World.

By integrating our fixed IMS network with the BiP 
infrastructure, the need to use home telephones in 
a fixed location will be eliminated. It is now possible 
to make and receive calls via home numbers, while 
being mobile.

TURKCELL UNIFIED COMMUNICATIONS

Turkcell Unified Communications is a cloud PBX 
service that we have started to offer to our fixed 
corporate customers. In addition to the traditional 
PBX services (company greeting announcement, 
short code dialing, call transfer, forwarding, 
standby music, voicemail, etc.), the SoftClient 
application downloaded on PC and mobile phones 
offers the experience of using a single-number 
for fixed and mobile phone, voice and video calls 
of the employees, teleconferencing and instant 
messaging.

TELCO CLOUD

Turkcell became the leader of Telco Cloud 
investments, the new standard of virtualization 
in the telecommunications sector. By implementing a 
virtual investment with an overall capacity of 1.8 Tbps, 
we became one of the world’s few operators in this 
field. By providing 70% virtualization on the VoLTE 
network, we gained significant cost advantage and 
flexibility for new digital voice services. Our central 
network providing our data and voice services is 
targeted to be 75% virtualized by 2020.

New generation digital data services were launched 
with the Appworld Project. By going a step further in 
charging standard data usage, we enabled our users 
to create their own packages from the applications 
as they wish. We managed to incorporate the most 
popular domestic and global applications into the 
selection range. We introduced a tariff model that our 
competitors lack.

AD BLOCKING

We launched an ad blocking service that is not 
offered by any other operator in Turkey. With this 
service, we provide our users a higher quality internet 
experience by preventing undesired advertisements 
that our customers are exposed to on the internet. 
The Ad Blocking Service can be activated on both the 
mobile and fixed network in real time via My Account 
application without installing any software. 

YAANİ BROWSER CHARGING

With innovative browser-based charging, we 
implemented a first for the world in the area of 
application-based pricing. With pricing structure 
specific to the use of local search engine Yaani and 
Yaani browser, users were enabled to use Yaani by 
spending from their Yaani quotas, without having 
to use the quota on their internet packages. This 
application is aimed at increasing the use of local 
search engine Yaani.

BASE STATION SERVICE OUTAGE PREDICTION – A 
ML/AI APPLICATION

“Base Station Service Outage Prediction” studies, 
conducted within the scope of digitalization of 
our operations, have begun to generate fruitful 
results. With this application, site outages, managed 
reactively today, are predicted before the incident 
occurs, and necessary actions are taken without any 
customer impact.

Approximately 200 million alarm records and the 
corresponding 200 GB of data are processed 
together with the algorithm developed by Turkcell’s 
engineers on Turkcell’s local ML (Machine Learning) 
platform. An outage prediction for 
a 24-hour time frame is calculated together 
with realization rate on a site basis. 

Based on the full year, 33 thousand hours of usability 
increase is anticipated due to proactive interventions. 
In addition, with the prevention of site outages, the 
instant signal loss problems that our customers 
experience will be prevented. Thus, a 5% decrease in 
the total number of customer complaints is foreseen.

We launched an ad 
blocking service that is 
not offered by any other 
operator in Turkey. With 
this service, we provide 
our users a higher quality 
internet experience by 
preventing undesired 
advertisements that our 
customers are exposed to 
on the internet.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201846

OUR CONSUMER BUSINESS 

We increased the time during which we add value to our users’ 
lives over 1440 minutes of the day through the campaigns and 
communications that we enrich with our digital services.

Mobile  
(Multiplay) 

60.5%

63.9%

58.7%

66.7%

1

8
0
2
Q

1

1

8
0
2
Q
2

1

8
0
2
Q
3

1

8
0
2
Q
4

Fiber Residential  
(Multiplay with TV) 

45.7% 46.8%

47.5%

48.6%

1

8
0
2
Q

1

1

8
0
2
Q
2

1

8
0
2
Q
3

1

8
0
2
Q
4

AS THE WORLD’S FIRST DIGITAL OPERATOR, 
WE LAUNCHED MANY OF OUR MASS 
CAMPAIGNS IN 2018 OVER OUR DIGITAL 
SERVICES.

We increased the time during which we add 
value to our users’ lives over 1440 minutes of the 
day through the campaigns and communications 
that we enrich with our digital services.

Together with increasing service usage, we 
continue to increase the number of customers 
using our multiple products.

LIFECELL’S UNLIMITED INTERNET WORLD 
CONTINUES TO GROW WITH BRAND NEW 
FEATURES.

As of December, we reached 2.5 million 
subscribers in our Lifecell world, where we meet 
all of our customers’ communication needs with 
our digital services and mobile internet service, 
wholly built on mobile data and entirely realized 
online.

On our digital brand journey that we set out on in 
the last quarter of 2017, we provide our customers 
with a more flexible and free Lifecell world with 
the Lifecell Mix incentives offered as of the second 
quarter of 2018. Lifecell customers experience 
the freedom of creating their own packages by 
choosing from a pool of nearly 30 applications, 
which are most widely used in Turkey and in the 
World, in addition to the rich internet offering 
available for Turkcell applications BiP, fizy, lifebox, 
TV+, Dergilik and Yaani, included in their packages.

In 2018, within Lifecell World, we implemented 
brand new solutions for Turkish citizens living 
in other countries. We launched Lifecell One 
offerings tailored to the communication needs 
of our citizens living abroad enabling them to 

freely communicate while they are holiday in 
Turkey. Moreover, upon return to their country 
of residence, they can register to BiP with their 
foreign number in use in their country of domicile, 
and through the 2nd Number service on BiP, may 
call their loved ones in Turkey as often as they 
wish.

The number of our customers who prefer 
Lifecell continues to increase nearly doubling 
each quarter. In Lifecell, which provides 
rich internet offers, subscribers consume an 
average of 8.6 GB of internet. Our customers 
who prefer Lifecell are 50% more loyal and 
create 1.3 times ARPU.

WE ALSO HAVE OUR CUSTOMERS 
EXPERIENCE HIGH SPEED SEAMLESS  
INTERNET IN THEIR HOMES.

We continued to meet the fixed broadband 
needs of our customers with our evolving product 
range. In addition to our fiber and ADSL services, 
we offered Superbox with its superior technology, 
and had our customers experience 4.5G speed at 
home. With Superbox, offering high-speed home 
internet with easy installation for those households 
that don’t have fiber infrastructure, and a unique 
customer experience, we exceeded 33 thousand 
customers in our first year. Superbox continues to 
grow with a monthly average growth rate of 30% 
in the number of new customers.

In 2018, the number of our customers who 
experienced our unique fiber speed had 
reached 1.4 million. We continued to support 
our multiplay strategy, a focus area also in 
2018, with our TV+ product offered with our 
fiber service. On the fixed front, the ratio of 
customers using multiplay with TV services 
reached 48.6%.

TURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
Turkcell sets an example 
for the entire world 
with its 4.5G network. 
The world’s first digital 
operator, Turkcell, was 
named one of the best 
in the world for its 4.5G 
(LTE) network, in May 
2018 Global Status 
Report published by the 
Global Mobile Suppliers 
Association (GSA).

297 million GB
Shake and Win, which 
awarded 297 million GB 
of data, 48 billion minutes 
and 73 billion BiP minutes to 
Turkcell customers, provided 
them with a sense of 
privilege of being a Turkcell 
customer.

In 2018, we continued to connect our customers 
to life with a seamless fiber speed experience by 
focusing on our literally unlimited packages that 
don’t have a Fair Usage Quota. At the same time, 
we created a world for all our customers with or 
without a Fair Usage Quota to freely experience 
Turkcell’s innovative digital services, where BiP, fizy, 
TV+, lifebox and Dergilik usage is not deducted 
from our customers’ quotas.

Within the scope of the initiative to open up our 
fiber infrastructure to other national operators 
initiated in 2014, we continued to participate 
in projects that contribute to the technological 
transformation and development of our country in 
2018 by supporting the joint infrastructure project, 
initiated together with the leading companies of 
the sector.

FASTEST IN 4.5G

Continuous Increase in Data Usage with 4.5G
The campaign doubling the internet packages 
of customers who change their SIM cards, free 
SIM Card campaign and the 4.5G Shake and 
Win campaign provided the most significant 
contribution during the 4.5G transformation 
period. In addition, on the anniversary of the 4.5G 
technology launch, the 4.5G Ramadan Campaign, 
where we doubled our customers’ internet 
packages, saw the participation of 3.4 million 
customers. In the context of the fight against 
inflation, we offered our 4.5G SIM card subscribers 
the opportunity to double their internet package 
for three months. The campaign, which was 
available from October 13 to December 31, 
attracted 6.3 million subscribers. Thanks to these 
campaigns, we have begun to be rewarded for 
our investments. At the end of 2018, the ratio of 
subscribers using 4.5G compatible devices among 
smartphone users rose to 80%. The average 
monthly data usage of our 4.5G customers rose 
to 8 GB in December, creating twice as much 
traffic as generated by other users.

47

Turkcell sets an example for the entire world with 
its 4.5G network. The world’s first digital operator, 
Turkcell was named one of the best in the world 
for its 4.5G (LTE) network, in May 2018 Global 
Status Report published by the Global Mobile 
Suppliers Association (GSA). 

DIGITAL LOYALTY

Shake and Win (Salla Kazan) 
Turkcell’s most popular campaign, Shake and Win, 
has delivered 604 million gifts to 21 million Turkcell 
mobile customers since its launch on November 
28, 2016. With this campaign, which grants 
customers a new right to shake every Friday, two 
shakes were granted on the week of Ramadan 
and Feast of Sacrifice.

Shake and Win, which awarded 297 million GB of 
data, 48 billion minutes and 73 billion BiP minutes 
to Turkcell customers, provided them with a sense 
of privilege of being a Turkcell customer.

Shake and Win, where 32% of gifts granted to 
customers were TV+, fizy, Dergilik, lifebox and BiP, 
became a platform for Turkcell subscribers to 
access and experience digital services. Turkcell’s 
service penetration focus was supported by 
additional features such as Dergilik Gift Campaign, 
where subscribers who participated in Shake and 
Win, received additional gifts when downloading 
magazines from the Dergilik application.

Shake and Win greatly benefited Turkcell’s 4.5G 
focus thanks to the campaign’s participation 
prerequisite of 4.5G SIM card ownership and 4.5G 
subscription approvals taken while participating 
in the campaign. Within the scope of the fight 
against inflation, subscribers whose SIM cards 
were not compatible with 4.5G were also allowed 
to participate in the campaign from November till 
year-end.

Mobile Data Usage (Average GB/User)

Gifts on Shake and Win

8.6 GB 

Lifecell 
user

7.6

5.9

5.9

4.3

2.2

2.8

3.0

4.3

3.4

4Q 2016

4Q 2017

4Q 2018

Non 4.5G Users

4.5G Users

Total Users

Paycell
4%

Voice
8%

App Data
27%

DSS
32%

Data
29%

2018 OPERATIONSTURKCELL ANNUAL REPORT 201848

OUR CONSUMER BUSINESS

Turkcell gave full support to the “All-out War Program 
Against Inflation” announced by the Ministry of Treasury 
and Finance.

We gave gifts to those 
of our customers who 
followed the Surprise 
Point Campaign in the BiP 
discover field, and went to 
the point where the gifts 
had been located. So far,  
7 million subscribers
have participated in the 
campaign through the
channel, which began in 
April 2018, and won
50 million gifts.

Since the launch of the campaign, the number of 
downloads of the My Account application, which 
enables customers to access Shake and Win, has 
risen from 10 million to 38.8 million, whereas the 
number of 3 month active users has been 19.2 
million per month. 

Shake and Win has a positive effect on 
valuable customer retention activities, due to 
the continuous benefit perception it gives to 
customers owning a smartphone.

The Fight Against Inflation 
Turkcell gave full support to the “All-out War 
Program Against Inflation” announced by 
the Ministry of Treasury and Finance. We 
doubled the internet quotas of our customers’ 
packages as of October 13, to enable everyone 
to meet their communication needs more 
easily. We also doubled the GBs valid for 
our digital applications BiP, TV+, Dergilik and 
lifebox. During the campaign, customers with 
a 4.5G compatible SIM card had to access 
the BiP application and follow the “All-out 
War Program Against Inflation” channel under 
the discover field. At the same time, our 
customers without a 4.5G compatible SIM card 
participated in the campaign between 15 and 
30 November and doubled the internet in their 
packages. Thus, 6.3 million customers have 
participated in the campaign through the BiP 
channel.

Surprise Point
We gave gifts to those of our customers who 
followed the Surprise Point Campaign in the BiP 
discover field, and went to the point where the 
gifts had been located. So far, 7 million subscribers 
have participated in the campaign through the 
channel, which began in April 2018, and won 
50 million gifts. Our customers have so far won 
a total of 50 million GB data, 9 million digital 
service gifts as well as a total of 8 billion minutes 
including 5 billion voice minutes and 3 billion BiP 
minutes.

GNÇ
Relaunched in May 2018 and downloaded 6 
million times, the GNÇ application is now open 
to the young subscribers of all operators. In the 
renewed GNÇ application, we started the “CRACK 
THE EGG” era this year. This smart system, which 
is developed and patented by Turkcell Technology 
and marks a first for the World, enables young 
people to crack the surprise eggs on the GNÇ 
application twice a week and earn hourly 
internet opportunities according to the network 
density at that time. With this newly-developed 
smart system, we use our networks efficiently, 
reduce our costs, and bring our young customers 
together with rich internet experience in the 
most efficient manner. The hourly 1 GB packages 
that we developed for the potential needs of 
young people for hourly internet and a daily 1 GB 
package for TRY 1, attracted considerable interest 
having opened the door to the rich internet world.

In addition, young people benefit from the GNÇ 
application in areas such as practicing English 
language for their academic and career needs, 
as well as access to university lecture notes and 
preparation for exams. With our campaign aimed 
at increasing youth recognition of Paycell, young 
people are not subject to transfer fees when 
realizing money transfers from mobile to mobile 
on the GNÇ application.

With the GNÇ application, positioned as a 
platform that markets other applications in our 
focus, young people enjoy various opportunities in 
applications such as TV+, fizy, Yaani and BiP. One 
of our most popular campaigns was the 2 GB 
internet gift campaign implemented via TV 
communication took place in June over BiP for our 
users under the age of 26, With such campaigns, 
we managed to increase the use of our digital 
services among the youth segment. In 2018, two 
out of every three of our young customers benefit 
from our postpaid offers including all our digital 
services free of charge. One out of two of our 
young customers is using the GNÇ packages 
prepared specifically for young people.

TURKCELL ANNUAL REPORT 201849

Platinum Package World
With the increasing internet needs in the 
digitalized world, we have added the Platinum 
50 package to our offering portfolio, which 
features our rich digital services such as BiP, 
fizy, TV+, lifebox, Yaani and Dergilik, provided 
to our Platinum customers. The Platinum 50 
package has 50 GB with benefits of use 
abroad and the placing of international calls. 
Our digital services have been integrated with 
our new customer acquisition and retention 
activities, with schemes such as movie gift via 
TV+, and Fulltrip gift voucher.

PLATINUM

ROAMING

We Continue to Offer Superior Services that 
Make a Difference for Our Customers by Adding 
Innovations to the Platinum World of Privilege.
Through Turkcell Platinum, the Turkcell brand 
addressing customers with high internet needs and 
heavy communication requirements, we embraced 
innovations this year, by offering our customers the 
privileges not offered before. Our brand, reaching 
2.1 million customers, enriched our customers’ lives 
with our sponsorships and privileges offered this 
year. We stood by our customers with sponsorships 
such as the Turkcell Platinum Night Flight Concerts, 
Turkcell Platinum Offroad Park, Turkcell Platinum 
Zorlu Arena, Turkcell Platinum Bosphorus Cup, 
Turkcell Platinum International Alaçatı Fishing 
Tournament, and Turkcell Platinum Golf Challenge, 
as well as with seasonal venue sponsorships. 
While continuing our current benefits such as free 
valet in Istanbul and Ankara with THY and D&R, we 
undersigned innovations in diverse areas such as 
the Zorlu Performance Center, 1001 Culture and Art 
Concept and Offroad. This year, we focused on the 
Adana, Mersin, Bursa, Antalya, Samsun and Kocaeli 
provinces with our goal of localization. We provided 
Havaş, cinema, car washing and car rental services 
through communication specific to these provinces. 
Working together with Samsun Municipality, we 
organized the first Turkcell Platinum Golf Challenge 
Samsun event, which reached approximately 11 
million people.

The Turkcell Platinum application, our main channel 
of communication with our customers, reached 
2.5 million downloads and 700 thousand 
three-month active users as of the fourth quarter of 
2018. We turned our application into a 
revenue-generator. Premium brands willing to 
take part in the Platinum application need to pay 
the campaign price to be included in the Turkcell 
application. Our customers who prefer high-GB 
Platinum packages, or who use fiber Platinum 
packages now receive more privileges as Platinum 
Black customers. These Platinum Black customers 
receive 5 GB of additional internet, as well as new 
surprises each month.

Turkcell Users Freely Connect to Life Abroad
In 2018, Turkcell strengthened its brand perception 
by providing the rich incentives offered to its 
customers abroad in more countries. Turkcell 
started to offer applications which accompanies 
our customers and facilitates their lives abroad in 
more countries as well.

Roam Like Home in 85 countries
Turkcell users can utilize their domestic tariffs as 
if they were using them in Turkey, without dealing 
with additional procedures, simply by paying an 
additional daily fee.

In 2018, Turkcell added 12 new countries to its 
“Roam Like Home” feature, making it available in 
85 countries in total.

In order for customers to use this feature, 
regardless of their tariff price, or segment; they 
need to be on a postpaid tariff, including internet, 
minute, and SMS at the same time.

Advantageous Smart World Tariff
When our customers travel abroad without 
choosing a package, they benefit from our Smart 
World tariff for safety purposes, instead of being 
charged at unfavorable linear fees.

Unrivalled Abroad Offers for Prepaid Lines 
from Turkcell
Thanks to the “Advantageous Abroad” package, 
valid in Turkey, as well as in 88 other countries, 
our prepaid customers can also conveniently 
communicate with their loved ones with rich 
package incentives, and remain connected to life 
with Turkcell while abroad.

Roam Like Home with Your Prepaid Card
Our prepaid customers, who buy Uçuran 
Packages, provided as part of our 4.5G offerings, 
can use their tariffs abroad as they wish, in 
exchange for an additional daily fee.

2.1 million 
customers
Through Turkcell Platinum, 
the Turkcell brand 
addressing customers with 
high internet needs and 
heavy communication 
requirements, we embraced 
innovations this year, by 
offering our customers 
the privileges not offered 
before. Our brand, reaching 
2.1 million customers, 
enriched our customers’ 
lives with our sponsorships 
and privileges offered this 
year.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201850

OUR CONSUMER BUSINESS

Through our customer-oriented approach, reception quality 
and uninterrupted connection, we continued our Net Promoter 
Score leadership.

WE FACILITATE LIFE.

Turkcell Store is Just One Click Away
Thanks to the “Fast Login” technology that we 
have integrated into our website, we made it 
possible for our 27 million visitors each month to 
log into turkcell.com.tr, the nearest Turkcell Store, 
safely and quickly with one click.

Moreover, we offer our customers an easy and 
lucrative e-commerce experience with a wide 
range of product alternatives from smartphones 
to accessories, and from new generation 
technologies to computers with advantageous 
payment options. We provide special offers 
specific to turkcell.com.tr on special days to enrich 
the e-commerce experience. In addition, we are 
implementing multi-channel sales schemes with 
our Yellow Days Campaign, integrated with our 
stores and digital channels.

The marketing automation schemes enable 
us to know our customers better and provide 
them customized campaign offers. Accordingly, 
our new device and campaign offers reach our 
users with the most appropriate design and 
visuals. We also use marketing automation 
schemes in new customer acquisition via 
turkcell.com.tr. For example, we provide offers 
by changing our message and visual based on 
the weather conditions at the user’s location.

In 2018, we launched the transformation of our 
Turkcell brand and logo, after having reflected all 
arrangements on our web and mobile site, with 
our new brand communication.

turkcell.com.tr visitors, the majority of whom 
are mobile internet users, continue to reach all 
products, services, digital services and campaigns 
Turkcell offers its subscribers, in a more 
customized manner.

Professional Tour Guide on Your Mobile Phone 
When Abroad
Thanks to the Piri application, Turkcell customers 
have their own professional tour guide on their 
mobile phones when abroad. The overseas 
tours, prepared with unique content by Saffet 
Emre Tonguç, Turkey’s most widely travelling tour 
guide, tells Piri users the unknown stories of the 
city they are visiting. With audio walking feature, 
which is free of charge for Turkcell customers, 
the beauty and stories of the cities, guided by 
Piri, can be listened in Turkish and explored. With 
Piri’s overseas tours, users can explore London, 
Amsterdam, Paris, Rome and Barcelona by 
listening to a guide in their own language.

Video Call with BiP Abroad
Through BiP’s Abroad Campaign valid in 
88 countries that provides 1 GB free of charge 
data to be used on BiP, all Turkcell customers can 
fulfil their loved ones’ longing through BiP video 
calls while talking and messaging as they wish. 
Thanks to BiP’s new group conversation feature, 
no matter how far they may be from their loved 
ones, they also have the opportunity to talk to 
them simultaneously. And if they need to call 
Turkcell customer services while abroad, they can 
do so free of charge via BiP. Moreover, calls from 
BiP in all directions are charged as domestic calls.

88 countries
Through BiP’s Abroad 
Campaign valid in 
88 countries that provides 
1 GB free of charge data to 
be used on BiP, all Turkcell 
customers can fulfil their 
loved ones’ longing through 
BiP video calls while talking 
and messaging as they 
wish. 

TURKCELL ANNUAL REPORT 2018We launched 
turkiyeninuygulamalari.com 
website where we explain 
the applications developed 
within our organization 
to users once again and 
in detail through the local 
and national concept, 
and enable their easy 
download.

TRULY IT BELONGS TO US, IT BELONGS TO 
TURKEY WITH EVERY INCH OF IT.

turkiyeninuygulamalari.com
We are progressing rapidly towards our goal 
of contributing to the growth of Turkey’s digital 
economy and supporting domestic production 
momentum. We continue to create and develop 
digital services that enrich our customers’ lives.

We launched turkiyeninuygulamalari.com website 
where we explain the applications developed 
within our organization to users once again and in 
detail through the local and national concept, and 
enable their easy download.

We offered Applications of Turkey to ensure 
that Turkey’s data remains in Turkey, that our 
application understands our language, and that 
our value that we generate contributes to Turkey’s 
growth. Developed entirely by Turkish engineers 
and programmers, on Applications of Turkey, 
wholly-domestic applications are presented to 
our customers ranging from entertainment to 
information services, from television to music, 
from magazines and newspapers to search 
engines, and from sports to educational content.

OUR NEW COLLABORATIONS IN SPORTS

Galatasaray Digital Cooperation
In January 2018, as the first step of the 
digitalization of Galatasaray Sports Club, we 
offered three special digital packages called 
Yellow, Red and Champion for those of our 
customers who love the yellow and red, allowing 
them to further support their team. In addition to 
being a first for Turkcell, these packages including 
our digital services aim to bring the Galatasaray 
community together in a digital environment. Thus, 
we create sustainable economic value for our 
business partner, Galatasaray, one of the largest 
sports club in Turkey.

51

Fans with these digital packages, had the 
opportunity to benefit from many special 
surprises, such as having access to club 
information from the Yellow Red Support 
channel established on BiP, gift match tickets, 
signed shirts and balls, while supporting their 
team. Moreover, our customers who have the 
Champion package, won 1 GB per day for each 
game won by Galatasaray and additional 200 
MB for each goal scored. 

Bursa Mobile
With the cooperation with Bursaspor, we offered 
lines specific for Bursa with the “516” initial code 
that includes the license plate number of the 
city, for those living in Bursa and who are fans of 
the green and white. In addition to the special 
number, we offered tariffs full of Turkcell’s 
rich digital services, the chance to earn 3 GB 
additional monthly internet with the Bring a 
Friend Campaign and a 200 MB internet gift to 
our customers for every goal Bursaspor scored. 
Bursa citizens subscribed to one of the “green-
white” packages by obtaining a 516 line from 
Turkcell, also have the chance to win various 
surprise gifts with campaigns organized on the 
16th of every month. We began the digitalization 
process of Bursaspor, which has undersigned 
several firsts, as one of Turkey’s five biggest 
teams experienced championship.

INCREASING CUSTOMER SATISFACTION

Through our customer-oriented approach, 
reception quality and uninterrupted connection, 
we continued our Net Promoter Score leadership.

Turkcell is also the leader among the 4.5G 
customers who have higher expectations of 
the operators. Our points over the next best 
competitor are higher in the promoter score 
of the 4.5G users compared to those not using 
4.5G.

Net Promoter Score (NPS)  
- Gap with Competition

Net Promoter Score (NPS) of 4.5G Users
- Gap with Competition

+23

+24

+23

+14

+13

+14

+21

+19

+23

+24

+16

+25

+19

+20

+12

+9

1Q18

2Q18

3Q18

4Q18

1Q18

2Q18

3Q18

4Q18

Points over the next best competitor

Points over the third best competitor

Points over the next best competitor

Points over the third best competitor

2018 OPERATIONSTURKCELL ANNUAL REPORT 201852

OUR CORPORATE BUSINESS

Turkcell, the world’s first digital operator, renewed its world 
of corporate products and services with a brand new vision, 
to accompany institutions through every stage of their 
digitalization process.

special service packages were launched to meet the 
entire digital communication needs of nearly 2 million 
artisans. Therefore, another important step was taken 
towards the rapid digitalization process of artisans, 
the lifeblood of the Turkish economy.

As the first step towards long-term digitalization 
process, TESK-member artisans can meet all their 
digital communication needs by opting for Turkcell’s 
artisan packages. At the same time, they also benefit 
from digital solutions such as Smart Fax specific to 
them. To qualify, it is sufficient for customers to have 
a TESK Card featuring the advantages aimed at 
artisans and craftsmen.

WE CONTINUE OUR LEADERSHIP OF THE NET 
PROMOTER SCORE.

With the increase in our digital product and 
service penetration, we posted an increase in both 
market share and brand image criteria. We not 
only maintained our leadership position in the Net 
Promoter Score (NPS) of corporate customers, 
but also increased the score difference to 8 points 
between our nearest competitor thanks to the 
contribution of the products and services developed 
that are tailored to the needs of our customers. 
Turkcell has strengthened its leadership position as 
the most recommended operator for its internet 
speed and innovative digital services during a period 
when competitors experienced losses in many areas, 
primarily market share, NPS and image scores.

Now, our customers are listening to music from the 
fizy, while following up on news and programs on 
TV+ and newspapers from Dergilik. While enabling 
our customers to experience digital services, we 
continue to develop those services to facilitate their 
daily life.

Turkcell has strengthened 
its leadership position as 
the most recommended 
operator for its internet 
speed and innovative 
digital services during a 
period when competitors 
experienced losses in 
many areas, primarily 
market share, NPS and 
image scores.

TURKCELL HAS COMPLETELY RENEWED ITS 
CORPORATE WORLD: “İŞTE DESTEK İŞTE 
TURKCELL”

Turkcell, the world’s first digital operator, renewed 
its world of corporate products and services with a 
brand new vision, to accompany institutions through 
every stage of their digitalization process. Taking the 
responsibility for digitalization of companies in Turkey 
as a mission, Turkcell brought a new perspective to 
product and service platform.

Turkcell, which produces customized solutions 
for the needs of companies, did not forget those 
entrepreneurs running their own businesses, 
declaring “İşte Destek İşte Turkcell.” By visiting the 
small companies that make up 85% of the national 
economy, hearing them out on site, and determining 
their digital needs, Turkcell offers solutions in a single 
package, such as e-accounting and mobile internet 
support, as well as the unlimited fiber internet that 
companies need the most.

TURKCELL AND TESK DIGITIZE ARTISANS.

Turkcell conducts the digitalization process of 
the members of the Confederation of Turkish 
Tradesmen and Craftsmen (TESK), Turkey’s largest 
professional non-governmental organization. With 
the cooperation of TESK and Turkcell, advantageous 

TURKCELL ANNUAL REPORT 2018Of those companies on the 
most recently announced 
Fortune 500 list, 88% work 
with Turkcell, for Turkey. 
All top 10 companies on 
the list receive service 
from Turkcell. 

As of 2018, the number of 
projects undertaken by 
our project management 
team under the roof of 
Digital Integration and 
Information Technology 
Solutions exceeded 550.

THE CHOICE OF TURKEY’S LARGEST 
COMPANIES: TURKCELL

Turkcell, the world’s first digital operator, is preferred 
by the most valuable companies of our country. 
Of those companies on the most recently announced 
Fortune 500 list, 88% work with Turkcell, for Turkey. 
All top 10 companies on the list receive service from 
Turkcell. And as Turkcell digitizes itself, it also provides 
full support to the giant companies it works with on 
the path of digital transformation.

DIGITAL SERVICES WERE THE STAR OF 
MOBILE MULTIPLAY. 

In the corporate segment, Turkcell increased the 
total number of 2P-3P-4P customers by 40% in a 
year in corporate multiplay, where the use of 
mobile/fixed core products, mobile business 
applications, fixed data center and cloud services 
are monitored. Through our data incentives that are 
to be used in digital services such as TV+, fizy, BiP, 
lifebox and Dergilik; we enabled all of our customers 
to experience these services without having to 
spend the internet in their packages. We accelerated 
our customers’ upsell through increasing benefits, 
differentiated content and the campaigns attached 
to these packages. 

SYSTEM INTEGRATION AND PUBLIC PRIVATE 
COLLABORATIONS

We continue to offer solutions to our customers’ 
telecom and other information technology needs 
from a single point. This is achieved by supporting 
our end-to-end solution approach adopted in our 
corporate business with our System Integration and 
Information Technology Services organization. In line 
with our vision, we implemented over 200 projects in 
2017. As of 2018, the number of projects undertaken 
by our project management team under the roof 
of Digital Integration and Information Technology 
Solutions exceeded 550. In these projects, we address 
the right solution by analyzing customer needs from 
each sector, and with our project management team 
we implement our solutions such as network, security 
and system management, application management, 
end-user support, data center services, digital 
transformation, IoT, mobile applications and mobile 
user support, in accordance with our customers’ 
business processes.

In addition to our Digital Integration and Information 
Technology Solutions approach, our mission is to be a 
critical business partner in the restructuring processes 
that will carry our country forward. Accordingly, in the 
role of our country’s digital solution partner, we have 
undersigned valuable projects in the public sector, 
and we will continue to do so.

53

We provide and manage all information technology 
infrastructure, including data centers, wired and wireless 
network infrastructure and end-user devices in the City 
Hospitals, the pioneers of digital transformation in health 
sector. In addition, we manage the entire operation within 
this scope with the Hospital Information Management 
System application software service, which is the heart of 
the hospital, and the data entry personnel hosted in the 
hospital. This transformation, which began in 2017 with 
Yozgat and Adana city hospitals, continues with Elazığ and 
Eskişehir in 2018 and Bursa hospitals in 2019.

In May, we launched the Talent Screening project with 
the Ministry of Youth and Sports to explore the talents 
of 3rd grade students throughout Turkey. We contributed 
to Turkish sports by taking part in the installation and 
integration of mobile infrastructure.

OUR ACHIEVEMENTS IN INFORMATION 
TECHNOLOGY SERVICES 

As Turkcell, we are among the leading companies in terms 
of our 2017 Information Technology Services revenues 
according to the report published by IDC, that reviews the 
market status of Turkey’s Information Technology services 
each year, in September. In addition to our digital operator 
vision our integrator identity enabled us to achieve this 
important outcome.

In addition, our Supply Chain Management team 
received the 2018 Cisco Managed Services Partner 
of the Year Award thanks to the partnership with 
Cisco this year for the purchases of our hospital 
projects managed by the DIIS (Digital Integration and 
IT Solutions) team overtaking our competitor, which 
maintained the leading position for five years. 

CLOUD COMPUTING AND DATA CENTERS

Turkcell Expanded its Data Center and Cloud 
Services by Opening the First Tier 3 Certified Data 
Center of the Aegean Region in Izmir.
In the area of cloud computing and data centers, this year:
 » With the opening of Izmir Data Center, the first Tier 
3 certified data center in the Aegean Region, we 
commenced the provision of data center and cloud 
services in four different cities (Izmir, Kocaeli, Ankara, 
Istanbul).

 » In Gebze Data Center, 2,000 m2 sale was 

performed within two years. In November 2018, 
1,000 m2 customer area was activated. With the 
new module, we will host the data of our new 
customers.

 » We became the Oracle Cloud best seller business 
partner of the year through the projects conducted 
in cooperation with Oracle this year.

 » As Turkcell, we integrated all cloud services that 
we offer to our corporate customers with a 
portal experience on www.turkcellbulut.com. We 
digitalized our cloud sales and order processes.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201854

OUR CORPORATE BUSINESS

In the Technology Summit, Turkey’s largest technology 
event, 127 expert speakers in 46 sessions took stage.

+10
thousand
participants

30
thousand
live broadcast 
viewers

Access to  

12 million  

people on 
social media

CYBER SECURITY

TECHNOLOGY SUMMIT

Having established a Cyber Security Operation 
Center, Turkcell offers companies 24/7 tailored 
solutions against threats. 

Having pioneered digital transformation in Turkey 
and become the world’s first digital operator with 
its technology and investments, Turkcell also uses its 
technological superiority to ensure cyber security. For 
this purpose, Turkcell established a Cyber Security 
Operations Center and offers companies 24/7 
tailored solutions against threats.

Having introduced the digital technologies, developed 
to ensure the security of networks and systems, 
Turkcell launched a new Cyber Security Operation 
Center that will provide institutions 24/7 service. 
Thanks to the new center established at Turkcell 
Maltepe Technology Plaza, expert teams monitor the 
potential cyber-attacks that institutions may face. By 
taking necessary measures beforehand, institutions 
are protected against cyber-attacks 24/7. At the 
cyber security center set to serve institutions, the 
prevention of material and moral damages is aimed 
at by avoiding data and information losses.

In April, we organized the Technology Summit, Turkey’s 
largest technology event, with the theme of “Turkey. 
Today. Now.” A total of 10 thousand people from our 
thousands of customer companies participated in the 
vast event, where 127 expert speakers in 46 sessions 
took stage to address many subjects that shape 
the future, such as artificial intelligence, blockchain 
and digitalization. Our event, which brought our 
corporate business partners together with the opinion 
leaders of the world of science and technology, also 
attracted interest at state level, with the participation 
of the Information and Communication Technologies 
Authority President and ministries.

Our event, which attracted record participation, 
also registered a record in terms of press coverage, 
appearing in 47 publications. Our news, covering a 
total of 10 newspaper pages, reached approximately 
10 million people.

TURKCELL ANNUAL REPORT 20182018 OPERATIONS56

TURKCELL ON COMMUNICATION

We thoroughly renewed our visual world, in accordance with 
the changing and digitalizing world.

We hold a total of 15 
awards from Crystal 
Apple, and were selected 
by Crystal Apple as an 
advertiser that had 
encouraged creativity 
over the past 30 years.

On the path on which we set off as the 
world’s first digital operator, we have now 
concluded another successful year where our 
solutions added value to life, where our projects 
demonstrated our social responsibility, and our 
family expanded. We were deemed worthy of 
many awards for our communication campaigns. 
We hold a total of 15 awards from Crystal Apple, 
Turkey’s preeminent marketing and creativity 
awards event. In addition, we were selected 
by Crystal Apple as an advertiser that had 
encouraged creativity over the past 30 years. We 
also received the “coolest brand” award in the 
telecom sector from Marketing Turkey.

We thoroughly renewed our visual world, in 
accordance with the changing and digitalizing 
world. In the new world, we further strengthened 
our natural, warm and sincere communication 
with our customers on the marketing front with 
the phrase “connect to life right now.” The cast of 
our commercial prepared for the launch of our 
major change featured the legendary Türkan 

Şoray, who had not appeared on the screen 
for many years. During this period, we shot TV 
technology programs at our stores, and through 
radio broadcasts in Turkcell stores, we gave 
consumers the opportunity to experience our new 
technologies.

As Turkcell, with our strong presence during the 
special days, we once again designed very 
special campaigns. Our October 29 campaign in 
2017, identified as the most admired commercial 
film of the past seven years, according to the 
results of research conducted by Mediacat 
and Ipsos, once again made us proud. In our 
campaign, we highlighted our integrity under 
the Turkish flag, with the message of unity and 
solidarity, and on the day of October 29, we 
celebrated Republic Day with the voice of our 
founder Atatürk. We touched the hearts of millions 
of people, achieving a great success. On the 
feast of Ramadan, we delivered Turkish people 
the message to “leave the phones aside and be 
with the family and loved ones” with our “Bayram 
Olsun” commercial film.

TURKCELL ANNUAL REPORT 201857

For the successful integrated communication of our 
Lifecell Mix “Yiyosa Gelin” campaign, we received 
the Silver and Bronze awards in general and service 
categories of Crystal Apple. We used “Media First” in 
Turkey with Light TV Viewers mass communication 
for the launch of the new 
data-focused operator, Lifecell.

Our use of the internet phenomenon Uncle 
Şelale and its video in new customer offering 
communication set a good example in terms of 
being mentioned and remembered with real time 
communication. It was one of the most frequently 
remembered commercial films for a period of five 
months. Since January 2017, Turkcell has ranked 
eight times on Adwatch’s top seven most frequently 
remembered commercial films, whereas competitor 
commercials were ranked once.

As Turkcell, we became the first to adopt the 
“There is no Fair Usage Quota” communication 
implementation ahead of our competitors. In 
addition, Turkcell fiber customers were able to use 
BiP, fizy, TV+, Dergilik and lifebox digital applications 
without the need to spend the quota of their internet 
packages, regardless of which tariff they used.

We conducted our Turkcell Corporate relaunch 
in April. In our image film, in which we asserted 
“İşte Destek İşte Turkcell” we reached out to the 
self-employed and emphasized that as Turkcell, 
we always supported them. Our first campaign, 
in which we said “call us for a workplace visit” 
made a mark in Turkcell Corporate history. Our “Self 
Employed” commercial was followed by the TESK 
(Confederation of Turkish Tradesmen and Craftsmen) 
cooperation commercial, in which we conveyed how 
Turkcell, the world’s first digital operator, digitized 
artisans.

Under the main communication platform of “İşte 
Destek İşte Turkcell,” we emphasize that we remain 
the firm supporter of all small and large scale 
companies, offering them solutions in a changing 
and transforming world. We also support this 
communication through TV, digital, brochures, 
corporate solution centers dressing, advertisements 
and local communications. 

As the pioneer of the world of innovations, and the 
world’s first and only digital operator, we continued 
to make a difference in digital communication. 
The new launch video of BiP broadcast under the 
slogan of “Do the BiPing!” attracted great attention 
in the social media. Following BiP’s mass reach 
out, a colorful world was set up in the video that 
encouraged people to download BiP.

Another of our activities to make a mark this year 
was Turkey’s search engine Yaani. We highlighted the 
recently rising trend of using and embracing local 
and national products in Turkey.

As Turkcell, since our inception, corporate social 
responsibility projects have always been our 
priority. We continued to develop new projects 
using our technology. In this context, we received 
three Crystal Apple awards for our “Hello Hope 
- Bana” film, in which we communicated our 
Hello Hope application, developed to overcome 
the language barrier of Syrians living in Turkey. 
In addition, we received four awards from the 
Mobile Marketing Association (MMA), Smarties 
and Felis competitions with another Hello Hope 
project implemented to develop empathy.

With our joint Talent Screening Project with 
the Ministry of Youth and Sports, we initiated a 
momentum towards sports with the film and 
public service ad aimed at motivating children 
to engage in sport. We launched TURKSPORU 
magazine, a quarterly periodical available 
exclusively on the Dergilik application, and that 
delivers to millions the stories of known and 
unknown heroes of Turkish sports. With its first 
volume and the Turkcell Gelibolu Marathon special 
edition, TURKSPORU received more than 
40 thousand reads.

We never stopped being the pioneer of 
innovation, while continuing to benefit our 
customers with our offers and tariffs. We 
increased the awareness of the Surprise Point 
campaign, by placing physical Surprise Points at 
the main arteries of the city during our campaign 
communications. Most importantly, we added a 
new member to our much loved Emocan family 
by launching Armağan Emocan, which will be 
available in the virtual environment. 

More than 40 
thousand reads
We launched TURKSPORU 
magazine, a quarterly 
periodical available 
exclusively on the Dergilik 
application. With its first 
volume and the Turkcell 
Gelibolu Marathon special 
edition, TURKSPORU 
received more than 40 
thousand reads.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201858

TURKCELL ON COMMUNICATION

We continue to benefit from the creative power of digital 
media to draw attention to the challenges that our disabled 
citizens face, while supporting them in all areas. 

Our news line project, 
which we implemented 
with TV channels, in 
order to enhance usage 
habit of BiP received the 
Effective Native - Special 
Award and Partnerships 
and Sponsorships - Bronze 
Award, from WARC.

a vacation with the “Let’s Travel!” concept. We 
conveyed product awareness to a large audience 
within a very short time frame through uninterrupted 
communications during the early booking period.

In our new TV+ ad, where we talked about the world 
of entertainment that smart devices bring to our lives, 
we explained that we could switch on TV+ and enjoy 
its fun content, rather than stare ahead in a traffic 
jam, a bank queue, before a meeting, or in any other 
spare moment. We highlighted that we can always 
carry our television with TV+ that we upload on our 
tablets or phones, by conveying our “TV+, wherever 
you go” message to the consumers. 

With the aim of penetrating our applications abroad, 
we started to invest in media in many countries, and 
particularly in Germany and the US for BiP, lifebox, 
Dergilik and fizy. Having launched the new world of 
BiP at first in the US, we also continued to broadcast 
in Turkey with a wide combination of channels. During 
this period, BiP appeared in main news bulletins along 
with the interviews of Kaan Terzioğlu.

We renewed nearly 4 thousand food containers left in 
our warehouses. We sent them to our close to 1,500 
stores throughout Turkey, announcing this with our film, 
which we used #LoveandFoodforStreetAnimals tag. 
#LoveandFoodforStreetAnimals entered the global 
agenda in third place, remaining for 2 hours on the 
list of Twitter’s trending topics. And in Turkey, entering 
the agenda in second place, it rose to first place and 
remained for 5.5 hours on the list of Twitter’s trending 
topics. Our film was accessed 946 thousand times 
over 2 days.

WE WERE REWARDED ON MANY LOCAL AND 
GLOBAL PLATFORMS THIS YEAR, FOR THE FIRSTS 
WE MARKED AND THE TECHNOLOGIES WE 
DEVELOPED, IN THE MEDIA!

Our news line project, which we implemented with 
TV channels, in order to enhance usage habit of BiP 
received the Effective Native - Special Award and 
Partnerships and Sponsorships - Bronze Award, from 
WARC.

One of our projects that touched many through our 
technology was Life Repairer Hasan. Our videos, 
told stories of Hasan from Mardin, helping disabled 
animals on World Animal Day, and building a 
prosthetic hand for his friend using Turkcell technology. 
These videos were shared on social media numerous 
times.

One of our key projects was our film broadcast 
during Disability Week, telling how Dialog 
Museum guides and Tango Instructor Elif Ömüriş 
connected to life through dance, and their story 
of overcoming obstacles. Our film was extensively 
disseminated on social media and in the press. 
Our “#PeoplewithoutBoundaries Marking a First in 
the World with Dance” video that we shared on 
Facebook, Twitter, Instagram, YouTube and LinkedIn 
reached 5.5 million people with 11.5 million page views.

Within the scope of the GSMA Mobile World 
Congress, we launched the www.turkcellblog.com 
website, and throughout the event, we brought 
together the most important developments, news 
and interviews with followers, while instantly sharing 
all developments at the lifecell Ventures booth. In 
addition to this website, we continuously shared 
innovations with respect to products and services, 
interviews, photos and videos within the booth on the 
social media accounts of Turkcell.

Bringing all travel operations together on a single 
platform with Fulltrip, we aimed to meet all the needs 
of our users in the field of tourism from end to end. 
We launched Fulltrip through our communication 
campaigns where we encouraged people to take 

TURKCELL ANNUAL REPORT 201859

We brought a breath of fresh air to TV advertorials 
through content integrations that turns characters 
from the series into the brand spokespersons. Our 
Lifecell introduction during Erkenci Kuş, the most 
popular series of the season, attracted great 
audience interest, leading to a significant rise in the 
product’s search and site traffic. Within the scope of 
the relaunch of Turkcell connect to life now campaign, 
we introduced the consumer to a fresh advertising 
model, by showing sections from the daily life of the 
actors of the series, during the ad break.

By deploying VAR (Video Aided Referee) broadcast, 
which began to be used in Superlig matches as of 
the 2018-2019 season, with TURKSPORU and Goals on 
Mobile, “first media” use was implemented on TV. 

WE FURTHER DEVELOPED OUR CONTENT 
STRATEGIES THIS YEAR.

We utilized all advertising areas available in our own 
media in our digital campaigns.

The use of channels on BiP, and articles on Dergilik, 
provided us the possibility of targeting. With these 
use cases and all of Turkcell’s targeting opportunities 
we are able to send notifications. We also made 
integrations in TV series, primarily for our DSS 
products, achieving highly successful business results. 
In the project, a first for Turkey, the organic view 
ratings greatly exceeded the target. Our videos, 
which received very positive responses, exceeded the 
5.5 million viewing level. 

For the first time in Turkey, we connected two internet 
phenomenon on the air and enabled them to live 
broadcast. We directed the live broadcast, watched 
with great interest by followers of the phenomenon, 
to the Yaani integrated main video on the YouTube 
channel, and introduced the product features. We 
broadcast questions coming from BiP and addressed 
to celebrities on the Onedio video channel. In addition 
to high viewing numbers, the ratio of our mentions 
rose with the sharing of the fun content on social 
media.

We also followed trends across the world as well as 
in Turkey. When we started communication for the 
Yaani web launch, we received 172 thousand page 
views and 23 thousand clicks on the internet with 
the “Yanny or Laurel” video. With this campaign, we 
provided 43% of the traffic in the always on search 
engine campaigns. In other words, we doubled our 
monthly traffic.

We were awarded at the Excellence in Branded 
Experience category in the Media Excellence Awards 
for the Series Extra Channel, which we created on BiP 
to offer special content to the followers of series.

We continue to benefit from the creative power of 
digital media to draw attention to the challenges 
that our disabled citizens face, while supporting 
them in all areas. Our interactive mobile advertising 
model, Aurora Case, which increased awareness of 
the My Sign Language and My Dream Companion 
applications, was crowned with five awards at the 
MMA Smarties.

WE CREATED STRONG APP INTERACTION, 
INFORMATICS AND CONTENT MODELS IN ALL 
CHANNELS, PRIMARILY SOCIAL MEDIA. WE 
IMPLEMENTED INNOVATIVE MEDIA MODELS.

We increased the return on investment with 
sophisticated approaches in addition to simple 
technical integration and measurements.

We completed the social media definitions of our 
data and implemented its integration with Turkcell 
customer relations management.

During the Fulltrip launch, we measured the impact of 
TV broadcasts on website traffic and implemented a 
new planning practice by spot-based optimization.

We used “Responsive Search Ads” in the beta 
advertising model, which provides more space in 
the Google search network. Thus, we provided more 
opportunities for a single ad user, while increasing 
turkcell.com.tr traffic by 9%.

We created new business models in cooperation 
with Hürriyet Emlak for Superonline, by integrating 
alternative communication channels, with the B2B 
sales channel.

We contributed to the efficiency of our investments, 
by actively using the advertising spaces in our mobile 
applications (BiP, fizy, Yaani, Dergilik) for all Turkcell 
campaigns through a cross-marketing strategy.

We turned the Hadi Live Quiz into a major source of 
active users, primarily for BiP and Yaani.

We received strong returns on the BiP Surprise Point, 
location based gamification schemes. For people 
seeking New Year gifts, we showed them the 
products that their loved ones would like, at the right 
time and location.

With our TV+ sponsorship for the “Ailecek Şaşkınız” 
movie, we increased product awareness by including 
TV+ in a high box office movie. By purchasing the 
exclusive broadcasting rights of the motion picture, 
we increased the activity of the application.

5.5 million 
views
We made integrations in 
TV series, primarily for our 
DSS products, achieving 
highly successful business 
results. In the project, a first 
for Turkey, the organic view 
rating greatly exceeded the 
target. Our videos, which 
received very positive 
responses, exceeded the 5.5 
million viewing level.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201860

OUR DIGITAL SERVICES

BiP has been used in 192 countries, and downloaded by 
34.6 million users as of the end of 2018.

Over BiP, which reached 
11.5 million three-month 
active users as of the 
fourth quarter of 2018, 
approximately 4 billion 
messages are sent each 
month, while more than 
20 million calls are placed 
and nearly 2 million hours 
are spent over phone calls.

50 million 
follows
With over 200 services 
positioned under the 
discover platform of BiP, 
the total number of follows 
reached nearly 50 million.

BiP

BiP has been used in 192 countries, and 
downloaded by 34.6 million users as of the end 
of 2018.

Over BiP, which reached 11.5 million three-month 
active users as of the fourth quarter of 2018, 
approximately 4 billion messages are sent each 
month, while more than 20 million calls are placed 
and nearly 2 million hours are spent over phone 
calls.

With over 200 services positioned under the 
discover platform of BiP, the total number of 
follows reached nearly 50 million. The paid and 
free of charge services launched in diverse 
categories, from sports to finance, and from 
magazines to entertainment and information 
services, continue to reach end users.

Hadi Live Quiz Started the Digital Journey with BiP.
Setting off with the idea of a live broadcast 
mobile quiz show with cash prizes, Vipme 
accomplished a first for Turkey with ‘Hadi Live 
Quiz’ as the strategic partner of BiP. The ‘Hadi 
Live Quiz’ channel appearing under the Discover 

category of BiP with its flexible and advanced 
capabilities, reached more than 2 million followers. 
While the latest information on the contest was 
provided through the ‘Hadi Live Quiz’ channel, 
BiP users were given the privilege of getting the 
lifeline they could use in the contest. Hadi starts 
digital interaction with its users by accepting them 
on the platform through Fast Login, the digital 
authentication management solution provided 
by Turkcell. The winners of the contest spend 
the money that they receive through Paycell. 
In new year’s eve, 1.2 million people competed 
simultaneously, setting a new record. BiP and the 
cooperation with Turkcell digital services have a 
significant share in the success of Hadi Live Quiz 
in reaching millions in a couple of months.

Vipme runs on Turkcell Cloud infrastructure by 
strengthening its cooperation with Turkcell for 
users from all operators, enabling an uninterrupted 
experience during the contest. The Hadi Live Quiz 
example is one of the key indicators of the power 
that Turkcell digital platform and solutions deliver 
to business partner applications online. In 2019, 
new players are going to continue to join the 
Turkcell digital ecosystem rapidly.

TURKCELL ANNUAL REPORT 201861

81 provinces of Turkey. Millions of BiP users roamed 
from one province to another, and from one 
district to another to collect the surprise gifts. As 
BiP’s most popular service in 2018, Surprise Point 
both amused users and rewarded them. Surprise 
Point continues to be positioned as a solution to 
customer acquisition and loyalty for numerous 
sectors.

Turkey Loved the Fight Against Inflation Channel.
Turkcell’s “Double Internet Quota” campaign 
launched in the scope of the All-out War 
Program Against Inflation Program announced 
by the Treasury and the Ministry of Finance, 
attracted great interest. In the first 72 hours of 
the campaign, more than 2 million Turkcell users 
followed the ‘Fight Against Inflation’ channel on 
BiP doubling their internet quota. As the result of 
the campaign, BiP became the most downloaded 
application of Turkey in the application stores in 
that time frame of 3 days.

The Era of Using Two Numbers on a Single 
Phone Began on BiP.
BiP makes it possible to use two different numbers 
on a single phone, thanks to My Second Number 
on BiP. With this innovative feature developed 
for BiP by Turkcell engineers; people using two 
different numbers can start using only one 
handset by using their other line via BiP. With the 
My Second Number on BiP service, the second 
number is identified on BiP to place and receive 
calls, and get SMS. Thus, those who need to 
use two lines may avoid the burden of carrying 
multiple devices.

This feature, a first in both Turkey and Europe, 
is also available to BiP users abroad. With this 
feature, Turkish people living in Europe started to 
use their line in Turkey, and their line of the country 
they live in, on a single phone, and eliminated the 
hassle of closing one of their lines.

Send Money Easily As If You Send Message
It is also possible to send money via BiP as if 
sending a message. With BiP money transfer, 
it is now possible to transfer money by simply 
knowing the phone number without requiring the 
IBAN or account number.

Joy of BiP Gaming
As of the end of December, 4.8 million unique 
visitors played games on the BiP game platform, 
which offers a unique game experience, 
accessing more players with each day with its 
enriched game portfolio.

With Surprise Point 
services under Discover 
platform of BiP, millions 
of gifts were distributed, 
from lifebox to fizy and 
from TV+ to Paycell, 
as well as cash at the 
surprise points located in 
the 81 provinces of Turkey.

Global Communications Campaigns that Make 
the World “BiP”ing
BiP accelerated its efforts for its communication 
abroad in the wake of Turkey. Having increased 
its number of users by 70% over the past year, 
BiP launched a new communication campaign. 
The first address of the application preparing 
to appear in the most important medium of the 
global media, was US, the country of its closest 
competitor. Thanks to the campaigns that BiP 
started in many European countries, including 
England, Germany, France and Russia, the number 
of users gained momentum in the last quarter of 
the year. In 2019, more than half of new users are 
expected to come from abroad.

In addition to its international communication 
activities, BiP also continues its digital 
transformation partnerships with operators. In 
2018, it increased the number of active users in 
Moldova 30 times as a result of the cooperation 
initiated with Moldcell.

Hundreds of Services, Including the Public 
Service Sphere, are Provided through Discover.
The number of the channels/services on BiP 
Discover platform exceeded 200 in 2018. The 
total number of unique followers of the channels 
exceeded 13 million.

BiP offers users diverse rich content from sports to 
magazine and games, and ensures users derive 
joy and excitement through different contests 
instantly. BiP also enables access to public 
institutions such as the Ministry of Agriculture 
and Forestry, State Supply Office, e-government 
gateway, Istanbul Metropolitan Municipality White 
Table, and the Keçiören and Bodrum Municipality.

Whole Turkey is at Surprise Point with BiP! 
With Surprise Point service under Discover 
platform of BiP, millions of gifts were distributed, 
from lifebox to fizy and from TV+ to Paycell, as 
well as cash at the surprise points located in the 

2018 OPERATIONSTURKCELL ANNUAL REPORT 201862

OUR DIGITAL SERVICES

Integration of UpCall and Turkey’s local search engine, 
Yaani, enabled location based searches inquired under 
the application to be performed over Yaani which further 
enriched those searches.

The Operator Name 
Setting feature provided 
only by UpCall enables 
users to personalize the 
operator name displayed 
on the phone screen.

UpCall application also has features that enable 
users to identify the number of an unknown 
person or place via name and to conduct number 
queries, to form a group and initiate a group 
call with a single click and speak to everyone in 
the group simultaneously. Allowing for a more 
dynamic usage with its renewed interface, UpCall 
enables to track all notifications and settings 
related to a mobile call on a single screen and to 
manage them effectively.

The Operator Name Setting feature provided 
only by UpCall enables users to personalize the 
operator name displayed on the phone screen.

Integration of UpCall and Turkey’s local search 
engine, Yaani, enabled location based searches 
inquired under the application to be performed 
over Yaani which further enriched those searches. 

Moreover, in order to enable users to get 
easier support, Live Support integration was 
first introduced in UpCall in addition to e-mail 
communication. With this feature, which is 
dynamically adjustable, it is possible to obtain 
rapid support via instant messaging with the 
application consultant within the specified time 
period.

With the UpCall application, which started to 
create solutions for institutions, employees in 
the same institution can see name and title 
information when they call each other, even if 
the number is not recorded in their phone book. 
In addition, with the feature of adding topics to 
calls, call centers are now able to communicate 
the reason for calling their customers while the 
phone is ringing. This way, while subscribers are 
informed about incoming calls when their phone 
rings, call centers also increase their ratio of reach 
and efficiency.

Having reached more than 5 million downloads, 
UpCall is planned to be made available for the 
use of other operators subscribers soon. 

UPCALL – THE APPLICATION THAT CHANGES 
THE CALLING EXPERIENCE

UpCall is an application enriching and facilitating 
our customers’ calling experience with the 
numerous value added features it offers. When 
a call is received from a number that is not 
saved in the phonebook, the caller is identified 
on the screen, while the phone rings; the calling 
experience can be made customized in a fun way 
by adding picture and Emocan stickers, while the 
call is being initiated; a note stating the reason for 
the call can be delivered to the other party, while 
the phone is ringing. In addition, with the Do Not 
Disturb feature, when the phone is on, the caller 
hears the message that the number cannot be 
reached, while it is possible to track when and 
which number called.

TURKCELL ANNUAL REPORT 201863

introduced them to users on the digital platform. By 
gathering these valuable publications on a single 
platform, we also manifested our leadership in digital 
publishing in Cyprus.

Dergilik Became Global.
As of January, users downloading Dergilik from 
the global application stores will benefit from the 
rich content world of Dergilik. Our users, who are 
thousands of kilometers away from Turkey, can read 
hundreds of local magazines and newspapers with 
just one click, from anywhere in the world.

Easy to Use Dergilik
Dergilik, Turkey’s richest and most popular digital 
magazine and newspaper reading platform, 
continues to solidify its position by taking strong 
steps towards becoming the Turkey’s most powerful 
digital publishing platform offering numerous 
features that enrich the reading experience.

Among others, reading offline and automatically 
downloading the current edition of the magazine 
with one instruction, being informed of the current 
edition of magazines listed on the favorite list, and a 
subscription offer that enables accessing hundreds 
of magazines at the price of a single magazine, are 
some of the features offered by Dergilik.

Offers That Add Value to Life
As of September 2016, Dergilik started to offer 5 GB 
of monthly mobile internet quota to be used in the 
application for consumer tariffs to encourage the 
downloading and reading of magazines. Users enjoy 
consuming 5 GB, reserved for reading in their Turkcell 
tariffs on Dergilik, without paying an additional fee to 
their tariffs. This benefit, part of the Digital Operator 
strategy, increases user loyalty and satisfaction.

In 2018, Dergilik users had the advantage of different 
benefits in addition to the 5 GB incentive. Turkcell 
customers who downloaded and logged in to the 
Dergilik application for the first time were gifted 
1 GB of internet. Users, who additionally downloaded 
magazines from Dergilik after participating in the 
Shake and Win campaign, won a second (minute, 
SMS, internet, etc.) gift. In addition, those who 
downloaded magazines from Dergilik won the right 
to participate in the phone draw campaign.

In 2018, Dergilik Users Read 81.7 Million Publishing!
The number of magazines and newspapers read 
on Dergilik, the leader in digital publishing, reached 
81.7 million, rising by 3.4 times in a span of one year. 
Moreover, Dergilik expanded the digital publishing 
sector by combining the content of many different 
publishers for its users, demonstrating its pioneering 
position by creating equality in the sector for small 
publishers, as much as for large ones within the 
ecosystem.

DERGİLİK – THE APPLICATION THAT CHANGES 
READING HABITS

Our Dergilik application, which offers the opportunity 
to read hundreds of Turkey’s popular magazines 
and newspapers digitally on one platform, reached 
12.5 million three-month active users as of the fourth 
quarter of 2018. While also improving its user-friendly 
experience in 2018, we made it more enjoyable for 
our users to read magazines and newspapers, by 
enhancing magazine and newspaper downloading 
and reading performance.

We Quadrupled Our Magazine and Newspaper 
Archive. 
In addition to the popular local magazines, Dergilik 
introduced 1 thousand popular international 
magazines across diverse categories, from sports to 
business, and from the tabloid press to science to its 
users, quadrupling the number of publications in its 
portfolio from 400 to 1.6 thousand in 2018.

Dergilik not only included Turkey’s most widely 
read national newspapers to its platform, but 
also extended its content with minority and local 
newspapers, Dünya Newspaper as well as the 
daily special ‘Headlines of the Day’ newspaper, 
which compiles the daily headlines unique to the 
application.

We Launched the Dergilik International Magazine 
Package.
In addition to our extensive portfolio of local 
magazines, we introduced our subscribers to 
1 thousand international magazines across diverse 
categories, from sports to business and from science 
to the tabloid press, with an additional premium 
fee. In order to attract many users to this premium 
subscription, we set the price equal to the cost of a 
single piece of a magazine boosting the value of the 
offering. 

Northern Cyprus Reads Dergilik, too. 
We brought Dergilik to the Turkish Republic of 
Northern Cyprus. By incorporating the most widely 
read national newspapers in Cyprus into Dergilik, we 

In addition to the popular 
local magazines, Dergilik 
introduced 1 thousand 
popular international 
magazines across diverse 
categories, from sports 
to business, and from the 
tabloid press to science to 
its users.

81.7 million 
publishing
The number of magazines and 
newspapers read on Dergilik, 
the leader in digital publishing, 
reached 81.7 million, rising by 
3.4 times in 2018.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201864

OUR DIGITAL SERVICES

In 2018, 7 million songs were listened at average on a daily 
basis on fizy, which reached 21 million downloads to date.

fizy Opened to the World!
Being offered with the radio application for 
Ukrainian users, fizy opened its doors to the 
world for the first time in 2017 in Ukraine. In 2018, 
fizy was first launched in Germany in March, 
followed by Belarus in May. fizy, which registered 
a tremendous impact, was launched in Germany 
with Tarkan on a six concert, special Germany 
tour. Thanks to the various social media schemes, 
fizy users in Germany won invitations to these 
concerts, and the chance to meet with the 
artist. In April, the “on demand” structure was 
brought into use in fizy in Ukraine, whereby the 
number of users began to increase rapidly. The 
efforts continue to enable the use of fizy in more 
countries in 2019.

Expanding Music Archive
The music archive is expanding rapidly with 
the addition of new audio and video content in 
the scope of agreements made with the most 
professional content firms and content distributors 
in their fields day by day. Currently, there are 
approximately 25 million different pieces of 
content in the fizy archive. fizy, the only music 
platform to include audio content and video 
content plus dozens of radio channels on the 
same platform, continues to work on expanding 
the fizy catalog/content.

Brand New Features!
Users have experienced a much stronger and 
more binding user experience with fizy Social, 
enabling them to share the playlists they prepared 
with other fizy users, follow and listen to the 
playlists that are shared with everyone. The new 
fizy Web Player eagerly awaited by desktop 
users, was brought into service with its newly 
added radio and video features, on the road to 
globalization. Besides, users also started to enjoy 
unlimited music through fizy with the CarPlay 
feature in their cars. Login to the application, the 
key to a perfect fizy experience, is integrated with 
Mobile Connect making fizy experience seamless.

In addition, this year fizy supported valuable 
events. These were;

fizy — TURKEY’S MUSIC PLATFORM

Users have experienced a 
much stronger and more 
binding user experience 
with fizy Social, enabling 
them to share the playlists 
they prepared with other 
fizy users, follow and 
listen to the playlists that 
are shared with everyone.

fizy, the most downloaded and popular music 
platform in Turkey ended 2018 with new records. 
As well as fizy Social, fizy Web Player, CarPlay 
and Mobile Connect that entered our lives in 
2018, existing features* like high audio quality, live 
concert broadcasts, artists’ performances not 
available in any other medium, and Turkey’s most 
popular radio channels provided users 48 minutes 
of music and entertainment daily.

In 2018, 7 million songs were listened at average 
on a daily basis on fizy, which reached 21 million 
downloads to date.

*High Audio Quality: fizy Premium users can listen 
to songs with high audio quality, i.e. 320 kbps 
(AAC).

*More Radio Stations: Users can access Turkey’s 
most popular radio channels located on the radio 
tab through fizy application. 

*Custom Video Content: fizy users can access 
video content, acoustic shots, and fizy concert 
recordings that will not be available anywhere 
else.

TURKCELL ANNUAL REPORT 201865

The Turkcell Starry Nights 
event was held at the 
Harbiye Cemil Topuzlu 
Stage once again this 
year. Throughout the ten-
concert event, all concerts 
were broadcast live 
through fizy.

The 21st fizy High School Music Contest 
The 21st fizy High School Music Contest, one of 
Turkey’s largest music contests, was held during 
the January-April 2018 period, again with the 
sponsorship of fizy. Communication of the contest 
began in January and the performances of the 
contestants were presented for the likes of users 
through fizy after auditions in Ankara, Istanbul and 
Izmir, in March. Following the voting on audition 
videos through fizy, a total of 6 groups won the 
right to participate in the grand finals on April 29. 
The grand final on April 29 was broadcast live on 
fizy for 13 hours. The 21st fizy HSMC gained 62% 
more new users compared to the previous year 
while 144% increased data consumption was 
registered.

fizy: Cappadox Festival
Pozitif’s music festival Cappadox, organized for 
the 4th time in 2018, and sponsored by fizy, was 
successfully staged.

In the context of Cappadox, 9 contemporary art 
performances, 65 workshops, and a total of 141 
events consisting of live music, a contemporary 
art exhibition, artistic performances, workshops, 
gastronomy tastings, outdoor trekking, bike tours, 
jogging, yoga and meditation were organized 
at 21 venues. In the music program of Cappadox 
participated in by 10 thousand people, many 
important artists took to the stage in rock, folk, 
electronic, Turkish folk music, jazz and world 
music genres, in total of 31 concerts. 

İlhan Erşahin’s Istanbul Sessions and Birsen Tezer 
Cappadox performances were broadcast live 
through fizy.

fizy: Bodrum Music Festival
This year, fizy was among the sponsors of the 
festival, which was held on August 4-8 in Bodrum 
D-Marin.

The festival hosted stars such as Fazıl Say, Gülsin 
Onay, Murat Karahan, Christina Pluhar, Lauren 
Fagan, Alina Pogostkina, Víkingur Ólafsson and 
Avi Avital, and virtuosos as Sevil Ulucan, Hillel Zori, 
İbrahim Yazıcı, Erman Türkili, Çağ Erçağ, Gülru 
Ensari, Dorukhan Doruk, Camille Thomas and 
Veriko Çumburidze, in addition to ensembles 
such as the Presidential Symphony Orchestra, 
L’Arpeggiata, the Olten Quartet and the LUDWIG 
Orchestra. In the scope of Bodrum Music Festival, 
numerous concerts were broadcast live through 
fizy.

Turkcell Starry Nights
The Turkcell Starry Nights event was held at the 
Harbiye Cemil Topuzlu Stage once again this year. 
Throughout the 10-concert event, all concerts 
were broadcast live through fizy. Approximately 
400 thousand music lovers watched live 
broadcasts with fizy. With competitions held on 
the social media accounts of the fizy application, 
fizy users won both invitation to the concerts, and 
a chance to meet the artists.

144%
The grand finale of 21st fizy 
High School Music Contest 
(HSMC) on April 29 was 
broadcast live on fizy for 
13 hours. The 21st fizy HSMC 
gained 62% more new users 
compared to the previous 
year while 144% increased 
data consumption was 
registered.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201866

OUR DIGITAL SERVICES

fizy Istanbul Music Week hosted a very special award ceremony 
in addition to the panels, concerts and signing days.

media accounts, music lovers won both invitations 
to the concerts and the chance to meet the 
artists.

fizy Music Awards were Presented to the Winners.
The fizy Istanbul Music Week, apart from panels, 
concerts and signing days, also hosted a very 
special award ceremony. On the evening of 
September 20, the awards were presented to the 
winners during the fizy Music Awards held for the 
first time this year at Zorlu PSM.

Awards were given in 11 categories at the 
ceremony, at which Burcu Esmersoy hosted. 
During the opening speech of the award 
ceremony, Turkcell CEO Kaan Terzioğlu stated that 
the results of the fizy Music Awards 
were determined by taking into account the 
most listened to and followed data from 
publicly-available sources including fizy, 
underlining that the new jury in the digital world 
is data.

Sezen Sokakta Documentary
During the International Antalya Film Festival, held 
for the 55th occasion this year, a special preview 
was presented. ‘Sezen Sokakta’ documentary, 
the production and shooting of which lasted 18 
months and was sponsored by fizy, premiered at 
the Antalya Film Festival.

In the documentary, written by Erkan Güleryüz 
and filmed by director Bedran Güzel, street 
musicians living in various cities of Turkey sang the 
songs of Sezen Aksu. In the ‘Sezen Sokakta,’ street 
musicians selected by Erkan Güleryüz covered 
Sezen Aksu songs with acoustic performances in 
select locations in Ankara, Eskişehir, Istanbul, Izmir, 
Mardin, Antalya and Cappadocia. The final shoot 
of the project in Kanlıca, Istanbul, was completed 
with the surprise participation of Sezen Aksu 
herself. During the 55th Antalya Film Festival, 
an audience of 2 thousand participated in a 
special preview, open to the public, setting a 
record in the festival’s history. Sezen Sokakta was 
broadcast exclusively on fizy for 1 month. As of 
November 2, the documentary had been viewed 
by over 200 thousand people through fizy.

During the International 
Antalya Film Festival, held 
for the 55th occasion this 
year, a special preview 
was presented. “Sezen 
Sokakta” documentary, 
the production and 
shooting of which 
lasted 18 months and 
was sponsored by fizy, 
premiered at the Antalya 
Film Festival.

fizy Istanbul Music Week
The fizy Istanbul Music Week, which was held 
for the first time this year on September 18-23 at 
Zorlu PSM, was completed with great success. 
Spreading over six days, the festival set out with 
the goal of being Turkey’s first and only popular 
cultural festival, and hosted signature days and 
special concerts one from another, as well as 
panels and interviews, that inspire legendary 
musicians and young artists. The fizy Istanbul 
Music Week took place at Zorlu PSM in five 
stages, with 36 concerts given by 300 musicians, 
as well as 13 panels of 47 speakers and five 
signing days.

During the festival, participated in by 25 thousand 
music lovers by the end of the 6 days, legendary 
musicians such as MFÖ, Athena, Bülent Ortaçgil, 
Teoman, Şebnem Ferah, Kenan Doğulu, Selda 
Bağcan, Nil Karaibrahimgil, mor ve ötesi and 
Gripin, and young stars such as Kalben, Edis, Ece 
Seçkin and Alper Erözer had met with their fans. 
Performances during the fizy Istanbul Music Week 
reached fizy users through the fizy application in 
a total of 12 hours of live broadcasts, whereby 
210 thousand people watched the concerts in real 
time. Again with the contests held through social 

TURKCELL ANNUAL REPORT 201867

TV+ started live broadcasting. While we 
broadcast various concerts, important events, 
sports and magazine programs, we also bring 
important live sports organizations and users 
together. We will continue to produce programs 
such as e-sports, horse racing, match broadcasts 
and live commentary programs that embrace 
those sports’ audiences, and further increase 
viewer numbers.

Hollywood’s blockbusters and the most prominent 
films, and series continue to meet users on TV+. 
High box-office movies such as Batman vs. 
Superman, Star Wars and Transformers are just a 
few of them.

In this period where series are increasingly 
drawing attention, we bring the most popular 
new series to our customers, both through our 
series channels and our optional video viewing 
service.

TV+

81 minutes
New generation TV viewing 
time of TV+ customers 
through mobile phones and 
tablet rose to 81 minutes.

TV+ continues to play an important role in Turkcell’s 
digital operator vision by enabling its users to access 
TV series, movies and television programs wherever 
and whenever they want.

We started to broadcast the highest box-office 
movies of Turkish cinema, the most beautiful 
classics and the most prominent Turkish movies 
on TV+.

On the back of this vision new generation TV daily 
viewing time of TV+ customers through mobile 
phones and tablets rose to 81 minutes.

Number of active users(1) reached 3.4 million as of the 
fourth quarter of 2018. Offers, in which we provided 
television, fiber internet and fixed call needs as a 
bundle, ranked among our most popular campaigns. 
While meeting our customers’ fixed and mobile 
needs in a single package with our convergence 
offers, we also provide users the convenience of 
receiving a single invoice with our TV service.

In addition to the rich content and superior technical 
features of TV+, which enables easier use, we 
introduced our customers to a diversity of new 
content this year. We continued to enrich our 
national and local channel choice by increasing the 
number of channels broadcasting in HD and UHD 
format. TV+ became the platform with the highest 
number of UHD channels in Turkey.

TV+ became the broadcaster of the German 
Bundesliga, one of the world’s most valuable football 
leagues, in addition to the UK Premier League, the 
most prestigious football league in the world, the 
NBA, home to the best basketball players in the 
world, and key motor sport events such as Formula 1 
and MotoGP. The world’s leading tennis tournament 
Wimbledon, and FIBA Champions League were also 
broadcast on TV+.

(1) IPTV users and OTT only cumulative active users.

We launched our specially designed new box 
to provide a better service to our home users, 
enabling them to enjoy a new generation 
television experience. With our new box, users 
can enjoy fizy, lifebox and YouTube, as well as TV+ 
on their televisions. We continue to offer the best 
viewing experience to home users on demand 
with our 4K (Ultra HD) supported box and our 
4K content on our platform. In addition, with our 
application world feature, all our home users will 
shortly have access to hundreds of applications 
such as Twitch and WSJ, along with fizy, lifebox 
and YouTube.

In the scope of our strategy of appearing on 
every screen, we respectively deployed Apple 
TV, Android TV and the Smart TV applications 
of TV+, which we offer to home users who are 
Superonline fiber internet customers. Thereby, we 
increased the number of screens on which our 
users can enjoy the new generation television 
experience. Our users can also watch broadcasts 
on their TV sets, by using TV+’s reflection feature, 
on their mobile devices. 

We offer a unique TV and video viewing 
experience with infrastructure improvements that 
will enhance TV+’s performance and enable us 
to provide tailor made offers to users. By listening 
to our users, we take into account their changing 
needs and global trends, and work on improving 
the holistic TV+ experience every single day.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201868

OUR DIGITAL SERVICES

lifebox has users in 155 countries, primarily in Ukraine, Germany, 
the US, Azerbaijan, Russia, China, Syria and the UK.

Thanks to the “Face and 
Object Recognition” 
feature launched in 2018, 
providing users with ease 
of use, lifebox began 
to automatically group 
photos based on faces and 
objects. 

Thanks to the “Face and Object Recognition” 
feature launched in 2018, providing users with 
ease of use, lifebox began to automatically group 
photos based on faces and objects. The entire 
photo archive is automatically grouped under 
the smart album based on individuals, objects 
and places, and can be reached out through 
performing a search.

Another innovative feature launched this year 
by lifebox is “Auto Story Creation.” By creating 
automatic stories from the users’ lifebox archive, 
memories are kept alive. Users can immortalize 
these videos by easily sharing them on their social 
media accounts.

In June, with the new design, lifebox had been 
transformed into a platform that enables it to 
directly interact with users. On this platform, 
through which lifebox can interact with its users at 
more points, automatic cards and stories enable 
users to better preserve their memories.

lifebox has users in 155 countries, primarily in 
Ukraine, Germany, the US, Azerbaijan, Russia, 
China, Syria and the UK. In addition, in 2018, 
after collaboration with subsidiaries in Ukraine 
and Cyprus, the operator business partnerships 
continued with Moldcell in Moldova. Thanks to 
operator business partnerships, lifebox advances 
by solidifying its presence abroad.

lifebox is available to operators throughout the 
World by providing language support in Turkish, 
English, Arabic, German, Russian, Ukrainian and 
Romanian. In 2018, it also began to provide 
Spanish language support to further broaden its 
audience. 

lifebox — BRAND NEW DESIGN MEETS THE 
USERS.

With its features allowing the safe storage and 
sharing of photos, videos, music and documents, 
lifebox presented its brand-new features to users 
all over the world in 2018. With the number of files 
stored exceeding 3.5 billion, phone books can also 
be backed up in lifebox. In 2018, the number of 
users who backed up their phone book in lifebox 
exceeded 1 million. Number of three-month active 
users rose up to 2.6 million.

TURKCELL ANNUAL REPORT 2018 
69

TURKCELL FAST LOGIN

Given the incidents recently experienced, digital 
authentication and the security of digital information 
has become one of the digital world’s most vital 
standards. Fast Login is a customer authentication 
service provided through mobile phone number, 
which tops the most reliably protected information 
list in personalized verification. Fast Login, which 
became one of the most reliable solutions that 
Turkcell introduced to the world, is compatible 
with the Mobile Connect service, provided by the 
World GSM Association (GSMA). The service, which 
marked significant steps in 2018, with 15.3 million 
registered users, became the first global application 
meeting the commercial sustainability criteria set 
by the World GSM Association (GSMA) worldwide. 
In order to both share this success story with global 
players and give information on different Mobile 
Connect applications, Mobile Connect Summit 
Istanbul was organized by GSMA and hosted by 
Turkcell on October 10-11. The event was held with 
the participation of approximately 150 people, where 
operators and service providers such as KPN, DT, 
SKT, Umniah, Tunise Telecom, Bharti Airtel, Payfone, 
Megafon, Microsoft, Infocert, Zain Group, JT Global, 
Telesign, BICS, Magyar, Reliance Jio, Teleoptima 
Global Mobile, Experian, Clayster, and Trans Union 
came together.

Reaching 8.2 million three-month active users as of 
the fourth quarter of 2018, Fast Login has been used 
in across over 40 different services for 232 million 
times to date.

Fast Login, described as the gateway to Turkcell’s 
digital world and the digital economy, is used in 
numerous Turkcell applications, including the popular 
newspaper and magazine application “Dergilik” 
and customer services application “My Account.” 
In addition, it is used in Turkcell’s customer services 
portal, in the Fulltrip travel site, and on crowd funding 
platform Beehive.

Many applications such as Hadi Live Quiz (the 
online game application), Piri (the travel application), 
Smart Beyoğlu (the lifestyle application of Beyoğlu 
Municipality that introduces Beyoğlu, one of the 
most popular districts of Istanbul), Kimboo (the 
social game platform) and N11.com (one of Turkey’s 
leading e-commerce brands) are among the service 
providers to benefit from the smooth and secure 
login service provided by Turkcell.

In 2018, the Fast Login Turkcell carried out joint 
integration activities with Paycell as an integral part 
of Turkcell’s secure e-Commerce platform, and close 
to 10 services were entitled to receive the Turkcell 
Secure e-Commerce stamp.

Celebrating its first 
anniversary on October 
25, 2018, Yaani continues 
to expand its features. 
With the most recently 
added Shopping Search 
Vertical, it provides a 
comparison of the sought 
for products on the basis 
of price and supplier 
without the need for users 
to switch to another page.

Turkcell Fast Login, 
which marked significant 
steps in 2018, with 
15.3 million registered 
users, became the 
first global application 
meeting the commercial 
sustainability criteria 
set by the World GSM 
Association (GSMA) 
worldwide.

YAANİ – TURKEY’S SEARCH ENGINE

Turkey’s search engine Yaani was introduced 
to users in October 2017. Yaani stands out for 
its precise comprehension of Turkish, more 
relevant demonstration of results corresponding 
to searched content, and the ability to offer the 
search results pages for Turkcell subscribers 
without consuming their data packages. It makes 
a difference by displaying the closest venues 
to users in location-based searches. Yaani has 
reached 7.6 million downloads amid intense user 
interest. Yaani made it to the first place on the 
list of most downloaded free apps on both App 
Store and Google Playstore, in a matter of just 2 
days after being introduced.

Initially, Yaani was designed as a mobile browser, 
but shortly thereafter, it could be accessed via 
yaani.com.tr through web and mobile browsers. 
Yaani draws attention for its location-based 
search feature, enabling users to view the results 
closest to them, based on the location search 
initiated. For example, while Yaani users search 
for movies in theaters, they can also monitor the 
closest movie theaters, where those movies are 
playing. Or, those seeking alternative places to 
eat, can easily access the restaurants and cafes 
closest to them, and get there with contact 
information.

Yaani also remembers important days for Turkey 
and displays a distinct logo for users on its main 
page for each special day.

Celebrating its first anniversary on October 
25, 2018, Yaani continues to expand its features. 
With the most recently added Shopping Search 
Vertical, it provides a comparison of the sought 
for products on the basis of price and supplier 
without the need for users to switch to another 
page.

Yaani is integrated with Turkcell services. For 
example, users who search on Yaani can directly 
access the relevant article or magazine through 
integration with the rich content of Dergilik.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201870

OUR DIGITAL SERVICES

Beehive is a crowd-funding platform initiated in 2016 to 
support Turkey’s entrepreneurial ecosystem, and pioneers a 
first in this field for technology initiatives in Turkey.

Twin Science Set, one of 
the first 3 initiatives to 
raise funds in Beehive, 
opened to the world and 
represented Turkey at the 
World Science Fair.

TRY 5.5 million
More than 6 thousand 
project applications 
have been submitted to 
Beehive thus far. Out of 65 
projects selected, 32 have 
successfully completed their 
campaigns and raised more 
than TRY 5.5 million in funds.

PLAYCELL

Launched for children under 12 years of age 
as a trusted game platform, Playcell reached 
18.7 million visitors and 81 million page views in 
its first year. Playcell, compatible with desktop, 
mobile web and Android devices, enables users 
to access the service anytime, anywhere as 
they wish. Setting out with a content strategy 
that always puts children’s development at the 
forefront, Playcell aims to make parents feel 
comfortable, while entertaining children with the 
games selected with care.

BEEHIVE – TURKEY’S CROWD FUNDING 
PLATFORM

Beehive is a crowd-funding platform initiated 
in 2016 to support Turkey’s entrepreneurial 
ecosystem, and pioneers a first in this field for 
technology initiatives in Turkey. Founded as a 
venture itself, Turkcell mediates in the foundation 
of new Turkcells. 

Beehive enables project owners to secure the 
financial resources they need to launch their 
products with the support of individuals in society, 
in large and small amounts, rather than a specific 
person or institution. More than 6 thousand 
project applications have been submitted to 
Beehive so far. Out of 65 projects selected, 32 
have successfully completed their campaigns and 
raised more than TRY 5.5 million in funds. Those 
initiatives to have successfully attracted funds and 
started mass production, have already begun to 
make a difference in the world. They have also 
brought global awards to Turkey thanks to the 
value add they created. Local drone Ape X, set 
a record in Turkey, by obtaining TRY 783,955 in 
support in 2018. Ape X was selected as one of 
the world’s 20 most innovative drone initiatives in 
the DISC2018 Drone Innovation Venture Contest 
organized in partnership with Wamda Capital 
and Krypton Labs. The Smart Stick WeWALK, 
successfully raising its target fund within twenty 
four hours, won a gold award in the health and 
well-being category at the Edison Awards.

Twin Science Set, one of the first 3 initiatives to 
raise funds in Beehive, opened to the world and 
represented Turkey at the World Science Fair.

Another opportunity was created for 
entrepreneurs at Beehive, which quickly became 
the market leader in terms of the fund size 
reached. And by launching Beehive Store, Turkey’s 
first market place specific to ventures, we enable 
easy access to the products and services that 
have successfully completed the funding phase. 
A number of initiatives successfully funded at 
Beehive sell their products on turkcell.com.tr, 
Turkey’s leading e-commerce platform.

Another important development for the 
entrepreneurial world of 2018 was Turkcell’s 
TRY 100 thousand cloud computing support to 
entrepreneurs. It enables entrepreneurs in Turkey 
to launch their applications, mobile and websites 
to the world via Turkcell’s secure cloud, and to 
benefit from Turkcell support while expanding 
their businesses. Moreover, Turkey’s entrepreneurs 
can also safeguard identity security of their 
digital customers with Turkcell Fast Login, and can 
benefit from Paycell privileges in digital payment. 
Entrepreneurs started to make their application 
as of December 2018 in order to benefit from 
this support. And with this support extended to 
entrepreneurs in the scope of the fight against 
inflation, Turkcell protects entrepreneurs from 
informatics-related costs which have been 
impacted by foreign exchange fluctuations. 

FULLTRIP

Fulltrip, the new address of end-to-end travel 
planning that we launched in October 2017, 
brought many innovations to the sector in 2018 as 
a new player in the tourism sector.

With Fulltrip’s personalized travel experience, 
people can perform all travel planning on a single 
platform. All transactions related to travel from A 
to Z such as car rental, cruises, airport information 
and transfer, hotel reservation, travel guide, plane 
and visa services can be performed through 

TURKCELL ANNUAL REPORT 201871

exclusive to İddaa fans, we offer live scores from 
all over the world and make a difference in our 
application with Turkey’s Smart Analysis system 
enriched by artificial intelligence.

In addition to Spain’s La Liga and England’s 
Premier League, the Bundesliga and France’s 
Ligue 1 were included in our content World in 2018, 
which enriched the content provided on Goals on 
Mobile. 

TURKCELL KOPILOT – YOUR VEHICLE IS SAFE

Vehicle tracking services, which for years have 
been utilized by corporate fleets only, were 
launched for individual use only for the first time 
in July 2018 through Turkcell Kopilot, thanks to 
Turkcell’s extensive sales and communication 
network. The Turkcell Kopilot device is connected 
to the Vehicle System Control Connector OBD2 
(On-Board Diagnostics 2) of cars and has an 
embedded IoT Sim card. Once paired with 
the application downloaded to smartphones, 
Turkcell Kopilot provides instant information flow 
to the users. Turkcell Kopilot, with its superior 
features, brings a new dimension to the driving 
experience. Focusing on smart and safe driving 
with its features far beyond the services provided 
by a classic vehicle tracking system, Turkcell 
Kopilot maximizes the passenger, vehicle and 
travel experience with the flow of information 
it provides to the driver. As drivers’ trustworthy 
companion Turkcell Kopilot works simultaneously 
with the application downloaded on smartphones 
and makes cars smarter. 

Turkcell Kopilot, a first for Turkey, provides key 
information such as usage details and travel 
statistics, driver profile and score, and automobile 
profile, while contributing to the vehicle safety of 
the drivers.

SUPERCAM

SUPERCAM was offered to our customers to 
ensure the safety of home and workplace with 
indoor and outdoor camera options as of June 
2018. Within a short time, it was appreciated 
and purchased by hundreds of customers keen 
to protect their homes and workplaces from 
undesired incidents.

Within a few months, SUPERCAM had started 
to serve more than a thousand customers. 
SUPERCAM continues to offer a solid experience 
with its smart features that we improve with 
developing technologies each day and increase 
the number of its customers day by day.

Fulltrip has brought a 
breath of fresh air to 
digital travel platforms 
with its end-to-end 
holiday planning service, 
and has also been a 
pioneer in the industry by 
offering online travel loan 
services for the first time. 

220 thousand
The Fulltrip platform has 
more than 220 thousand 
hotels, over 120 airlines, 
4 thousand car rental 
companies and over a 
thousand tour options.

Fulltrip. In addition to these services, Fulltrip offers 
a personalized travel experience based on the 
habits of its users. Ensuring ease of booking by 
displaying the latest search records, Fulltrip is also 
integrated with new generation communication 
platform BiP. Through the Fulltrip page in BiP’s 
discover field, it offers digital customer service 
experience and provides 24/7 instant support. Fulltrip 
gives all passengers 25 GB of storage space from 
lifebox and offers a 1 GB internet gift through BiP, 
valid abroad. Our users access Fulltrip, equipped 
with end-to-end Turkcell assurance with Fast 
Login technology, and can sign up just by using 
their phone numbers, and make payments through 
Paycell infrastructure, the national payment platform.

Fulltrip has brought a new breath to digital travel 
platforms with its end-to-end holiday planning 
service, and has also been a pioneer in the industry 
by offering online travel loan services for the first 
time. In collaboration with Financell, Turkcell’s 
financing company, Fulltrip offers up to 24 month 
installments on holiday plans.

The Fulltrip platform, which has more than 
220 thousand hotels, over 120 airlines, 4 thousand 
car rental companies and over a thousand tour 
options, commenced service through also mobile 
phone application as of July. Various advantageous 
campaigns await users for transactions made 
through Fulltrip application.

GOALS ON MOBILE – CUSTOM SERVICE FOR 
THE FANS

Our Goals on Mobile applications, designed for fans 
of the big 4 teams, now offer its users a simpler 
and faster experience with its interface renewed 
in 2018. Through Goals on Mobile 1903, Goals on 
Mobile 1905, Goals on Mobile 1907 and Goals on 
Mobile 1967 applications, we provide our customers 
with live goals, newsflashes, special videos and live 
scores from all over the world, as well as score stats, 
league tables and live commentary during games. 
Through our Goals on Mobile Live Score application, 

2018 OPERATIONSTURKCELL ANNUAL REPORT 201872

OUR DIGITAL SERVICES

With the audio description technology of My Dream 
Companion we launched in December 2015, the visually 
impaired can follow all movies at all movie theaters in Turkey 
without missing any visual detail.

Turkey without missing any visual detail. My 
Dream Companion application automatically 
syncs with the movie anywhere during the 
film; and in scenes where there is no dialogue, 
by describing all visual details with external 
sound, it improves the viewing experience of the 
visually impaired. The audio description service, 
implemented for the first time in the world 
delivered 130 movies playing at movie theaters, 
and a 14-episode TV program, to the visually 
impaired. The service has been awarded in 
the category of Accessibility and Integration to 
Social Life at GSMA 2016, and also named the 
application with the highest social impact in the 
MEFFYS 2016.

In July 2016, we implemented a pilot project 
using beacon technology to improve the public 
transport experience of the visually impaired in 
cooperation with the Gaziantep Metropolitan 
Municipality. With this project, visually impaired 
people in Gaziantep can access information such 
as the arrival of the bus they are waiting for while 
at the bus stop; the stops they pass while on the 
bus, and arrival at their final destination via the My 
Dream Companion application. Additionally, while 
the visually impaired user waits at the bus stop, 
the driver of that bus is informed that a visually 
impaired individual will board their bus. In order 
to implement the transportation technology in 
different cities, demo studies with municipalities 
continue.

My Dream Companion’s navigation technology 
was combined with audio description 
technology. The audio descriptions of the work 
of art exhibited in Yapı Kredi Cultural Center are 
delivered to visually impaired art lovers through 
the application. At the same time, users can also 
utilize navigation services within the museum.

Following movies, the audio description 
technology extended its use to TV programs. The 
weekly TV program “Bilin Deneyin” on CNN Turk 
was audio described simultaneously through the 
My Dream Companion application for the visually 
impaired.

In the scope of My Dream 
Companion service, the 
visually impaired follow 
the current agenda across 
various categories such as 
science and technology, 
health, sports, politics 
and the economy, as well 
as enjoying up to date 
articles from over 500 
columnists. In addition, 
they have access to 
intellectual content 
such as thousands of 
audio books, as well as 
educational materials and 
magazines.

MY DREAM COMPANION 

My Dream Companion serves through the 8020 
short number used by the visually impaired, 
iOS, and Android operating systems, which are 
compatible with the My Dream Companion 
mobile application and www.hayalortagim.com 
website. It is a free service open to all operators’ 
subscribers. In the scope of the service, the 
visually impaired follow the current agenda 
across various categories such as science 
and technology, health, sports, politics and the 
economy, as well as enjoying up to date articles 
from over 500 columnists. In addition, they have 
access to intellectual content such as thousands 
of audio books, as well as educational materials 
and magazines. 

Through My Dream Companion application, 
which makes use of beacon technoloy, visually 
impaired users obtain detailed information on 
stores as they pass them at a total of 28 shopping 
centers in the 12 cities including Istanbul, Ankara, 
Gaziantep, Konya, Kayseri, Nevşehir, Adana, Izmir, 
Bursa, Antalya, Mersin and Kocaeli, as well as 
Özyeğin University and Yapı Kredi Cultural Center. 
In addition, they benefit from navigation service 
for areas such as shops, lifts, help desks and 
restrooms.

With the audio description technology we 
launched in December 2015, the visually impaired 
can follow all movies at all movie theaters in 

TURKCELL ANNUAL REPORT 2018With Turkcell Big Data 
Services, we continue to 
provide services to our 
corporate customers 
across diverse sectors 
enabling them to develop 
business processes, make 
data-based decisions 
and conduct customer-
competitor analysis, 
among numerous other 
functions.

73

MY SIGN LANGUAGE

TURKCELL BIG DATA SERVICES

My Sign Language application, launched in August 
2017, is facilitating the communication between 
hearing impaired individuals and the ones who 
don’t know sign language, supporting the self-
development of the hearing impaired individuals.

In the scope of this application, a simultaneous 
translator of written and spoken text into Sign 
Language a digital dictionary including sign 
equivalents of over 3.5 thousand words, current 
news, content on personal and child development 
and sign language trainings can be accessed. The 
application can be downloaded free of charge 
by the customers of all operators and the data 
used within the application is completely free for 
Turkcell customers.

In addition to the digital solutions implemented 
for the equal and full participation of the visually 
impaired and hearing-impaired in social life, a 
new mobile application project was initiated to 
support the education of individuals with autism.

HELLO HOPE

The “Hello Hope” mobile application, launched 
in September 2016 in support of Syrians in 
overcoming the language barrier, a major 
obstacle to their participation in social life in 
Turkey, reached 1 million users. Through the 
application, users can access instant audio 
translation in the Arabic and Turkish languages, 
learn the most frequently used Turkish words and 
sentences in written and audio format, and check 
their own pronunciation. The application also 
allows access to information useful in daily life in 
Turkey, as well as the Arabic Call Center, with a 
single click.

According to the results of the survey conducted 
at the end of 2017 on the application, in the 
Turkish learning section of the application, the 
number of words, also classified for children 
and adults, has been increased and exceeded 1 
thousand.

In addition, the Arabic news section was 
launched, addressing at Syrians’ need to access 
information on daily life. In this section, users can 
access the international and Turkish news.

The application can be used free of charge by the 
customers of all operators.

With Turkcell Big Data Services, we continue to 
provide services to our corporate customers across 
diverse sectors to develop business processes, 
make data-based decisions and conduct 
customer-competitor analysis, among numerous 
other functions. With Turkcell Smart Capabilities 
services, we ensure that customers from different 
sectors keep their customer databases in all 
sectors up-to-date, while creating mechanisms 
to prevent financial fraud. With location analytics 
services, we provide reports and analysis that helps 
to plan business processes, such as advertising, 
routing, branch positioning and the opening of 
new stores based upon the mobility data of their 
current and potential customers. Turkcell Analytical 
Services, provide supporting services for users to 
interpret their own data. In addition, we serve in 
the field of data-driven decision-support systems 
with analytical models. These analytical models, 
essentially prediction models concerning their own 
customers, consider various metrics such as new 
customer acquisition, customer churn tendency, 
demand forecast, price elasticity and discount-
coupons, through software provided via Turkcell 
Database without any data sharing. We will 
continue to offer innovative services developed 
under the umbrella of Turkcell that digitize business 
processes in the upcoming period, without our 
corporate customers having to invest in either 
software or hardware.

TURKCELL ACADEMY

Turkcell Academy allows users to freely access the 
training they find useful for their needs anytime and 
anywhere. The Turkcell Academy service, launched 
in 2014 to reshape the learning experience, 
delivers users digital learning content across 
various categories such as technology, innovation, 
personal development, marketing, leadership 
and certification programs through its website 
and mobile application. The Turkcell Academy 
application has been created as a platform where 
users can plan their own personal development 
with over 1.5 thousand trainings prepared by 
experts, including world renowned educators, and 
one where they access all necessary information 
on their mobile, and track their developments.

With the launch of new training packages 
and certificate programs in 2018, the first step 
was taken to offer paid training packages and 
certification programs to the market, in different 
categories and for different needs. With these 
certificate programs, users develop themselves 
and receive certification in areas such as Human 
Resources, Leadership Skills and Basic Law Training.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201874

OUR DIGITAL SERVICES

We continue to accompany employees’ developmental journey 
with the Turkcell Academy Corporate learning platform.

In 2018, more than 5 
million trainings were 
assigned to more than 
150 companies and 
100 thousand users on 
the Turkcell Academy 
Corporate Learning 
Platform.

By integrating Fast Login and Paycell in September 
2017, we allowed our customers to enter the 
application automatically, and to quickly purchase 
the packages they wanted by using the mobile 
payment.

The Turkcell Academy mobile application was 
downloaded by 2.8 million users in 2018, with 
approximately 2.3 million learning videos viewed.

Enriched with Turkcell’s technology and education 
know-how, as well as its content network 
partnership with the world’s leading institutions, 
Turkcell Academy aims to create opportunities in 
the information access and personal development 
of users supported by Turkcell’s mobile strength.

TURKCELL ACADEMY CORPORATE

We continue to accompany employees’ 
developmental journey with the Turkcell Academy 
Corporate learning platform.

We launched the Turkcell Academy Corporate 
learning platform in 2015. End-to-end services 
are provided to our corporate customers through 
online training available on the platform, creating 
a more efficient employee development path. 

With new generation learning methods, we 
develop over 100 thousand employees from 
companies of diverse dynamics operating 
in sectors such as retail, health, technology, 
finance, food, services and energy, throughout 
Turkey. On this platform, we enable companies 
to personalize their own training management 
platforms and design end-to-end in-house 
learning processes such as planning, reminders 
and the reporting of trainings. We provide mobile 
access to rich content trainings at any time. 
We support mobile transformation initiatives of 
institutions by contributing to the more efficient 
development of human resources and corporate 
ecosystems, and ways of doing business.

In 2018, more than 5 million trainings were 
assigned to over 150 companies and 
100 thousand users on the Turkcell Academy 
Corporate Learning Platform, which continues to 
evolve with Turkcell Technology. In 2018, numerous 
innovations were added to the product through 
the information bank, automatic training planning 
and new interface studies.

E-COMPANY 

Turkcell e-Company, launched in the second half 
of 2017, received the best cloud product award 
of the year in the IDC Cloud 2018 assessment. It 
supports the digital transformation of companies 
and enables them to manage their financial 
processes on a single platform by use of its 
accounting and e-transformation products. 
Turkcell e-Company provides its customers with 
the convenience of managing their business 
processes through devices such as phones, 
computers and tablets, among others, in all 
environments where the internet is available, 
thanks to cloud technology. On our platform, 
developed according to international security 
standards with Turkcell quality and assurance, 
all of the customers’ data is stored safely at the 
Turkcell Data Center. As well as our corporate 
customers, our e-Company product is actively 
used at Turkcell, Group companies and Turkcell 
Communication Centers.

FİLİZ

As the world’s first digital operator, we have 
launched Turkcell Filiz in November 2018 in order 
to become a leader in digital agriculture. Turkcell 
Filiz IoT device and mobile application enables 
farmers to increase productivity. Farmers track 
their fields and get recommendation on irrigation 
and fungal disease management.

TURKCELL ANNUAL REPORT 20182018 OPERATIONS76

TURKCELL SALES CHANNELS 

We continue to provide services and solutions to our 
customers through our Turkcell consumer sales channel, 
alternative sales channels, Turkcell fiber and DSL solution 
centers, corporate sales and online channels.

We provided services to 
our retail customers at 
approximately 
1.5 thousand Turkcell 
stores and around 
4.5 thousand digital sales 
points. The transformation 
was completed as of the 
start of 2018.

SALES CHANNEL STRUCTURE

We deliver all of the advantages, campaigns, 
devices, services and facilities offered by Turkey’s 
leading communication and technology company 
Turkcell, to our customers. We continue to provide 
services and solutions to our customers through 
our Turkcell consumer sales channel, alternative 
sales channels, Turkcell fiber and DSL solution 
centers, corporate sales and online channels. 

Within the framework of our integrated structure, 
we present our fixed and mobile converged 
Turkcell solutions throughout Turkey at our Turkcell 
and Turkcell Plus stores. We work towards 
ensuring uniform service quality at every sales 
point.

OUR RETAIL CHANNEL 

In our retail channel, holistic digital transformation, 
the foundations of which were laid in 2017, 
continued at full steam. Turkcell stores, the 
transformation of which was completed as of 
the start of 2018, delivered the latest technologies 
and digital services to our customers with Turkcell 
quality in approximately 1.5 thousand locations 

and around 4.5 thousand digital sales points. On 
the other hand, changing customer trends were 
closely monitored and advanced store concepts 
were implemented at selected special points.

The scope and penetration of the Certificate 
Program, launched in 2017 and prepared for our 
store employees, was increased. New employees 
were certified in just one month, while 94% of 
the total 8,350 employees were certified. An 
advanced certification program was launched for 
experienced employees. In this context, about 300 
employees had one week face-to-face training 
through cooperation with Marmara University. 
Our employees entitled to receive advanced 
certification were rewarded with extended 
benefit packages.

The product portfolio of Turkcell stores was 
enriched with new products including Paycell 
products, TV+ and Superbox. Meanwhile, the 
invoices of more than 150 institutions serving 
across Turkey became payable at Turkcell stores.

As the most important step in digital 
transformation, strategic infrastructure investments 
were initiated at stores where physical 
transformation was completed.

TURKCELL ANNUAL REPORT 2018The first major change occurred in the supply 
chain model. As of 2018, the product catalog, 
presented to our customers at all Turkcell stores, 
was centrally standardized. With the centrally 
managed catalog structure, more advantageous 
purchasing options and products of high quality 
standards were placed in stores.

Turkcell retail business partners began to supply 
commercial products through a digital catalog. 
Performance indicators of products in the 
procurement processes began to be monitored 
transparently, with efficiency ensured.

With the experience gained through the 
transformation of exclusive Turkcell stores, the 
structure of the non-exclusive sales channel was 
also wholly renewed. Upon optimization of the 
distribution structure, Turkcell Sales Points started 
to operate under the name of Digital Sales Point. 
Digital Sales Points began to serve via tablets, in a 
paperless way, as in Turkcell stores. The personal 
data of our customers started to be transported 
safely through Turkcell’s superior 4.5G network. 
In the focus of Digital Sales Points, Turkcell Stores 
were differentiated by the widespread availability 
of basic products and services.

As the last link of the digitalization process at our 
stores, the Turkcell GO Project, which digitizes 
the interaction of our employees and customers 
during sales was launched. Thanks to GO, sales 
screens adopted a simple, understandable and 
transparent structure. Store employees were 
enabled to look at the sales screens with our 
customers, better understand customer needs 
thanks to the data and product information, and 
offer products tailored to those needs. With its 
simple architecture, GO has shortened the time 
for new store employees to specialize in their job 
and learn about the new products.

OUR ALTERNATIVE SALES CHANNEL 

On our Alternative Sales Channel, which reached 
a sales volume of 12 million units, we focused on 
bringing products and services to our customers 
whenever they need them.

We turned every channel through which we reach 
the customer into a sales channel, by earning 
sales competence and adding focus to written 
channels such as Telesales, Chain, Bank Channels, 
Flagship, Social Media, WEB Chat and proactive 
chat. Alternative Sales Channels played a leading 
role in delivering digital services, such as TV+, 
lifebox and fizy to our customers. Turkcell Energy, 
Paycell, Kopilot, SUPERCAM, BiP and Dergilik were 
positioned as priority products. The Active Use 
Project was launched to increase the active use 

77

of fizy, TV+, lifebox, Dergilik, BiP, My Account and 
UpCall products by customers. The IVR (Interactive 
Voice Response) technology, used to reduce 
conversation times, the primary cost item of the 
channel, was utilized for the sale of all digital 
services, providing increased efficiency. 

OUR CORPORATE SALES CHANNEL

We serve through a segmented structure 
including all our public, strategic, large and small-
scale customers in Turkey.

We provide end-to-end integrated telecom 
services with Turkey’s largest and most 
widespread sales force on our Corporate 
Sales Channel. We digitize companies through 
our system integration, IT services, corporate 
applications, data center and cloud solutions. 
In 2018, we increased our revenue share in our 
products on the fixed front and contributed 
to Company profitability with these products 
of strategic importance. And for corporate 
customers, we continue to lead digital 
transformation by creating expertise aimed at 
sectors and solutions in these areas.

With 2.3 thousand people working at our 
Corporate Solution Centers, we perform active 
sales to small and medium-sized companies. 
Additionally, we provide services from our Global 
Bilgi Call Center for all of those companies’ 
requests. We also provide portfolio management 
services by conducting regular calls with a staff of 
close to 500 portfolio managers.

OUR ONLINE SALES CHANNEL 

In 2018,Online Sales Channel dominated 
the e-commerce market in Turkey heavily 
compared to 2017. We had reached to 35% 
more e-commerce customers, by reflecting the 
stable growth on the basis of category and 
product range, also on the number of visitors. 
Combining the phygital communication model 
with the digitalization vision of 2017, we increased 
coordination with all our sales channels through 
360 degree communication such as Yellow Days. 
In addition, as an indicator of digitalization and 
mobile transformation, 70% of our e-commerce 
volume was realized through our mobile website 
and the My Account application.

In line with the increasing traffic and orders, we 
will continue to invest in our digital channels in 
2019, and improve user experience and design. 
We will launch omni-channel schemes modeled 
on the strengths of Turkcell sales channels, while 
creating new value propositions for our customers.

We provide end-to-
end integrated telecom 
services with Turkey’s 
largest and most 
widespread sales force 
on our Corporate Sales 
Channel. We digitize 
companies through 
our system integration, 
IT services, corporate 
applications, data center 
and cloud solutions.

2018 has been a year in 
which our Online Sales 
Channel dominated the 
e-commerce sector in 
Turkey compared to 2017. 
It managed to reach 
35% more e-commerce 
customers in 2018 
compared to 2017, by 
reflecting its stable 
growth on the basis of 
category and product 
range, also on the number 
of visitors.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201878

CARRIER RELATIONS AND WHOLESALE

We lead the change in Turkey’s telecommunications sector. We 
have become the most important capacity and internet provider 
of many neighboring countries.

By enabling other national 
operators to utilize our 
own infrastructure, we 
both created new business 
areas and pioneered 
successful and major 
projects that pave the 
way for the technological 
transformation of our 
country.

7 Tbps
In the scope of our 
wholesale data services, 
our international carrying 
capacity has exceeded 
7 Tbps. We cooperated with 
the world’s largest global 
traffic exchange platforms 
and played a major role 
in their decision to enter 
Turkish market.

We lead the change in Turkey’s 
telecommunications sector through business 
partnerships with national and international 
operators in roaming, interconnection, wholesale 
voice and wholesale data services.

During the event, participated in by 300 senior 
executives from 40 countries, we discussed 
2018 issues and evaluated new cooperation 
opportunities that will add value to the sector.

TURKEY, MAIN INTERNET ROUTE

INFRASTRUCTURE SHARING AND JOINT 
INFRASTRUCTURE

We have become the most important capacity 
and internet provider of many neighboring 
countries with the activities conducted since 2008 
towards our vision of transforming the Silk Road 
into the Fiber Road, and our main strategy of 
positioning Turkey as the primary internet route, 
with Istanbul as the regional internet hub.

Through our collaborations with the world’s 
leading operators, we have served as a bridge 
providing wholesale customers with uninterrupted 
access from east to west, at the speed of light.

ISTANBUL, THE TRAFFIC EXCHANGE HUB OF 
THE REGION 

In the scope of our wholesale data services, our 
international carrying capacity has exceeded 
7 Tbps. We cooperated with the world’s largest 
global traffic exchange platforms and played a 
major role in their decision to enter Turkish market. 
Thus, we have taken another crucial step in 
transforming Istanbul into the traffic exchange hub 
of the region. We have also played a significant 
role in bringing content providers to the point 
where they wish to provide their services from 
Istanbul.

WE EVALUATED 2018 ISSUES AT THE 
WHOLESALE INTERNATIONAL OPERATORS 
CUSTOMER EVENT.

We organized an event in Antalya on October 
1-3, 2018 geared at continued contribution to the 
strategy of turning Turkey into a regional digital 
hub, positioning Istanbul as its technology center. 

By enabling other national operators to utilize 
our infrastructure, we both created new business 
areas and pioneered successful and major 
projects that pave the way to technological 
transformation of our country.

We played a leading role in the initiation and 
progress of the installation of joint infrastructure 
solutions that will enable our country to reach 
information in the fastest and cheapest manner, 
facilitate information processing, ensure 
information storage and create a competitive 
environment for all service providers, with a 
focus on real productivity in increasing richness 
of services. We continue to contribute to this 
development.

TURKCELL USERS ALSO ROAM LIKE HOME 
WHILE ABROAD.

We began to act as a group regarding 
agreements reached with other operators in the 
scope of international roaming. And we have 
been able to position the efficiency gained 
through our increasing cooperation with many 
major international operators as a benefit for our 
consumer and corporate customers’ international 
tariffs.

Roam Like Home package that started with 51 
countries today covers 85 countries. We have 
ensured that our subscribers travelling abroad to 
enjoy the benefits of packages charged at their 
domestic tariffs, and are able to meet all their 
communication needs through advantageous 
offers.

TURKCELL ANNUAL REPORT 201879

CUSTOMER EXPERIENCE FOCUS

Our My Account application, developed for customer needs 
and digital habits, and which became the most preferred 
service and sales channel among our customers, reached 
38.8 million downloads in 2018.

With our My Company 
application specific to 
our corporate customers, 
we enable company 
representatives to 
collectively execute 
transactions related to 
all their lines on a single 
platform.

FAST LOGIN 

By integrating Fast Login to Turkcell’s many digital 
channels and applications, we improved customers’ 
login experience and solved the problem of 
forgetting password. Fast Login is a customer 
authentication service provided via mobile phone 
number, and is supported by numerous GSM 
operators across the world through World GSM 
Association (GSMA)’s global solution Mobile Connect 
infrastructure. Fast Login, facilitating login to digital 
channels and applications reached to 15.3 million 
registered users.

MY ACCOUNT

Our My Account application, developed to meet 
the customer needs and digital habits, and which 
became the most preferred service and sales 
channel among our customers, reached 38.8 million 
downloads in 2018. On the My Account application, 
which has 19.2 million three-month active users in the 
fourth quarter, our customers conducted 300 million 
transactions per month. In addition to monitoring their 
remaining balances with the My Account application, 
our customers are able to reach and instantly switch 
to the packages, services and campaigns most 
suitable for their use. With our notifications, we 
ensure that our customers make the right switches at 
the right time. 

In addition, we provide our customers the 
appropriate device and accessory offers. With our 
cargo tracking module, we display the status of the 
products they purchase.

We continued the Shake and Win campaign in 2018 
with surprise gifts that changed weekly. With Shake 
and Win, we award our customers internet packages 
and digital services each week.

In February 2019, My Account application was 
renamed as Digital Operator and enriched with new 
features.

MY COMPANY

With our My Company application specific to 
our corporate customers, we enable company 
representatives to collectively execute transactions 
related to all their lines on a single platform. With 
instant notifications, we inform representatives about 
company lines. And by enabling them to carry out 
transactions such as switching to appropriate offers 
and campaigns, as well as SIM card changes on a 
line basis without documentation, and online, we 
bring speed and convenience to their lives. In 2018, 
200 million transactions were executed by 
150 thousand companies in My Company and its 
web applications.

APPLICATION CONSULTANT 

We provide services for our 14 different applications, 
and meet 35 thousand requests, sent over the 
application, per month with our application 
consultant team. The biggest motivation of our 
Application Consultant team, is to instantly solve the 
problems that our customers could potentially face 
while experiencing content. 

In 2018, we transformed our application consultant 
process, which we served via e-mail, into the 
application chat method to deliver our customers 
instant service.

With the application consultant, we serve all our 
customers simultaneously in 5 languages, without 
distinguishing between Turkcell users and others.

CHAT&CHATBOT

Moreover, our customers not only have access 
to Turkcell transactions and products, but also to 
Superonline products, and perform transactions 
within the same application. Nearly 300 thousand 
Superonline customers used My Account, performing 
1.8 million transactions per month.

Our applications such as BiP, fizy, lifebox, TV+, Dergilik 
enabled us to meet our customers’ information, 
messaging, storage, reading, entertainment and 
other needs related to life through the infrastructures, 
developed by our own engineers, in a way the data 
is retained within the borders of our country. With 

2018 OPERATIONSTURKCELL ANNUAL REPORT 201880

CUSTOMER EXPERIENCE FOCUS

We have reduced the transaction time by 60% using the Secure 
Digital Signature application. In this respect, we achieved savings of 
TRY 22 million as a result of completing 15 million transactions using 
the digital signature to date.

We started providing 
service to our customers 
with artificial intelligence 
based Turkcell Assistant.

SOCIAL MEDIA

We serve our users 24/7 with a total of 47 accounts 
on Facebook, Twitter, Instagram, YouTube and 
LinkedIn. We respond to the 150 thousand comments 
of 50 thousand social media users on average, per 
month. We establish dialogues with users according 
to the nature of the medium used and our brand 
positioning, supporting them across all our digital 
applications.

ENVIRONMENTALLY FRIENDLY INVOICE 

We aim to ensure that invoices are always sent to 
our customers in a secure, timely and transparent 
way. In this respect, by using digital channels in 
delivery of invoice, we contribute to both rapid 
delivery to our customers and environmental 
conservation. In 2018, we were ranked 1st in the 
world among telecom companies by reaching an 
environmentally friendly invoice subscription and 
delivery rate of 97% for mobile consumers, 88% for 
mobile corporate, 96% for fixed consumer and 95% 
for fixed cumulative. 

SECURE DIGITAL SIGNATURE AND SMART 
IDENTITY 

Our Secure Digital Signature application enables 
signatures to be appended by special pressure 
pen on touch screens such as tablets, in the digital 
medium instead of on printed paper, while the 
concluded agreement is safely stored in the digital 
environment. 

Elements that distinguish the signature appended on 
the tablet are measurable technical data such as 
pressure, acceleration and speed information. 

With Secure Digital Signature, we ensure a paper 
free environment at all our stores, and provide our 
customers a more reliable, swift and easy digital 
experience. We have reduced the transaction time 
by 60% using the Secure Digital Signature application. 

our applications such as My Account, GNÇ and 
Platinum, we ensure that our customers perform their 
transactions on Turkcell lines while utilizing the unique 
benefits we provide them. For all these services 
and channels, we developed service platforms, on 
which our customers can reach us quickly and easily, 
whenever and wherever they want, without having 
to talk.

Our customers can contact us via instant messaging 
if they have an inquiry about their lines, or our 
applications. We offer an average of 1.3 million chat 
services each month in 5 different channels. We 
have digitized the instant written service we offer to 
our customers through artificial intelligence based 
Chatbot, Determinist Chatbot, and Selective Chatbot 
technologies. We are able to conclude approximately 
40% of the contacts for the customers we serve 
using our Chatbot technologies. Following the launch 
of our newly built artificial intelligence-based Turkcell 
Assistant, we see these rates reaching nearly 80% 
levels and we are planning its rapid expansion.

We continue to work on our artificial intelligence-
based Chatbot activities with a perspective to enrich 
scenarios and channels, enabling the growth of 
data analytics models by maintaining our past data 
analysis live. We also continuously monitor customer 
insights and make necessary updates accordingly.

TURKCELL ANNUAL REPORT 2018We accelerated our 
artificial intelligence 
projects in 2018 to 
increase customer 
satisfaction. 4 of the 
30 projects that we 
determined as priorities 
went live in 2018.

81

In this respect, we achieved savings of TRY 22 million 
as a result of completing 15 million transactions 
using the digital signature to date. We foresee the 
digitalization of 150 million documents and achieving 
TRY 40 million in cost savings once the digital 
signature transformation is completed at all our 
service points. As a result, 20 thousand mature trees 
and 342 thousand tons of water will be conserved.

As Turkcell implements a first for Turkey, the expansion 
of Digital Signature is predicted to contribute around 
TRY 300 million to the Turkish economy.

In this context, we move more swiftly towards 
digitalization for customer benefit. And regarding 
Smart Identity technology, as Turkcell, we are 
conducting our activities with all relevant institutions 
and companies to remain as a pioneer. 

TURKCELL EVREKA

We test the customer experience through Turkcell 
Evreka with our customers and channel employees, 
tackling any problems, and evaluating developmental 
areas and innovative concepts for our products and 
services.

We invite users to contests through SMS or BiP 
channels. In exchange for their ideas, feedback and 
problem determinations, participating users compete 
with each other for various prizes thanks to Turkcell 
Evreka’s gamification infrastructure.

We listen to the Voice of the Customer through the 
Turkcell Evreka platform, which we designed based 
on the Crowdsourcing model, and save on traditional 
testing and research resources.

Thirteen different contests were completed in the 
first year of our gamification platform and more than 
15 thousand posts were shared. Among these, we 
continue to monitor over 1,500 actions that will either 
improve customer experience, or provide a cost 
advantage.

We continuously collect our customers’ feedback in 
every interaction to improve our products, services 
and processes. Around 200 thousand customers 
share their experiences and grade us each month. 
With this feedback, we aim to improve our efforts to 
still higher levels.

We continue to integrate new technologies into our 
processes to better hear the “Voice of the Customer.” 
We integrated artificial intelligence into our survey 
system at the beginning of 2018 to instantly interpret 
customer surveys. By diversifying our survey methods, 
we began studies to conduct surveys within 
applications in order to reach out to more customers.

CUSTOMER EXPERIENCE STREGTHENED BY 
ARTIFICIAL INTELLIGENCE

As the customer experience team, we accelerated 
our artificial intelligence projects in 2018 to minimize 
human effort in our processes and increase customer 
satisfaction. 4 of the 30 projects that we determined 
as priorities went live in 2018. With these four Artificial 
Intelligence projects, we saved TRY 12.1 million in total, 
TRY 2.6 million of which will be saved every year. 
Together with the financial benefits, we also provide 
significant improvements in customer experience.

CUSTOMER EXPERIENCE PERFORMANCE 
MANAGEMENT

We monitor the experience that our customers had 
on a daily basis through the Customer Experience 
Dashboard, with over 400 metrics that we have 
determined, and an automated data infrastructure. 
On this platform, we ensure that the experience 
metrics that all functions throughout Turkcell Group 
are responsible for are clearly demarcated, and that 
specific actions are taken based on them.

We aim to reduce the complaints and improve the 
level of our customers’ satisfaction by defining the 
improvement needs in detail on a map of Turkey for 
each province and district separately.

WE LISTEN TO THE CUSTOMER’S VOICE 
THROUGH ALL CHANNELS…

SENDING A SIM CARD ABROAD

23.2 million
In 2018, we had got in touch 
with our customers through Call 
Center, Social Media, Chat and 
Digital channels. We analyzed 
and interpreted the statements 
of 23.2 million customers 
to improve ourselves, and 
provide better service. Based 
on these studies, we identify 
our developmental areas and 
improvement initiatives.

As the customer experience team, we listen to and 
interpret the “voice of the customer” at every channel 
which we interact. Based on the feedback we 
receive, we strive to perfect our customer service. 

In 2018, we had got in touch with our customers 
through Call Center, Social Media, Chat and 
Digital channels. We analyzed and interpreted the 
statements of 23.2 million customers to improve 
ourselves, and provide better service. Based on these 
studies, we identify our developmental areas and 
improvement initiatives.

We ensure that our customers receive the best 
service, not only in Turkey, but wherever they may 
be in the world. In cases where our customers’ SIM 
cards are lost, or broken down while abroad, we 
send a new SIM card free of charge to the address 
they give anywhere in the world. So far, we have 
performed delivery to our customers in 200 countries, 
from the Dominican Republic to Ethiopia and from 
Singapore to Mexico, ensuring the continuation of 
their communication abroad.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201882

CUSTOMER EXPERIENCE FOCUS

We focus on critical moments in the experience of our corporate 
postpaid customers, concerning their voice, internet, SMS packages 
and campaigns.

We presented an 
uninterrupted service 
scheme for our customers 
waiting for installation 
on the fixed front, or 
for those experiencing a 
malfunction for over 24 
hours. We provide 4 GB 
mobile data support to 
these customers.

TRANSMISSION OF NETWORK REQUESTS 
THROUGH MY ACCOUNT

We have digitized network complaints diagnostic 
set ups. Our clients can diagnose their problem by 
tapping My Account/Help/Search/Connection Control 
and reach the solution.

What Have We Done?
 » We are trying to understand the problems our 
customers are experiencing, with a total of 15 
inquiries. We summarized our inquiries in the 
following main topics:
 » Use in Abroad
 » Calling Abroad
 » SMS Blocking
 » SMS Forwarding
 » Secure Internet Profile Control
 » Outgoing Communication
 » Incoming/Outgoing Communication

After obtaining information on their network 
status, our customers may apply for complaint, 
and then track the process in detail from the 
related screens.

NEW GENERATION DIGITAL SERVICE: SERVICE 
SUSPENSION IS ON OUR DIGITAL CHANNELS

In order for our customers to obtain the same 
service on all channels, we have transferred our 
service suspension process to the web and My 
Account. We have enabled them to register the 
service suspension request on whichever date 
they wish, or withdraw the request as they prefer, 
without the need to contact the call center or 
visiting a dealer.

Approximately 4 thousand customers performed 
transactions through our digital channels without 
calling the Call Center.

PROMO CODE SCHEME

We presented an uninterrupted service scheme 
for our customers waiting for installation on the 
fixed front, or for those experiencing a malfunction 

for over 24 hours. We provide 4 GB mobile data 
support to these customers. By sending 778 
thousand promo codes, we ensured uninterrupted 
service for 589 thousand of our customers in 2018.

FACILITIES FOR OUR CORPORATE CUSTOMERS 

We focus on critical moments in the experience 
of our corporate postpaid customers, concerning 
their voice, internet, SMS packages and 
campaigns they utilize. We aim to become 
indispensable in our customers’ eyes. We do this 
by stretching the rules in campaign and package 
switches, and by informing them in a timely 
fashion of the appropriate offers on our digital 
channels, facilitating life for everyone in contact 
with the customer, gathering the information 
that our customers need, and solving problems 
at source by simplifying the proposals in our 
campaign systems. Thus, we continue to improve 
the experience offered to our customers by 
removing technical constraints and strengthening 
our channels.

When our customers with own businesses wish 
to switch their consumer lines to the corporate 
segment to benefit from our corporate services, 
we do not reflect the cancellation fees that 
normally arise from withdrawal from the 
consumer line campaigns to which our customers 
had committed. Thus, we ensure the satisfaction 
of our 17 thousand customers each month by 
positioning them with the right offer. For our 
corporate customers who log in to the “My 
Account” application and monitor their remaining 
balance, after having used more than 80% of their 
existing package, we proactively offer the most 
appropriate additional package and we perform 
5 thousand sales accordingly per month. For our 
26 thousand corporate customers who complain 
of exceeding their quota, or for usage without a 
package, we establish contracts by upselling them 
and eliminate those complaints at first contact, 
and without asking for additional fee.

TURKCELL ANNUAL REPORT 201883

SUCCESSFUL FINANCE MANAGEMENT

Taking timely and sound steps, we contributed to sustaining robust 
balance sheet structure and profitability of our Group in 2018 which 
was shaped by challenging macroeconomic conditions. 

On the back of hedging instruments, we maintained 
FX risk at a minimum level, generating solid 
profits, despite TL depreciation. Moreover, hedge 
accounting principles minimized volatility, allowing 
for predictable quarterly net profits throughout the 
year.

In 2017, we had made preparations for the 
local currency trade with respect to our capital 
expenditures and conducted trade in Chinese Yuan 
for the first time. In 2018, we continued our efforts to 
prioritize local currency trade in the payments made 
to our suppliers in order to protect the credibility and 
value of the Turkish lira.

With respect to IFRS 16 Leases standard, which 
started to be implemented in accounting periods 
after December 31, 2018, we have been among 
the small number of pioneering companies which 
initiated the adaption for accounting period starting 
on January 1, 2018. Moreover, in the accounting 
period starting on January 1, 2018, we started 
to successfully implement IFRS 9 – Financial 
Instruments and IFRS 15 - Revenue from Contracts 
with Customers standards with our exemplary 
process management.

In accordance with Turkcell’s vision of digitalization, 
we allowed the key performance indicators that we 
report to be monitored in real time by transferring 
them to the digital platform, thereby increasing the 
efficiency of our operations.

Thanks to our successful operations as finance 
management, we have been granted numerous 
awards. At the Bonds & Loans Awards Turkey, 
held annually in Istanbul by the London-based 
GFC Media Group to reward the best financing 
transactions of the year, we received awards in 
4 different categories. The awards that we were 
granted for US$ 500 million bond issuance with a 
10 year maturity, TRY 125 million sukuk issuance by a 
Turkish telecom company for the first time, and the 
scope expansion of the Chinese Development Bank 
loan agreement enabling its use in 3 currencies by 
our group companies, strengthened our presence 
and pioneering position in the financial markets.

At the Bonds & Loans 
Awards Turkey, held 
annually in Istanbul by the 
London-based GFC Media 
Group to reward the best 
financing transactions 
of the year, we received 
awards in 4 different 
categories.

As the finance management of Turkcell, taking 
timely and sound steps, we contributed to sustaining 
robust balance sheet structure and profitability of 
our Group in 2018 which was shaped by challenging 
macroeconomic conditions on a local and global 
scale. 

Strong operational performance combined with 
our Business Model Hedging strategy, main pillars of 
which are right pricing, FX & interest rate hedging 
and liquidity management, enabled us to achieve 
strong profitability and create shareholder value, 
despite macroeconomic headwinds.

With our 10-year, USD 500 million Eurobond 
issuance in April, we became the first Turkish 
company to issue a 10-year bond since 2015. 
This has strengthened our balance sheet under 
favorable financing conditions, while confirming 
market confidence in Turkcell. Going forward, 
we plan to keep the average tenure of our debt 
portfolio at 4-5 years. In addition to the bond 
issuance, we continued to strengthen our liquidity 
and diversify financing sources, while registering 
firsts for the market with vendor financing, lease 
certificates, asset-backed securities and other debt 
instruments.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201884

SOCIAL RESPONSIBILITY 

In recognition of its social responsibilities and with the promise of 
allocating 1% of its revenues to the social responsibility projects, 
Turkcell continued to pursue its social-benefit focused projects in 
2018, at the same pace.

of technology based on the needs of society and to 
establish a healthy relationship between society and 
technology. In this respect, Turkcell Foundations aims 
to carry out research and development as well as 
scientific and educational activities, and to support 
scientists and the skilled workforce that the country 
and society need in every aspect.

HELLO HOPE PROJECT

The Syrian war that started in 2012 created a vast 
humanitarian drama, causing the broadest migration 
movement seen in the region since the Second World 
War. As over 6 million Syrians left their country, Turkey 
opened its doors to over 3.5 million of them, in doing 
so becoming the largest host nation. 

As Turkey’s Turkcell, with the awareness of our 
responsibility, we have planned all of our actions so 
as to support long-term solutions, primarily those 
meeting urgent needs. In the scope of the Hello Hope 
project, we initiated partnerships with experts in their 
fields from the Ministry of Interior, Directorate General 
of Migration Management, Disaster and Emergency 
Management Authority (AFAD) and the Turkish Red 
Crescent. With the Hello Hope Project, proceeding 
in two phases, we maintain our services through a 
mobile application and Hello Hope Technology Center.

In another phase of the Hello Hope project, we 
launched a Technology Center at the Kahramanmaraş 
Temporary Housing Center in association with AFAD 
and Prodea Systems.

At our Hello Hope Technology Center, we provide;

 » The first free fiber internet connection service 
offered for the education of Syrians in Turkey,
 » The Hello Hope application; a solution for learning 

Turkish and accessing communication and 
information over Turkcell T tablets, as well as 
providing an opportunity of listening to music over 
fizy and watching TV on Turkcell TV+,

 » Khan Academy’s K12 training, content on news and 

As Turkcell, the pillars 
of our corporate social 
responsibility projects 
are the United Nations 
Sustainable Development 
Goals and Turkey’s Vision 
2023.

Since our establishment, we have met our 
responsibility to society through projects implemented 
with our stakeholders in diverse fields such as 
education, culture, arts and sports.

As Turkcell, the pillars of our corporate social 
responsibility projects are the United Nations 
Sustainable Development Goals and Turkey’s Vision 
2023. We reflect the expectations of our stakeholders 
to all our business processes, and 
we build our social responsibility projects in light of our 
focus on “equality of opportunity.” 

TURKCELL FOUNDATION

Turkcell allocates one percent of its revenues for the 
benefit of the society by obtaining authorization 
from the General Assembly each year. In this respect, 
Turkcell took another step and established the 
Turkcell Foundation in October 2018. The resolution 
regarding the establishment of Turkcell Foundation 
has been submitted to shareholders’ attention at the 
General Assembly meeting held on March 30, 2018. 
The Foundation has 14 Board of Trustees members, 5 
Board of Directors members, and 3 Audit Committee 
members.

The foundation aims to enable the development of 
science and technology in our country and extend it 
internationally, to engage in activities to enable use 

health.

TURKCELL ANNUAL REPORT 20182018 OPERATIONS86

SOCIAL RESPONSIBILITY

With the “Whiz Kids Project” we aim to enable students with the 
potential to steer the future from all over Turkey to realize their 
potential, and access to future technologies.

The trainings that aim to bring out the creativity 
and potential of talented children, allow students to 
create their own product by combining numerous 
variables, by teaching them to design and produce 
using three-dimensional printers, program their own 
mobile applications with App Inventor, and construct 
their own electronic circuits.

Technology laboratories in 33 BİLSEM were 
completed in the scope of the Project, which has 
been initiated in 2016 in eight provinces including, 
Istanbul (Bahçelievler), Adana, Ankara, Şanlıurfa, 
Ordu, Kütahya, Erzincan, and Kocaeli (Tevitöl). We 
reached out to 27 provinces in the scope of our 
Turkcell Whiz Kids Project. 

In the scope of the project; we also provide 
technological support to certain successful schools 
beyond the scope of BİLSEM. In 2018, we set up 
a Whiz Kids class in Ordu Kökenli Middle School, 
in addition to those established in 2016 in Kocaeli 
Tevitöl School, in 2017 in Gökçeada Greek Middle 
School and High School, as well as in Mardin Midyat 
Sivrice Middle School, whereby those students also 
had the opportunity to benefit from the Project.

In the new period, the Whiz Kids Project’s distance 
learning system is also being updated. The updated 
Whiz Kids training portal will be switched to the 
Open edX infrastructure, which is also used by 
Stanford, MIT, and Cambridge and Sorbonne 
universities. With the new system, the Whiz Kids 
portal is transforming into a rich educational 
resource, including trainings such as Arduino, Scratch, 
Space Sciences and Robotics, to the benefit of all 
students in Turkey.

In the scope of the Project so far;

 » 33 laboratories were established in 27 provinces 
and more than 30 thousand uniquely talented 
students were reached over three years.
 » Maker and coding kits were distributed to 

approximately 25 thousand students at 100 
Bilsem and 4.5 thousand students were provided 
face-to-face trainings.

In the new period, the 
Whiz Kids Project’s 
distance learning system 
is also being updated. 
The updated Whiz Kids 
training portal will be 
switched to the Open edX 
infrastructure, which is 
also used by Stanford, 
MIT, and Cambridge and 
Sorbonne universities.

Our efforts to ensure a greater inclusion of Syrians 
in social life through technology and communication 
have been communicated at various organizations 
including the GSMA, the United Nations and 
the World Economic Forum, and have received 
numerous awards on international platforms.

The UN Global Compact platform has selected 
Turkcell CEO Kaan Terzioğlu as the pioneer of 
“Sustainable Development Goals” for his efforts with 
respect to Syrian refugees.

TURKCELL WHIZ KIDS PROJECT

Turkcell hit the road to assist Turkey’s greatest 
resource, uniquely talented students, to overcome 
impossibilities and enable them access the 
educational opportunities required to develop them 
through new generation technology and learning. 
With the “Whiz Kids Project” initiated under the 
auspices of the Ministry of National Education and 
under the roof of Science and Art Centers (BİLSEM), 
we aim to enable students with the potential to 
steer the future from all over Turkey to realize their 
potential, and access cutting-edge technologies. 

TURKCELL ANNUAL REPORT 201887

As Turkcell, we set up a 
“Maker” lab in Midyat 
Sivrice School equipped 
with 3D printers, 
notebooks, electronic 
circuits and robotics 
equipment to support 
Whiz Kids in Mardin.

 » Students have been continued to be supported 
through the Whiz Kids training portal, through 
which over 150 thousand hours of online training 
were provided.

 » One-on-one support was provided to children 
who added value to Turkey by reaching out to 
success stories such as Ordu, Sivrice, Gökçeada 
and Tevitöl.

Sivrice Dream: Mardin
Students of Mardin Midyat Sivrice Middle School, 
who achieved great level of successes in robotics, 
attended to the First Lego League Tournament 
organized by “Bilim Kahramanları Derneği (Science 
Hero Club).” Against all those who said “you can 
not achieve it, stop dreaming,” Sivrice Dream team 
made their dreams come true.

Sivrice Dream team first attended the regional 
championship. Lacking the means to pay for 
tickets, by obtaining support for transportation, 
they participated in Istanbul for the finals, then in 
the FLL European Open Championship in Spain 
where they won the Rising Star First Prize.

As Turkcell, we set up a “Maker” lab equipped 
with 3D printers, notebooks, electronic circuits 
and robotics equipment in support of Whiz Kids 
in Mardin. We provided training for children in the 
areas of robotics, coding and mobile application 
development with specialized trainers. As Turkcell, 
we became the official sponsor of Mardin Midyat 
Sivrice Middle School in the FLL (FIRST LEGO 
League) tournament.

The Technological Success Reaching Out to the 
World from Kökenli Village in Ordu…
A huge dream that emerged from a tiny village… 
The talented students of Kökenli Village in 

Ordu won First Prize in the FIRST LEGO League 
Tournament organized under the theme of “the 
Science Heroes are Meeting” in Izmir in 2016, with 
their Project named “Turn Waste into Nutrition on 
Time.” At the tournament, took place in Istanbul, 
they received the Innovative Solution Award, 
and were qualified to participate in the world 
tournament in the US. Our students represented 
our country successfully there as well, being 
worthy of the “Project Special Award.” As Turkcell, 
we are committed not to be indifferent to 
such valuable efforts. With the laboratory and 
equipment that we provided to our students in the 
scope of the Whiz Kids Project, we support them 
in reaching higher up the ladder of success.

DQ DIGITAL INTELLIGENCE

Turkcell introduces our kids, the future of Turkey, 
with the digital intelligence Project, defined as the 
world standard for digital literacy and capabilities.

With the DQ online training platform, developed 
by Dr. Yuhyun Park for children aged 8-12 years, 
children learn to cope with the risks of the digital 
world and are able to adapt to its requirements, 
while playing games.

The training gives children the eight core technical, 
mental and social competencies of privacy, cyber 
security, critical thinking, coping with cyberbullying, 
digital empathy, screen time management, digital 
identity and digital footprint.

The training will enable our children to better 
benefit from the opportunities offered by 
technology and become effective citizens of the 
digital world.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201888

SOCIAL RESPONSIBILITY

Within the framework of the “Women Developers of the Future” 
trainings, to which close to 1,400 women applied, we provide 
online mobile application development lectures across Turkey on 
weekdays, and classroom lectures in 18 cities at the weekends.

and improve women’s employment capacity 
and entrepreneurship in this area. We support 
them in catching the wave of the software 
era, and in being one step ahead in terms of 
entrepreneurship through familiarity with mobile 
technology.

Within the framework of the “Women Developers 
of the Future” trainings, to which close to 
1,400 women applied, we provide online mobile 
application development lectures across Turkey 
on weekdays, and classroom lectures in 18 cities 
(Istanbul, Ankara, Izmir, Şanlıurfa, Gaziantep, 
Diyarbakır, Trabzon, Kayseri, Antalya, Denizli, Van, 
Adana, Karabük, Eskişehir, Sivas, Aydın, Samsun ve 
Elazığ) at the weekends. 

One of the outputs of our “Women Developers 
of the Future Projects” with most concrete data 
is Tester Women. We employed 100 women, 
who had received training as remote software 
testing experts, thereby creating a new business 
model in Turkey. Among the women trained in 
the women Developers of the Future Project, 100 
successful women at the end of a four-stage 
election process, began testing Turkcell’s digital 
products and services having also completed the 
Mobile Application Test Training. Women who 
participated from twenty-one provinces continue 
to contribute to both Turkcell Family and our 
customers with more than 4 thousand findings, 
and 359 ideas, 55 of which were implemented, 
and a number which are currently at the 
planning phase. With Tester Women, Turkcell has 
implemented a new, inclusive and sustainable 
business model never attempted before.

The 2018 launch of the Project, notable for its 
contribution to Turkey’s economy, was hosted 
by Mrs. Emine Erdoğan and held at the Beştepe 
People’s Culture and Convention Center, with the 
participation of 2,000 people.

One of the outputs of our 
Women Developers of the 
Future Project’s with most 
concrete data is Tester 
Women. We employed 100 
women, who had received 
training as remote 
software testing experts, 
thereby creating a new 
business model in Turkey.

WOMEN DEVELOPERS OF THE FUTURE

In 2017 we took our “Future Developers” Project, 
launched five years ago to activate our country’s 
potential in the IT sector, to another level with 
“Women Developers of the Future.”

With this project we are aiming to support 
Turkey’s digital transformation, increase the 
share of software exports in line with 2023 
targets, increase the use of domestic product 
in the IT industry, contribute to the economy by 
supporting women for entrepreneurship, provide 
more women the opportunity to enter the IT 
sector, spread the culture of producing, sharing, 
and implementing knowledge, and expand 
entrepreneurship culture.

The purpose of the project initiated together 
by Turkcell, TOBB (Union of Chambers and 
Commodity Exchanges of Turkey) and the 
TOBB Women Entrepreneurs Council is 
to support women in developing mobile 
applications by educating them on software, 

TURKCELL ANNUAL REPORT 201889

As the Turkcell family, we 
attach great importance 
to provision of equal 
opportunities for all 
segments of our society 
for the economic and 
social development of our 
country, and are taking 
firm steps in this regard.

10 thousand 
students
In the scope of the 
Education without 
Boundaries program, since 
2015 over 10 thousand 
disabled students with 
special education needs 
have been reached at 84 
schools across 45 provinces.

PEOPLE WITHOUT BOUNDARIES

As the Turkcell family, we attach great importance 
to provision of equal opportunities for all 
segments of our society for the economic and 
social development of our country, and are taking 
firm steps in this regard. In light of this vision, we 
provide solutions in a diversity of fields under the 
roof of “People without Boundaries” to facilitate 
the lives of the disabled, and better integrate 
them into the daily life.

EDUCATION WITHOUT BOUNDARIES 
PROGRAM

We support the development of disabled 
students in education and employment within the 
framework of the Education without Boundaries 
Program we initiated in June 2015 under the 
auspices of the Ministry of National Education. 
The program aims to increase the competence 
of disabled children with special education needs, 
and to ensure their participation in social life.

In the scope of the program, since 2015 over 
10 thousand disabled students with special 
education needs have been reached at 84 
schools across 45 provinces.

Students with mild mental disabilities are 
being prepared for post-school business life at 
professional workshops in 48 Special Education 
Centers established through the Turkcell Education 
without Boundaries Program. With the skills they 
acquire in accommodation and travel services, 
food and beverage services, and handicrafts 
workshops, students are prepared for their 
employment after graduation.

With the technology classes established at all 16 
schools for the visually impaired students throughout 
Turkey, students are prepared for development 
towards employment, and opportunities for 
progress are provided through technology training.

At 20 schools for the hearing-impaired, computer 
classes and other necessary workshops are 
established to prepare young people for 
employment in graphic design, computer 
technologies and similar fields. 

Specialized trainings are provided according 
to individual interests to contribute to their 
development and enable them to gain fundamental 
computer skills required for employment at state 
institutions and private companies. 

Cultural tours within the scope of “Education without 
Boundaries Program” conducted by Turkcell, under 
the auspices of the Ministry of National Education 
for disabled children who need special education, 
continue for the second year.

This year, Van, Erzurum and Izmir were included to 
these tours, which were attended by 1,200 students 
and their families last year. A total of 135 students 
and their parents in Van, 220 in Erzurum, and 350 
in Izmir, participated in the tours, which were 
initiated by Turkcell for disabled children, unable 
to experience the city they live in, due to financial 
difficulties or disability. Many historical sites from Van 
Castle to the Twin Minarets, and from Ephesus to 
the Edremit Maiden’s Castle Viewing Terrace were 
explored, accompanied by tour guides. In the scope 
of the Project, thus far, over 3 thousand students 
across Turkey have experienced and explored their 
cities using their senses.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201890

SOCIAL RESPONSIBILITY

Turkcell has so far granted scholarships to over 100 thousand 
young people and contributed to tens of thousands of young 
people’s chance of obtaining a profession.

century. Additionally, an outdoor sports area and 
recreational facilities were built. As a continuation of 
this project, we continued to strengthen friendship 
between the two countries by sponsoring an 
exhibition. Turkcell hosted the Communication in 
Art themed Art Exhibition showcasing the art work 
of 42 visual artists from Turkey and Greece, in 
cooperation with the İmroz Education and Culture 
Association and the Greek Community. In total 
110 art works including sculpture, painting and 
photography were on show at the exhibition, where 
artists displayed personalized communication 
concepts and conveyed a communication message 
through the medium of visual art. The exhibition 
reached art lovers in Athens, Thessaloniki, Izmir and 
Istanbul.

School construction and restoration activities 
continues each year with the inclusion of new 
schools to the scope of the program.

DISABILITY FOOTBALL FEDERATION 
SPONSORSHIP

We support our activities in different fields to 
enable disabled citizens to participate more in 
daily life with our sporting projects. We continue 
our disability sports sponsorships initiated with 
the cooperation of the Blind Sports Federation 
in football branch with Hearing Impaired Sports 
Federations, the Physically Disabled Sports 
Federation and the Special Athletes Federation. 
Within the framework of the disability football 
sponsorships we initiated in cooperation with the 
Turkish Football Federation, we provide sponsorship 
support for both the national team and the leagues 
of 4 federations.

Our Amputee National Team became the European 
Champions in 2017, sustaining the European 
Championship success of our Visually Impaired 
National Team of 2015. The Amputee Football 
National Team competed and ranked second in 
the 2018 World Cup and brought happiness to the 
country. We are sincerely hoping to achieve similar 
successes in other disability branches over the 
coming years. 

We support our activities 
in different fields to 
enable disabled citizens 
to participate more in 
daily life with our sporting 
projects.

EDUCATION SCHOLARSHIPS AND SCHOOL 
RENOVATIONS

In the scope of education, approximately 8,000 
high school and university students receive 
educational scholarships each year. Turkcell has 
so far granted scholarships to over 100 thousand 
young people and contributed to thousands of 
young people’s chance of obtaining a profession.

In the context of school renovation projects, 
within the framework of the protocol signed 
with the Ministry of National Education and 
Istanbul Governorship; Sâmiha Ayverdi Anatolian 
High School, Fatih Vocational and Technical 
Anatolian High School, and Vatan Vocational 
and Technical Anatolian High School were 
renovated. A technology class was built for the 
historical Gökçeada Greek Middle School and 
High School, which reopened in 2015 after half a 

TURKCELL ANNUAL REPORT 201891

Turkcell Dialogue Museum 
won the Digital Impact 
Award in London with 
Tango without Boundaries.

ACADEMY WITHOUT BOUNDARIES

Turkcell Academy’s online education platform 
www.turkcellakademi.com offers special trainings 
for visually and hearing impaired individuals under 
the category of “Education without Boundaries.” 
Many training programs for the hearing impaired 
ranging from technology to personal development, 
and from the business world to leadership are 
provided with the sign language option. There 
are trainings for the hearing impaired that teach 
“Turkish Sign Language” prepared in cooperation 
with the Turkish Federation of the Hearing Impaired, 
as well as trainings for the visually impaired that 
teach smartphone usage specific to iOS and 
Android. Additionally, educational programs that 
support child development are offered to parents 
with hearing and visually impaired children.

In the scope of the project, close to 50 visually 
and hearing-impaired people are employed in 
Istanbul with the support of Turkcell.

TANGO WITHOUT BOUNDARIES

This unique project, implemented by Istanbul 
Social Enterprise and supported by Turkcell, 
brought together couples consisting of one 
visually-impaired and one with hearing-impaired 
person, through tango. The team, which initially 
consisted of four visually impaired and four 
hearing impaired indiviuals, will now continue with 
a larger crowd. The journey that started with the 
guides of Turkcell Dialogue Museum, now opens 
its doors to all visually and hearing impaired 
people who wish to join. Moreover, not only 
disabled individuals, but also anyone who wishes 
to can share this unique experience.

TURKCELL DIALOGUE MUSEUM

ONLINE TANGO TRAINING 

In addition to the products and services we have 
developed under the roof of “People without 
Boundaries” to enrichen the lives of the disabled 
people, and ensure their active and equal 
participation in daily life, we are also conducting 
new social responsibility projects to provide 
thorough and permanent solutions. We believe in 
the importance of creating awareness to provide 
solutions to social problems. Hence, with the 
inclusion of the “Dialogue in Silence” exhibition we 
transformed the “Dialogue in the Dark” exhibition, 
initiated in cooperation with the Istanbul Social 
Enterprise, İBB and Metro Istanbul, into a permanent 
museum under the name “Turkcell Dialogue 
Museum:” The museum, which has been hosting the 
Dialogue in the Dark Exhibition with the support of 
Turkcell since 2014, introduces visitors to a different 
world along with visually and hearing-impaired 
guides, with the inclusion of the “Dialogue in the 
Silence” exhibition, 

We believe in the 
importance of creating 
awareness to provide 
solutions to social 
problems. Hence, with the 
inclusion of the “Dialogue 
in Silence” exhibition we 
transformed the “Dialogue 
in the Dark” exhibition, 
initiated in cooperation 
with the Istanbul Social 
Enterprise, İBB and Metro 
Istanbul, into a permanent 
museum under the 
name “Turkcell Dialogue 
Museum.”

“My Dream Companion” and “My Sign Language” 
applications, implemented with Turkcell 
technology, were also integrated into the tango 
training. The applications also include a training 
package for visually impaired and hearing 
impaired individuals enabling them to learn 
tango on an online platform. Hearing impaired 
individuals who wish to dance can watch training 
videos in this package with sign language, and in 
detail with subtitles. In addition, all figures have an 
instant visual description, for the visually impaired.

Turkcell Dialogue Museum won the Digital Impact 
Award in London with Tango without Boundaries.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201892

SOCIAL RESPONSIBILITY

Considering humans, economy and environment as a whole, Turkcell 
takes every step with an awareness of sustainability. Turkcell both 
protects environment and reduces Turkey’s energy bill.

SUSTAINABILITY INITIATIVES

We closely monitor 
our carbon footprint 
in combating climate 
change, and we annually 
increase the use of 
renewable energy sources 
in our business processes 
in targeting reduced 
carbon emissions.

We attach great importance to compliance 
with environmental principles, which are among 
the United Nations Development Program’s 
Sustainable Development Goals. While supporting 
sustainable industrialization with our technology, 
we build our infrastructure with consideration for 
the future of the climate and the environment. 
And in developing our services, we aim to reduce 
our environmental impact.

We closely monitor our carbon footprint in 
combating climate change, and we annually 
increase the use of renewable energy sources 
in our business processes in targeting reduced 
carbon emissions. In order to improve our energy 
efficiency, we focus on energy saving in our 
process improvement efforts. We also reduce our 
waste and dispose of it by separating it at source.

In 2017, we ranked 1st in the world among telecom 
companies by reaching an environmentalist 
invoice subscription and delivery rate of 97% for 
mobile and 85% for the fixed segment customers.

Sustainability Report 2017
With our sustainability report published in August 
2018, we shared our sustainability management 
approach and the sustainability practices and 
performance of the operating period between 
January 1, 2017 and December 31, 2017 with our 
stakeholders in full transparency. 

This report, in which we adopted the 
internationally accepted sustainability reporting 
standard of the Global Reporting Initiative (GRI) 
G4 Sustainability Reporting Principles as a guide, 
also contains the seventh Communication on 
Progress of the United Nations Global Compact 
(UNGC), of which we have been a signatory 
party since 2007. We have declared our support 
for, and our progress regarding UNGC’s principles 
in the area of human and employee rights, the 
environment and the fight against corruption.

Data for 2012, 2013, 2014, 2015, 2016 and 2017 has 
been included for the purpose of interpretation 
of our economic, social and environmental 
performance, and enabling comparisons between 
the periods. Stakeholders’ feedback is important 
in helping us to enhance our sustainability 
performance and improve our reporting. For 
this reason, stakeholder opinions gathered from 
various channels, which are related to several of 
our applications and initiatives, are included in the 
report.

Energy Saving Initiatives 
Considering humans, economy and environment 
as a whole, Turkcell takes every step with an 
awareness of sustainability. By employing energy-
saving technologies and implementations at every 
stage of our business processes. Turkcell both 
protects environment and reduces Turkey’s energy 
bill.

Turkcell, the very first mobile operator with 
ISO 50001 - ISO 14064, ISO 50001 and ISO 
14064 Certification
We are moving forward with a systematic, 
transparent and proactive approach in our efforts 
to fight against climate change. We follow our 
performance in line with the targets that we set 
out. We are continuing to lead the market in the 
development of the solutions in the management 
of energy and the greenhouse gasses.

We have proven to be an environmentally friendly 
company with human and benefit-oriented 
initiatives bound to international standards in 
social, economic and environmental areas of 
influence. We have fulfilled all our responsibilities 
regarding greenhouse gas standards, and in 2015 
we became the very first telecom operator that 
received “ISO 14064 – Accounting and Verification 
of Corporate Greenhouse Gas Emissions” 
certification in Turkey.

TURKCELL ANNUAL REPORT 201893

We adopt the principle 
of sustaining our 
effectiveness in social, 
environmental and 
corporate governance 
areas, with the 
responsibility of being 
Turkey’s digital operator, 
and in light of our position 
within the industry.

95 million kWh
With the efficiency and 
savings solutions we 
implemented throughout 
2017, we saved over 95 
million kWh of energy and 
TRY 33 million.

In 2017, we continued our efforts and have again 
been entitled to ISO 14064 certification. With 
the efficiency and savings solutions 
implemented throughout 2017, we saved over 
95 million kWh of energy and TRY 33 million. 
The amount corresponds to the total electricity 
consumed by 36 thousand homes for a one 
year period. Turkcell’s total capital invested in 
environmentally friendly systems reached 
TRY 185 million in 2017.

BIST Sustainability Index 
We adopt the principle of sustaining our 
effectiveness in social, environmental and 
corporate governance areas, with the 
responsibility of being Turkey’s digital operator, 
and in light of our position within the industry. 
The BIST Sustainability Index provides companies 
a performance evaluation means of making 
improvements to their future plans and 
establishing new objectives. The index also 
provides companies with the opportunity to 
develop their risk management skills regarding 
corporate transparency, accountability and 
sustainability issues. As Turkcell, we are proud of 

maintaining our position on the 2018 list of the 
index in which we have been included since 2015 
for our practices that meet the selection criteria 
for the BIST Sustainability Index.

Carbon Disclosure Project (CDP)
As a company that had internalized the 
awareness to climate change at a very early 
stage, we have been studying the risks and 
new opportunities created by climate change, 
having adopted these studies as a part of our 
strategic plans. In 2018, we participated in CDP 
Turkey (Carbon Disclosure Project), sharing the 
comprehensive report we prepared on our 2017 
performance with the public. 

We incorporate all of our stakeholders, including 
our suppliers, employees and customers, into the 
processes of our sustainability efforts, making 
sustainability an integral part of our processes on 
principle.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201894

SPONSORSHIPS

Turkcell has maintained its pioneering efforts to develop 
sports in Turkey and help Turkish athletes and National Teams 
in their journey of gaining both national and international 
recognition for many years.

In the scope of individual amateur sports, we 
continued our support for the disciplines of running, 
fishing and golf, organizing events under our name 
throughout the year. 

Turkcell, supporting Turkish sports since its 
establishment, both through sponsorship and raising 
awareness, gathered all related efforts under the 
umbrella of its brand, TURKSPORU. Turkish athletes 
marked the year 2018 with these sponsorships. 
Thanks to Turkcell’s support, they won world and 
European championships, raising our flag to the very 
top of the staff.

OUR AMPUTEE NATIONAL TEAM IS THE WORLD 
RUNNER UP!

In the Amputee Football World Cup in Mexico, our 
National Amputee team outpointed their rivals, 
winning the 2nd place. As Turkcell, with our vision of 
contributing to the development of TURKSPORU and 
with awareness of supporting the development of 
disabled sports in Turkey, we granted our athletes a 
TRY 1 million success bonus. In the coming years, we 
will continue our support, to experience this pride in 
other disability sports branches.

WE HAVE EXTENDED OUR COOPERATION 
WITH THE PHYSICALLY DISABLED SPORTS 
FEDERATION IN SUPPORT OF ALL BRANCHES!

In 2018, we continued to support our activities in 
diverse fields to enable our disabled people to 
more actively engage in daily life. This year, we 
continued our support for disability sports, which 
we began in cooperation with the Blind Sports 
Federation, in the discipline of football with Hearing - 
Impaired Sports Federation and the Special Athletes 
Federation sponsorships. We broadened the scope 
of our cooperation with the Physically Disabled 
Sports Federation to cover all branches. Within 
the framework of these sponsorships, we support 
both the National Team and the league of each 
federation. Our collaboration was crowned with the 
world’s most respected public relations award, the 
IPRA Golden World Awards.

We extended our support 
for disabled sports to all 
branches!

OUR CONTRIBUTION TO THE DEVELOPMENT OF 
TURKISH SPORTS CONTINUES.

Turkcell has maintained its pioneering efforts to 
develop sports in Turkey and help Turkish athletes 
and National Teams in their journey of gaining both 
national and international recognition for many 
years. In 2018, we continued our support for our 
National Teams in the fields of football, athletics, and 
swimming, as well as sailing and physically disabled 
sports. 

TURKCELL ANNUAL REPORT 201895

we initiated in 2013. At the 2018 European Swimming 
Championship in Glasgow, V. Zeynep Güneş made 
it to the finals in the 200 meter women’s mixed 
category. In addition to this success, our national 
swimmers successfully swam for our country in four 
semi-finals in the same tournament.

We had supported the growth of the number of 
the licensed athletes which recently reached to 
224,076. In athletics we have reached out to over 
32 thousand young athletes in 78 races that had our 
name and support.

We crowned the successful performance of 
2017 with achievements in the European Athletics 
Championships in Berlin in 2018. Ramil Guliyev 
ranked second fastest of all time in Europe in 
the 200 meter category, becoming European 
Champion. Meanwhile, Yasmani Capello brought a 
silver medal to our country in the 400 meter hurdles 
finals. We won bronze with Yasemin Can in the 
5,000 meter women’s category. At the 100 meter 
men finals, Jak Ali Harvey added another bronze 
to our medal collection. We successfully ended the 
tournament with the Silver Medal that our national 
team won in the 4x100 meters category.

Thousands of Sports Fans Ran for Peace in the 
Turkcell Gallipoli Marathon.
We organized the 4th Turkcell Gallipoli Marathon, 
Turkey’s first thematic marathon, in the unique 
atmosphere of the historical Gallipoli Peninsula on 
October 14. Over 5 thousand athletes participated 
in the marathon.

Through a dedicated marathon channel aired 
within BiP, we enabled participants to register 
for the event, sharing related information through 
one-to-one communication with them. On the day 
of the marathon, we identified free fizy for our all 
runners with chips, enabling them to listen to the 
Turkish/foreign jogging lists custom made for the 
marathon. In addition, our participants were able to 
purchase advantageous travel packages through 
Fulltrip.

We enlarged the Turkcell Peace forest, which we 
created in previous years by planting  of 
20 thousand trees in the Güzelyalı and Çınarlı 
region, by planting additional 10 thousand new 
seedlings. 

We will continue our support for the marathon, 
which provides athletes and sports fans a unique 
running experience, over the years to come.

We organized the 
4th Turkcell Gallipoli 
Marathon, Turkey’s first 
thematic marathon, with 
the participation of more 
than 5 thousand athletes.

We enlarged the Turkcell 
Peace forest, which 
we created in previous 
years by planting of 20 
thousand trees in the 
Güzelyalı and Çınarlı 
region, by planting 
additional 10 thousand 
new seedlings. 

At the Physically Disabled Sailing branch in Turkey, 
Miray Ulaş, the winner of 5th place in the world, and 
Hüseyin Akbulut, the winner of the 1st place in the 
Silver Group made us proud at the Sheboygan 2018 
Paralympic World Sailing Championship.

UNINTERRUPTED SUPPORT FOR FOOTBALL

Having committed to being the “Official 
Communication Sponsor” in 2002, we have 
maintained our sponsorship of the A National 
Football Team, as the “main sponsor” since 2005.

OUR SWIMMING AND ATHLETICS PROJECTS 

We Provide the Greatest Private Sector Support to 
Amateur sports. 
We plan to invest a total TRY 28 million in the 
swimming and athletics projects initiated in 2013, 
under the auspices of the Turkish Ministry of Youth 
and Sports until 2020. With this project, we have 
been providing the greatest and longest term 
support to amateur sports to date in Turkey.

We are actively involved at every step of the 
project, which aims to increase the number of 
active athletes in swimming and athletics, and 
targets success in the international arena. We work 
with the Athletics and Swimming Federations across 
many areas, ranging from the implementation 
of innovative and modern management models 
and expansion of the pool of young athletes, to 
continuity of elite athlete development, corporate 
and technological development.

We began to see achievements in the semi-finals 
and finals in accordance with the objectives of the 
Swimming and Athletics Performance Projects that 

2018 OPERATIONSTURKCELL ANNUAL REPORT 201896

SPONSORSHIPS

The Turkey Athletic Talent Screening and Orientation 
to Sports Project, officially sponsored by Turkcell, the 
lead supporter of TURKSPORU continues to train the 
champion athletes of the future.

The two-day tournament was attended by 
the President of the Turkish Football Federation 
Yıldırım Demirören, Turkcell CEO Kaan Terzioğlu, 
and key figures from the business world including 
Fikret Öztürk and Cemal Kalyoncu.

Following on from Bodrum, Turkcell Platinum 
united golf lovers in Samsun on September 
1-2, 2018. Nearly 100 golfers competed in the 
tournament held this year for the first time in 
Samsun in the scope of the Turkcell Platinum 
Golf Challenge. The two-day tournament was 
attended by the President of the Turkish Golf 
Federation Ahmet Ağaoğlu and Turkcell CEO Kaan 
Terzioğlu, as well as key figures from the business 
World. As part of the tournament, the golf course 
in Samsun was opened.

The Turkcell Platinum Golf Challenge was held 
at the Kemer Country Golf Club in Istanbul 
on October 19-20-21. Close to 300 golfers 
participated in the three day tournament, being 
held for the fourth time this year.

Set Sail for Freedom with the Turkcell Platinum 
Bosphorus Cup!
The Turkcell Platinum Bosphorus Cup 2018, one of 
Turkey’s key sporting events in the international 
arena, saw its 16th outing on September 29-30, 
2018 this year, attended by over 100 boats from 
around the world. After two days of uninterrupted 
excitement, the team to lift the grand cup this 
year was “Istanbul Cerrahi Cheese” led by Levent 
Peynirci. 

Business World Goes Fishing with Turkcell 
Platinum in Seferihisar and Çeşme.
The Turkcell Platinum International Fishing 
Tournament was held in Seferihisar on September 
20-23, and in Port Alaçatı on October 4-7. The 
tournament which outsets an international 
atmosphere due to the significant interest from 
the foreign participants, since its inception hosted 
numerous contestants from across the world once 
again this year. 

The Turkcell Platinum 
Bosphorus Cup 2018 was 
attended by over 100 
boats from around the 
world.

Athletic Talent Screening Project Shaping the 
Future of TURKSPORU 
The Turkey Athletic Talent Screening and Orientation 
to Sports Project, officially sponsored by Turkcell, 
the lead supporter of TURKSPORU, and initiated 
together with the Ministry of Youth and Sports and 
the Ministry of National Education, continues to train 
the champion athletes of the future. 46,884 athletes, 
who are qualified from among 423,557 students 
during the first phase screening kicked off in May, 
started to the second training module of 4 months.

The second phase student screening of the 
largest infrastructure project in Turkish sports 
history is ongoing. The second phase screening 
began with the new academic term and as of 
November end, 611,802 primary school 3rd grade 
students had been reached. So far, the physical 
data of over 1 million children has been scanned 
for the project, which targets to reach 1.5 million 
students at the end of the 2 screening phases.

We Brought Golf Enthusiasts Together with the 
Turkcell Platinum Golf Challenge Tournament. 
Over 100 golfers competed in the tournament 
held in Bodrum this year for the second time in 
the scope of the Turkcell Platinum Golf Challenge. 

TURKCELL ANNUAL REPORT 201897

400 thousand 
people
With Turkcell Starry Nights 
music lovers enjoyed 
a wonderful series of 
summer concerts. While 55 
thousand people enjoyed 
the concerts at the Harbiye 
Open Air Theater, they were 
broadcast live on fizy, and 
watched by approximately 
400 thousand people.

CULTURE AND THE ARTS 

We perceive culture and the arts as pertaining to 
Turkey’s most important values. With the desire to 
both support and raise these values, we became the 
Communication and Technology sponsor of Sakıp 
Sabancı Museum in 2014.

We will continue to support culture and the arts 
by integrating our technology that improves and 
facilitates life into museums.

fizy Germany Launch 
Our cooperation that started in Turkey last year with 
Tarkan, Turkey’s megastar, has expanded overseas. 
We continued our cooperation with 7 concerts in 6 
German cities, organized as part of fizy’s launch in 
that country.

We provided privileges to fizy users during concerts 
watched by 50 thousand people. We broadcast our 
commercials, shot with Tarkan, on TV channels the 
radio and digital media airing in Germany, while we 
decorated the most popular concert venues and 
streets of Germany with fizy advertisements in the 
scope of our communication programs. With our 
social media schemes, dozens of our followers had 
the chance to meet Tarkan.

Our cooperation with the megastar continued in 
Turkey at the same pace. We released 2 new video 
clips in March and October, and achieved record 
viewing figures by presenting them for the first and 
only time, for fizy users to view for a period of 2 
weeks.

fizy High School Music Contest 
The 21st anniversary of the high school music contest 
was held with the sponsorship of fizy. The contest 
featured intense participation from 557 high schools 
in 49 provinces. 

The audition videos posted on the fizy High School 
Music Contest platform, visited by 2.8 million users, had 
received over 291 thousand votes within 3 weeks.

The Karabük Safranbolu İMKB Fine Arts High School 
won first prize in the event among 35 high schools 
competed on the final day. 

Turkcell Starry Nights (Turkcell Yıldızlı Geceler)
With Turkcell Starry Nights, which took place between 
August 30 and September 10, 2018, music lovers 
enjoyed a wonderful series of summer concerts. While 
55 thousand people enjoyed the concerts at the 
Harbiye Open Air Theater, they were broadcast live 
on fizy, and watched by approximately 400 thousand 
people.

With the social media schemes, Instagram stories 
were viewed 2.4 million times, while 65 thousand 
people participated in 11 contests custom made for the 
concerts, and 825 thousand people gained access. 
Turkcell Starry Nights, which became a classic event, 
this summer once again brought music lovers together 
in the open air.

fizy Istanbul Music Week
fizy Istanbul Music Week, staged for the first time in 
Turkey, and combining popular culture and Turkish 
pop music under one roof, hosted five signing days, 
36 concerts and 300 musicians on five stages. 25 
thousand people participated in the six-day event. The 
fizy Music Awards Night, where the “top” individuals 
of the digital platform in 2018 were awarded, has 
set the music agenda in Istanbul and Turkey with live 
broadcasts, 13 full-fledged panel discussions and 47 
speakers.

50 hours of musical performance took place on the 
Turkcell Stage, Turkcell Platinum Stage, Studio and AMFI 
within the Zorlu Performance and Arts Center through 
36 concerts given by over 300 musicians. In addition 
to 25 thousand participants, fizy Istanbul Music Week 
concerts were watched by 210 thousand fizy users 
through a live broadcast of nearly 12 hours in total.

2018 OPERATIONSTURKCELL ANNUAL REPORT 201898

HUMAN RESOURCES

We conduct our Human Resources practices at Turkcell with an 
innovative approach on the basis of a platform. We meet all 
requirements of being a digital operator with an effective management 
approach through our unique and flexible human resources perspective.

In today’s world, we now know the importance of 
providing solutions customized to needs, and we 
respect the individual differences of our employees. 
Accordingly, our Flex HR practices offered to 
employees as human resources, enable each 
employee to shape and personalize almost every 
practice to their own needs.

In 2018, we have taken many important steps 
towards becoming the “Digital Human Resources 
Department of the Digital Operator” with efforts 
on both the technology and working culture fronts. 
We prioritized the digitization of our processes, 
while we further developed our Flex platform by 
creating value from data derived from our new 
digital tools.

MORE EFFECTIVE, AGILE HUMAN RESOURCES 
WITH FLEXSOURCING

As Turkcell Group Human Resources, we work with 
a flexible and agile organization. Aimed at taking 
full advantage of the talents and experience of 
our employees, in 2018, we increased our number 
of agile teams by 20% to 85, and employees in 
agile teams by 44% to 900. In addition, in 2018 for 
the first time, we established agile teams working 
cross functions, creating an agile coach role to 
support those teams.

The progress achieved in 2018 with these agile 
teams has encouraged us to further benefit 
effectively from them, and we have started to offer 
project-based internal crowdsourcing opportunities 
under FlexSourcing.

FlexSourcing has been launched as a practice 
enabling our employees to work on projects that 
are beyond their responsibilities, thereby expanding 
their impact, while allowing us to use our talent 
pool more effectively. While FlexSourcing increases 
inter-team interaction, the formation of agile 
teams serves better those projects set to carry our 
company a step forward, and has now became a 
routine part of our business.

We support talented 
people to develop 
diverse competencies 
that enable them to 
assume more effective 
roles. Accordingly, 
we both invest in our 
employees and employ 
our work force much 
more effectively through 
crowdsourcing.

THE “FLEX” HUMAN RESOURCES OF THE 
DIGITAL AGE

We are in an era of excitement for all, with 
the world moving from a capital to a platform 
economy, as companies rapidly undergo the 
process of digitalization.

As Turkcell Human Resources, we have adapted 
our practices to the digital era and the younger 
generation. Maintaining our leadership in the area 
of technology and innovation is only possible if 
we take a leading role in every field, including 
the management of our human resources and 
the setting of our vision. For this very reason, 
we approach our HR practices at Turkcell with 
a wholly innovative approach, viewing them as 
a flexible platform. We have named this” Flex,” 
and we are implementing a more effective 
management approach with our one of a kind 
practices.

TURKCELL ANNUAL REPORT 2018FlexTalent, provides 
Turkcell employees with 
a unique opportunity 
to prove and express 
themselves, access to 
professional and social 
prospects, hence it is a 
highly competent tool for 
HR professionals. 

FLEXTALENT: RIGHT TALENT, RIGHT TEAM, RIGHT 
PROJECT

In our era data is one of the most valuable assets. 
Because today we obtain, interpret and process 
data in detail as never seen before. For the effective 
functioning of our Human Resources platform, 
which we redesigned for flexibility, data on the skills, 
experience and interests of our employees had to 
be properly defined in our database. In other words, 
we required the most accurate possible data of 
our employees. For this purpose, we designed and 
implemented the FlexTalent platform in 2018.

FlexTalent is our professional and social platform, on 
which all Turkcell employees have a profile page. 
Our employees share all kinds of information about 
themselves on their FlexTalent profile page, from 
their position in the Company to their professional 
experience, from the project groups they are 
involved to the awards they receive, from the foreign 
languages they speak to the instruments they play, 
and from the team they support to the pet they keep.

In addition, with the FlexTalent, it is possible to reach 
out to Turkcell employees regarding their expertise on 
any topic through “T-Search” (Turkcell Search Engine) 
integrated with FlexTalent, and establish professional 
work teams or social activity groups.

FlexTalent, provides Turkcell employees with a 
unique opportunity to prove and express themselves, 
access to professional and social prospects, hence 
it is a highly competent tool for HR professionals. 
Within a short period of time, FlexTalent profiles 
created personally by Turkcell employees will be the 
primary source of reference for our HR employees in 
FlexSourcing and candidate evaluation processes.

FLEX PERFORMANCE: OUR PERFORMANCE 
SYSTEM IS EVEN MORE “FLEX” 

As a Digital Operator, the range of operations carried 
out and the expertise required in Turkcell is so diverse 
that it is an expected outcome for a single system 
to fall short in measuring business results. The value 
of each activity performed under the umbrella of 
Turkcell, and labor expended on it is so great that 
our employees deserve the most fair and meticulous 
measurement of their work performance.

The Flex Performance System, which we set up 
to measure performance in the most accurate 
and fair manner, allows targeting and evaluation 
in accordance with the needs and dynamics of 
each job, rather than standardized performance 
management. 

99

Thanks to the Flex Performance system, during the 
targeting period, our employees process their score 
cards with their goals that will both enable their work 
to be evaluated with the most accurate metrics and 
support the goals set by their managers. In case 
of a possible change of duty or position during the 
year, our employees have access to the system and 
update their goals according to the requirements of 
the day. In addition, employees can set short-term 
goals required by specific duties and, over the time, 
can replace these and set additional goals.

During the performance evaluation period, our 
employees are able to monitor the commonality of 
their goals with those of the Company, and track 
the realization ratio of their goals through the Target 
Tree and Initiative Tree schemes within the Flex 
Performance system.

Throughout this process, our employees are more 
closely supported by the “Performance Coaches” we 
have selected from their business units, together with 
their Human Resources Business Partners.

With its structure supporting continuous feedback, 
the Flex Performance System provides the 
opportunity for our employees to closely monitor the 
impact of their work on their performance.

OUR FLEX FEEDBACK SYSTEM: REFLEX

At Turkcell, we know that our collective success is 
possible thanks to strong communication among 
ourselves. Hence, we have renewed our digital 
feedback system and developed ReFlex, where we 
appreciate each other’s achievements and make 
positive and substantial suggestions to each other on 
our areas of development.

It is of great importance for the personal and 
professional development of each one of us to give 
constructive feedback to each other after any joint 
project carried out with our team or project partners 
and create a “reflex” out of it. Our employees 
are able to give each other ReFlex in connection 
with the main objectives and sub-goals of their 
performance criteria through the application, which 
makes feedback a regular part of our lives, easily 
accessible on mobile devices. The ReFlex application 
also enables Turkcell users to observe their personal 
development processes retrospectively, and to 
monitor their progress.

TURKCELL BEHAVIOR MODEL: OUR FOCUS IS TO 
BRING OUT BENEFIT FROM EVERY JOB

It is our belief that to be a Digital Operator also 
requires a fresh notion of work and behavior model 
for our employees. We have redefined Turkcell’s 
New Behavioral Model after a long and detailed 
evaluation conducted with our employees.

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018100

HUMAN RESOURCES

Behind our new Turkcell Behavior Model lies our vision of 
becoming a “Digital Operator” aiming to touch 1440 minutes 
of our customers’ lives every day.

One of our new tools 
which is to guide 
employees on their career 
journey, and ensure they 
discover their potential, 
is the Apprenticeship 
Program.

Our young employees, 
who started working 
through GNCYTNK 
program underwent 
an efficient orientation 
process, including 
applications that bring 
Turkcell into the virtual 
reality environment, 
activities that combine 
games and learning, 
and social responsibility 
projects.

We have created our new behavior model 
that brings the “Let’s Bring out a Benefit in Every 
Activity We Carry Out” principle into focus with our 
employees.

Behind our new Turkcell Behavior Model lies our 
vision of becoming a “Digital Operator” aiming to 
touch 1440 minutes of our customers’ lives every day. 
We know that the only criterion to determine how 
many of those 1440 minutes we can be by their side, 
is, in their eyes, the value of the benefits we create 
for them. For this very reason, we expect each 
Turkcell Group employee to question themselves 
while doing their job in terms of its actual benefit. 
Our expectation from our employees is to create 
benefit not only for our customers, but as Turkcell 
employees, also for ourselves, our team, and our 
country.

Our behavior model, designed together with 
our employees, is intended to guide us on how 
to achieve the benefits we have created. For us, 
“Running in Pursuit of Their Dreams” when doing 
their job, enjoying the pleasure of “Achieving Success 
Together,” progressing with solid steps by “Creating 
Value from Data,” and “Winning Through Without 
Giving Up” are the must-have behavior of Turkcell 
employees, to bring out the ‘benefits’ that will lift 
them to their highest goals and dreams.

FOR THOSE WHO WANT TO MASTER THEIR JOB: 
APPRENTICESHIP PROGRAM 

One of our new tools which is to guide employees 
on their career journey, and ensure they discover 
their potential, is the Apprenticeship Program.

Within the framework of this eye-catching program, 
identified by Turkcell employees as ‘inspiring’, it 
is possible for them at any level of seniority to 
participate as an “apprentice” of another team for 
a week. For example, a Marketing Manager can 
work as an apprentice for one week at the Legal 
team and obtain a basic knowledge and valuable 
experience in an area beyond their immediate 
expertise.

Another benefit of the apprenticeship program is 
that it allows employees who work together, but in 
different departments, to develop empathy through 
a clearer perspective on each other. Thanks to the 
Apprenticeship Program, Turkcell employees better 
comprehend each other and develop the ability 
to work as a single team even during the most 
challenging times, as a more harmonious larger team. 

Through the Apprenticeship Program, 95 Turkcell 
employees had the opportunity to experience 
different departments in 2018, also bringing with 
them a different vision to the teams they joined as 
apprentices.

WITH GNCYTNK, THE FUTURE WILL COME WITH 
TURKCELL.

In 2018, tens of thousands of successful young 
people applied for GNCYTNK, Turkey’s first and 
most comprehensive young talent recruitment 
program. 62 thousand candidates applied to the 
program, with its enriched application, evaluation 
and recruitment processes through methods such 
as mobile platforms, as well as gamification and 
video interviewing. Among the applicants, 232 young 
people were placed to full time roles in Turkcell.

Our young employees who started working 
through GNCYTNK program underwent an efficient 
orientation process, including applications that bring 
Turkcell into the virtual reality environment, activities 
that combine games and learning, and social 
responsibility projects.

GNCYTNKs who started professional life at Turkcell 
in September 2018, were included in an intensive 
training program prepared by Turkcell Academy, in 
order to quickly adapt them to Turkcell.

EVEN HIGHER WITH YUPO

We believe that Turkcell employees who pursue 
success at Turkcell, and who proactively strive to 
create benefit for their customers, their country, 
their team, and themselves, eminently deserve a 
motivational privilege. For this reason, in 2018, we 
initiated YUPO (High Potential).

TURKCELL ANNUAL REPORT 2018101

260 Newborn 
Baby Welcome
Within the context of our 
Employee Journey Program, 
which we digitized in the 
beginning of 2018, we gave 
our employees presents, of 
which 79 were for military 
service send-offs, 260 were 
for newborn babies, 
175 were for marriages and 
45 were promotions.

YUPO is a system based on the volunteer principle. 
We designed YUPO to reach out to Turkcell 
employees with distinctive talents, and who can take 
those talents to high performance. These individuals 
will determine Turkcell’s future by realizing this 
performance in harmony with the culture and values 
of the company.

employees presents, of which 79 were for military 
service send-offs, 260 were for newborn babies, 175 
were for marriages and 45 were promotions.

This year we featured our Maternity Leave Guide 
prepared especially for mothers, our Working 
Models Guide and orientation guides, compiled for 
our expats.

The YUPO program is open to all employees, 
independent of seniority, who meet the candidate 
criteria and wish to be involved in the process. 
Candidates who participate in this program of 
their own will, are subject to a development and 
networking program if designated as YUPOs upon 
preselection.

YUPOs enjoy priority in attending the certificate 
programs of international universities, as well as 
domestic and international apprenticeship programs, 
conferences and seminars. In addition, they are able 
to increase their impact through various networking 
opportunities provided to them, and gain access to 
platforms in which to share their know-how. 

EMPLOYEE JOURNEY: BETTER TOGETHER

Turkcell experience is not just about working at 
Turkcell. We’re a big family. Each Turkcell employee 
experiences precious moments of their lives and 
key milestones under the Turkcell roof. As Human 
Resources, we work for them to recall these 
experiences in the most beautiful way possible, 
and ensure that all Turkcell employees feel like they 
belong to a giant family.

For this reason, in the beginning of 2018 we digitized 
the data of our Employee Journey Program. In 
this context, throughout the year, we gave our 

In the scope of our application, which we developed 
for fresh starter Turkcell employees to maximize their 
experience, we transferred all preparation processes, 
from the moment they accepted our offer to the day 
they commenced work, to the digital environment 
via kariyer.turkcell.com.tr. Hence, we offer all our new 
employees a great first day experience that befits a 
Digital Operator.

As for Turkcell Turkey over all, we realized that we 
needed to unite all Turkcell employees everywhere. 
As human resources, we started to perform our site 
visits, which we named “BirlİKteyiz” (BirlİKteyiz means 
We Are Together, while the capital letters İK stand 
for HR in Turkish.) in a more structured manner. In the 
scope of the BirlİKteyiz, we contacted with Turkcell 
employees in 30 different locations for a total of 621 
times in 2018.

Finally, this year we launched a project in cooperation 
with Yeryüzü Doktorları (Earth Doctors). On behalf of 
our employees, we began to cover the eye surgery 
cost of a visually impaired person, opening their eyes 
to life, on our employees’ birthdays. In this manner, 
365 visually impaired people opened their eyes to the 
world over 365 days.

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018102

HUMAN RESOURCES

2018 was a year where we took firm steps towards becoming 
the Digital Human Resources of the World’s First Digital 
Operator by digitizing our HR processes.

In 2018, we established 
and activated HR Data 
Warehouse, which 
substantially contributes 
to Human Resources 
Analytics and facilitates 
the collection of all 
employee data in a 
single source system, as 
well as the evaluation 
of relationships among 
the data through 
multidimensional analysis.

WE TURN ANALYTICAL DATA INTO VALUE FOR 
HUMAN RESOURCES.

Our Human Resources Analytics studies, conducted 
to determine our strategies and actions with data-
based predictions, continued to accelerate with the 
digitalization breakthroughs we have carried out in 
2018. Throughout the year, we worked to maximize 
the employee experience with the help of Human 
Resources Analytics, and to develop processes and 
organizational studies by interpreting them with 
analytical data models. One of them, HR Dashboard, 
which entered our lives in 2018, enables us to track 
HR metrics that include our employees’ information 
instantly and via mobile.

In 2018, we established and activated HR Data 
Warehouse, which substantially contributes to 
Human Resources Analytics and facilitates the 
collection of all employee data in a single source 
system, as well as the evaluation of relationships 
among the data through multidimensional analysis.

In addition, 2018 was a year where we took 
important steps towards becoming the Digital 
Human Resources of the World’s First Digital 
Operator by digitizing our HR processes using 
concepts such as artificial intelligence and machine 
learning. We can proudly say that our efforts in 
Human Resources Analytics pioneered data-based 
decision-making culture in Human Resources field, to 
become widespread, inspiring the sector in Turkey. 

AN EMPLOYER BRAND BEFITTING A DIGITAL 
OPERATOR

Turkcell, as the world’s first and only Digital Operator, 
is an ever-growing consumer brand, as well as 
an employer brand that speaks to our employees 
who created the brand, and the wider business 
community. We conduct communications both 
through traditional and digital media for the business 
community and potential employee candidates, and 
explain the experience of working at Turkcell, and 
our life within the company.

TURKCELL ANNUAL REPORT 20182018 brought much 
success for our athletes in 
all branches. We shared 
the achievements of our 
teams with all Turkcell 
employees throughout the 
year, supporting them at 
competitions, on-site. 

Flex Conversations, one of 
the latest outputs of our 
flexible communication 
understanding in HR, is a 
sincere mini video series 
where we listen to Turkcell 
projects from Turkcell 
employees.

103

ACTIVITIES THAT CONNECT US TO EACH OTHER 
EVEN MORE

DIGITAL FACE OF INTERNAL COMMUNICATION

As those who carry the brand that connects people 
to life a step forward, we are also connected to life 
in general, and as Turkcell employees, to one another. 
Therefore, in 2018, we undersigned many events and 
campaigns to boost the motivation of our employees, 
and embark upon new projects with full energy, by 
strengthening our intra and inter-team communication.

Specifically, we frequently brought our senior 
management team together with Turkcell employees 
in the scope of the ‘servant leadership’ concept, 
which sums up both the stance of our brand and our 
leadership style within Turkcell. It became quite normal 
for Turkcell employees to see our senior executives 
serving desserts on ashoura day, or to take a fun 
break, visited by our CEO and Assistant General 
Managers during long night shifts.

HEALTHY LIVING AND SPORTS ARE AN 
INDISPENSABLE PART OF A TURKCELL 
EMPLOYEE’S LIFE.

As Turkcell, we reflect our enthusiasm for Turkish 
sports to our in-house sports activities. The number of 
Turkcell Corporate Sports Teams, at 14 last year, rose 
to 16 in 2018 with the establishment of our Women’s 
Football and Chess teams. With the establishment of 
our women’s football team, we have implemented our 
men and women teams across all branches (football, 
basketball, volleyball, tennis, table tennis, swimming, 
sailing, running, cycling, paddle, chess).

2018 brought much success for our athletes in all 
branches. We shared the achievements of our teams 
with all Turkcell employees throughout the year, 
supporting them at competitions, on-site. In that way, 
we shared the enthusiasm, joy and, on occasion, the 
disappointment of our athletes.

WE CELEBRATE SUCCESS TOGETHER: 
REWARDING AT TURKCELL

At Turkcell, we take great care to celebrate our 
achievements together, and to motivate those 
employees who stand out for their personal 
achievements. In this context, in 2018, our CEO Kaan 
Terzioğlu awarded the CEO Special Prize to 60 
Turkcell employees for their outstanding achievements, 
thanking them personally. Similarly, our Executive Vice 
Presidents gave CXO Awards to 656 employees who 
made a difference and created benefit through their 
work.

In 2018, thanks to our Instant Reward mobile platform, 
our executives have had the opportunity to say ‘thank 
you’, and to gift a small reward to their teams in order 
to recognize their success and continuous efforts.

As we offer our customers all the communication 
means of the digital future as a Digital Operator, so 
also accept the same standards and understanding 
in our internal communications, where Turkcell 
employees stay in touch through Turkcell’s superior 
technology.

2018 was the year in which Turkcell also started to 
use digital communication tools effectively, and in 
a variety of ways, for internal communication. In 
addition to diversifying our digital channels, we made 
improvements to the integrity of our
inter-medium communication language and design, 
under the brand roof.

Our digital magazine @Trkcll, which befits the 
employees of a “Digital Operator,” features various 
news ranging from Turkcell employees’ achievement 
in professional and social fields, to our latest products 
and services, and from activities within Turkcell to 
industry developments from our country and the 
wider world. Mobilim integration is another distinctive 
feature of our magazine, which can be accessed 
online.

WITH FLEX CONVERSATIONS, WE GET TO KNOW 
EACH OTHER BETTER.

Flex Conversations, one of the latest outputs of our 
flexible communication understanding in HR, is a 
sincere mini video series where we listen to Turkcell 
projects from Turkcell employees. With this series, 
initiated in 2018, we both talk about precious Turkcell 
projects to all Turkcell employees and potential 
candidates, through social media, and also introduce 
the hidden heroes behind the stage for these projects. 
Due to considerable interest, the mini talk series that 
started as a pilot scheme within Human Resources, 
continues with their guests working in different teams 
of Turkcell.

TURKEY’S BIGGEST HEARTS: TURKCELL 
VOLUNTEERS

As Turkcell Volunteers, made up of voluntarily 
assembled Turkcell Group employees, we once again 
initiated numerous pioneering aid projects in 2018 with 
the moral and material support of Turkcell employees. 

As Turkcell Volunteers, we believe that the greatest 
benefit we will provide to our country is the 
investment we make to the future, namely children. 
For this reason, as in previous years, we focused this 
year also on children having financial difficulties. The 
Turkcell Volunteer Team worked with enthusiasm and 
love throughout 2018 to help our children grow as 
tech-savvy, curious, environmentalist and questioning 
individuals with strong communication skills.

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018104

HUMAN RESOURCES

One of the most noteworthy projects of this year was the Toy 
Project, where we gave Emocan toys, which we bought with 
the donations received from Turkcell employees, to our little 
ones receiving treatment in hospital.

We enabled our 
employees to dispose 
of their organic waste 
separately from other 
wastes in the Zero Waste 
bins placed throughout 
the plaza, in order to 
collect our organic waste 
separately. 

One of the most noteworthy projects of this year 
was the Toy Project, where we gave Emocan toys, 
which we bought with the donations received 
from Turkcell employees, to our little ones receiving 
treatment in hospital.

Some of the other projects that our volunteers 
executed this year are:

 » Izmir Maltepe Çiğli Primary School: Cleaning 
supplies, library, book and chess set support

 » Trabzon Çamlıyurt Primary School: Clothing, library 

and chess set support 

 » Hatay Gazi Middle School: Award and toy support 

for the winners of the reading contest

 » Kayseri Closed Women’s Prison: Clothing and toy 

support

 » Urfa Hanedan Primary School: Clothing, stationery 

and school supplies support

 » Erzurum Çatlı Primary School: Stationery and 

school supplies support

 » Konya Ahmet Haşhaş Primary School: Kite festival
 » Van Hasbey, İnköyü, Yemişlik and Abalı Schools: 
Stationery, clothing, educational game and toy 
support

 » Antalya Kumluca Sarıcasu Special Education 

School: Handicrafts, technology design and visual 
arts lecture support
 » Foster Parents Seminar

ORGANIC WASTE STATION

With the organic waste station we established at 
Turkcell Küçükyalı Plaza, we became one of the 
first companies in Turkey to support the Zero Waste 
campaign.

We enabled our employees to dispose of their 
organic waste separately from others in the Zero 
Waste bins placed throughout the plaza, in order to 
collect our organic waste separately. We started to 
collect the waste tea leaves of brewed tea in these 
bins, located in kitchens areas.

In addition, we separately collect the waste from 
restaurants, cafes and dining halls within the plaza 
and send it to our organic waste station on a daily 
basis.

TURKCELL ANNUAL REPORT 2018105

All waste collected in our organic waste station is 
transformed into fertilizer after a 30-day treatment 
by use of a compost machine. We started to use this 
high-quality fertilizer in landscaping areas and plants 
in our plaza. We also distribute this fertilizer, which 
is extremely useful and nutritious for the soil, in small 
packages, at regular intervals to our employees who 
requested it, and who have plants at home.

We produced 1,358 kg of fertilizer from around 
5 tons of organic waste generated in the first 3 
months after we commenced the project at Turkcell 
Küçükyalı Plaza.

their expectations, and share our experiences in 
working life. In doing so we met with the university 
representatives.

We evaluated the education design of the new 
generation with the “Health and Safety in Preschool 
Education” workshop. We also shared our story of 
digital transformation in the field of OHS, and our 
practices against psychosocial risk factors in our 
employee journey, with sector representatives at the 
symposiums. We took part in the working group at 
the 11th Development Plan to convey our knowledge, 
experience and suggestions. 

WE ARE TURKCELL EMPLOYEES, WE ARE 
VALUABLE, WE TAKE PRECAUTIONS

This year, as Turkcell Group Occupational Health 
and Safety (OHS) Team, we signed a cooperation 
protocol with the General Directorate of 
Occupational Health and Safety of the Ministry of 
Family, Labor and Social Services and İSGAM for 
training and promotion activities for national and 
international organizations.

In addition, as Turkcell, we hosted the “9th 
International Occupational Health and Safety 
Congress” organized by our Ministry. In this context, 
the safe design in our offices, ergonomic living 
conditions, activities, social areas, our corporate 
occupational health and safety management system 
“Turkcell Radar” and our mobile applications won 
the admiration of the visiting delegation comprising 
Ministry officials, occupational safety professionals, 
academicians and human resources experts.

Together with the General Directorate of 
Occupational Health and Safety of the Ministry 
of Family, Labor and Social Services and İSGAM, 
we implemented the Occupational Health and 
Safety for University Students Project. In order to 
gauge young people’s opinions on OHS, understand 

AWARDS WE RECEIVED THIS YEAR AS TURKCELL 
HUMAN RESOURCES:

As Turkcell Human Resources, we have been 
honored by awards across numerous categories, 
related to our pioneering practices and projects 
throughout the year:

LinkedIn Talent Awards: Best Employer Brand

Employer Branding Summit: Best Employer Brand

Stevies: Most Effective Rewarding System, Best Low-
Budget Big-Effect Event, Best Use of Technology 
in Human Resources, Best Internal Communication 
Practices, Best Recruitment Program, Best Human 
Resources Employee

Brandon Hall: Best Unique and Innovative Learning 
and Development Program, The Best Use of Blended 
Learning, Best New Hire Onboarding Program, Best 
Certification Program 

Asian Leadership Awards: Best Leadership 
Development Program for the top management

Crystal Helmet OHS Awards: Best Employee Safety 
Practices, Best Employee Health Practices

EMPLOYEE PROFILE 

Female Manager

Male Manager 

34%

66%

Post Graduate & PhD

Undergraduate

Two-year Degree

High School 

Other

8%

44%

22%

21%

5%

Female 

Male 

52%

48%

The demographic information 
presented above indicates the data 
of Turkcell Turkey.

The number of Turkcell 
employees is 4,065 and 
the number of Turkcell 
Group employees is 
20,120, as of December 
31, 2018. 

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018106

TURKCELL ACADEMY

As Turkcell’s corporate university, we aim to spread the culture 
of learning, among our employees in accordance with the 
mission of enabling renewal, change and transformation.

We carry Turkcell into 
the future with learning 
models that make a 
difference worldwide.

We believe that institutions and individuals need 
to review and renew their vision and mission 
along their journey of development. As Turkcell’s 
corporate university, we aim to spread the culture 
of learning, among our employees in accordance 
with the mission of enabling renewal, change and 
transformation. We prepare Turkcell and Turkey 
for the future by enabling our employees to gain 
new competencies required by the business lines, 
professions and occupations that are created with 
the new technologies which guide our corporate 
business plans. 

We are renewing our measurement and evaluation 
approach this year, with the introduction of long-
term training programs which are available to all 
employees and which are participated in on a 
voluntary basis. As an indicator of our employees’ 
learning efforts and achievements, we renewed our 
individual and corporate learning index.

the level of expertise of its employees in this area 
with the Digital Masters program. In the context of 
Digital Masters Program prepared in cooperation with 
Udacity and Turkcell, online trainings were provided 
in the fields of Data Foundation, Introduction to 
Programming, Business Analyst, Data Analyst, Machine 
Learning and Artificial Intelligence. During the 8 month 
program, 721 out of 1,093 participants were granted 
Udacity Nanodegree certification by completing the 
training and projects.

During the program, 25 participants selected by MIT 
(Massachusetts Institute of Technology) received 
training on IoT, the main source of future technologies, 
from leading professors at MIT. With the training 
received, our participants will continue to create 
global solutions by producing innovative products 
and services across many areas such as health, 
agriculture, logistics, education and the environment, 
not only for our customers but also for Turkey. 

We aim for our new “Learning Index” to further 
strengthen the integration of all our human resources 
processes such as performance, career and training/
development. 

WE EDUCATE AND STRENGTHEN TURKEY 
WITH TURKCELL DEVELOPERS OF THE FUTURE, 
TURKEY’S LARGEST SOFTWARE COMMUNITY.

As Turkcell Academy, we undersigned major initiatives 
in 2018, to prepare our thousands of employees and 
business partners within our ecosystem, and the 
wider society for the future.

With our “Master’s Program,” initiated nearly two years 
ago, we achieved firsts that make a big difference 
for in-house training. We have adopted an approach 
of “equal opportunities for everyone” in trainings. 
Regardless of their duties and responsibilities within 
the company, we provide all our willing employees 
with the opportunity to develop themselves.

WITH TURKCELL DIGITAL MASTERS PROGRAM, 
WE HAVE LAUNCHED THE LARGEST IN-HOUSE 
DIGITAL TRANSFORMATION INITIATIVE IN THE 
WORLD.

Having focused on developing pioneering products 
and services that will shape the future world with 
the new generation technologies, Turkcell maximized 

Developers of the Future has been providing free 
software, training, development and attainment 
opportunities since 2013. In order to develop lives 
through technology, and contribute to the realization 
of the dreams of all segments of society, we 
eliminate the digital divide, inequality of opportunity, 
financial impossibilities, insufficient supply and lack 
of role models. We strive for Turkey to become a 
leading country in software development. With 
the Turkcell Developers of the Future Platform, we 
strengthen Turkey by offering an integrated training 
and development solution in many areas that add 
value to the society, primarily Women Developers of 
the Future, Tester Women and Children.

WE ARE PREPARING TURKEY FOR THE FUTURE 
WITH NEW TECHNOLOGICAL TRAININGS.

We have signed agreements with Turkish content 
providers, all experts in their fields, in order to attract 
those people working across diverse technologies 
to our Developers of the Future community, and to 

TURKCELL ANNUAL REPORT 2018107

project with participation of Mrs. Emine Erdoğan. 
We aim to reach more women this year with more 
comprehensive content.

WE EQUIP CHILDREN WITH 21ST CENTURY SKILLS.

With Turkcell’s Children Develop the Future Project, 
we taught coding to 660 children aged between 7-18 
years in an entertaining fashion through the Scratch 
and App Inventor trainings developed by Code.
org, MIT. We lead the translation of the MIT Scratch 
coding platform actively used by 33 million children 
around the world, to develop games, animations and 
stories into Turkish. 

WE PREPARE THE LEADERS OF THE FUTURE.

Leadership Development Programs based on 
Turkcell’s initiatives and strategies, together with 
Turkcell’s vision of being a Digital Operator, prepare 
Turkcell Group leaders as pioneer leaders for the new 
World through collaboration with leading universities 
and institutions around the World and in Turkey.

These programs are implemented in six different 
leadership levels, ranging from aspiring managers 
to C-Level, focusing on the development of 
approximately 700+ Turkcell Group Leaders.

The “Digital Business Transformation” program, the 
focus of the IMD Global Leadership Program, and 
provided to directors by IMD Business School in 
2017, was designed for all of our managers this year 
to support Turkcell’s vision of becoming a digital 
operator. The program was delivered by 15 volunteer 
directors, who had completed the IMD Global 
Leadership Program, to a target group of nearly 500 
managers.

The “Building Leaders” certification program was 
designed and implemented with the collaboration 
of Koç University for aspiring managers and new 
manager target groups. This eleven-day program 
is intended to develop the Strategic Thinking, 
Strategic Marketing, Networking, Finance and Digital 
Transformation focus of the target group.

We continue to implement internal mentoring 
programs with the “Leader as Teachers” approach, 
and the C-Lounge sessions where role model leaders 
in and beyond the Turkcell Group share their success 
stories and leadership journeys. The “GNCMNTR 
Program,” a reverse mentoring program for our 
C-Level managers in which they receive mentoring 
from our young people, started in 2018. The GNCMNTR 
practice, is an innovative mentorship practice, where a 
Y generation employee conveys his/her insights about 
the new world, new jobs and new technologies, to a 
C-Level executive of senior generation.

present the most up-to-date content. In this respect, 
the Developers of the Future Platform will possess 
important content pertinent to the current agenda, 
such as database training, web training, game 
programming training, data science, machine learning 
and deep learning.

WE HAVE TOUCHED THE LIVES OF 4 MILLION 
PEOPLE.

To date, 4 million users from 100 countries have 
benefited for 400 thousand hours from the 
Developers of Future portal, which includes content 
for adults and children related to new technologies, 
and primarily Turkish mobile and web programming. 
On the Developers of the Future Platform, which has 
137 thousand registered users, 17 thousand people 
have successfully completed the online trainings and 
received 37 thousand certificates of achievement. 
We do not only offer an online training platform, 
but have also become Turkey’s largest software 
community, providing face-to-face mobile application 
development training for 10 thousand students at 105 
universities, in the TRNC and across the 81 provinces of 
our country. 

WOMEN DEVELOPERS OF THE FUTURE

With the “Women Developers of the Future Project” 
initiated in cooperation with Turkcell and the TOBB 
Women Entrepreneurs Council, we provided women 
with 6 months of software training in 18 cities, and 
supported them to develop mobile applications. 319 
out of 761 women who completed the in-class and 
remote Mobile Application Development trainings, 
developed mobile applications with 203 project ideas. 
Of the 660 women who successfully completed the 
training process in the Women Developers of the 
Future Project, 100 were employed by Turkcell to carry 
out end-user tests of Turkcell products and services. 
Every day, 100 expert test women, from 21 cities of 
Turkey, experienced Turkcell products and services 
end-to-end with the possibility of remote working, 
shared improvements that need to be made from the 
perspective of a real end-user, and contributed to the 
development of products and services. On November 
27, at the Ankara Presidential Convention Center, 
we launched Women Developers of the Future 

17 thousand 
people
On the Developers of the 
Future Platform, which has 
137 thousand registered 
users, 17 thousand people 
successfully completed the 
online trainings and were 
entitled to 37 thousand 
certificates of achievement.

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018108

TURKCELL ACADEMY

Turkcell Academy offers a custom prepared one year training 
program for young people who are employed within the 
scope of GNCYTNK Program, launched by Turkcell to hire 
talented young people.

Turkcell Academy initiated 
two major training 
programs in 2018 with 
the Massachusetts 
Institute of Technology, 
one of the world’s leading 
universities.

THE FIRST STEP OF THE LONG-TERM 
EDUCATION, DEVELOPMENT JOURNEY-
TURKCELL ACADEMY GNCYTNK PROGRAM

Turkcell Academy offers a custom prepared one 
year training program for young people who are 
employed within the scope of GNCYTNK Program, 
launched by Turkcell to hire talented young people. 
In the program formed by 6 modules; hundreds 
of trainings with themes Turkcell Employees 
Are Here, Customer is Here, Technology is Here, 
Our New Business World is Here, Culture is Here, 
Entrepreneur Leaders are Here - are offered 
through a variety of learning methods where 
digital, experiential and face-to-face learning are 
implemented together. 

Turkcell Employees Are Here Module: GNCYTNKs 
came together with Turkcell leaders to hear from 
them about our company.

Customer is Here Module: After receiving training 
on Turkcell Customer values, our GNCYTNKs 
served our customers at all customer touch 
points across Turkey for 15 days, gaining on-site 
experience.

Technology is Here Module: In this module, they 
received trainings from Turkcell teams and 
from the corporate universities of technology 
companies such as Huawei, Oracle, Cisco, 
Ericsson, Nokia, DELLEMC in order to develop their 
technology vision. They had the opportunity to 

benefit from Coding and Robotics Coding trainings. 
105 of our successful young talents benefited 
from the opportunity of studying abroad at the 
headquarters of corporate universities.

Our New Business World is Here Module: 
GNCYTNKs developed their financial perspectives. 
They heard about Turkcell’s activities in different 
business areas from their CEO.

Culture is Here Module: They attended seminars 
on civilizations, psychology and leadership 
approaches.

Entrepreneur Leaders are Here Module: 
MIT-Turkcell Innovation & Leadership Bootcamp 
specifically designed for GNCYTNKs will be 
implemented together with Massachusetts 
Institute of Technology (MIT), one of the leading 
universities across the globe.

ANOTHER GLOBAL FIRST FROM TURKCELL 
AND MIT: TURKCELL IOT BOOTCAMP 
PROGRAM & INNOVATION AND LEADERSHIP 
DEVELOPMENT PROGRAM EXCLUSIVE TO 
TURKCELL

Turkcell Academy initiated two major training 
programs in 2018 with the Massachusetts 
Institute of Technology, one of the world’s leading 
universities. MIT IoT Bootcamp and MIT-Turkcell 
Innovation & Leadership Bootcamp are the 
first training programs specially designed for a 

TURKCELL ANNUAL REPORT 2018109

With the MIT IoT 
Bootcamp Program, 
Turkcell invests in the 
future and prepares its 
teams working on new 
technologies for digital 
transformation.

Within the Technology 
Development Program, 
we provided 123 thousand 
hours of training for 2.5 
thousand employees 
through online training 
platforms and in-class 
trainings.

company by MIT. Under the MIT-Turkcell Innovation 
& Leadership Bootcamp program, through which 
Turkcell plans to train new and young leaders, the 
GNCYTNKs received special and intensive training 
blended together with MIT content and practices, 
for one week. The selected project teams will be 
involved in boot camps to be implemented around 
the world.

With the MIT IoT Bootcamp Program, Turkcell 
invests in the future and prepares its teams 
working on new technologies for digital 
transformation.

In 2018, we support continuous learning in Turkcell 
with development solutions that make 
a difference.

HAP+

Through HAP+ trainings that will benefit the 
personal development of Turkcell employees, we 
provided our employees with new perspectives 
and broadened their visions through methods 
such as experiential learning and distance learning 
in addition to face-to-face learning with seminars 
and in-class trainings.

CX LAB

With the “CX Lab Customer Experience 
Development Program,” we enabled our customer 
experience teams to design Customer Experience 
journeys with a “Design Focused Perspective,” 
providing them the opportunity to improve this 
perspective and the way of doing business, in 
Turkcell.

TECHNOLOGY DEVELOPMENT PROGRAM

In parallel with developing technologies and 
Turkcell’s strategic priorities, we focused on 
the topics of Big Data, Hadoop, iOS & Android, 
Business Analysis, UX, IoT, Virtualization, LTE, 5G 
and Security in our “Technology Development 
Programs.” We provided 123 thousand hours of 
training for our 2.5 thousand employees through 
online training platforms and in-class trainings.

The “NT Expert Program” aimed to ensure rapid 
adaptation to the changing Turkcell Network 
World, and to develop competencies in the 
main domains of the Network. In the scope of 
this program, organized with Huawei, 34 people 
selected among Network teams completed their 
developmental journey by receiving their in-class 
training in Turkey and implementation trainings in 
China.

WE ARE DEVELOPING TURKEY WITH THE 
COUNTRY’S MOST ADVANCED TECHNOLOGY 
RETAILING CERTIFICATION PROGRAMS.

As Turkcell Academy, we care a lot about meeting 
increasing customer expectations in technology 
retailing, and the development of our employees 
who will advise our customers in our stores 
within the scope of our digital transformation. 
Since 2016, we have been updating the content 
of our Technology Retailing Certification Program 
every year with innovations in order to train 
the advanced workforce, one of the biggest 
driver of the digital transformation in the World. 
The Technology Retailing Certification Program 
has been rewarded this year by the world’s 
largest consulting firm, Brandon Hall, in the “Best 
Certification Program” category. 

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018 
110

TURKCELL ACADEMY

We did not only increase the technical competence of our 
employees, but also targeted for them to better serve our 
customers and provide the best customer experience.

We made our staff 
ready for the field 
transformation, by 
combining different 
training technologies 
with numerous training 
courses, from orientation 
training for staff in the 
field to focus trainings 
compatible with business 
strategies.

We did not only increase the technical 
competence of our employees, but also targeted 
for them to better serve our customers and 
provide the best customer experience. In this 
respect, we provided trainings to develop 
competency and behavior in the scope of 
the Certificate Program. We measured our 
employees’ competencies with Online Evaluation 
Center inventories prepared with real customer 
scenarios in order to understand the extent to 
which our messengers internalized their trainings, 
and the extent to which they use the outputs of 
these trainings in stores.

We are also glad to hear from the business 
teams we have been servicing that our customer 
satisfaction and employee loyalty ratios saw 
a positive increase once the Basic Certificate 
Program had been put into practice. We made 
our staff ready for the field transformation, by 
combining different training technologies with 
numerous training courses, from orientation 
training for staff in the field to focus trainings 
compatible with business strategies. 10 thousand 
of our field employees were better equipped 
and specialized thanks to the Turkcell Academy 
Certificate. In addition to Basic Certification, 
we continue to deepen the expertise of our 
employees with vertical expertise through the 
Advanced Certificate Program, IoT, Turkcell 
Financial Services, Digital Service and Solutions 
Certificate Programs.

TURKCELL ANNUAL REPORT 2018111

WE SUPPORT YOUNG PEOPLE WITH A 
PROMISING FUTURE IN TECHNOLOGY.

WE ARE ALSO DEVELOPING THE EXPERTISE 
OF OUR DISTRIBUTORS.

While we support the studies of local and 
national research groups, we help young people 
to become better equipped for new business 
areas during their development journey through 
the technology programs we prepared with 
the expertise of Turkcell. While we support the 
research of PhD students working in the field of 
artificial intelligence with scholarships, we play an 
important role in generating a qualified workforce 
for the information sector through 18 certificate 
programs through which we have shared our 
know-how with thousands of university students. 
At 10 of Turkey’s most prestigious universities, 
we have planned Mobile Communications 
Technologies and Software Testing courses 
together with our Turkcell Academy trainers. 
Through these courses, we both introduce youth 
in Turkey to the technology sector and support 
our employees’ know-how and background 
development. In addition, we ensure the 
participation of our managers, who are experts in 
their fields, in the activities planned by university 
students, to conduct information sharing sessions, 
and support the development of our students 
with our short-term training programs. In 2018, 
we had the opportunity to reach out to almost 10 
thousand students.

We continue to develop KVK and GENPA 
employees in accordance with the needs of 
the future world. In this direction, we designed 
certification programs specifically for KVK and 
GENPA requirements and performance targets 
with the leadership of Turkcell Academy. In the 
scope of certification programs we implemented 
digital and in-class training solutions for 900 
employees in total, through the training programs 
on leadership, sales, product management, 
corporate culture and specific functional 
focus areas. We organized vision seminars on 
technology, economics and humanity topics with 
speakers who are experts in their fields to ensure 
that employees have a command of current 
developments. We digitized basic classroom 
trainings included in the leadership and sales 
programs of the certification program in the first 
2 years. We thereby enabled new employees 
to benefit from the trainings. Through the 
development solutions implemented, Sales and 
Product Management teams were certified with 
100% success.

While we support the 
studies of Local and 
National Research 
Groups, we support 
young people to become 
better equipped for new 
business areas during 
their development journey 
through the technology 
programs we prepared 
with the expertise of 
Turkcell.

In the scope of 
certification programs, 
custom designed by 
Turkcell Academy 
according to the needs 
and performance targets 
of KVK and GENPA, we 
implemented digital and 
in-class training solutions 
for 900 employees 
in total through the 
training programs on 
leadership, sales, product 
management, corporate 
culture and specific 
functional focus areas,

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018112

OUR SUBSIDIARIES 

lifecell became the first operator to introduce Ukrainians to 
4.5G on March 30 and strengthened its digital operator position 
in the market with a smartphone penetration of 75.9%.

subscribers in almost 30 countries on 4 continents 
with its roaming partnerships. Lifecell, which provides 
its subscribers with the highest quality internet 
experience, started to serve with 4.5G network on 
1,800 MHz to more than 230 settlements on July 1.

lifecell enriched its digital services portfolio in line 
with Turkcell’s digital services strategy and increased 
the penetration of these services on its customer 
base. In addition to the previously launched lifebox, 
fizy, lifecell, Dergilik, and LifeSport applications, a 
number of new applications and services such as 
TV+, All Recipes, Games Club, Kids Club and Fitness 
have been introduced to users. 

Paycell, a subsidiary of lifecell, is ready to provide its 
services to its Ukrainian customers after receiving all 
necessary permits from the National Bank of Ukraine 
and obtaining the payment infrastructure operator 
status.

Ahmet Akça, Chairman of the Board of Turkcell, 
joined the National Investment Council of Ukraine 
as a member with the decision of the President 
of Ukraine Petro Poroshenko. As an advisory body 
under the authority of the Ukrainian President, the 
Council has brought together 20 top executives 
of world-leader companies in their fields and 
representatives of the Ukrainian state bodies to 
improve the country’s investment ecosystem and 
organize the investment regulation.

lifecell was the first company to launch SMS 
donations, by providing short codes to the non-profit 
organizations in the country. The Company is the 
technologic sponsor of the National Football Team 
of Ukraine, the Premium Sponsor of FK Dynamo 
Kiev, and also the official technology partner of the 
Ukrainian National Paralympic Committee. 

lifecell sponsored the 5th IT Arena, one of the leading 
IT and technology conference in Eastern Europe, 
during which lifecell CEO İsmet Yazıcı introduced the 
Turkcell’s vision and development and impact of 5G. 
lifecell founded the 3rd “lifecell laboratory” in Kharkiv 
National University of Radio Electronics and enable 
students to reach modern telecommunication 
materials and join workshops. 

lifecell became the first 
operator that launched 
the 4.5G network on 2600 
MHz frequency in various 
city centers of Ukraine on 
March 30.

lifecell

Having commenced operations in February 2005 
in Ukraine, lifecell has a population coverage of 
92.2% and a geographical coverage of 94.6%. The 
Company has 7.3 million three-month active, 9.9 
million registered customers. lifecell is the market 
leader in Ukraine in terms of smartphone penetration 
which is 75.9%. In 2018, number of three-month 
active subscribers using 3G+ and 4.5G exceeded  
4 million while mobile data usage per user grew by 
128%. lifecell’s revenue in TRY terms increased 39% 
and reached TRY 924 million. 

2018 was an important year for lifecell after being 
named the leader of the new generation internet. 
At the 2,600 MHz and 1,800 MHz frequency auctions 
that were held on January 31 and March 12, 
respectively lifecell acquired the widest spectrum 
per subscriber, ensuring the highest quality mobile 
internet for the LTE subscribers nationwide.

lifecell became the first operator that launched the 
4.5G network on 2600 MHz frequency in various 
city centers of Ukraine on March 30. Following the 
successful launch of 4.5G in the domestic market, 
lifecell started to provide LTE services to its travelling 

TURKCELL ANNUAL REPORT 2018lifecell became a partner 
in the 15th Yalta European 
Strategy (YES) Annual 
Meeting, which brought 
together over 600 
participants from 28 
countries, in Kiev. 

TRY 292.9 million
On a TRY basis, the 
Company’s revenues 
increased by 39.2% to 
TRY 292.9 million. 

113

lifecell became a partner in the 15th Yalta European 
Strategy (YES) Annual Meeting, which brought 
together over 600 participants from 28 countries, 
in Kiev. Participants of the meeting included the 
world’s leading decision makers, futurists, politicians, 
investors, as well as security, technology and media 
experts.

Having enriched its operations, the Company moved 
to its headquarters next to the lifecell Technical 
Center; increasing the harmony, synergy and 
efficiency between all departments. 

BeST

Having joined Turkcell Group in July 2008, BeST 
(Belarusian Telecommunications Network) was 
the first operator to offer 3G service in Belarus in 
November 2009. BeST has a population coverage of 
99.9% and a geographical coverage of 97.7% as of 
year-end 2018.

Having 1.6 million subscribers, BeST started to offer 
4G service in August 2016 through LTE infrastructure 
established by beCloud. BeST provides 4G LTE 
services, across all regions and major cities of 
Belarus.

BeST has a wide product portfolio consisting 
of various voice and data packages as well as 
terminal and digital offers. The Company enriched its 
products and service portfolio in line with Turkcell’s 
strategy of providing digital services and solutions on 
a global scale. In this respect, BeST included BiP, fizy, 
lifebox, Magazines, TV+, Apps Club and Kids Game 
Club applications to its digital services portfolio.

As a result of the growing 4G LTE customer 
penetration and increasing data usage, BeST’s 
revenues grew by 11.7% in local currency compared 
to the previous year, reaching BYN 124.9 million 
in 2018. On a TRY basis, the Company’s revenues 
increased by 39.2% to TRY 292.9 million. 

Lifetech, established as 99.9% owned subsidiary 
of BeST to serve in the area of telecommunication 
and infrastructure solutions, information and 
communication technologies, software development 
and security systems, successfully carries out Turkcell 
Group projects with 200 employees as of 2018. 

KUZEY KIBRIS TURKCELL

Kuzey Kıbrıs Turkcell was established in 1999 as a 
100% owned subsidiary of Turkcell. Having operated 
until 2007 as part of a revenue-sharing agreement 
with the Turkish Republic of Northern Cyprus 
Telecommunication Department, the Company 
signed an 18 year GSM license contract in the same 
year. 

In 2016, Turkcell Grup pioneered a first in TRNC and 
the world by launching its new digital brand Lifecell, 
which exclusively operated on the internet, and 
became the world’s first digital operator.

With its infrastructure covering 100% of the population 
and a market share of 62% based on data of the 
Information and Communication Technologies 
Authority as of the 3rd quarter, the Company 
continued its operations as the leader operator of the 
TRNC. 

Having established Lifecell Digital LTD in 2018 to 
offer fixed internet services in the TRNC, Kuzey Kıbrıs 
Turkcell became the first integrated digital operator 
to provide converged offerings to its customers, 
including both GSM and fixed internet services.

The revenues of Kuzey Kıbrıs Turkcell grew by 13.8% 
and reached to TRY 180.1 million in 2018. 

TURKCELL EUROPE

Founded in Germany in 2010 as a Mobile Virtual 
Network Operator (MVNO), Turkcell Europe provides 
services to approximately 200 thousand customers 
through marketing cooperation conducted with 
Deutsche Telekom. Operating under Turkcell’s global 
brand lifecell as of 2018, Turkcell Europe has set its 
course as Europe for the export of Turkcell’s digital 
products and services. It is intended to spread 
innovative services such as BiP, fizy, Dergilik, lifebox, 
Yaani, TV+ and Fulltrip from Germany to Europe.

Turkey’s most innovative communications and 
experience platform BiP, has added a new dimension 
to communication habits. BiP enabled users to identify 
their phone numbers both in Germany and Turkey on 
the same platform without the need of a different 
SIM card or second phone, and to communicate 
both mobile and fixed lines in Turkey with very 
advantageous packages with HD sound quality,

With its expanding music catalogs, fizy aims to 
become irreplaceable for the citizens living in 
Germany. Achieving great success with important 
contributions to the music industry in Turkey, fizy has 
also become the representative of the digital music 
infrastructure of Turkey in Germany, thanks to its rich 
archive.

Dergilik, the digital publishing platform that changed 
reading habits in Turkey is now available also in 
Europe with its unique content. Offering more than 
700 newspapers and magazines to its readers in 
the digital platform, Dergilik provides the opportunity 
to read all of Turkey’s popular magazines and 
newspapers also offline. In addition, it enables 
Turkish people in Germany to read and follow 
developments in Turkey through local sources.

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018114

OUR SUBSIDIARIES

Acting as the strategic business partner of its customers, 
Turkcell Global Bilgi aims to increase the customer satisfaction 
and revenues of companies by delivering customized solutions 
meeting the needs of over 60 companies, including Turkcell itself. 

Turkcell Global Bilgi 
ranked 1st place in the 
“Best in Customer 
Service” category at 
the World finals of 
the “2018 Top Ranking 
Performers” awards of 
“ContactCenterWorld,” 
the world’s largest call 
center sector event.

Global Tower, the first and 
only telecommunications 
infrastructure and tower 
company in Turkey, now 
operates in 4 countries.

lifebox, personal data storage service developed by 
Turkcell by using entirely local sources, has become 
one of lifecell’s most important products with its 
features including German language support and 
automatic backup, freeing up device storage, faces 
and object recognition for photos easy sharing, fast, 
and secure access.

TURKCELL GLOBAL BİLGİ

Turkcell Global Bilgi offers new generation creative 
solutions in customer experience by closely 
monitoring technological innovations in addition to 
its 19 year experience in customer service. Acting 
as the strategic business partner of its customers, 
Turkcell Global Bilgi aims to increase the customer 
satisfaction and revenues of companies by delivering 
customized solutions meeting the needs of over 60 
companies, including Turkcell itself.

With 14 locations in Turkey and 5 in Ukraine, Turkcell 
Global Bilgi operates in 19 locations in total as of the 
end of 2018, providing employment to approximately 
12 thousand people with a 9 thousand desk capacity. 
With 7,300 female employees, the ratio of women 
employed in total at Turkcell Global Bilgi is 61%.

Turkcell Global Bilgi, which realized the first 
technology investment in the east of Turkey with the 
Erzurum Call Center, is also the first, and still the only 
Turkish call center to serve abroad with its Ukrainian 
investment. The Company ranks among the top 500 
IT companies in Turkey. Turkcell Global Bilgi ranked 
1st in the “Best in Customer Service” category at the 
World finals of the “2018 Top Ranking Performers” 
awards of “ContactCenterWorld,” the world’s largest 
call center sector event.

Turkcell Global Bilgi manages communication with 
the end-consumer through many channels such as 
face-to-face service, telephone, audio and video 
response systems (IVR and IVVR), e-mail, SMS, web 
chat, next generation customer experience platform 
BiP and social media. It also develops tailor made 
solutions for its customers through its design team, 
which handles customer services end-to-end to 
create a unique customer experience.

GLOBAL TOWER

Global Tower, the first and only telecommunications 
infrastructure and tower company in Turkey, now 
operates in 4 countries. Global Tower provides 
infrastructure services to telecom operators, radio 
and TV broadcasters, internet service providers, 
energy companies and public institutions. In addition, 
Global Tower commenced operating in the field of 
satellite services in 2018 within the framework of its 
end-to-end service concept. Global Tower currently 
offers over 2 thousand closed circuit satellite 
services from its own infrastructure with geographic 
redundancy, and aims to increase its product range 
and service diversity by following the trends in 
satellite sector. Global Tower has a market share of 
around 20% in the satellite broadband industry.

Global Tower increased its net revenues by 32% to 
TRY 338 million(1) in 2018. In the medium term, the 
Company anticipate increasing its revenues annually 
by 25%- 30%(3) on average. In 2018, EBITDA(2) rose 
60% to TRY 223 million. The medium term EBITDA 
growth expectation is at 25%-30%(3) on average. The 
consolidated tenancy ratio was 1.60x in 2018, and is 
targeted to reach 1.80x-1.90x(3) range in the medium 
term.

Global Tower is currently Turkey’s first and Europe’s 
fifth largest telecommunications infrastructure 
company with a total site portfolio of 10,581, of 
which:
 » 8,501 are in Turkey
 » Owned: 3,943
 » Operated: 2,334
 » Contract Management: 2,224

 » 1,132 are in Ukraine (Owned)
 » 833 are in Belarus (Right of Use)
 » 115 in TRNC (Right of Use)

(1) Net revenues do not include reclassification revenues.
(2) Including the impact of new IFRS standard.
(3) Please note that this paragraph contains forward looking 
statements based on our current estimates and expectations 
regarding market conditions for each of our different businesses. 
No assurance can be given that actual results will be consistent 
with such estimates and expectations. For a discussion of factors 
that may affect our results, see our Annual Report on Form 20-F 
for 2017 filed with U.S. Securities and Exchange Commission, and in 
particular, the risk factor section therein.

TURKCELL ANNUAL REPORT 2018BELARUS

UKRAYNA

Turkey’s first and 
only, Europe’s 5th 
largest tower and 
infrastructure 
company

TÜRKİYE

KKTC

Global Tower’s main areas of activity are:
 » Leasing services,
 » Build and sell services,
 » Contract management services,
 » Maintenance services,
 » Satellite service and facilities. 

Global Tower closely follows the transformation 
process of the global telecommunication 
infrastructure sector, from tower management to 
infrastructure management, and plans to include 
new emerging business lines in this sector within its 
operations. In this respect, it aims to both introduce 
our country to new technologies, and continue its 
growth momentum in the upcoming periods. It is 
observed that the mobile operators in our country 
have a positive attitude towards the infrastructure 
sharing and consolidation model led by Global Tower, 
in parallel with global developments. A critical step 
can be taken in terms of resource efficiency through 
related regulatory arrangements.

TURKCELL FİNANSMAN  
(CONSUMER FINANCE COMPANY)

Turkcell Finansman A.Ş. received its operational permit 
from the Banking Regulation and Supervision Agency 
in March 2016, and started to serve in approximately 
3 thousand Turkcell stores throughout Turkey under 
the Financell brand, carrying Turkcell quality to the 
finance sector to provide flexible payment solutions 
for customers’ device needs through financial loans.

Turkcell Finansman A.Ş., which has an asset size of 
more than TRY 5 billion by year-end of 2018 and
has granted TRY 11.5 billion in loans to around  
4.6 million customers to date, became one of the 
most important players in the Turkish financing sector. 
The Company will continue its growth through new 
business lines, such as Turkcell Sigorta A.Ş. (insurance 
company) founded in 2018.

Global Tower is Turkey’s 
first and Europe’s fifth 
largest telecommunications 
infrastructure company 
with a total site portfolio of 
10,581.

Launched by Paycell  
in 2017, the Paycell 
application, the single 
platform on which Paycell 
has gathered all of its 
services, reached 2.6 million 
downloads in 2018. 

115

TURKCELL ÖDEME VE ELEKTRONİK  
PARA HİZMETLERİ* (TURKCELL  
PAYMENT SERVICES)

Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş. 
(TÖHAŞ), the payment services company, extended 
the scope of its operational permit obtained from the 
BRSA in 2016 to operate as a Payment Institution, with 
an E-Money license in 2017. With the new products 
and collaborations developed in 2018, it has both 
expanded its customer and merchant network, and 
provided a simple and secure payment experience to 
its customers.

TÖHAŞ offers quick and easy payment services to 
over 3 thousand member merchants and over 5 million 
customers with the Paycell brand. Thanks to the Paycell 
Mobile Application’s credit card and Paycell card 
registration feature, TÖHAŞ has enabled its customers 
to make secure purchases using just phone number 
information, to transfer money 24/7 to any phone 
numbers they wish, and to pay using QR technology.

Launched by Paycell  in 2017, the Paycell application, 
the single platform on which Paycell has gathered all 
of its services, reached 2.6 million downloads in 2018. 
Additionally, the prepaid Paycell Card, launched at the 
end of 2017, has been offered for sale in D&R stores 
and PTT branches as well as in 5 thousand Turkcell 
stores. The number of card sales has exceeded 1 million 
with the contribution of extensive sales point network.

Following the addition of invoice payment product 
to its payment solutions in 2017, Paycell increased the 
number of institutions of which invoices are collected 
to 232. While 5 thousand invoices were collected per 
month from 700 invoice payment representatives, the 
number of collection reached 160 thousand per month 
with over 6 thousand representatives as of 2018. Having 
improved its existing payment channels and its share in 
the payment market in 2018, Paycell plans to diversify 
its member merchant network by providing new digital 
financial solutions to its customers from transportation 
to account management, and from personal finance 
to credit management through its mobile app, in the 
upcoming period.

Taking its initial steps towards becoming a strong brand 
in the first half of 2018, Paycell renewed its corporate 
identity and started to earn appreciation among its 
target audience with the “It’s not a pro bank, it’s a 
bro bank” slogan. Respective commercials enjoyed 
considerable appreciation, achieving wide outreach 
figures through organic dissemination. Turkcell’s brand 
image was also supported with the appreciation of 
the audience.

*After the registration of the General Assembly resolution on 
20.02.2017, the trade name of Turkcell Ödeme Hizmetleri A.Ş. will 
be referred to as Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş.

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018116

OUR SUBSIDIARIES

Turkcell Technology has received many prestigious awards 
in consequence of the innovative and original technologies it 
has produced in 2018.

While more than 10 
million unique users in 
total have played games 
through Playcell and 
BiP Gaming in 2018, the 
Tavla Go application, the 
first board game that 
we developed, has been 
downloaded by more than 
240 thousand players.

With national and 
international patent 
applications, Turkcell 
Technology aims to be a 
pioneering technology 
company on a global 
scale.

İNTELTEK

İnteltek (55% owned by Turkcell, 20% by Intralot SA, 
and 25% by Intralot Iberia Holding SA) conducts 
Head Agency, Central System Administration and 
Risk Management operations in the scope of sports 
betting games administration in Turkey.

İnteltek has been positioned as one of the world’s 
largest operators in the state-controlled betting 
games sector with its “iddaa” brand. Between 
2004 and 2018, the contribution of public revenues 
originating from “iddaa” to the Turkish economy on 
the basis of tax and sports, reached almost USD 14 
billion.

Inteltek entered the digital gaming sector with BiP 
Gaming, the game platform developed on Turkcell 
BiP application in 2017. Inteltek introduced secure 
game platform Playcell for kids, as well as the Tavla 
Go (Backgammon Go) application for Turkish game 
lovers in 2018, achieving significant success within a 
short time.

While more than 10 million unique users in total have 
played games through Playcell and BiP Gaming in 
2018, the Tavla Go application, the first board game 
that we developed, has been downloaded by more 
than 240 thousand players.

TURKCELL TEKNOLOJİ  
(TURKCELL TECHNOLOGY)

As one of Turkey’s largest R&D centers, Turkcell 
Technology conducts its R&D and innovation 
activities with over 700 R&D personnel at Küçükyalı 
Technology Plaza. This center, running end-to-end 
product and service development processes under 
the same structure, also offers different products, 
services and infrastructures to 15 countries, in 
addition to Turkcell Group companies.

The focus areas of Turkcell Technology include; 
Roaming Solutions, Smart SIM Card Solutions, Big 
Data Processing, Business Intelligence Applications, 
Smart Cloud Platform and Platform Based 
Solutions, Location Based Services and Platforms, 

Customer Relationship Management and Solutions, 
Network Management Solutions, New Generation 
Value Added Services, Mobile Financial Systems, 
Music and Entertainment Services, IPTV Services, 
Mobile Marketing Solutions, Internet of Things (IoT), 
Geographic Information Systems, Voice Identification, 
AR/VR, 5G infrastructure projects, Mobile 
communication solutions, Campaign Management 
Systems and Over-the-Top (OTT) solutions.

Turkcell Teknoloji carries out its technology and 
software export activities in the Commonwealth 
of Independent States, the Middle East, Africa and 
Europe regions, and continues its sales and 
after-sales maintenance activities abroad with a 
total of 24 products. Among the products designed 
and developed by Turkcell Technology, RoamSelect 
is used in 10 countries, SimSelect in 7 countries, and 
Campaign Management System in 4 countries. 
In 2018, digital services produced by Turkcell 
Technology were sold to Moldova. We continue 
our search for new markets in order to increase our 
sales.

With national and international patent applications, 
Turkcell Technology aims to be a pioneering 
technology company on a global scale. The 
patent application process makes a significant 
contribution to differentiating the services and 
products of Turkcell Technology, and rendering them 
competitive, with export potential. The Company 
continues to work intensively and shares this 
experience with universities, incubators, SMEs and 
other business partners to ensure that the process 
gains wider recognition. With the 1,172 national and 
108 international patent applications made since 
2008, Turkcell Technology is the leader in Turkey’s 
telecommunications sector. 

Turkcell Technology ensures the development 
of innovative products and services through the 
use of advanced technologies by taking part in 
international fund-supported R&D projects, and 
interacts with ecosystems enabling it to enter new 
markets. At the same time, further development of 
expertise is ensured by conducting joint research 
and technology studies with leading organizations 

TURKCELL ANNUAL REPORT 2018lifecell Ventures aims to 
digitize the
telecommunications 
industry. In this context, 
the first international 
digital solution 
partnership was realized 
in 2017 through the 
revenue sharing model 
with Eastern European 
operator Moldcell with 
the “BiP” and “lifebox” 
products.

in their fields. In this context, Turkcell Teknoloji is a 
member of the board of directors of ITEA and Celtic 
clusters under the umbrella of EUREKA, and carries 
out active tasks by developing innovative projects 
within those clusters. As part of the innovative and 
potentially commercial product and services projects 
conducted with ITEA that focus on information 
technology topics and with the Celtic clusters that 
focus on network, infrastructure, and all information 
technology verticals built on them, funding aid and 
TUBİTAK support secured by involving in consortiums 
formed in Turkey. In this respect, contribution to the 
development of the Turkish ecosystem is sustained. 
Apart from the EUREKA cluster, Turkcell Technology 
responds to the IT-focused invitations made on 
the Horizon 2020 platform, directly funded by the 
European Commission, with new project ideas 
and engages in intensive studies on this front. In 
addition to these projects, where AR-VR, Machine 
Learning, Artificial Intelligence, Blockchain, IoT and 
5G technologies are intensively used; Turkcell 
Technology develops ideas that further expands 
our existing technological know-how, and that have 
the potential to turn into marketable software and 
products.

Turkcell Technology has received many prestigious 
awards in consequence of the innovative and 
original technologies it has produced in 2018.

Pioneering the production of new technologies, 
Turkcell Technology has also conducted important 
research into the dissemination of technology, 
and produced many Academic and Technical 
Publications on national and international platforms 
in 2018.

Turkcell Technology enriched its collaborations with 
universities in 2018. These include joint R&D projects 
determined in line with strategic focus areas and 
that generate innovative solutions to enrich customer 
experience; postgraduate and PhD programs 
organized at the Turkcell Technology campus; 
trainings and conferences providing technology 
transfer at various universities, and the Young Talent 
Program aimed at enabling new graduates start 
their career at Turkcell Teknoloji in line with their 
targets.

lifecell VENTURES

lifecell Ventures is a 100% Turkcell subsidiary 
established in the Netherlands. In line with 
Turkcell Group’s strategic priority of enhancing its 
international activities, lifecell Ventures aims to 
spread its digital products and services and OTT 
(over-the-top) services to regional and global 
markets.

117

lifecell Ventures’ mission is to deliver digital 
communications, entertainment, music, TV, money 
transfer, e-commerce applications, and cloud 
solutions. It also leverages technology to provide 
consumers with a new digital experience around the 
world, and to enable telecom operators to compete 
effectively.

lifecell Ventures aims to digitize the 
telecommunications industry. In this context, the first 
international digital solution partnership was realized 
in 2017 through the revenue sharing model with 
Eastern European operator Moldcell with the “BiP” 
and “lifebox” products. In February 2018, following the 
Barcelona Mobile World Congress, lifecell Ventures 
organized workshops with dozens of operators, 
while providing consultancy services on digital 
transformation to operators from the Caribbean to 
Nepal, and from Africa to the countries of Asia Minor.

TURKCELL ENERJİ ÇÖZÜMLERİ VE  
ELEKTRİK SATIŞ TİCARET  
(TURKCELL ENERGY SOLUTIONS)

Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş. 
commenced providing services to customers with 
the “Enerjicell” brand having registered the “Enerjicell” 
brand name and logo in 2018. 

In order to provide the best customer experience in 
the sector, Enerjicell had initiated its sales activities 
aimed at retail customers. With retail customer 
sales covering the whole of Turkey, Enerjicell made 
an impressive entry into the market targeting to 
become one of the major players in the electricity 
sector. In addition, it provided service to the counters 
within Turkcell Group throughout the year, taking 
important steps to meet all needs of the corporate 
customer segment, and developing its competencies 
for on-site operations.

2018 draws attention as the year when the first 
seeds were sown within the framework of the 
vision of digital and smart energy solutions. Acting 
in accordance with the strategies of spreading 
uninterrupted energy, renewable energy production 
and energy efficiency projects, Enerjicell developed 
pilot projects on residential-type energy storage 
systems and roof-type solar power plants. In this 
respect, projects have been launched for roof-
type solar power plants at different locations and 
residential-type energy storage systems of various 
sizes have been  installed. Enerjicell actively monitors 
all projects and strives to deliver them to the end 
user conveniently by generating innovative and 
unique financing models.

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018118

AWARDS

Turkcell has been named the leader of the “Communication” 
category at The One Awards - Integrated Marketing Awards that 
Marketing Türkiye organized in cooperation with Akademetre, 
Turkey’s prominent market and consumer research company.

FEBRUARY

Turkey’s Most Effective 50 CHRO Survey 
Turkey’s Most Effective 50 Chief Human Resources 
Officers (CHRO) were determined in cooperation 
with Fortune Türkiye and DataExpert in an 
attempt to draw attention to the proactive role 
and importance of the CHRO function in the 
current global economy and the variable nature 
of the workplace environment. Turkcell Human 
Resources Executive Vice President Seyfettin 
Sağlam was ranked on the list.

Purchasing and Supply Chain Management 
Summit
With our “Supply Chain Transformation Project,” 
we were granted “The Best Purchasing 4.0 
Project” award at the 7th Purchasing and Supply 
Chain Management Summit organized by 
the Purchasing Professionals and Executives 
Association (TÜSAYDER).

At the Şikayetvar A.C.E. 
(Achievement in Customer 
Excellence) Awards 2018, 
where brands ensuring 
the highest customer 
satisfaction in Turkey 
are determined, Turkcell 
became the leader in the 
Communication category.

JANUARY

MARCH

R&D Center Awards
The best R&D centers have been rewarded at the 
6th Private Sector R&D and Design Centers Summit 
organized by the General Directorate of Science 
and Technology of the Ministry of Science, 
Industry and Technology. The Turkcell Teknoloji 
R&D Center was ranked 1st place in the “Computer 
and Communication Sector” category.

The ONE Awards - Integrated Marketing 
Awards 
As Turkcell, we have been named the leader 
of the “Communication” category at The One 
Awards - Integrated Marketing Awards that 
Marketing Türkiye organized in cooperation 
with Akademetre, Turkey’s prominent market 
and consumer research company. Turkcell was 
deemed worthy of this award for the first time.

5G MENA Summit
5G MENA Summit, which brings together the 
mobile telecommunication industry of our region 
in Dubai, was held on April 9-10, 2018. Within the 
scope of the event, 5G MENA Awards were given. 
Ayşem Ertopuz, Digital Services and Solutions 
Executive Vice President, a nominee for the 
Assistant General Manager of the Year award, 
received it.

A.C.E Awards 
At the Şikayetvar A.C.E. (Achievement in Customer 
Excellence) Awards 2018, where brands ensuring 
the highest customer satisfaction in Turkey are 
determined, Turkcell became the leader in the 
Communication category. Also; Turkcell Mobile 
was ranked in 3rd place in the Mobile Phone 
category, Turkcell TV+ 2nd in the Digital Platform 
category, and Turkcell Superonline 2nd in the 
Internet Service Providers category.

TURKCELL ANNUAL REPORT 2018119

In the Phoenix Awards 
where the Green Crescent 
rewarded people and 
institutions who had 
struggled against 
addictions and adopted
a healthy lifestyle as a 
mission, Turkcell received 
the ‘Social Responsibility 
Award’.

World HRD Congress
Turkcell returned from the World HRD Congress, 
held for the 27th time in India, with 2 awards. Turkcell 
Akademi was named “Training Company of the 
Year” for its innovative and different training solutions, 
while Turkcell Akademi General Manager Banu İşçi 
Sezen received the “World Women Leadership” 
award in the telecom and technology category.

IDC Türkiye Cloud Awards 
We won awards in 2 categories at the IDC Türkiye 
Cloud Awards. Turkcell won the 1st prize in the “SaaS/
Cloud Software Service” category with E-Company, 
while we received the runner up prize in the “Iaas/
PaaS/Cloud Infrastructure/Platform Service” category 
for our Turkcell Virtual Server Business Continuity 
product.

APRIL

Employer Brand Summit
Our company has been deemed worthy of the 
“Most Admired Company” award of its sector at the 
Employer Brand Summit, the prestigious event of the 
field of Human Resources.

Phoenix Awards
Turkcell, the supporter of projects touching people 
and improving life, has received an award from the 
Green Crescent. In the Phoenix Awards where the 
Green Crescent rewarded people and institutions 
who had struggled against addictions and adopted 
a healthy lifestyle as a mission, Turkcell received the 
‘Social Responsibility Award’. The ceremony was held 
at the Istanbul Cemal Reşit Rey Concert Hall with 
the participation of President Recep Tayyip Erdoğan. 
Marketing Executive Vice President İsmail Bütün 
received the award on behalf of Turkcell.

Turkey Social Media Awards
Turkey Social Media Awards has been organized in 
cooperation with Marketing Türkiye and BoomSonar. 
Our company, the leader of the telecommunication 
category, received the Gold award in the Real-Time 
Campaign category with “BiP - What was not up 
and running?”; the Silver award in the Digital Exclusive 
- Search Engine Campaign category with Yaani - 
How to Design a Search Engine Campaign for a 
Product that Never Existed Before?”; and the Bronze 
award in the Social Responsibility Communication 
category with “Life Fixer – Canlara Destek.”

MAY

A.L.F.A. Awards
Those brands ranking among the top 3 at the 
“A.L.F.A. Awards,” which have acknowledged brands 
creating the best customer experience since 2015, 
were identified. Turkcell ranked 1st in the Telephone 
Operator category, while Turkcell Superonline was 
the leader in the Internet Service Providers category.

Gold Compass
Celebrating its 46th anniversary in the 
communications sector, the Turkish Public Relations 
Association (TÜHİD), awarded winners of the Golden 
Compass Turkey Public Relations Awards in its 17th 
occasion this year. Turkcell was deemed worthy of 
multiple awards, with the Amputee Football National 
Team sponsorship, fizy 20th High School Music 
Contest sponsorship, and Turkcell Life Fixer/Canlara 
Destek.

12th World Procurement Awards 2018 
We also received a worldwide award for projects 
implemented in the field of procurement. In this 
organization held in London, we were winners in the 
“external collaboration” category.

Our company has been 
deemed worthy of the 
“Most Admired Company” 
award of its sector at the 
Employer Brand Summit, 
the prestigious event 
of the field of Human 
Resources.

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018120

AWARDS

We have been awarded the grand prize in the IoT Solution Provider 
category at the “IoT World Europe Awards” for a project we 
initiated with Ericsson, within the scope of London Tech Week, one 
of the world’s most prestigious platforms, organized in London.

The Turkcell Supply Chain 
team returned with the 
Golden Award from 
the International CSR 
Excellence Awards held at 
the Royal Academy of
Dramatic Art (RADA).

ETİKA 2017 Turkey Ethics Awards 
The Turkcell Group Internal Audit team won the 
ETİKA 2017 Turkey Ethics Award, within the scope 
of Turkey Ethics Award, which evaluates institutions’ 
business ethics and related commitments. Our 
Company was the first company in the sector to 
be deemed worthy of the award for the Ethical 
Values Center Association (EDMER).

Mobile Europe Awards 
Gediz Sezgin received the CTO of the Year award 
organized by UK-based Mobile Europe, one of the 
key reference points of the telecom industry.

ContactCenterWorld.com EMEA Region
Turkcell Global Bilgi won the world championship 
in the “Best in Customer Service” category at the 
“2018 Top Ranking Performers” Awards, which 
identifies the best of the sector. The event is 
organized by the “ContactCenterWorld.com,” one 
of the most prestigious organizations of the call 
center sector worldwide.

2018 Great Place to Work 
Turkcell Global Bilgi, Turkey’s customer experience 
solutions center, has been identified as one of the 
best employers of 2018 in the +2,000 (institutions 
where 2,000 and more people work) category of 
the Turkey’s Best Employers Survey, for its successful 
and effective Human Resources practices.

Turkey’s Most Admired Call Centers
Call Center Life magazine, published to develop 
and promote the call center sector and strengthen 
sectoral communication, rewarded the “Most 
Admired Call Centers” in 2018. Turkcell received the 
“Most Admired Telecommunications Call Center for 
Customer Satisfaction” Award, while Turkcell Global 
Bilgi won the “Most Admired Outsource Call Center” 
Award. 

The Most Effective 50 CFO Award
The third outing of the most effective 50 CFO 
research, launched by cooperation between 
Fortune Turkey and DataExpert in 2015, was held 
in 2018. Bülent Aksu from TURKCELL took place in 
the list.

JUNE

Loyalty Magazine Awards
The winners of the Loyalty Magazine Awards 
2018, rewarding the most successful customer 
loyalty programs in Europe, Middle East and Africa 
region was manifested. At the award ceremony 
organized in London, Turkcell was deemed worthy 
of the Best Use of Analytics & Data award with 
the Next Best Action Platform.

IoT World Europe Awards
We also received an important award in the 
field of Internet of Things with the “Smart Parking 
Lot Project.” We have been awarded the grand 
prize in the IoT Solution Provider category at 
the “IoT World Europe Awards” for a project we 
initiated with Ericsson, within the scope of London 
Tech Week, one of the world’s most prestigious 
platforms, organized in London.

Telecoms World Middle East
We were recognized in the Innovation Awards 
category for the “Water Irrigation” smart irrigation 
systems study.

CIPS MENA Awards
In this organization held in Dubai, we were 
awarded in the social responsibility field for 
our project, positioned under the title of “Green 
Procurement.”

JULY

International Corporate Social Responsibility 
Excellence Awards
The Turkcell Supply Chain team returned with 
the Golden Award from the International CSR 
Excellence Awards held at the Royal Academy of 
Dramatic Art (RADA).

WARC Awards
The “news is on-air” project initiated together 
with TV channels for BiP to become a habit in 
daily life, received the Bronze award at WARC, in 
the Effective Native - Special Award, as well as 
Partnerships and Sponsorship categories.

TURKCELL ANNUAL REPORT 2018121

Turkcell marked the 
Crystal Apple Awards, 
Turkey’s most important 
marketing and creativity 
event. At the awards 
ceremony, Turkcell won 
a total of 15 awards, of 
which 3 were Crystal 
awards.

Turkey’s digital operator 
Turkcell has been named
the “Coolest Brand of the 
Year” in the Cool Brands
Survey conducted 
in cooperation with 
Marketing Türkiye and 
Roamler Türkiye.

IT 500 Awards 
As in previous years, Turkcell Global Bilgi ranked 
1st in the ‘Call Center Service’ category this year in 
Turkey’s single comprehensive survey in the field 
of informatics. The survey was prepared based 
on the 2017 net sales revenues of companies 
operating in the information sector in Turkey.

The International CSR Excellence Awards 
In this organization held in London, we were 
awarded in the Equal Opportunities category 
for our projects aimed at providing youth 
employment, as well as for women, and refugees 
living in rural areas of Turkey.

SEPTEMBER 

Stevie Awards 
In the 2018 Stevie Awards held in London, Turkcell 
received 12 awards consisting of one gold, 
one silver and 10 bronze awards across seven 
categories.

The Owl Awards
We were acknowledged for our survey 
that evaluated market dynamics, customer 
expectations, loyalty and brand perceptions 
altogether, transforming insights into action as 
Marketing, Sales and CEM teams.

OCTOBER

Crystal Apple Awards
Turkcell marked the Crystal Apple Awards, Turkey’s 
most important marketing and creativity event. 
At the awards ceremony, Turkcell won a total 
of 15 awards, of which 3 were Crystal awards. 
In addition, Crystal Apple named Turkcell as the 
Advertiser Encouraging Creativity over the past 
30 years.

Digital Impact Awards
Turkcell’s Tango project returned from the Digital 
Impact Awards, one of the most prestigious 
awards in the digital world, and organized in 
London, with 3 awards; namely, Best Use of Digital 
to Aid a CSR Campaign, Best Corporate Viral 
Campaign, and Best Use of Digital and Media.

Marketing Türkiye Cool Brand Awards
Turkey’s digital operator Turkcell has been named 
the “Coolest Brand of the Year” in the Cool Brands 
Survey conducted in cooperation with Marketing 
Türkiye and Roamler Türkiye. 

In the survey, conducted for the 4th time this year, 
we, as Turkcell, were awarded on the 4th occasion 
in the GSM operator category. 

Supply Management Awards 2018 Europe
Our Turkcell Supply Chain Management team 
has received awards in 2 branches at the 
Supply Management Awards 2018 Europe event 
organized by CIPS and ProcureCon, in Prague.

2018 OPERATIONSTURKCELL ANNUAL REPORT 2018122

AWARDS

Our customer satisfaction program won 1st place in the world in 
the “Best Customer Experience” category at the Contact Center 
World “2018 Top Ranking Performers awards” organized in 
Prague on November 9.

Turkcell Academy was 
awarded 1st prize in 
the Best Leadership 
Development Program 
for Top Management 
category.

Our Turkcell Marketing 
Masters Program received 
a Golden Award in 
the Best Unique and 
Innovative Learning and 
Development Program, 
and The Best Blended 
Training Program.

IPRA Golden World Awards 
Turkcell won 2 awards at the IPRA Golden World 
Awards, the world’s most prestigious public 
relations award. At the award ceremony held in 
Barcelona, Turkcell, the supporter of Turkey in sports 
for the disabled, received the gold award in the 
‘Sponsorship Category’ for its Amputee National 
Team main sponsorship. Meanwhile, fizy won first 
place in the ‘Arts and Entertainment’ category, thanks 
to the cooperation realized with Tarkan for his album 
“10.”

Asian Leadership Awards
Turkcell Academy was awarded 1st prize in the 
Best Leadership Development Program for Top 
Management category.

NOVEMBER

MMA, The Smarties
We returned with 8 awards, including 3 international 
and 5 in Turkey from the MMA, The Smarties Awards. 
During the award ceremony held at Swissotel The 
Bosphorus in Istanbul, we received: a gold award 
internationally and a silver award in Turkey with 
“Hello Hope” in the Social Impact/Not For Profit 
category; a gold award in Turkey with “Seeing 
Through Disabilities” in the Innovation category; 
a bronze award in Turkey with “Seeing Through 
Disabilities” in the Brand Awareness category; a silver 
award internationally and a gold award in Turkey 
with “Seeing Through Disabilities” in the Mobile Video 
category; a gold award internationally and a gold 
award in Turkey with “BiP - WhatsApp Down” in the 
Mobile Search category.

IDC Retail Awards
Our Artificial Intelligence and Digital Analytics team 
received a runner-up prize in the Best Innovation 
with Disruptive Technologies branch for our Smart 
Refrigerator Monitoring System technology at the 
Technology Awards organized within the framework 
of the IDC Turkey Retail Executive Summit 2018.

Awards organized for the 2nd time this year by 
LinkedIn, the world’s largest professional network.

Turkey’s Most Effective 50 CMOs
The most effective 50 CMOs of Turkey have been 
announced. According to the results of the survey 
conducted in cooperation with Fortune Türkiye and 
DataExpert, İsmail Bütün was one of the names to 
make the list.

Contact Center World
Our customer satisfaction program won 1st place 
in the world in the “Best Customer Experience” 
category at the Contact Center World “2018 Top 
Ranking Performers awards” organized in Prague on 
November 9.

Felis Awards
Our company has made its mark in the MediaCat 
Felis Awards ceremony held for the 13th time this 
year. On the night of the ceremony, where the most 
effective and creative communication works of the 
sector were rewarded, Turkcell received 23 awards, 
8 of which were Felis and 15 Achievement Awards.

Brandon Hall Group Excellence in Talent 
Acquisition Awards
Our Turkcell Marketing Masters Program received 
a Golden Award in the Best Unique and Innovative 
Learning and Development Program, and The 
Best Blended Training Program. Turkcell received 
a gold award in the Brandon Hall Best New Hire 
Onboarding program category within the scope 
of young talent recruitment program, and a Silver 
award in the Brandon Hall Best Certification Program 
within the scope of field certification program.

DECEMBER 

IDC IoT, Analytics, Big Data & AI Conference
Our Artificial Intelligence and Digital Analytics team 
collected awards in the five categories at the IDC 
IoT, Analytics, Big Data & AI Conference.

LinkedIn Talent Awards 
Our company was named “Best Recruiter Brand 
of the Year” within the scope of the Turkey Talent 

Bosphorus IT Awards
Turkcell was the winner in the best 
telecommunication company category, at the 18th 
Bosphorus IT Awards.

TURKCELL ANNUAL REPORT 2018123

INVESTOR RELATIONS 

Having a market capitalization of TRY 26.8 billion (USD 5.1 
billion) as of December 31, 2018; Turkcell, the only Turkish 
company listed on both BIST and the NYSE, has become the 
6th largest among the companies trading on BIST.

CAPITAL MARKET INSTRUMENTS PERFORMANCE

SHARE AND BOND BUYBACK 

The size of Turkcell’s 
American Depositary 
Receipts as of year-end 
2018 is 75.1 million.

Turkcell shares commenced trading simultaneously 
at the Borsa Istanbul (BIST) and the New York Stock 
Exchange (NYSE) on July 11, 2000. Shares are traded 
under the TCELL ticker symbol at the BIST, and as 
American Depository Shares (ADS) under the TKC 
ticker symbol at the NYSE. 2 ADSs represent 5 shares.

Turkcell’s issued capital has a nominal value 
of TRY 2.2 billion, including 2.2 billion shares, 
each with a nominal value of TRY 1. Having a market 
capitalization of TRY 26.8 billion (USD 5.1 billion) as of 
December 31, 2018; Turkcell, the only Turkish company 
listed on both BIST and the NYSE, has become the 6th 
largest among the companies trading on BIST.

The size of Turkcell’s American Depositary Receipts 
as of year-end 2018 is 75.1 million. 

On 16 October 2015, Turkcell issued a bond with a 
nominal value of USD 500 million and maturity of 10 
years. On April 11, 2018, Turkcell undersigned the first 
and only Eurobond issuance of 10-year maturity by 
a Turkish company in international markets since its 
previous issuance in 2015. Having a nominal value 
of USD 500 million and a coupon rate of 5.80%, the 
bond is listed on the Irish Stock Exchange (Euronext 
Dublin).

Turkcell’s institutional investors constitute 81.00% 
of the shareholder base. Additionally, 36.9% of its 
institutional investors are located in North America, 
34.2% in the UK and Ireland, and 18.5% in Europe 
(including Turkey). While 53.0% of institutional 
investors are “Value” focused investors, more than 
90% of institutional investors have been investing in 
Turkcell for more than a one year period. (Source: 
IPREO, January 2019). The share of foreign investors 
in Turkcell’s free float increased to 89.05% in 2018. 
The share of foreign investors in the free float of 
Borsa Istanbul reached 65.12.% in the same period.

Our Company’s Board of Directors decided to 
execute share buyback transactions, and to buy 
our Company’s bonds in an attempt to protect our 
investors against any instability perception that may 
arise in the short and medium-term; subsequent 
to the events on, and after July 15, 2016, and/or 
due to the potentially negative reflection of global 
macroeconomic volatility on Turkey. Accordingly, 
within the framework of the Capital Markets Board’s 
announcements dated July 21, 2016 and July 25, 2016, 
the Board of Directors has resolved to authorize the 
Company management to execute share buyback 
transactions, and to buy our Company’s bonds, with 
a maximum fund amount of TRY 150 million. The 
maximum fund amount has been raised to TRY 300 
million in 2017. Within this context, 16,077,517 shares 
have been bought back in exchange for TRY 170.2 
million, and bonds with a nominal value of USD 15.5 
million have been repurchased, since 2016. 

OUR BUSINESS PRINCIPLES

We Adopt Corporate Governance Principles.
The basic work policies adopted by the Turkcell 
Investor Relations Department include accessibility, 
rapid feedback to stakeholders and analysts, 
and the informing of stakeholders transparently, 
consistently and in a timely fashion. Accordingly, we 
disclose information to all investors through modern 
and accessible technology instruments such as our 
user-friendly, up-to-date website, Investor Relations 
Application (IR App) and Twitter on a timely basis.

Investor Relations team members have deep and 
active understanding of the Company and sector 
dynamics, and are proactive in communicating 
the Company’s story in a comprehensive manner. 
While Turkcell Investor Relations team has an 
accurate understanding of the Company in 
analyzing the business model and opportunities, it 
makes a difference with the grasp of its Company’s 
strategies and by effectively communicating these 
strategies to investors. The team aims to establish 
long lasting relationships with investors. The inquiries 
and requests of investors and analysts are met in 

CORPORATE GOVERNANCETURKCELL ANNUAL REPORT 2018124

INVESTOR RELATIONS 

We shared our strategy and medium-term guidance with 
approximately 340 participants during Capital Markets Day that 
we held on March 14, in Istanbul.

 » Data usage and growth
 » Regulation and tax regulations
 » Share performance and dividend
 » Shareholder structure

In return for these efforts, in 2018, Turkcell won 
the 2nd place in the “Best Analyst Day” award in 
the EMEA Region technology category, while the 
Treasury and Capital Markets Management Director 
Zeynel Korhan Bilek won 3rd place in the “Best IR 
Professional” awards in the EMEA region based on 
the “Institutional Investor” evaluation, participated in 
by over 500 international portfolio managers and 
analysts.

We Strive to Provide Maximum Benefit and 
Create Value for Turkcell and Our Stakeholders.
As Turkcell Investor Relations, our primary goal is to 
increase the market capitalization of our Company 
and the trading volume of Turkcell’s shares. Within 
this context, our target is to develop and deepen 
Turkcell’s investor profile, and increase the weight 
and number of long-term investors in the institutional 
investor base.

On the other hand, investor relations standards are 
shaped by the constantly developing and intensifying 
needs of the capital markets. At this point, the 
implementation of any practice that carries a 
publicly-traded company one step ahead of others, 
creates a difference that add strategic value to the 
companies and contributes to the Turkish Capital 
Markets.

On March 14, 2018, Turkcell Investor Relations 
organized Capital Markets Day, to explain first-hand 
to its stakeholders the strategic transformation it has 
been undergoing, along with digital services as well 
as its 3 year guidance. The Capital Markets Day, an 
all-day event held in Istanbul, has been participated 
in by 340 people, reaching a broad audience 
through live broadcast. At this meeting, where the 
digital transformation story and medium-term 
expectations were appreciated by stakeholders, 
investors, analysts and credit rating experts had the 
opportunity to directly ask questions to Turkcell’s 
management team, and to better understand its 
perspectives.

As Turkcell Investor 
Relations, our primary 
goal is to increase the 
market capitalization 
of our Company and 
the trading volume of 
Turkcell’s shares. Within 
this context, our target 
is to develop and deepen 
Turkcell’s investor profile, 
and increase the weight 
and number of long-
term investors in the 
institutional investor base.

the fastest and most accurate manner within the 
framework of related legislation and regulations. As 
the Investor Relations Department, throughout 2018:

 » We held 568 meetings with institutional 

investment funds,

 » We participated in 15 investor conferences and 3 

roadshows,

 » We shared our financial results in 4 
teleconferences during the year,

 » We shared our strategy and medium-term 

guidance with approximately 340 participants 
during Capital Markets Day that we held on 
March 14, in Istanbul,

 » Over a thousand phone and email requests were 
received throughout the year, and we responded 
to all of them.

The main topics of questions most frequently asked 
to the Investor Relations in 2018:

 » Digital services and our transformation strategy
 » Sources and sustainability of growth 
 » Medium-term financial expectations
 » The impact of macroeconomic changes on 

business model and financials
 » Hedging instruments and their use 

TURKCELL ANNUAL REPORT 2018125

WE MAKE A DIFFERENCE WITH OUR COMMUNICATION.

WE CARE ABOUT SUSTAINABILITY.

Turkcell believes in simultaneous and open communication with its 
stakeholders. As Turkcell Investor Relations, we use technological 
instruments such as the Investor Relations application (IR App), as well 
as communication channels such as the website and Public Disclosure 
Platform to provide extensive, accurate and timely information to our 
investors. With the Turkcell IR App, our investors and analysts can follow 
Turkcell’s most recent announcements, financial and operational result 
announcements, press releases, presentations and annual reports in both 
Turkish and English on iOS and Android based smartphones and tablets, 
at any time and from any location. In addition, this year, the interface of 
the Turkcell Investor Relations web page was renewed, today presenting 
visitors a more-user friendly structure.

In 2014, Borsa Istanbul launched the Sustainability Index. This index 
indicates each company’s approach to significant sustainability-related 
issues important for both Turkey and the wider world, including global 
warming, the depletion of natural resources, including water, as well 
as healthcare, safety, and employment. In total, the index enables 
companies’ activities and decisions to be assessed from an independent 
perspective, and subsequently confirmed by Borsa Istanbul. Entitled to 
be ranked among the Sustainability Index for the period comprising 
November  2018-October 2019, Turkcell, one of the 44 companies of the 
index, has been included in it since its inception. 

SHARE INFORMATION*

TCELL (TRY)
Lowest

Highest

Closing

TKC (USD)
Lowest

Highest 

Closing

*Share prices are adjusted for dividend payments. 

(Source: Bloomberg)

STOCK EXCHANGE SYMBOLS 

Country
Share 

ADR

Bond 

Bond 

2013
7.41

9.26

8.24

2013
9.41

12.91

9.70

2014
7.83

10.71

10.38

2014
8.76

12.06

10.99

2015
8.28

11.33

8.28

2015
7.01

12.01

7.10

2016
7.43

10.41

8.15

2016
5.33

9.04

5.77

2017
7.84

14.37

14.37

2017
5.58

9.47

9.47

2018
9.76

15.65

12.17

2018
3.80

10.33

5.62

Stock Exchange
Borsa Istanbul

NYSE

Irish Stock Exchange

Irish Stock Exchange

Ticker Symbol
TCELL

TKC

ISIN: XS1298711729

ISIN: XS1803215869

SHARE PERFORMANCE (RELATIVE) (2018)

ANALYST RECOMMENDATIONS

TCELL

BIST 100

1.2

1,1

1

0,9

0,8

0,7

0,6

HOLD 18%

BUY 82%

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Turkcell is actively covered by 28 brokerage houses, approximately half 
of which are foreign organizations. As of the end of 2018, there were 
23 analysts with a “buy,” 5 analysts with a “hold,” and no analysts with a 
“sell” recommendation. 

CORPORATE GOVERNANCETURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
126

CREDIT RATINGS

Turkcell receives ratings from two leading international credit 
rating agencies. 

Fitch

S&P

Long Term Credit Rating

BB+

BB-

Outlook

Negative

Stable

Date

July 2018

August 2018

INVESTOR RELATIONS CONTACT INFORMATION

Tel 
Fax 
E-mail 
Web 
Address 

: +90 (212) 313 18 88
: +90 (216) 504 40 58
: investor.relations@turkcell.com.tr
: https://www.turkcell.com.tr/en/aboutus/investor-relations
: Turkcell Küçükyalı Plaza, Aydınevler Mahallesi İnönü Caddesi No: 20 B Blok Küçükyalı Ofispark, 34854 - Maltepe/Istanbul

TURKCELL ANNUAL REPORT 2018127

IMPORTANT DEVELOPMENTS AFTER THE 
REPORTING PERIOD

02.01.2019

Announcement Regarding the Share Buy-back Transactions

Within the scope of our Board of Directors’ share buy-back decisions on July 27, 2016 and January 30, 2017, our company purchased a total 
of 827,750 shares at a price range of TRY 11.89 – 12.24 with an average of TRY 12.08 totaling TRY 9,997,061 on December 31, 2018. With this 
transaction, the ratio of our shares in company’s capital has reached 0.731%.

The details of the transaction are listed below.

Total 
Nominal 
Value of 
Shares 
Purchased 
(TRY)
827,750

Total 
Nominal 
Value of 
Shares Sold 
(TRY)
-

Net Nominal 
Value of 
Transactions 
(TRY)
827,750

Nominal 
Value of 
Shares 
Owned 
At The 
Beginning 
of Day 
(TRY)
15,249,767

Nominal 
Value of 
Shares 
Owned At 
The End of 
Day (TRY)
16,077,517

Ratio of 
Shares 
Owned 
At The 
Beginning 
of Day (%)
0.693%

Ratio of 
Voting 
Rights 
Owned 
At The 
Beginning 
of Day (%)
0.693%

Ratio of 
Shares 
Owned At 
The End of 
Day (%)
0.731%

Ratio of 
Voting 
Rights 
Owned At 
The End of 
Day (%)
0.731%

Transaction 
Date
31.12.2018

11.01.2019

Announcement Regarding the Completion of the Sale of Azerinteltek QSC Shares

Board Decision Date for Sale

Were Majority of Independent Board Members’ Approved the Board Decision for Sale?

Title of Non-current Financial Asset Sold

Field of Activity of Non-current Financial Asset sold

Capital of Non-current Financial Asset sold

Date on which the Transaction was/will be Completed

Sales Conditions

Nominal Value of Shares Sold

Sales Price Per Share

Total Sales Value

Ratio of Shares Sold to Capital of Non-current Financial Asset (%)

Total Ratio of Shares Owned in Capital of Non-current Financial Asset After Sales Transaction (%)

Total Voting Right Ratio Owned in Non-current Financial Asset After Sales Transaction (%) 

Ratio of Non-current Financial Asset Sold to Total Assets in Latest Disclosed Financial Statements of Company 
(%)

Ratio of Transaction Value to Sales in Latest Annual Financial Statements of Company (%)

Effects on Company Operations

Profit/Loss Arised After Transaction

How will Sales Profit be Used if Exists?

Board Decision Date for Use of Sales Profit if Exists

Title/Name-Surname of Counter Party Bought

Is Counter Party a Related Party According to CMB Regulations?

Relation with Counter Party if any 

Agreement Signing Date if Exists

Value Determination Method of Non-current Financial Asset

Did Valuation Report be Prepared?

Reason for not Preparing Valuation Report if it was not Prepared

Value Determined in Valuation Report if Exists

Reasons if Transaction wasn’t/will not be performed in Accordance with Valuation Report

26.10.2018

Yes

Azerinteltek QSC (“Azerinteltek”)

Information and entertainment services

AZN 100,000

11.01.2019 

Cash

AZN 51,000 (Inteltek’s stake)

EUR 383

EUR 19,530,177

28.07%

0%

0%

0.02%

0.67%

The parent-subsidiary relationship is ceased.

The profit generated with this transaction is 
calculated to be TRY 58.2 million based on 
financials as of November 30, 2018. 

-

-

Baltech Investment LLC

Yes

One of the other two shareholders of the 
financial asset sold

15.11.2018

Peer Company and trading multiples

Not required by the legislation.

No.

-

-

CORPORATE GOVERNANCETURKCELL ANNUAL REPORT 2018128

IMPORTANT DEVELOPMENTS AFTER THE 
REPORTING PERIOD

With reference to our announcement dated November 16, 2018, the transfer of shares held by our Company’s 55% owned subsidiary İnteltek 
İnternet Teknoloji Yatırım ve Danışmanlık Ticaret A.Ş. (“İnteltek”) in its 51% owned subsidiary Azerinteltek QSC (“Azerinteltek”) with a nominal value 
of AZN 51,000 to Baltech Investment LLC, shareholder of Azerinteltek with a 24.5% shareholding, has been completed on January 11, 2019 for a 
total consideration of EUR 19,530,177.

01.02.2019

Announcement Regarding the Decision on Inteltek’s Participation in Spor Toto Tender

Our Company’s Board of Directors has decided that our 55% owned subsidiary İnteltek İnternet Teknoloji Yatırım ve Danışmanlık Ticaret A.Ş. is to 
participate in the “Tender on Fixed Odds and Pari-Mutuel Betting Games Based on Sports Competitions Shall Be Made by Spor Toto Directorate 
through Private Legal Entities,” which is announced to be held on February 11, 2019, in accordance with the tender provisions and specifications 
which were published in the Official Gazette dated January 11, 2019 and No.30652.

01.02.2019

Announcement Regarding the Capital Increase in Lifecell Ventures

The capital of our 100% owned subsidiary Lifecell Ventures Coöperatief U.A. (“Lifecell Ventures”) is increased by TRY 5,000,000 (EUR 825,982). Our 
Company’s pre-emption rights with respect to the capital increase is fully paid.

05.02.2019

Announcement Regarding the Decision to Issue Lease Certificates

Our Company’s Board of Directors approved issuance of management agreement based lease certificates in accordance with capital markets 
legislation by our wholly owned subsidiary Superonline İletişim Hizmetleri A.Ş. through an Asset Leasing Company in the domestic market, in 
Turkish Lira terms, at an amount of up to TRY 500 million, with maturities up to 12 months, at one or more tranches, without public offering, as 
private placement and/or to be sold to institutional investors.

13.02.2019

Announcement Regarding Spor Toto Tender in which Our Subsidiary Inteltek Participated

“Tender on Fixed Odds and Pari-Mutuel Betting Games Based on Sports Competitions Shall Be Made by Spor Toto Directorate through Private 
Legal Entities” was held and on February 13, 2019 the final offers were submitted. The official result of the tender will be announced following the 
decision of the Tender Committee. The revenues subject to the tender comprises 1% of our consolidated revenues.

25.02.2019

Announcement Regarding the Signing of a Long Term Loan Agreement

Our Company signed a loan agreement of US$ 150 million with J.P.Morgan Chase Bank N.A., London Branch and AB Svensk Exportkredit within 
the framework of the insurance of the Swedish Export Credit Agency (EKN) in order to fund the procurement of products and services from 
Ericsson AB and Ericsson Telekomünikasyon A.Ş. The availability period of the loan is until April 2021, to be utilized in three equal tranches each 
with a maturity of 10 years. The total annual cost of the loan is LIBOR+2.10% for the first tranche and fixed 5.35% for the second and third tranches.

TURKCELL ANNUAL REPORT 2018129

27.02.2019

Announcement Regarding Cooperation Agreements Signed by Lifecell Ventures

Our subsidiary Lifecell Ventures Coöperatief U.A. (“Lifecell Digital”) signed cooperation agreements with ALBtelecom SH.a. (ALBtelecom) of Albania, CG Corp 
Global of Nepal and Digicel Group of Carribean following the existing agreement with Moldcell of Moldova within the scope of our international digital 
business which will allow the use of our digital services in total 39 countries. ALB Telecom, which operates in Albania with a population of 3 million, will 
initially start to offer Lifecell’s BiP and lifebox services to its customers, and then will expand its offerings to include fizy, Yaani, Dergilik (OKUDO) and copilot 
in accordance with the cooperation. Digicel Group operating in 31 countries in the Caribbean, Central America and the Pacific will integrate these services 
into the infrastructure of operators in its countries of operations. With the agreement signed, CG Corp Global, part of the CG Group, will launch Nepal’s first 
digital operator that will offer our digital services BiP, lifebox, fizy, TV+, Dergilik (OKUDO) and Fast Login to around 30 million potential customers.

Lifecell Digital’s business model is based on charging consultancy, brand and license fees in return for provision of digital service infrastructure and know-
how to respective operators. Our digital services with proven success through our Group’s subsidiaries, will initiate a robust start to our global expansion 
with the announced agreements.

28.02.2019

Announcement Regarding the Result of the Spor Toto Tender in which Our Subsidiary İnteltek Participated

With reference to our announcement dated February 13, our 55% owned subsidiary İnteltek İnternet Teknoloji Yatırım ve Danışmanlık Ticaret A.Ş. (“İnteltek”) 
has been notified that the “Tender on Fixed Odds and Pari-Mutuel Betting Games Based on Sports Competitions Shall Be Made by Spor Toto Directorate 
through Private Legal Entities” is concluded. The tender was awarded to the other bidder. The respective revenues comprise 1% of our consolidated 
revenues while 2019 contribution is expected to be lower considering our ongoing contract and the transfer process.

İnteltek, which has been operating İddaa game since 2004, has been one of the greatest supporters of the sports since its establishment, and contributed 
significantly to the development of the sports industry. With respect to the tender process, our rights stemming from the law will be exercised by Inteltek 
within the respective time frame.

28.02.2019

Announcement Regarding Capital Markets Board Application for Debt Instrument Issuance

Our Company evaluates the use of various long term debt instruments in international markets in accordance with our active and efficient balance sheet 
management principles. An application has been made to Capital Markets Board on February 28, 2019 for the approval of issuance certificate to issue debt 
instruments with an amount up to US$ 750 million or its equivalent in another currency, through private placement and/or sales to qualified investors abroad, 
without public offering pursuant to the authority granted to our Board of Directors by article 25 of our Articles of Association and in accordance with 
Capital Markets Board’s legislation. The debt instrument will be issued in one or more tranches and in various types and terms with fixed and/or floating 
interest rates to be determined as per the market conditions at the date of the issuance.

The announcement with respect to issuance decision has been previously deferred.

07.03.2019

Announcement Regarding the Board Member Appointment

Our Company’s Board of Directors has decided on March 7, 2019 to appoint Mr. Bülent Aksu as a Board Member to the seat, which had become vacant 
following Mr. Bekir Pakdemirli’s resignation, pursuant to Article 363 of the Turkish Commercial Code.

08.03.2019

Announcement Regarding Capital Markets Board’s Approval of Debt Instrument Issuance

Our application with respect to issuing debt instruments with an amount up to US$750,000,000 or its equivalent in another currency, to be sold in 
international markets, through private placement and/or sales to qualified investors abroad, without public offering has been approved by the Capital 
Markets Board on March 7, 2019. The debt instrument will be issued in one or more tranches and in various types and terms with fixed and/or floating 
interest rates to be determined as per the market conditions at the date of the issuance.

This announcement appears for information purposes only and does not constitute an offer with respect to the securities described herein, in the United 
States of America or elsewhere. Such securities may not be offered or sold in the United States absent registration or an exemption from registration. Any 
public offering of securities in the United States will only be made by means of a duly registered prospectus.

CORPORATE GOVERNANCETURKCELL ANNUAL REPORT 2018130

2018 FINANCIAL YEAR CORPORATE 
GOVERNANCE PRINCIPLES COMPLIANCE REPORT

STATEMENT OF COMPLIANCE WITH CORPORATE GOVERNANCE PRINCIPLES

Turkcell İletişim Hizmetleri A.Ş. (“Turkcell” or the “Company”) is aware of its responsibilities towards its stakeholders, with the belief that high 
standards of corporate governance are key to maintain successful business practices and to provide long-term economic value to the 
company’s shareholders. Within this framework, having adopted the principles of “equality,” “transparency,” “accountability” and “responsibility” 
that constitute the basis of corporate governance in its activities, the Company exercises due diligence with regard to compliance with the 
Capital Markets Law (“CML”) and the secondary regulations and resolutions of the Capital Markets Board (“CMB”). 

Corporate governance mechanisms established with the creation of the Investor Relations Department at the time of the IPO, and gained 
momentum in 2003, are being implemented thanks to the corporate governance efforts launched in line with the corporate governance 
principles.

Turkcell İletişim Hizmetleri A.Ş. places a great importance on the full compliance with Corporate Governance Principles.

In the activity period that ended as of 31 December 2018, our company has adopted and fully implemented the mandatory corporate 
governance principles set forth in the annex of the Corporate Governance Communiqué and the relevant legislation. Moreover, as a positive 
development, partial compliance has been achieved with respect to the principle no. 4.3.7 as a result of the fact that the 3 members sitting in 
the board of directors beside the independent members were elected by the General Assembly in the General Assembly Meeting for the 2017 
accounting period. Full compliance is aimed at the following General Assembly Meetings.

Although full compliance with non-mandatory corporate governance principles provided for in the relevant legislation is aimed, it has yet to 
be achieved due to the challenges in the implementation of certain principles, the conflicts arising between some principles and the current 
structure of the Company and the market. 

Currently, the principles yet to be fully complied with so far have not led to any conflicts of interest between the stakeholders. 

In the activity period that ended as of 31 December 2018, necessary explanations are provided in the annual report, relevant sections of 
the Corporate Governance Compliance Report (“CGCR”) and the Corporate Governance Information Form (CGIF) and this report as to the 
corporate governance principles in the annexes of the Communiqué on Corporate Governance with which the compliance is achieved as well 
as the ones that are not yet complied with. 

Taking into account the amendments of the regulations and the practices, future efforts will continue to improve our corporate governance 
practices including the limited number of unimplemented principles and, to ensure, within the framework of these principles, the better 
operation of the mechanisms with respect to the corporate governance practices of the our company. 

Should the CGCR or CGFS be amended within the activity period, a material event disclosure will be made, and this amendment will be 
included in the interim activity reports. 

TURKCELL ANNUAL REPORT 2018131

CORPORATE GOVERNANCE COMPLIANCE REPORT

COMPANY COMPLIANCE STATUS

Yes

Partial

No

Exempted

Not 
Applicable

Explanation

1.1. FACILITATING THE EXERCISE OF SHAREHOLDER 
RIGHTS

1.1.2 - Up-to-date information and disclosures which may 
affect the exercise of shareholder rights are available to 
investors at the corporate website.

1.2. RIGHT TO OBTAIN AND REVIEW INFORMATION

1.2.1 - Management did not enter into any transaction that 
would complicate the conduct of special audit.

1.3. GENERAL ASSEMBLY

1.3.2 - The company ensures the clarity of the General 
Assembly agenda, and that an item on the agenda does 
not cover multiple topics.

1.3.7 - Insiders with privileged information have informed 
the board of directors about transactions conducted on 
their behalf within the scope of the company’s activities 
in order for these transactions to be presented at the 
General Shareholders’ Meeting.

1.3.8 - Members of the board of directors who are 
concerned with specific agenda items, auditors, and 
other related persons, as well as the officers who 
are responsible for the preparation of the financial 
statements were present at the General Shareholders’ 
Meeting.

1.3.10 - The agenda of the General Shareholders’ Meeting 
included a separate item detailing the amounts and 
beneficiaries of all donations and contributions.

1.3.11 - The General Shareholders’ Meeting was held open 
to the public, including the stakeholders, without having 
the right to speak.

1.4. VOTING RIGHTS

1.4.1 - There is no restriction preventing shareholders from 
exercising their shareholder rights.

1.4.2 - The company does not have shares that carry 
privileged voting rights.

1.4.3 - The company withholds from exercising its voting 
rights at the General Shareholders’ Meeting of any 
company with which it has cross-ownership, in case such 
cross-ownership provides management control.

1.5. MINORITY RIGHTS

1.5.1 - The company pays maximum diligence to the 
exercise of minority rights.

1.5.2 - The Articles of Association extend the use 
of minority rights to those who own less than one 
twenthieth of the outstanding shares, and expand the 
scope of the minority rights.

X

X

X

X

X

X

X

X

X

X

No information regarding this kind of 
activities were received from such person 
following the routine information requests 
made before the general assembly 
meetings.

Media is not invited to the general 
assembly meeting convened in 2018 but 
results of the meeting have been shared 
with the media afterwards.

Thresholds determined by the respective 
legislation are in effect.

X

X

CORPORATE GOVERNANCETURKCELL ANNUAL REPORT 2018132

2018 FINANCIAL YEAR CORPORATE 
GOVERNANCE PRINCIPLES COMPLIANCE REPORT

CORPORATE GOVERNANCE COMPLIANCE REPORT

COMPANY COMPLIANCE STATUS

Yes

Partial

No

Exempted

Not 
Applicable

Explanation

1.6. DIVIDEND RIGHT

1.6.1 - The dividend policy approved by the General 
Shareholders’ Meeting is posted on the company 
website.

1.6.2 - The dividend distribution policy comprises the 
minimum information to ensure that the shareholders 
can have an opinion on the procedure and principles of 
dividend distributions in the future.

1.6.3 - The reasons for retaining earnings, and their 
allocations, are stated in the relevant agenda item.

1.6.4 - The board reviewed whether the dividend policy 
balances the benefits of the shareholders and those of 
the company.

1.7. TRANSFER OF SHARES

1.7.1 - There are no restrictions preventing shares from 
being transferred.

2.1. CORPORATE WEBSITE

2.1.1 - The company website includes all elements listed in 
Corporate Governance Principle 2.1.1.

2.1.2 - The shareholding structure (names, privileges, 
number and ratio of shares, and beneficial owners of 
more than 5% of the issued share capital) is updated on 
the website at least every 6 months.

2.1.4 - The company website is prepared in other selected 
foreign languages, in a way to present exactly the same 
information with the Turkish content.

2.2. ANNUAL REPORT

2.2.1 - The board of directors ensures that the annual 
report represents a true and complete view of the 
company’s activities.

2.2.2 - The annual report includes all elements listed in 
Corporate Governance Principle 2.2.2.

3.1. CORPORATION’S POLICY ON STAKEHOLDERS

3.1.1 - The rights of the stakeholders are protected 
pursuant to the relevant regulations, contracts and within 
the framework of bona fides principles.

3.1.3 - Policies or procedures addressing stakeholders’ 
rights are published on the company’s website.

3.1.4 - A whistleblowing programme is in place for 
reporting legal and ethical issues.

3.1.5 - The company addresses conflicts of interest 
among stakeholders in a balanced manner.

X

X

X

X

X

X

X

X

X

X

X

X

X

Turkcell distributed dividend in 2018.

Without prejudice to 137/3, due to Article 
7.2 of the AoA we ticked the “partial” box.

X

(Communique on Material Events 
Disclosure Article-16/2 Central Securities 
Depository is updating the respective 
information available in PDP under the 
General Information heading.

Certain parts of corporate web site is 
available in English, Arabic and Russian 
language in addition to that Investor 
Relations page is provided in English 
as well.

TURKCELL ANNUAL REPORT 2018133

COMPANY COMPLIANCE STATUS

Yes

Partial

No

Exempted

Not 
Applicable

Explanation

Employees participation to the 
management is facilitated through internal 
regulations of the company and various 
company practices.

We do not have a syndicate.

X

X

3.2. SUPPORTING THE PARTICIPATION OF THE 
STAKEHOLDERS IN THE CORPORATION’S MANAGEMENT

3.2.1 - The Articles of Association, or the internal 
regulations (terms of reference/manuals), regulate the 
participation of employees in management.

3.2.2 - Surveys/other research techniques, consultation, 
interviews, observation method etc. were conducted 
to obtain opinions from stakeholders on decisions that 
significantly affect them.

3.3. HUMAN RESOURCES POLICY

3.3.1 - The company has adopted an employment policy 
ensuring equal opportunities, and a succession plan for 
all key managerial positions.

3.3.2 - Recruitment criteria are documented.

3.3.3 - The company has a policy on human resources 
development, and organises trainings for employees.

3.3.4 - Meetings have been organised to inform 
employees on the financial status of the company, 
remuneration, career planning, education and health.

3.3.5 - Employees, or their representatives, were notified 
of decisions impacting them. The opinion of the related 
trade unions was also taken.

3.3.6  - Job descriptions and performance criteria 
have been prepared for all employees, announced to 
them and taken into account to determine employee 
remuneration.

3.3.7 -  Measures (procedures, trainings, raising awareness, 
goals, monitoring, complaint mechanisms) have 
been taken to prevent discrimination, and to protect 
employees against any physical, mental, and emotional 
mistreatment.

3.3.8  - The company ensures freedom of association and 
supports the right for collective bargaining.

3.3.9 -  A safe working environment for employees is 
maintained.

3.4. RELATIONS WITH CUSTOMERS AND SUPPLIERS

3.4.1  - The company measured its customer satisfaction, 
and operated to ensure full customer satisfaction.

3.4.2 -  Customers are notified of any delays in handling 
their requests.

3.4.3 -  The company complied with the quality standards 
with respect to its products and services.

3.4.4  - The company has in place adequate controls to 
protect the confidentiality of sensitive information and 
business secrets of its customers and suppliers.

X

X

X

X

X

X

X

X

X

X

X

X

X

CORPORATE GOVERNANCETURKCELL ANNUAL REPORT 2018134

2018 FINANCIAL YEAR CORPORATE 
GOVERNANCE PRINCIPLES COMPLIANCE REPORT

COMPANY COMPLIANCE STATUS

Yes

Partial

No

Exempted

Not 
Applicable

Explanation

3.5. ETHICAL RULES AND SOCIAL RESPONSIBILITY

3.5.1  - The board of the corporation has adopted a code 
of ethics, disclosed on the corporate website.

3.5.2  - The company has been mindful of its social 
responsibility and has adopted measures to prevent 
corruption and bribery.

4.1. ROLE OF THE BOARD OF DIRECTORS

4.1.1  - The board of directors has ensured strategy and 
risks do not threaten the long -term interests of the 
company, and that effective risk management is in place.

4.1.2  - The agenda and minutes of board meetings 
indicate that the board of directors discussed and 
approved strategy, ensured resources were adequately 
allocated, and monitored company and management 
performance.

4.2. ACTIVITIES OF THE BOARD OF DIRECTORS

4.2.1 - The board of directors documented its meetings 
and reported its activities to the shareholders.

4.2.2  - Duties and authorities of the members of the 
board of directors are disclosed in the annual report.

4.2.3 -  The board has ensured the company has an 
internal control framework adequate for its activities, size 
and complexity.

4.2.4 -  Information on the functioning and effectiveness 
of the internal control system is provided in the annual 
report.

4.2.5  - The roles of the Chairman and Chief Executive 
Officer are separated and defined.

4.2.7 -  The board of directors ensures that the Investor 
Relations department and the corporate governance 
committee work effectively. The board works closely 
with them when communicating and settling disputes 
with shareholders.

4.2.8  - The company has subscribed to a Directors and 
Officers liability insurance covering more than 25% of the 
capital.

4.3. STRUCTURE OF THE BOARD OF DIRECTORS

4.3.9  - The board of directors has approved the policy 
on its own composition, setting a minimal target of 
25% for female directors. The board annually evaluates 
its composition and nominates directors so as to be 
compliant with the policy.

4.3.10 -  At least one member of the audit committee has 
5 years of experience in audit/accounting and finance.

X

X

X

X

X

X

X

X

X

X

X

X

X

Since duties and responsibilities of the 
Board of Directors are determined by 
the Commercial Code we do not have 
specific chapter in our annual report 
regarding this topic.

The roles of chairman and chief executive 
officer of our Company are separated.

The company has subscribed to a 
Directors and Officers liability insurance 
with a policy limit more than %25 of the 
capital.

We do not have a policy which restrains 
female candidates from being appointed 
as a board member.

TURKCELL ANNUAL REPORT 2018135

COMPANY COMPLIANCE STATUS

Yes

Partial

No

Exempted

Not 
Applicable

Explanation

4.4. BOARD MEETING PROCEDURES

4.4.1 -  Each board member attended the majority of the 
board meetings in person.

4.4.2 -  The board has formally approved a minimum time 
by which information and documents relevant to the 
agenda items should be supplied to all board members.

4.4.3  - The opinions of board members that could not 
attend the meeting, but did submit their opinion in written 
format, were presented to other members.

4.4.4 -  Each member of the board has one vote.

4.4.5 -  The board has a charter/written internal rules 
defining the meeting procedures of the board.

4.4.6 -  Board minutes document that all items on the 
agenda are discussed, and board resolutions include 
director’s dissenting opinions if any.

4.4.7  - There are limits to external commitments of board 
members. Shareholders are informed of board members’ 
external commitments at the General Shareholders’ 
Meeting.

4.5. BOARD COMMITTEES

4.5.5 -  Board members serve in only one of the Board’s 
committees.

4.5.6 -  Committees have invited persons to the meetings 
as deemed necessary to obtain their views.

4.5.7  - If external consultancy services are used, the 
independence of the provider is stated in the annual 
report.

4.5.8 -  Minutes of all committee meetings are kept and 
reported to board members.

4.6. FINANCIAL RIGHTS

4.6.1  - The board of directors has conducted a board 
performance evaluation to review whether it has 
discharged all its responsibilities effectively.

4.6.4  - The company did not extend any loans to its 
board directors or executives, nor extended their lending 
period or enhanced the amount of those loans, or 
improve conditions thereon, and did not extend loans 
under a personal credit title by third parties or provided 
guarantees such as surety in favour of them.

4.6.5  - The individual remuneration of board members 
and executives is disclosed in the annual report.

X

X

X

X

X

X

X

X

X

X

There is no rule which restricts board 
member to serve outside the company.

X

X

X

Due to the number of the board members, 
they are serving as a committee member 
in more than one committee.

X

No service has been received from an 
outside counsel in 2018.

Board of Directors’ performance has not 
been evaluated.

Aggregate amount of the remuneration 
of board members and executives is 
disclosed in the annual report.

CORPORATE GOVERNANCETURKCELL ANNUAL REPORT 2018136

2018 FINANCIAL YEAR CORPORATE 
GOVERNANCE PRINCIPLES COMPLIANCE REPORT

CORPORATE GOVERNANCE INFORMATION FORM

1. SHAREHOLDERS 

1.1. Facilitating the Exercise of Shareholders Rights

The number of investor meetings (conference, seminar/etc.) organised by the 
company during the year

In 2018, Investor Relations Department attended 15 investor conferences 
and 3 road shows, and organized Capital Markets Day and held 568 
meetings in total with analysts and corporate mutual funds.

1.2. Right to Obtain and Examine Information

The number of special audit request(s)

The number of special audit requests that were accepted at the General 
Shareholders’ Meeting

1.3. General Assembly

Link to the PDP announcement that demonstrates the information requested by 
Principle 1.3.1. (a-d)

Whether the company provides materials for the General Shareholders’ Meeting in 
English and Turkish at the same time

The links to the PDP announcements associated with the transactions that are 
not approved by the majority of independent directors or by unanimous votes of 
present board members in the context of Principle 1.3.9

The links to the PDP announcements associated with related party transactions in 
the context of Article 9 of the Communique on Corporate Governance (II- 17.1)

The links to the PDP announcements associated with common and continuous 
transactions in the context of Article 10 of the Communique on Corporate 
Governance (II- 17.1)

0

0

https://www.turkcell.com.tr/en/aboutus/investor-relations

Provided in English as well.

No transaction has been executed in the context of Principle 1.3.9

No related party transaction has been executed above the thresholds.

No related party transactions have been executed above the threshold.

The name of the section on the corporate website that demonstrates the donation 
policy of the company

https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/donation-policy

The relevant link to the PDP with minute of the General Shareholders’ Meeting where 
the donation policy has been approved

The number of the provisions of the articles of association that discuss the 
participation of stakeholders to the General Shareholders’ Meeting

Identified stakeholder groups that participated in the General Shareholders’ Meeting, 
if any

1.4. Voting Rights

Whether the shares of the company have differential voting rights

In case that there are voting privileges, indicate the owner and percentage of the 
voting majority of shares.

The percentage of ownership of the largest shareholder

1.5. Minority Rights

Whether the scope of minority rights enlarged (in terms of content or the ratio) in 
the articles of the association

If yes, specify the relevant provision of the articles of association.

1.6. Dividend Right

https://www.kap.org.tr/en/Bildirim/674316

Not available.

Not available.

No

There is no preferential share class.

51%

No

Not available.

The name of the section on the corporate website that describes the dividend 
distribution policy

https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/dividend-policy

Minutes of the relevant agenda item in case the board of directors proposed to 
the general assembly not to distribute dividends, the reason for such proposal and 
information as to use of the dividend.

PDP link to the related general shareholder meeting minutes in case the board of 
directors proposed to the general assembly not to distribute dividends

Dividends are distributed in 2018.

Dividends are distributed in 2018.

TURKCELL ANNUAL REPORT 2018137

General Assembly Meetings

The number 
of information 
requests 
received by 
the company 
regarding the 
clarification 
of the agenda 
of the General 
Shareholders’ 
Meeting

General 
Meeting 
Date

Shareholder 
participation 
rate to the 
General 
Shareholders’ 
Meeting

Percentage 
of shares 
directly 
present at the 
GSM

Percentage 
of shares 
represented 
by proxy

Specify the name of the page of the corporate website 
that contains the General Shareholders’ Meeting minutes, 
and also indicates for each resolution the voting levels 
for or against

Specify the 
name of the 
page of the 
corporate 
website that 
contains all 
questions asked 
in the general 
assembly 
meeting and 
all responses to 
them

The number of 
the relevant item 
or paragraph 
of General 
Shareholders’ 
Meeting minutes 
in relation to 
related party 
transactions

The number of 
declarations 
by insiders 
received by 
the board of 
directors

The link to the related PDP general 
shareholder meeting notification

29/03/2018

0

82.6%

0.01%

82.59%

https://s2.turkcell.com.tr/SiteAssets/Hakkimizda/yatirimci-
iliskileri/documents/pdf/meetingminutes_29032018.pdf

No question 
submitted.

N/A

0

https://www.kap.org.tr/en/Bildirim/671368

2. DISCLOSURE AND TRANSPARENCY

2.1. Corporate Website

Specify the name of the sections of the website providing the information 
requested by the Principle 2.1.1.

https://www.turkcell.com.tr/en/aboutus/investor-relations ,
https://www.kap.org.tr/en/sirket-bilgileri/ozet/1103-turkcell-iletisim-hizmetleri-a-s

If applicable, specify the name of the sections of the website providing the list 
of shareholders (ultimate beneficiaries) who directly or indirectly own more 
than 5% of the shares.

List of languages for which the website is available

2.2. Annual Report

The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information requested by principle 2.2.2.

a) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on the duties of the members of the board of 
directors and executives conducted out of the company and declarations on 
independence of board members

b) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on committees formed within the board structure

c) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on the number of board meetings in a year and 
the attendance of the members to these meetings

ç) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on amendments in the legislation which may 
significantly affect the activities of the corporation

d) The page numbers and/or name of the sections in the Annual Report 
that demonstrate the information on significant lawsuits filed against the 
corporation and the possible results thereof

e) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on the conflicts of interest of the corporation 
among the institutions that it purchases services on matters such as investment 
consulting and rating and the measures taken by the corporation in order to 
avoid from these conflicts of interest

f) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on the cross ownership subsidiaries that the direct 
contribution to the capital exceeds 5%

g) The page numbers and/or name of the sections in the Annual Report that 
demonstrate the information on social rights and professional training of the 
employees and activities of corporate social responsibility in respect of the 
corporate activities that arises social and environmental results

3. STAKEHOLDERS

3.1. Corporation’s Policy on Stakeholders

The name of the section on the corporate website that demonstrates the 
employee remedy or severance policy

The number of definitive convictions the company was subject to in relation to 
breach of employee rights

The position of the person responsible for the alert mechanism (i.e. 
whistleblowing mechanism)

The contact detail of the company alert mechanism

https://www.kap.org.tr/en/sirket-
bilgileri/genel/4028e4a1486ec80a0148c55510d71d31

Turkish and English

Information provided in Annual Report-Other Issues Regarding Corporate 
Governance section.

Information provided in our website under “Investor Relations>Corporate 
Governance>Board Committees” heading and in the Corporate Governance 
Information Filings under 4. section which is attached to our annual report.

Information provided in the Corporate Governance Information Filings, which is 
attached to our annual report, under Section 4.

Information provided in Annual Report-Telecommunications Sector in Turkey 
and Developments in Our Companies sections.

Information provided in 37th disclosure of IFRS report which is attached to 
our Annual Report.

We do not receive such services in 2018.

Information provided in 39th disclosure of IFRS report which is 
attached to our Annual Report.

Information provided in Annual Report-Social Responsibility and Human 
Resources sections.

It is not disclosed in the website of the Company.

20

Ethics Committee

E-mail: ethicscommittee@turkcell.com.tr Address: Turkcell İletişim Hizmetleri A.Ş. 
Etik Kurulu Aydınevler Mah. İnönü Cad. No.20, Küçükyalı / İstanbul

CORPORATE GOVERNANCETURKCELL ANNUAL REPORT 2018138

2018 FINANCIAL YEAR CORPORATE 
GOVERNANCE PRINCIPLES COMPLIANCE REPORT

3.2. Supporting the Participation of the Stakeholders in the Corporation’s 
Management

Name of the section on the corporate website that demonstrates the internal 
regulation addressing the participation of employees on management bodies

Corporate bodies where employees are actually represented

3.3. Human Resources Policy

The role of the board on developing and ensuring that the company has a 
succession plan for the key management positions

The name of the section on the corporate website that demonstrates the 
human resource policy covering equal opportunities and hiring principles. Also 
provide a summary of relevant parts of the human resource policy.

Not available.

Not available.

Board of Directors, when necessary, get involved to the procees through 
Nomination Committee within the framework of the Committee’s 
roles&responsibilities.

Hiring process is carried out by taking Equal Opportunities Policy into 
consideration under the responsibility of the HR Department. During the hiring 
process objective criteria such as; a. Being Turkish citizen or having work permit 
in Turkey b. Completion of military service c. Not to be deprived from civil rights 
d. Not to have a disease that will prevent him/her from working or pose a 
threat to the environment e. Not to be sentenced for an infamous crime f. Not 
under obligation of an involuntary servitude g. To have a graduate degree h. 
To have required skills determined specifically to the title and role (such as 
experience, field of graduation, certificate etc.) ı. “Close Relatives” (Spouses, 
brothers/sisters, children, father, mother, uncle, maternal aunt, paternal aunt) of 
people working in Turkcell Group companies may not be employed in Turkcell 
Group Companies, are taken into consideration. Employees with no past 
experience are assessed within the special hiring programs such as GNCYTNK.

Whether the company provides an employee stock ownership programme

There isn’t an employee stock ownership programme

The name of the section on the corporate website that demonstrates the 
human resource policy covering discrimination and mistreatments and the 
measures to prevent them. Also provide a summary of relevant parts of the 
human resource policy.

The number of definitive convictions the company is subject to in relation to 
health and safety measures

3.5. Ethical Rules and Social Responsibility

https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/code-of-ethics

Not available.

The name of the section on the corporate website that demonstrates the code 
of ethics

https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/code-of-ethics

The name of the section on the company website that demonstrates the 
corporate social responsibility report. If such a report does not exist, provide the 
information about any measures taken on environmental, social and corporate 
governance issues.

Any measures combating any kind of corruption including embezzlement 
and bribery 

Corporate Social Responsibility

For our Company it is essential to carry out its activities in a fair, honest, legal 
and ethical manner. Turkcell Group Anti-Bribery and Corruption (“ABC”) Policy 
demonstrates and reflects our Company’s Board of Director’s commitment to 
the highest prevailing national and international anti-corruption and bribery 
standards. Turkcell expects the same degree of commitment from group 
companies as well.

Within the main framework of the ABC Policy; in April 2018 Corporate 
Governance & ABC Program Office has been established and an ABC 
program which provides necessary risk based trainings and establishes 
internal communication, and takes necessary preventive measures to ensure 
compliance with the rules has been initiated. With the establishment of the ABC 
Office, direct and efficient channels have been designed to access the Board 
of Directors, its committees and Senior Management with respect to ABC 
compliance related matters. ABC Office is the first contact point so that values 
and processes set by the ABC Program to be understood well and set these in 
motion along with Company’s dynamics. (Please see  
https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/anti-bribery-and-corruption-policy to obtain more information on 
our ABC Policy.) 

TURKCELL ANNUAL REPORT 2018139

4. BOARD OF DIRECTORS- I

4.2. Activity of the Board of Directors

Date of the last board evaluation conducted

Whether the board evaluation was externally facilitated

Whether all board members released from their duties at the GSM

No evaluation has been conducted.

No

Yes

Name(s) of the board member(s) with specific delegated duties and authorities, 
and descriptions of such duties

There is no executive member within the Board of Directors and all board 
members have A group signature authorization.

Number of reports presented by internal auditors to the audit committee or any 
relevant committee to the board

Specify the name of the section or page number of the annual report that 
provides the summary of the review of the effectiveness of internal controls

Information provided in Annual Report-Risk Assessment section.

14

Name of the Chairman

Name of the CEO

If the CEO and Chair functions are combined: provide the link to the relevant 
PDP announcement providing the rationale for such combined roles

Link to the PDP notification stating that any damage that may be caused by 
the members of the board of directors during the discharge of their duties is 
insured for an amount exceeding 25% of the company’s capital

The name of the section on the corporate website that demonstrates current 
diversity policy targeting women directors

The number and ratio of female directors within the Board of Directors

Composition of Board of Directors

Ahmet Akça

Muhterem Kaan Terzioğlu

CEO and Chair functions are not combined.

No disclosure has been made in PDP.

Not available.

1

Whether 
The Director 
Has At Least 
5 Years’ 
Experience 
On Audit, 
Accounting 
And/Or 
Finance Or 
Not

Whether 
Executive 
Director Or 
Not

Whether 
Independent 
Director Or 
Not

The First 
Election 
Date To 
Board

Link To PDP Notification That Includes 
The Independency Declaration

Whether the 
Independent 
Director 
Considered 
By The 
Nomination 
Committee

Whether 
She/He is the 
Director Who 
Ceased to 
Satisfy The 
Independence 
or Not

Non-
executive

Non-
executive

Non-
executive

Non-
executive

Non-
executive

Non-
executive

Independent 
director

Independent 
director

Independent 
director

Not 
independent 
director

Not 
independent 
director

Not 
independent 
director

11/03/2013 https://www.kap.org.tr/en/Bildirim/266009  

11/03/2013 https://www.kap.org.tr/en/Bildirim/266009  

11/03/2013 https://www.kap.org.tr/en/Bildirim/266009  

29/03/2018

Not available.

29/03/2018

Not available.

29/03/2018

Not available.

Not 
considered

Not 
considered

Not 
considered

Not 
considered

Not 
considered

Not 
considered

No

No

No

- 

 -

- 

Yes

Yes

Yes

No

No

No

Name, Surname of 
Board Member

Ahmet Akça

Atilla Koç

Mehmet Hilmi Güler

Mustafa Kıral

Ingrid Maria Stenmark

Hasan Tuvan Yalım

CORPORATE GOVERNANCETURKCELL ANNUAL REPORT 2018140

2018 FINANCIAL YEAR CORPORATE 
GOVERNANCE PRINCIPLES COMPLIANCE REPORT

4. BOARD OF DIRECTORS- II

4.4. Meeting Procedures of the Board of Directors

Number of physical board meetings in the reporting period (meetings in person)

Director average attendance rate at board meetings

Whether the board uses an electronic portal to support its work or not

Number of minimum days ahead of the board meeting to provide information 
to directors, as per the board charter

The name of the section on the corporate website that demonstrates 
information about the board charter

Number of maximum external commitments for board members as per the 
policy covering the number of external duties held by directors

4.5. Board Committees

Page numbers or section names of the annual report where information about 
the board committees are presented

Link(s) to the PDP announcement(s) with the board committee charters

Composition of Board Committees- I

13

99.9%

No

5 days before the meeting.

We do not disclose the charter in the company’s website.

We do not have such policy.

Information provided in our website under “Investor Relations>Corporate 
Governance>Board Committees” heading and in the Corporate Governance 
Information Filings under 4. section which is attached to our annual report.

https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/board-committees

Names Of The Board Committees

Name Of Committees Defined As 
“Other” In The First Column

Name- Surname of 
Committee Members

Whether 
Committee Chair 
Or Not

Audit Committee

Audit Committee

Audit Committee

Audit Committee

Audit Committee

Audit Committee

Ahmet Akça

Mehmet Hilmi Güler

Atilla Koç

Corporate Governance Committee

Corporate Governance Committee

Mehmet Hilmi Güler

Corporate Governance Committee

Corporate Governance Committee

Ingrid Maria Stenmark

Corporate Governance Committee

Corporate Governance Committee

Zeynel Korhan Bilek

Corporate Governance Committee

Corporate Governance Committee

Nomination Committee

Nomination Committee

Nomination Committee

Nomination Committee

Nomination Committee

Nomination Committee

Committee of Early Detection of Risk

Committee of Early Detection of Risk

Committee of Early Detection of Risk

Committee of Early Detection of Risk

Remuneration Committee

Remuneration Committee

Remuneration Committee

Remuneration Committee

Remuneration Committee

Remuneration Committee

Emre Alpman

Ahmet Akça

Mehmet Hilmi Güler

Atilla Koç

Mehmet Hilmi Güler

Hasan Tuvan Yalım

Atilla Koç

Mehmet Hilmi Güler

Mustafa Kıral

Yes

No

No

Yes

No

No

No

Yes

No

No

Yes

No

Yes

No

No

Whether Board 
Member Or Not

Board member

Board member

Board member

Board member

Board member

Not board member

Not board member

Board member

Board member

Board member

Board member

Board member

Board member

Board member

Board member

TURKCELL ANNUAL REPORT 2018141

4. BOARD OF DIRECTORS- III

4.5. Board Committees- II

Specify where the activities of the audit committee are presented in your 
annual report or website (Page number or section name in the annual report/
website)

Specify where the activities of the corporate governance committee are 
presented in your annual report or website (Page number or section name in 
the annual report/website)

Specify where the activities of the nomination committee are presented in your 
annual report or website (Page number or section name in the annual report/
website)

Specify where the activities of the early detection of risk committee are 
presented in your annual report or website (Page number or section name in 
the annual report/website)

Specify where the activities of the remuneration committee are presented in 
your annual report or website (Page number or section name in the annual 
report/website)

4.6. Financial Rights

Specify where the operational and financial targets and their achievement are 
presented in your annual report (Page number or section name in the annual 
report)

Not available in the annual report. Please see: 
https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/board-committees

Not available in the annual report. Please see: 
https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/board-committees

Not available in the annual report. Please see: 
https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/board-committees

Not available in the annual report. Please see: 
https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/board-committees

Not available in the annual report. Please see: 
https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/board-committees

Information provided in Annual Report-Turkcell Group: 2018 Financial & 
Operational Review section.

Specify the section of website where remuneration policy for executive and 
non- executive directors are presented.

https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate-
governance/compensation-policy

Specify where the individual remuneration for board members and senior 
executives are presented in your annual report (Page number or section name 
in the annual report)

Information provided in 38th disclosure of IFRS report which is attached to 
our Annual Report.

Composition of Board Committees- II

Names Of The Board Committees

Name of committees defined as 
“Other” in the first column

Audit Committee

Audit Committee

Corporate Governance Committee

Corporate Governance Committee

Nomination Committee

Nomination Committee

Committee of Early Detection of Risk

Committee of Early Detection of Risk

Remuneration Committee

Remuneration Committee

The Percentage 
Of Non-
executive 
Directors

The Percentage 
Of Independent 
Directors In The 
Committee

The Number Of 
Meetings Held 
In Person

The Number Of 
Reports On Its 
Activities Submitted 
To The Board

100%

50%

100%

100%

100%

100%

25%

100%

50%

66.6%

8

2

0

5

3

8

2

0

6

3

CORPORATE GOVERNANCETURKCELL ANNUAL REPORT 2018142

OTHER ISSUES REGARDING CORPORATE GOVERNANCE

Board Member Name-Surname

Duties Outside The Group: Company Name
Akça Lojistik Hizmetleri ve Ticaret A.Ş. 

Duties Outside The Group: Title/Position
Chairman of the Board of Directors

Ahmet Akça

Atilla Koç

Mehmet Hilmi Güler

BİM A.Ş.

Member of the Board of Directors 
(Independent)

Bezmialem Vakıf Üniversitesi

Chairman of the Board of Trustees

-

ICBC Turkey Bank A.Ş.

Member of the Board of Directors 
(Independent)

-

Kabine Danışmanlık Ticaret Ltd. Şti.

Manager

Hasan Tuvan Yalım

Cukurova Telecom Holdings Limited

Chairman and Member of the Board of 
Directors

Mustafa Kıral

Ingrid Maria Stenmark

Neo Skola Eğitim Danışmanlık ve Ticaret A.Ş.

Member of the Board of Directors

LetterOne Technology

Senior Partner

FreedomPop and Hadi Live Holdings Limited

Member of the Board of Directors

Telia Company

Head of CEO Office Strategy & Combined 
Assurance

TeliaSonera Asia Holding B.V.

Member of the Board of Directors

TeliaSonera UTA Holding B.V.

Member of the Board of Directors

Sonera Holding B.V.

Telia Resurs AB

Managing Director

Member of the Board of Directors

Telia Netherland Holding AB

Member of the Board of Directors

Turkcell Holding A.Ş.

Member of the Board of Directors

TURKCELL ANNUAL REPORT 2018CONCLUSION OF THE SUBSIDIARY REPORT

143

01.01.2018-31.12.2018 FISCAL YEAR

Conclusion of the Report on the relationship among the Parent Company and the subsidiaries as per Article 199 of the Turkish Commercial 
Code:

Details of the legal transactions of our Company with Turkcell Holding A.Ş. and its subsidiaries during the fiscal year 2018 are given in the above 
tables. There is neither any legal transaction made in favor of Turkcell Holding A.Ş or one of its subsidiaries nor any action taken or avoided in 
favor of Turkcell Holding A.Ş. or one of its subsidiaries upon directive by Turkcell Holding A.Ş.

Details of services provided and/or fixed asset purchases/sales performed under operational activities carried out between our Company and 
Turkcell Holding A.Ş. and/or its subsidiaries that are fully in conformity with the market during the fiscal year 2018 are included in this Report. 

CORPORATE GOVERNANCETURKCELL ANNUAL REPORT 2018144

TELECOMMUNICATIONS SECTOR IN TURKEY

According to the Information and Communication Technologies 
Authority (“ICTA”) Market Data report, published by the regulatory 
authority of our sector, the number of players operating in the 
Turkish electronic communications sector was 448 as of the 3rd 
quarter of 2018, and the number of authorizations granted to these 
players was 794. 

In the first 3 quarters of 2018, the total net sales revenues of mobile 
operators Turkcell İletişim Hizmetleri A.Ş. (“Turkcell”), Vodafone 
Telekomünikasyon A.Ş. (“Vodafone”), Avea İletişim Hizmetleri A.Ş. 
(“Avea”) and Türk Telekomünikasyon A.Ş. (“Türk Telekom”) were 
approximately TRY 33.5 billion, while the net sales revenues of other 
operators were realized at TRY 10.4 billion. The total amount of 
investments made by Turkcell, Türk Telekom, Avea and Vodafone in 
the same period was around TRY 4.1 billion.

MOBILE MARKET 

There are 80.6 million mobile subscribers in total in our country, 
corresponding to a penetration rate of approximately 99.8% as 
of the 3rd quarter of 2018. (Mobile penetration rate excluding the 
population aged 0-9 years: 113%). 

In the 3rd quarter of 2018, the number of 4.5G subscribers stood 
at 69.3 million, while the number of 3G subscribers decreased 
to 8.6 million. With 3G and 4.5G services, the number of mobile 
broadband subscribers who get Internet service from mobile 
computer and phone rose to 60.8 million. 

As of the 3rd quarter of 2018, 55.7% of mobile subscribers were on 
postpaid tariffs, while 44.3% were on prepaid tariffs. The number 
of prepaid mobile broadband subscribers was 25.2 million and the 
number of postpaid mobile broadband subscribers was 35.6 million, 
while the number of M2M subscribers reached 5 million. 

In the 3rd quarter of 2018, the number of mobile numbers ported 
decreased by 1.7% compared to the previous quarter to 2.7 million. 
As of November 14, 2018, 120 million mobile number portability 
transactions were realized in total. 

In terms of market share distribution based on the number of 
subscribers, Turkcell has a 43.3%, Vodafone a 30.9% and Avea a 
25.8% market share. Approximately 88.2% of mobile subscribers are 
consumer and 11.8% are corporate subscribers.

Average monthly data usage of mobile broadband was at 4.7 GB 
levels, while the data usage of subscribers whose devices and SIM 
cards were compatible with the 4.5G service, realized at 7.6 GB. 
Total mobile traffic volume for the third quarter of 2018 increased by 
2.7% compared to the same period of last year, and registered at 
70.6 billion minutes. 

In terms of the revenues obtained from subscribers, Turkcell’s market 
share stood at 45.2%, Vodafone’s at 30.6% and Avea’s at 24.3% 

THE BROADBAND INTERNET MARKET

The number of broadband internet subscribers, at around 6 million 
in 2008, had reached 73.8 million (13 million fixed broadband, 60.8 
million mobile broadband subscribers) as of the end of the 3rd 
quarter of 2018. Meanwhile, the annual rate of increase in the total 
number of internet subscribers was 8.5%. The number of xDSL 
subscribers exceeded 9.2 million and fiber subscribers exceeded 
2.6 million. The total length of the fiber infrastructure of alternative 
operators had reached 71,563 km.

The total amount of revenue in relation to internet service providers 
in the 3rd quarter of 2018 exceeded TRY 5.8 billion. The average 
monthly usage of fixed broadband internet subscribers reached 
93.9 GB. Approximately 68% of fixed broadband subscribers in 
Turkey prefer packages offering connection at a speed of 
10-30 Mbps.

The share of service provided with xDSL technology by alternative 
operators in the broadband industry was at 18.4% as of the 3rd 
quarter of 2018.

TV MARKET

As of the 3rd quarter of 2018, there are 16 operators, which have the 
Cable Broadcast Service (CBS) authorization. While the number of 
Türksat’s cable TV subscribers is 1.22 million; among the operators 
providing IPTV services, Superonline has 580 thousand and TTNet 
has 700 thousand subscribers. 

Among those operators authorized to provide satellite platform 
services, Dijital Platform Teknoloji Hizmetleri A.Ş. (Digitürk), Demirören 
TV Digital Platform İşletmeciliği A.Ş. (DSmart), Platformturk Dijital 
Platform Hizmetleri A.Ş. (Filbox) and TTNET A.Ş. (Tivibu) are actively 
providing services. 

FIXED VOICE MARKET

As of the end of the 3rd quarter of 2018, there are 11.5 million fixed 
telephone subscribers in our country, while the penetration ratio of 
the population is 14.3%. 

TURKCELL ANNUAL REPORT 2018DEVELOPMENTS IN OUR COMPANIES 

145

DEVELOPMENTS AT OUR COMPANIES

REGULATORY DEVELOPMENTS – SECTORAL REGULATIONS

TURKCELL SİGORTA ARACILIK HİZMETLERİ A.Ş. (INSURANCE 
COMPANY)
Turkcell Sigorta Aracılık Hizmetleri Anonim Şirketi (the insurance 
company) was established on June 19, 2018 to act as an intermediary for 
all types of insurance activities in accordance with the provisions of the 
relevant legislation on insurance brokerage activities, with its capital fully 
funded by Turkcell Finansman Anonim Şirketi. Our Company has made 
the necessary applications for registry with the Insurance Agents Board.

TURKCELL ÖDEME ve ELEKTRONİK PARA HİZMETLERİ A.Ş. (“TÖHAŞ”)
TÖHAŞ was authorized to operate as a payment institution in 2016. 
Accordingly, it gained the status of being Turkey’s first “payment 
institution” to receive an operational permit in the mobile payment area. 
It has been authorized to act as an “electronic money institution” in 2017. 
Within the framework of the aforementioned authorization, TÖHAŞ can 
issue electronic money, while acting as an intermediary in the payment 
of institutional bills. 

As per Paragraph 12.1 (b) of Law numbered 6493, TÖHAŞ was authorized 
to operate as a payment facilitator on December 27, 2018 by BRSA. This 
payment service consists of the execution of payment transactions, 
including transfer of funds on a payment account with the user’s 
payment service provider, direct debits, including one-off direct debits, 
payment transactions through a payment card or a similar device, and 
credit transfers including standing orders. 

Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş. (“Sofra A.Ş.”) was 
established on July 27, 2018 by registration at the Istanbul Trade Registry 
Office. TÖHAŞ, Posta ve Telgraf Teşkilatı A.Ş., and Belbim Ödeme 
Hizmetleri ve Elektronik Para A.Ş. has an equal shareholding in Sofra A.Ş. 
Within the framework of the trade agreements contracted with Sofra 
A.Ş.’s member companies, the Company plans to issue meal cards and 
transportation cards to be integrated into these meal cards.

MOBILE ELECTRONIC COMMUNICATION SERVICES RETAIL PRICE 
CAP REGULATION
The retail price cap regulation, from which our Company has been 
exempted since 2016, has been reinstated as of October 1, 2018. On 
the other hand, with the official letter of the Ministry of Transport and 
Infrastructure, General Directorate of Communication dated 17.08.2018 
and numbered 63000, it has been stated that, as the Ministry’s 
policy, the retail price cap regulation that Turkcell and Vodafone are 
subject to, will also be applied to TT Mobil, in order to offer mobile 
communication services in a liberated, fair and sustainable competitive 
environment, and to protect the rights of consumers. In this regard, it is 
indicated it is deemed appropriate for ICTA to conduct the necessary 
duties, processes and inspections in order to ensure uniformity of 
the implementation, and to reduce bureaucratic procedures. In this 
context, the “Mobile Electronic Communication Services Retail Price Cap 
Regulation has been approved so as to be binding for all three mobile 
operators with the ICTA decision dated 20.09.2018 and numbered 2018/
DK-ETD/279.

LAWSUIT FILED FOR THE CANCELLATION OF THE BOARD’S 
DECISION ISSUED IN 2013 REGARDING ACCESS TO MOBILE 
NETWORKS AND CALL ORIGINATION MARKET
In the lawsuit filed for the cancellation of the ICTA’s decision dated 
18.02.2013 and numbered 2013/DK-SRD/105 regarding the approval 
of the Final Document on the “Access to Mobile Networks and Call 
Origination Market”; the Market Analysis Final Document subject 
to this decision of the Authority, as well as the proceeding, through 
which the Authority defined our Company as an operator holding 
Significant Market Power (SMP) in the Access to Mobile Networks 
and Call Origination Market, deciding to impose certain obligations 
to our Company in this regard, the court has justified the claims of 
our Company and cancelled the actions and decisions subject to the 
lawsuit.

Upon this development, the ICTA added the ‘Joint SMP Evaluation’ 
section to the cancelled market analysis with the Board decision dated 
22/03/2018 and numbered 2018/DK-SRD/93, and approved the ‘Access 
to Mobile Networks and Call Origination Market Final Document.’

ICTA BOARD DECISION REGARDING POSTPONEMENT OF THE 
DEREGULATION OF THE ACCESS TO MOBILE NETWORKS AND CALL 
ORIGINATION MARKET
In the scope of the ‘Mobile Access and Call Origination Market’ 
document, approved by the ICTA Board Decision dated 12.04.2017 and 
numbered 2017/DK-SRD/124, it has been stated that, the market would 
be deregulated as of 12/04/2018 and the obligations imposed on our 
Company would be removed, at the end of a one-year transition period 
within the deregulation of the aforementioned market, unless the ICTA 
Board decides otherwise, taking into account market developments.

TURKCELL ANNUAL REPORT 2018SECTORAL AND FINANCIAL INFORMATION146

DEVELOPMENTS IN OUR COMPANIES

As a consequence of the evaluation of the applications made to the 
Authority by the operators with various competitive concerns regarding 
deregulation of the related market in the process, ICTA has decided, with 
the Board Decision dated 04/04/2018 and numbered 2018/DK-SRD/104, 
to continue monitoring developments in the mobile communication 
services market and to extend the defined transition period by one year 
until 12/04/2019 and for the obligations imposed on Turkcell as part of 
the market analysis approved by the Board Decision dated 22/03/2018 
and numbered 2018/DK-SRD/93 to remain valid during this period.

ICTA BOARD DECISION REGARDING THE POSTPONEMENT OF THE 
DEREGULATION OF THE SMS/MMS TERMINATION SERVICE WITHIN 
THE SCOPE OF THE MOBILE CALL TERMINATION MARKET ANALYSIS
Within the framework of the market analyses conducted by the ICTA, 
before the end of the one-year transition period for the deregulation of 
the SMS/MMS termination service as part of the Mobile Call Termination 
Market Analysis published upon the approval of the Board with the 
decision dated 19.04.2017 and numbered 2017/DK-SRD/131, the Board 
has issued a further decision. As per the decision dated 12.04.2018 and 
numbered 2018/DK-SRD/111, it has been decided that the SMS/MMS 
termination service should remain regulated within the framework of the 
obligations set by the Authority within the scope of the said Mobile Call 
Termination Market Analysis. 

NETGSM - REJECTION OF THE LAWSUIT REGARDING THE 
ANNULMENT OF THE ICTA DECISION ON THE EXCLUSION 
OF CALLS ORIGINATING FROM ABROAD FROM REFERENCE 
INTERCONNECTION OFFERS 
Netgsm had filed a lawsuit requesting the annulment of the Information 
Technologies and Communication Board’s decision dated 27.09.2011 and 
numbered 2011/DK-07/501 in regard to the exclusion of calls originating 
from abroad, from the operators’ Reference Interconnection Offers. The 
court decided to reject the lawsuit in favor of our Company. Thus, the 
Board decision may continue to be implemented, and operators will be 
able to freely determine the fee to be applied for calls originating from 
abroad.

FAIR USE POLICY (FUP) REGULATION
With the ICTA Board decision dated 27.12.2016 and numbered 
2016/DK-THD/518 regarding Fair Usage Policy (FUP), tariffs with Fair 
Usage Policy in fixed broadband shall be terminated as of 31.12.2018. 
With the implementation of the relevant decision, offers with FUP in the 
fixed broadband market have been terminated, while unlimited and 
quota packages continue to be offered.

RULES AND PROCEDURES IN REGARD TO THE IMPLEMENTATION OF 
THE ADDITIONAL CLAUSE 37 OF TELEGRAM AND TELEPHONE LAW 
NO 406
With the regulation, approved by the ICTA’s Board decision dated 
27.09.2018 and numbered 2018/DK-YED/285, the obligations regarding 
the Treasury Share, which must be paid by the operators listed in 
Annex 37 of Telegram and Telephone Law No. 406; the principles and 
procedures to be applied for not paying the Treasury Share in full, or 
in due time; as well as the methods for follow-up and collection have 
been determined.

THE LAW ON THE AMENDMENT OF CERTAIN TAX LAWS AND OTHER 
LAWS NO 7061
The aforementioned Law provides an opportunity for restructuring 
the ongoing disputes related to the Treasury Share (HP), Contribution 
Share to the Authority’s Expenses (KMKP), Administrative Fees, Universal 
Services Contribution Payment fee (EHKP) and radio fees, and the 
relevant penalty, late payment interest, default interest and legal 
expenses and restructuring the HP, KMKP, Administrative Fees and EHKP 
for the periods which investigations are ongoing, or has not been yet 
initiated. In this context, The Company restructured the ongoing disputes 
with respect to the HP, EHKP, KMKP, administrative fees, radio fees and 
the relevant penalty, late payment interest, default interest and legal 
expenses and 62 lawsuits. The lawsuits with respect to the HP, KMKP, 
EHKP and radio fees have been settled. In addition, the Company 
increased the tax base regarding the HP, EHKP, KMKP and administrative 
fees for the periods for which investigations are ongoing, or has not 
been yet initiated and these periods have been closed to examination. 

ANNULMENT OF THE BOARD DECISION ALLOWING TURK TELEKOM 
TO PROVIDE RETAIL INTERNET SERVICES 
A lawsuit has been filed for the cancellation of the Board decision 
dated 04.08.2011 and numbered 2011/DK-10/411, which allowed Türk 
Telekomünikasyon A.Ş., a SMP in the wholesale broadband market, to 
offer retail broadband internet services. Initially, the Court has accepted 
the stay of execution request  in favor of our Company, and then 
accepted the case. ICTA and Türk Telekom both appealed the decision. 
Consequently, The Council of State rejected the request of appeal 
and approved the decision of the First Instance Court in favor of our 
Company.  In accordance with the decision of stay of execution and 
annulment, it has been ensured that Türk Telekom will not be allowed to 
provide retail internet services, and also administrative fine against Türk 
Telekom has been imposed. 

ICTA BOARD DECISIONS REGARDING ‘THE REFUND/USE 
OF REMAINING TRY BALANCES IN CANCELLED PREPAID 
SUBSCRIPTIONS AND ‘THE TRANSFER OF NON-REFUNDED 
BALANCES IN PREPAID SUBSCRIPTIONS TO THE UNIVERSAL SERVICE 
FUND’
By the Board decision dated 12.04.2018 and numbered 2018/DK-THD/116 
(Board decision numbered 116), the ICTA first introduced obligations for 
operators in regard to the remaining balances in cancelled prepaid 
subscriptions. The ICTA revised the operators’ obligations and introduced 
new ones to grant rights to prepaid subscribers to get refund. Following 
the aforementioned regulation, operators were notified of the Board 
decision dated 16.04.2018 and numbered 2018/DK-THD/123 in June 
2018 obligations on operators to transfer the non-refunded balances 
including i) those that could not be returned pursuant to ICTA Board 

TURKCELL ANNUAL REPORT 2018decision numbered 116 within two years, to subscribers who have 
terminated their subscriptions, , ii) those that could not be refunded to 
the prepaid subscribers as of the notification date of the ICTA Board 
decision numbered 123; to the Universal Service Fund at the end of two 
years. Our Company has filed a lawsuit against the aforementioned 
regulation claiming that the section of the Board’s decision regarding the 
ICTA Board Decision numbered 123 about the balances not previously 
refunded is in contradiction with the retrospectivity principle of the law.

END TO END DOMESTIC 5G PROJECT AND APPLICATION TO TÜBİTAK 
TEYDEB SYSTEM
An application was made to the TÜBİTAK TEYDEB system for funding 
the “End to End Domestic and National 5G Network Project,” initiated 
by the 17 member companies of the Communication Technologies 
Cluster (HTK)’s, as well as three operators, 10 universities, six techno cities 
(technology parks) and the OSTİM Organized Industrial Zone. The project 
aims to ensure that 5G technologies are commissioned in 2020 in our 
country at the same time as the whole world. It is stated that the project 
will provide employment opportunities to over two thousand people.

Our company is positioned as a stakeholder to support the project 
by providing feedback in R&D activities and testing opportunities 
for prototypes to be produced within the scope of the projects at 
laboratories and within systems.

JOINT USE OF INFRASTRUCTURE WITHIN THE SCOPE OF IMT 
AUTHORIZATION
Pursuant to the verbal and written request made to the ICTA by our 
company, with the Board decision dated 07.02.2018, the ICTA has 
decided to authorize other operators to utilize transmission lines and 
equipment (radio line, router, etc.) owned by the mobile network 
operators and used as part of their IMT network. In this manner, some of 
Turkcell’s equipment is now being used by Superonline.

RADIOLINK FREQUENCY PLANNING AND USE OF EQUIPMENT 
HAVING DOMESTIC GOODS CERTIFICATION 
Following the ICTA Board decision dated 10.01.2018, operators shall 
present, within the framework of the relevant legislation the “Domestic 
Goods Certificate” granted for the radio link devices to be used when 
making radio link frequency allocation on the 7 GHz, 13 GHz and 80 GHz 
bands.

112 BASED IN-VEHICLE EMERGENCY CALL SYSTEM (E-CALL)
Developments in the information and communication sector bring about 
personal security, cyber security and national security risks. In addition, 
in the event of a need to call back the number that originated the 
e-Call from the Emergency Call Centers, problems that may occur in 
connection processes to be made through foreign operators potentially 
increases the possibility of loss of life and property. Taking such risks into 
consideration, an ICTA decision dated 22.01.2018 has been issued in order 
to eliminate these risks, and to ensure that the necessary information 
systems and services are provided from the local and national sources to 
the utmost degree.

LAUNCH OF EHABS
As a result of studies carried out by ICTA, the Electronic Communication 
Infrastructure Information System has started to be used as of November 
2018. The system contains information on the fixed and mobile network 
infrastructure of the operators and updates on the infrastructure 
information are made via web services. Operators are obliged to use 
EHABS for making facility sharing and right of way transactions by 
21.01.2019. 

147

REGULATION ON THE PROVISION OF SITE SELECTION 
CERTIFICATE, AND DETERMINATION OF THE FEES FOR ELECTRONIC 
COMMUNICATION STATIONS
Regulation on the provision of site selection certificate, and determination 
of fees for the electronic communication stations was published on 
January 27, 2018 within the scope of sub-paragraph (r) added to the first 
clause of Article 15 of the Municipality Law dated 3/7/2005 and numbered 
5393. With this regulation, principles and procedures related to the site 
selection certificate, as well as the fees to be charged in exchange for 
the certificates given to the electronic communication stations used in the 
fixed and mobile communication infrastructure, or networks, have been 
determined. In this context, the site selection certificate and fee will not 
be received for the electronic communication stations established within 
the boundaries of the adjacent area of the municipality before 6/12/2012, 
the date when law numbered 6360 and dated 12/11/2012 was published 
in the Official Gazette. The site selection certificate for these stations shall 
be deemed to have been received. For those electronic communication 
stations, established within the boundaries of the adjacent area of 
the municipality, between 6/12/2012 and the date when this regulation 
became effective, and which did not hold site selection certificates, the 
security certificate alone will be presented, and application will be made 
to the relevant administration by paying the related fee.

Electronic communication stations can be established without obtaining 
a building license and occupancy permit, in cases where compliance 
with the provisions of “Planned Areas Zoning Regulation” which became 
effective as of October 1, 2017, and “Regulation on the provision of the 
site selection certificate, and determination of fees for the electronic 
communication stations” is provided.

REGULATION ON THE AMENDMENT TO THE ELECTRICITY INTERNAL 
FACILITIES REGULATION
Amendments have been made in Article 69 of the “Electricity Internal 
Facilities Regulations” of the Ministry of Energy, which entered into force on 
04.11.1984. The amendment obligates the indoor electronic communication 
facilities to be in compliance with the current Technical Specifications 
for Indoor Electronic Communication Facilities prepared and published 
by the Information and Communication Technologies Authority. With 
this amendment to the regulation which was based on PTT technical 
specifications (in practice, Türk Telekom specifications) in its previous 
version, a standardization has been introduced where no technical 
specifications of any company are imposed in vertical manufacturing. In 
this manner, it became a rule to make an examination, in compliance with 
PAİY during the issuance of the residential usage license, to ensure the 
establishment and existence of an infrastructure that can be benefitted 
by more than one user at the same time, in line with the specification 
prepared by the ICTA. 

ANNEX SUPPLEMENTED TO THE ARTICLE 79 OF THE MUNICIPALITY 
REVENUES LAW NUMBERED 2464, WITH LAW NUMBERED 7099 
With the law numbered 7099, an annex has been supplemented to 
Article 79 of the Municipality Revenues Law numbered 2464. Accordingly, 
uniformity was ensured in excavation fees, ground destruction costs, and 
fines applicable by municipalities for violations regarding these matters. 
This regulation stipulates that the unit prices and tariffs to be determined 
by the Ministry of Environment and Urbanization as well as by the Ministry 
of Transport and Infrastructure shall be taken into consideration when 
determining fees.

TURKCELL ANNUAL REPORT 2018SECTORAL AND FINANCIAL INFORMATION148

DEVELOPMENTS IN OUR COMPANIES

CONSUMER RIGHTS REGULATION REGARDING THE ELECTRONIC 
COMMUNICATION SECTOR
All provisions of the regulation, which allows subscription contracts to 
be made in the electronic environment, entered into force on April 28, 
2018. In this context, precautions have been taken against circulation of 
photocopied ID cards in the physical environment. It has been regulated 
that copies of ID cards, which operators are obligated to take from of 
subscribers during the establishment of the contract, should be taken 
from their originals, and only transferred to the appropriate electronic 
environment. In addition to these developments, various regulations 
regarding consumer rights in the electronic communication sector have 
been introduced.

PROCEDURES AND PRINCIPLES REGARDING THE SETTLEMENT OF 
CONSUMER AND USER COMPLAINTS BY OPERATORS AND SERVICE 
PROVIDERS
The regulation approved by the Board decision dated May 22, 2018, 
differently from previous regulations, has in its scope all applications 
coming from different (all kinds) channels that are complaints in nature, 
New methods have been designated for receiving complaints and 
resolving them using the complaints system to be established by the 
operators through the integration of infrastructure with the ICTA.

PROCEDURES AND PRINCIPLES ON MEASURES FOR COMMUNITIES IN 
NEED OF SOCIAL SUPPORT 
“Procedures and Principles on Measures for Communities in Need of Social 
Support” prepared by the ICTA for the determination of the measures 
to be taken for the socially vulnerable, have been published so as to be 
effective as of January 1, 2019. With this regulation, which repealed the 
Board’s previous decisions regarding the disabled, it became mandatory 
for operators with more than 200 thousand subscribers, to provide special 
tariffs that include economic advantages for people with disabilities, 
widows and orphans of the martyrs of war and the line of duty, as well 
as veterans and to launch of special call centers for disabled subscribers 
and to provide services from other operation channels.

CHANGES IN CLI PROCEDURES AND PRINCIPLES
Changes to the Principles and Procedures for the Use of Caller Line 
Information (CLI) have been made with the ICTA Board decision dated 
July 23, 2018, where the rules for displaying alphanumeric CLI have been 
modified for the delivery of message services such as SMS and MMS. The 
use of internet domain names and website addresses as CLI has been 
prohibited. In the case that the CLI contains the first and last name of the 
sender, the Place of Residence Document shall be submitted in addition to 
the ID card of the sender.

WLR NUMBER PORTABILITY
A temporary alternative method for the porting of numbers within the 
Wholesale Line Rental (WLR) system has been identified, so that these 
numbers can start to be ported until changes to the number portability 
system are completed. Portability transactions have commenced as of 
September 28, 2018.

PROTECTION OF PERSONAL DATA:

REGULATION ON MEASURES TO BE TAKEN IN AREAS SUCH 
AS COUNTERS, PAY DESKS AND DESKS WHERE SERVICES ARE 
PROVIDED
The decision of the Personal Data Protection Board dated December 
21, 2017 and numbered 2017/62 was published on the Official Gazette 
dated January 25, 2018. In this context, it was decided that necessary 
technical and administrative measures are to be taken by the public 
and private sector institutions and organizations, serving with more 
than one employee, and providing services with adjoining desks. These 
institutions and organizations include primarily banking and health 
services, mail and cargo services, tourism agencies, the customer 
service departments of chain stores, institutions carrying out various 
subscription operations, as well as municipalities, tax and civil registry 
offices. In addition, pursuant to Article 12 of the Law on the Protection 
of Personal Data numbered 6698, it was decided to take measures to 
prevent unauthorized people from crossing the counter, pay desk, and 
desk areas, and to prevent people who receive services close to each 
other, at the same time; from hearing, seeing, learning or acquiring each 
other’s personal data.

REGULATION ON PROCESSING SPECIAL CATEGORIES OF PERSONAL 
DATA
The Personal Data Protection Board’s decision regulating technical 
measures to be taken by the data controller for processing special 
categories of personal data, dated 31.01.2018 and numbered 2018/10 has 
been published in the Official Gazette on March 7, 2018.

COMMUNIQUE ON PROCEDURES AND PRINCIPLES REGARDING 
INFORMATION TO BE PROVIDED TO DATA SUBJECTS
The Personal Data Protection Board published “the Communiqué on the 
Procedures and Principles Regarding Information to be Provided to Data 
Subjects ” in the Official Gazette dated March 10, 2018 and numbered 
30356. The Communique regulates that the information to be provided 
to data subjects by data controllers should cover at least, identity of the 
data controller and of its representatives, the purpose for which personal 
data will be processed, the means of collection, with whom and for 
what purpose personal data could be shared, the legitimate ground of 
processing and other rights of the data subject.

COMMUNIQUE ON THE PROCEDURES AND PRINCIPLES REGARDING 
APPLICATION TO THE DATA CONTROLLER
The communique, which determines the means of application to the 
data controller, as well as the fees in cases where a transaction requires 
additional cost, has been published by the Personal Data Protection 
Board in the Official Gazette dated March 10, 2018, becoming effective 
on the same day.

TURKCELL ANNUAL REPORT 2018REGULATIONS ON DATA CONTROLLER REGISTRY 
The exemptions of registration and the deadlines for registering with the 
Data Controllers Registry are regulated by the Personal Data Protection 
Board with resolutions dated 19.07.2018, and numbered 2018/87 and 
2018/88. 

Currency” published in the Official Gazette dated January 25, 2018 and 
numbered 30312, a limitation has been imposed on foreign currency 
borrowing by people who reside in Turkey. According to the regulation, 
it is stated that foreign currency credits can be used domestically or 
abroad under certain conditions.

149

LIMITATION IN THE NUMBER OF INSTALLMENTS 
Pursuant to “The Regulation in regards to the Amendment to the Bank 
Cards and Credit Cards Law” which has been published in the Official 
Gazettes dated August 15, 2018 and numbered 30510, and dated 
November 27, 2018 and numbered 30608; the installment period for cash 
withdrawals as well as purchases of goods and services, to be realized 
by credit cards, including the periods that the installment of the debt for 
a certain fee after the purchase of goods or services or in which the 
payment has postponed shall not exceed 12 months. In the purchase of 
electronic goods, this time of period will be applied as three months. 
In addition, in the telecommunication expenditures by credit cards, but 
which do not contain any concrete goods or services, such as a gift 
voucher, installment cannot be applied.

Pursuant to “The Regulation in regards to the Amendment on the 
Regulation in the Procedures and Principles to be Applied in Retail Trade” 
which has been published on the Official Gazettes numbered 30510 
and dated August 15, 2018, numbered 30549 and dated September 28, 
2018, and numbered 30609 and dated November 28, 2018, “goods and 
services” defined as “all kinds of goods and services, which are subject 
to retail trade, and which are sold to retailers and consumers.”

According to these regulations, the installment period has been 
determined as three months in sales of television and audio and video 
systems, and as six months in the sales of computers, tablet PCs, 
and mobile phones with a price exceeding TRY 3,500. The 6-month 
installment period, for mobile phone sales exceeding TRY 3,500, is 
applied as 12 months until January 31, 2019.

Pursuant to “The Regulation in Regards to the Amendment on the 
Regulation on the Establishment and Operating Principles of Financial 
Leasing, Factoring and Financing Companies” which has been published 
on the Official Gazettes dated August 15, 2018 and numbered 30510, 
and dated November 27, 2018 and numbered 30608; the maturity of 
loans extended cannot exceed 6 months for the purchase of tablets and 
computers, 12 months for mobile phones with a price of up to TRY 3,500, 
and 6 months for mobile phones with a price higher than TRY 3,500. The 
6-month maturity limit of loans extended for the purchase of mobile 
phones with a price exceeding TRY 3.5 thousand is applied as 12 months 
until January 31, 2019. It has stated that the same maturities shall be 
applied in the restructuring of these loans.

REGULATION ON CONCORDAT
As per “The Code of the Amendment Regarding the Code of 
Enforcement and Bankruptcy and Certain Codes” published in the 
Official Gazette dated March 15, 2018 and numbered 30361; the 
suspension of bankruptcy has been abolished, and the provisions of 
concordat have been amended.

REGULATIONS ON PROTECTION OF THE VALUE OF TURKISH 
CURRENCY
As per “The Communique in Regards to Amendment (Communique No: 
2008-32/46) in the Communique (Communique No: 2008-32/34) on the 
Decree Numbered 32 regarding Protection of the Value of the Turkish 

Pursuant to “The Decree (Decree No: 85) in Regards to Amendment in 
the Decree Numbered 32 Concerning Protection of the Value of Turkish 
Currency” has been published in the Official Gazette dated September 
13, 2018 and Numbered 30534, except for cases specified by the Ministry, 
people who reside in Turkey shall not determine the contract prices and 
other payment obligations that arise from these contracts, denominated 
in, or indexed to foreign currency. These include securities and real estate 
purchase and sale contracts between each other, all kinds of movable 
and real estate rental contracts, including vehicle and financial leasing, 
as well as leasing contracts for business, service and artwork. The last 
exceptional cases have been published in the Official Gazette dated 
November 16, 2018 and numbered 30597.

REGULATIONS ON PRICE TAG
As per “The Regulation in Regards to the Amendment on the Price Tag 
Regulation,” published in the Official Gazette dated September 18, 2018 
and numbered 30539, it became mandatory to display the following 
details on tags and lists: “Sales price of goods and the start date of the 
unit price implementation, as well as the shape, logo or mark identified 
and announced by the Ministry for goods manufactured in Turkey.” In 
addition, it has been regulated that the specifications of the form and 
scope of the tags will also be applied to the “tariff and price lists.” 

As per “The Communique on the Use of Domestic Production Logo 
on Price Tags” published in the Official Gazette dated October 5, 2018 
and numbered 30556, the procedures and principles regarding the 
use of the domestic production logo, which have to be included on 
the tags, and the price lists of the goods offered to consumers, have 
been determined. Accordingly, it became mandatory to display “the 
production place of goods, the distinctive feature of goods, sales price 
including all taxes, unit price of goods, sales price of goods and the 
start date of the unit price implementation, as well as the shape, logo or 
mark identified and announced by the Ministry for goods manufactured 
in Turkey,” on the tags and price lists, with a domestic production logo 
to be placed in a manner so as to be easily visible and readable. In 
addition, the local production logo should be placed on tags and price 
lists, in the original colors and figures as specified in the logo attached to 
the Communique.

REGULATION IN REGARDS TO THE AMENDMENT TO THE 
REGULATION ON PAYMENT SERVICES AND ELECTRONIC MONEY 
ISSUANCE, AND PAYMENT INSTITUTIONS AND ELECTRONIC MONEY 
INSTITUTIONS (“REGULATION”)
The regulation in regard to Law numbered 6493 on Payment Services 
and Electronic Money Transfer, and Payment Institutions and Electronic 
Money Institutions has been amended by the Banking Regulation and 
Supervision Agency (BRSA). Within the scope of this amendment, which 
has been published in the Official Gazette and become effective on 
October 12, 2018, the guidelines and restrictions on service provision 
were determined.

TURKCELL ANNUAL REPORT 2018SECTORAL AND FINANCIAL INFORMATION150

TURKCELL GROUP: 2018 FINANCIAL &
OPERATIONAL REVIEW

Our audited annual consolidated financial statements including our consolidated statements of financial position as of December 31, 2018 and 
2017 and our consolidated statements of profit and loss, comprehensive income, changes in equity and cash flows for the two years in the 
period ended December 31, 2018 and the related notes included in this annual report have been prepared in accordance with International 
Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Report”). The following financial and operational 
overview focuses principally on the developments and trends in our business in the full year 2018 and should be read in conjunction with the 
IFRS report. The figures are expressed in Turkish Liras (TRY) unless otherwise stated. A year on year comparison of key indicators is provided 
and figures in parentheses following the operational and financial results for the year end 2018 refer to the same item for the year end of 2017 
unless otherwise stated.

In the tables totals may not foot due to rounding differences. The same applies to the calculations in the text.

TURKCELL GROUP: FINANCIAL SUMMARY

Profit & Loss Statement (million TRY)
Revenue
Cost of revenue(1)

Gross Margin(1)
Administrative expenses

Selling and marketing expenses

Net impairment loses on financial and contract assets

EBITDA(2)
EBITDA Margin 
    Depreciation and amortization

EBIT(3)
Net finance income / (costs)

    Finance income
    Finance costs(4)

Other income / (expense)

Non-controlling interests

Share of profit of equity accounted investees

Income tax expense

Net Income

FY17
17,632.1

(8,753.2)

50.4%
(645.2)

(2,005.4)

-

6,228.3

35.3%
(2,597.0)

3,631.3
(322.9)

818.3

(1,141.2)

(698.9)

(58.6)

-

(571.8)

1,979.2

FY18
21,292.5

(9,858.0)

53.7%
(673.4)

(1,626.7)

(346.4)

8,788.0

41.3%
(4,288.0)

4,500.0
(1,687.0)

1,932.1

(3,619.1)

(140.1)

(156.3)

(0.1)

(495.5)

2,021.2

Change%
20.8%

12.6%

3.3 pp
4.4%

(18.9%)

n.m

41.1%

6.0 pp
65.1%

23.9%
422.5%

136.1%

217.1%

(80.0%)

166.7%

n.m

(13.3%)

2.1%

(1) Excluding depreciation and amortization expenses.
(2) EBITDA is a non-GAAP financial measure. 
(3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses.
(4) Fair value loss and interest expense in relation to derivative instruments reported under finance cost were netted off from respective fair value gain and interest income in relation to 
derivative instruments reported under finance income. Historical periods were restated to reflect this change. 

Consolidated Balance Sheet Data (Year End) (million TRY)
Cash and cash equivalents

Total assets 
Long term debt

Total debt

Total liabilities

Total equity

2017
4,712.3

33,982.5
8,258.0

12,536.1

18,937.4

15,045.1

2018
7,419.2

42,765.3
13,119.6

20,155.5

26,711.7

16,053.6

Change %
57.4%

25.8%
58.9%

60.8%

41.1%

6.7%

TURKCELL ANNUAL REPORT 20182017
3,101.3 

(3,304.6)

(1,566.7)

430.1 

4,712.3

2017
50.4%

35.3%

11.2%

125.9%

1.3x

2018
5,829.9 

(4,535.6)

(534.4)

1,947.0 

7,419.2

2018
53.7%

41.3%

9.5%

166.4%

1.4x

151

Change %
88.0%

37.3%

(65.9%)

352.7%

57.4%

Change %
3.3 pp

6.0 pp

(1.7 pp)

40.5 pp

0.1x

Selling and marketing expenses: Selling and marketing expenses as 
a percentage of revenues was at 7.6% (11.4%). Selling expenses and 
marketing expenses decreased 2.5 pp and 0.4 pp, respectively as a 
percentage of revenues.

Please note that starting from Q418 frequency usage fees related to 
prepaid subscribers reported under selling and marketing expenses 
were classified under net impairment loses on financial and 
contract assets item. Prior years’ financials have not been restated 
to reflect this change. Frequency usage fees related to prepaid 
subscribers amounted to TRY 142 million for the full year. 

Net impairment loses on financial and contract assets: Net 
impairment loses on financial and contract assets amounted to TRY 
346 million in 2018

EBITDA(3) rose by 41.1% resulting in an EBITDA margin of 41.3% (35.3%). 

 »  Turkcell Turkey’s EBITDA rose by 34.7% to TRY 7,534 million  

(TRY 5,594 million), while its EBITDA margin rose 5.0 pp to 41.2% 
(36.2%). 

 »  Turkcell International EBITDA increased to TRY 613 million  

(TRY 264 million), while the EBITDA margin reached 42.1% (24.7%).
 »  The EBITDA of other subsidiaries rose by 73.0% to TRY 641 million 

(TRY 370 million). 

Summary Consolidated Cash Flow Statement (in TRY millions)
Net cash inflow from operating activities

Net cash outflow from investing activities

Net cash (outflow)/inflow from financing activities

Effects of exchange rate changes on cash and cash 
equivalents

Cash and Cash Equivalents

Profitability and Solvency Ratios (%)
Gross Profit Margin(1)

EBITDA Margin

Net Profit Margin

Total Liability / Equity Ratio

Net Debt / EBITDA Multiple

(1) Excluding depreciation and amortization expenses.

EXPLANATIONS:

Revenue1: Turkcell Group revenues rose by 20.8% to TRY 21,292 
million (TRY 17,632 million).

 » Turkcell Turkey revenues, at 86% of Group revenues, grew by 18.2% 

to TRY 18,266 million (TRY 15,450 million). 

-  Data and digital services revenues grew by 16.4% to  

TRY 11,997 million (TRY 10,304 million). 

-  Wholesale revenues grew by 54.9% to TRY 910 million  

(TRY 587 million).

 » Turkcell International revenues rose by 36.5% to TRY 1,457 million 

(TRY 1,067 million). 

 » Other subsidiaries’ revenues grew by 40.8% to TRY 1,570 million 

(TRY 1,115 million).

Cost of revenue (excluding the depreciation and amortization):  
Cost of revenue decreased to 46.3% (49.6%) as a percentage of 
revenues. This was mainly due to the decrease in radio costs  
(2.4 pp), interconnection costs (0.8 pp) and other cost items  
(1.4 pp), despite the increase in TRX costs (1.3 pp) as a percentage  
of revenues.

Administrative expenses: Administrative expenses was at 3.2% 
(3.7%) as a percentage of revenues. Administrative expenses 
included a positive impact of TRY 133 million in 2017 due to the 
change we made in our doubtful receivable provision assumptions 
based on improvement in collection performance. 

Please note that starting from Q418 net impairment expense 
recognized on receivables reported under administrative expenses 
was classified under net impairment loses on financial and contract 
assets item. Prior years’ financials have not been restated to reflect 
this change. Net impairment expense recognized on receivables 
amounted to TRY 205 million for the full year. 

(1) Please refer to the notes to the consolidated financial statements for the definition of Turkcell Turkey, Turkcell International and other subsidiaries.
(2) “Other subsidiaries” is mainly comprised of our information and entertainment services, call center business revenues, financial services revenues and inter-business eliminations.
(3) EBITDA is a non-GAAP financial measure.

TURKCELL ANNUAL REPORT 2018SECTORAL AND FINANCIAL INFORMATION 
152

TURKCELL GROUP: 2018 FINANCIAL &
OPERATIONAL REVIEW

Depreciation and amortization expenses: Depreciation and 
amortization expenses increased 65.1%.

Net finance expense: The net finance expense rose to TRY 1,687 
million (TRY 323 million). This was mainly due to higher net foreign 
exchange losses and higher interest expenses resulting from a larger 
loan portfolio.

Asset held for sale and discontinued operations: In accordance 
with our strategic approach and IFRS requirements, Fintur is 
classified as ‘held for sale’ and reported as discontinued operations 
as of October 2016.

Income tax expense: The income tax expense decreased by 13.3%. 

-  Our consumer finance company had a debt balance of  

TRY 4,096 million, of which TRY 2,073 million (US$ 394 million) 
was denominated in US$, and TRY 1,171 million (EUR 194 million) in 
EUR with the remaining TRY 853 million in TRY.

 » TRY 719 million of IFRS 16 lease obligations is denominated in 

TRY, TRY 40 million (US$ 8 million) in US$, TRY 195 million (EUR 32 
million) in EUR and the remaining balance in other local currencies 
(please note that the figures in parentheses refer to US$ or EUR 
equivalents).

TRY 11,565 million of our consolidated debt is set at a floating rate. 
Excluding the consumer finance business borrowings, TRY 4,154 
million of consolidated debt will mature within less than a year. 

Net income: We registered a net income of TRY 2,021 million (TRY 
1,979 million). Solid operational performance and prudent financial 
risk management allowed us to register a strong net income for the 
full year, despite a challenging macro environment.  

Net debt as of December 31, 2018 was at TRY 12,736 million with a 
net debt to EBITDA ratio of 1.4 times. Excluding consumer finance 
company consumer loans, our telco only net debt was at TRY 8,565 
million with a leverage of 1.0 times.

Total cash & debt: Consolidated cash as of December 31, 2018 
decreased to TRY 7,419 million from TRY 8,749 million as of 
September 30, 2018. Excluding the FX swap transactions for TRY 
borrowing, 74% of our cash is in US$ and 26% is in EUR.

Turkcell Group’s short FX position was at US$ 224 million as at 
the end of Q418. (Please note that this figure takes into account 
advance payments and hedging, but excludes FX swap transactions 
for TL borrowing).

Consolidated debt as of December 31, 2018 decreased to TRY 20,156 
million from TRY 23,055 million as of September 30, 2018. Please 
note that TRY 1,414 million of our consolidated debt is comprised of 
lease obligations resulting from the implementation of IFRS 16. 

 » Consolidated debt breakdown excluding lease obligations 

resulting from the implementation of IFRS 16:

- 

- 

Turkcell Turkey’s debt was TRY 13,717 million, of which TRY 7,652 
million (US$ 1,455 million) was denominated in US$, TRY 5,775 
million (EUR 958 million) in EUR, TRY 193 million (CNY254 million) in 
CNY and the remaining TRY 96 million in TRY. 

The debt balance of lifecell was TRY 925 million, of which  
TRY 895 million (UAH 4,728 million) was denominated in UAH and 
the remaining TRY 30 million (EUR 5 million) in EUR.

Capital expenditures: Capital expenditures including non-
operational items were at TRY 4,643.8 million (excluding the impact 
of new IFRS standards). 

In FY18, operational capital expenditures (excluding license fees) at 
the Group level was at 18.5% of total revenues.

Capital expenditures (million TRY)

Turkcell Turkey
Turkcell International(1)
Other Subsidiaries(1)

FY17
(3,821.5)

(246.6)

(22.3)

FY18
(3,793.0)

(831.0)

(19.8)

Capex and License

(4,090.4)

(4,643.8)

(1) The impact from the movement of reporting currency (TRY) against local currencies of 
subsidiaries in other countries is included in these lines.

Donations: Turkcell Group donated TRY 176 million to various 
associations, foundations and charitable organizations in 2018.

TURKCELL ANNUAL REPORT 2018OPERATIONAL REVIEW (TURKEY):

Summary of Operational Data
Number of subscribers (million)
Mobile Postpaid (million)  
   Mobile M2M (million)
Mobile Prepaid (million)
Fiber (thousand)
ADSL (thousand)
IPTV (thousand)
Churn (%)(1)
Mobile Churn (%)(2)
Fixed Churn (%)
ARPU (Average Monthly Revenue per User) (TRY)
Mobile ARPU, blended 
   Mobile ARPU, blended (excluding M2M)
Postpaid
   Postpaid (excluding M2M)
Prepaid
Fixed Residential ARPU, blended
Average mobile data usage per user (GB/user)
Mobile MoU (Avg. Monthly Minutes of usage per subs) 
blended

FY17
36.7
18.5
2.3
15.6
1,204.3
921.4
505.9

1.9%
1.8%

29.8
31.6
43.0
48.5
14.9
53.6
3.9

347.1

FY18
36.7
18.8
2.4
14.9
1,385.6
905.6
613.4

2.1%
1.8%

33.9
36.2
48.2
54.9
16.9
55.7
5.2

359.5

153

y/y %                
-
1.6%
4.3%
(4.5%)
15.1%
(1.7%)
21.2%

0.2 pp
-

13.8%
14.6%
12.1%
13.2%
13.4%
3.9%
33.3%

3.6%

(1) Presentation of churn figures has been changed to demonstrate average monthly churn figures for the respective quarters.   
(2) In Q117, our churn policy was revised to extend from 9 months to 12 months (the period at the end of which we disconnect prepaid subscribers who have not topped up above TRY10). 
Additionally, under our revised policy, prepaid customers who last topped up before March will be disconnected at the latest by year-end. Please note that figures for prior periods have not 
been restated to reflect this change in churn policy.

Our mobile subscriber base stood at 33.8 million by the end of the 
year. We registered 347 thousand net postpaid subscriber additions 
annually, while the share of postpaid subscribers reached 55.7% 
(54.2%) of our mobile subscriber base. Meanwhile, our prepaid 
subscribers declined by 676 thousand annually. Please note that 
555 thousand prepaid subscribers, who last topped up between 
January and March, were disconnected in accordance with our 
churn policy in Q418.

Our fixed subscriber base reached 2.3 million on 166 thousand 
annual net additions. We registered 181 thousand annual net 
additions to our fiber subscribers. IPTV subscribers exceeded 613 
thousand on 108 thousand annual net additions. Total TV subscribers 
including OTT only users reached 3.4 million(3) on 1.3 million annual 
additions. 

The average monthly mobile churn rate was at 2.1% and the 
average monthly fixed churn rate at 1.8%.

Mobile ARPU (excluding M2M) rose 14.6% for the full year driven 
mainly by increased data and digital services usage and upsell 
performance.

Fixed Residential ARPU rose 3.9% for the full year, positively 
impacted by the rise in multiplay subscribers with TV(4) to 48.6% of 
total residential fiber subscribers. 

Average mobile data usage per user rose by 33.3% for the full year, 
driven by higher data consumption of 4.5G users and rich digital 
services offerings. Accordingly, the average mobile data usage of 
4.5G users was at 8 GB in December.

4.5G compatible smartphones increased to 18 million on 2.3 million 
annual additions in 2018 comprising 80% of total smartphones on 
our network by the end of the year.

(3) IPTV users and OTT only cumulative active users
(4) Multiplay subscribers with TV: Fiber internet + TV users & fiber internet + TV + voice users

TURKCELL ANNUAL REPORT 2018SECTORAL AND FINANCIAL INFORMATION 
 
 
 
 
 
154

FORWARD LOOKING STATEMENTS

In 2019, we target Group revenue growth of 16% - 18%, an 
EBITDA margin of 37% - 40% and an operational capex to 
sales ratio(1) of 16% - 18%.

2019 GUIDANCE

16%-18%
REVENUE 
GROWTH

37%-40%
EBITDA 
MARGIN

16%-18%
OP. CAPEX/ 
SALES(1)

(1) Excluding license fee

Please note that this paragraph contains forward looking statements based on our current estimates and expectations regarding market 
conditions for each of our different businesses. No assurance can be given that actual results will be consistent with such estimates and 
expectations. For a discussion of factors that may affect our results, see our Annual Report on Form 20-F for 2017 filed with U.S. Securities and 
Exchange Commission, and in particular, the risk factor section therein.

TURKCELL ANNUAL REPORT 2018REVIEW OF RISK ASSESSMENT

155

RISK MANAGEMENT AND INTERNAL CONTROL MECHANISM 

During the process of selecting the independent external 
auditor; the Audit Committee considers the competencies and 
independence status of the independent audit firms, and advises 
the Board of Directors presenting a report about the most suitable 
audit firm. 

During our Company’s Ordinary general assembly meeting held on 
March 29, 2018, PwC Bağımsız Denetim ve Serbest Muhasebeci Mali 
Müşavirlik A.Ş. was appointed as the Company auditor for auditing 
our Company’s financial statements of 2018 as per the Turkish 
Commercial Code (TCC).(1) 

Moreover, the Internal Audit Function operates with the Board 
of Directors and is responsible for the auditing of Turkcell İletişim 
Hizmetleri A.Ş. and all of the group companies which are 
subsidiaries, and reports the results of the audit carried out in line 
with the International Standards for the Professional Practice of 
Internal Auditing to the Audit Committee. The auditing activities of 
the Internal Audit function mainly comprise of operational audits 
conducted pursuant to annual risk based audit plans and audits in 
accordance with Article 404 of the Sarbanes-Oxley Act.

Operational audit activities are carried out according to annual 
audit plans prepared with respect to a risk based audit approach. 
Through conducting operational audits, Internal Audit function 
evaluates and improves effectiveness of risk management, 
control, and governance processes, provides assurance to Board 
of Directors and Audit Committee. Thereby, helps Turkcell to 
accomplish its objectives.

On the other hand, as we are listed on the New York Stock 
Exchange in the United States, audits are conducted within the 
framework of the annual plan to provide assurance in terms 
of the adequacy and effectiveness of internal control system 
across Turkcell and Turkcell group companies, of which financial 
statements  are consolidated, and whether this structure operates 
effectively, in compliance with the provisions of Article 404 of the 
Sarbanes-Oxley Act, which all publicly traded companies are 
required to comply with. All stages from the planning stage to 
the indentified internal control insufficiencies and following and 
concluding actions of the audit activities carried out in accordance 
with said Article are reported to the Audit Committee, CEO and 
CFO at regular intervals.

 » Competition in the Turkish telecommunications market may 

adversely affect the growth of our business and our financial 
condition. 

 » Our growth strategy is partly dependent on new investment 
opportunities, which could affect our business and financial 
condition, and the return on our investments cannot be guaranteed. 

 » Regulatory decisions and changes in the regulatory environment 

could adversely affect our business and financial condition. 
 » Any downturn in the economy and instability in the political 

environment in Turkey and internationally may have an adverse 
effect on our business and financial condition.

 » We hold interests in several companies that may expose us to 
various economic, business, political, social, financial, liquidity, 
regulatory and legal risks and may not provide the benefits that 
we expect, and our pursuit of acquisition opportunities may 
increase these risks. 

 » We are exposed to foreign exchange rate risks that could 

significantly affect our results of operation and financial position. 

 » Reduction in cash generated from operations and increased 

capital needs may increase our borrowing requirements, which 
may increase our financing costs and our exposure to the risks 
associated with borrowing. 

 » We are subject to a variety of risks with respect to our Base 

Transceiver Stations (“BTSs”) excellence.  

 » We face risks related to our dependence on network and IT 

systems and the products and services we provide through third 
party suppliers as well as our exposure to technological changes 
in the communications market, including industries where we 
traditionally do not compete.

 » Turkcell’s complex ownership structure and ongoing disagreements 
among our main shareholders have adversely impacted and may 
continue to impact decision making on important matters.  These 
ongoing disputes may lead to further regulatory or legal actions, 
and affect the ownership and control of our company. 

 » Our business, consolidated financial results and/or operational 

performance could be adversely affected unless we retain our key 
personnel, our partners and their employees. 

 » We are involved in various claims and legal actions arising in 

connection with our business, which could have a material effect 
on our financial condition.

 » Although we maintain and regularly review our internal control 
over financial reporting, there are inherent limitations on the 
effectiveness of our controls, particularly as our Company grows 
and enters into new businesses

 » If we fail to comply with laws and regulations regarding 

unethical business practices, including bribery and corruption, and 
international sanctions, or if one of our key suppliers becomes 
subject to international sanctions, this could adversely affect our 
business and financial condition

 » Our ADS price may be volatile, and purchasers of ADSs could incur 

substantial losses.

 » Natural disasters and/or cyber-attacks, sabotages and 

extraordinary outages may pose various threats for our network 
and information technology infrastructure.

TURKCELL ANNUAL REPORT 2018SECTORAL AND FINANCIAL INFORMATION156

REVIEW OF RISK ASSESSMENT

were worked with the business owners. One-to-one meetings were 
held with each risk contact to create and develop the risk universe. 
The risk universe is created for each function / department with the 
inputs provided by the directors and the risk contacts. Turkcell Group 
has created awareness on the common risk culture in order to 
standardize its corporate risk management efforts. Regular synergy 
meetings were held with central and support functions such as 
Strategy, Law, Finance, Network Technologies, Customer Experience 
and Information Technologies, Global Bilgi etc.

In 2000, Turkcell formulated its business continuity plans in a manner 
also encompassing its technical operations and repositioned its 
business continuity plan as Business Continuity Management by 
broadening the extent thereof in 2004.

With the restructuring in 2011, the scope of the program expanded 
so as to comprise Turkcell Group companies and suppliers. 
Turkcell Group Business Continuity Management System has been 
structured and certified in a manner ensuring the continuity of our 
call, messaging, Internet, server services, data centers and societal 
security services as per the international “ISO 22301, Societal 
security - Business continuity management systems” standard. 
Regular drills are conducted for our business continuity plans formed 
by considering the customers’ expectations, corporate policies and 
legal obligations in order to guarantee their operation in case of 
emergency and disaster.

Thanks to our geographically dispersed technical infrastructure, 
extensive coverage, solution partner network, mobile exchanges, 
mobile base stations, additional capacity, emergency centers 
and extensive experience in handling emergencies enable us to 
minimize the impact of risks as much as possible and additionally, 
the experience of our Group companies in customer services, our 
high speed fiber-optic infrastructure, data storage services and our 
experienced software development teams allow us to effectively 
manage any disasters from another center, thereby ensuring the 
continuity of our activities.

(1) Başaran Nas Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.’s (Başaran 
Independent Audit & Financial Consultancy Inc.) commercial name was changed as of the 
12th of December 2016 to PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik 
A.Ş. (PwC Independent Audit & Financial Consultancy Inc.).

The Internal Audit Unit also provides consultancy in current matters 
and matters requested by the management.

The Internal Audit Unit reports the compliance practices as per 
Sarbanes Oxley Rule Act Section 404 to the Audit Committee 
and CEO while Corporate Risk Management Unit reports to the 
Early Detection of Risks Committee. The Internal Audit mechanism 
operates with a risk based audit approach. Within this scope, 
functionally and institutionally probable risks are continuously 
monitored, where the risk analyses resulting from these conducted 
operations constitute the main input of audit activities.

As of the end of the financial year of 2012, the “Early Detection 
of Risks Committee” has been in operation in order to perform 
activities in a manner affiliated with the Board of Directors 
within the scope of article 378 of the TCC and the Communiqué 
on Corporate Governance of the CMB. The Early Detection of 
Risks Committee supports the Board of Directors by performing 
studies for the purpose of early detection of the risks which may 
jeopardize the existence, development and continuity of the 
Company, implementing the necessary measures related with the 
identified risks and managing the risks. The Committee reports to 
the Board of Directors once every 2 months and these reports are 
shared with an independent audit company. Board of Directors 
regularly provides an evaluation regarding the risks affecting the 
Company through the Early Detection of Risks Committee.

It is the responsibility of the Enterprise Risk Management team 
to assess the risks and to report the risk prevention activities to 
the Early Detection of Risk Committee and to coordinate the risk 
prevention activities with the directors and group companies 
in Turkcell and Global Bilgi. Each director is responsible for the 
Enterprise Risk Management activities in her/his unit. Enterprise Risk 
Management team carries out the corporate risk management 
duties together with directors, managers who directly reports 
to vice presidents, and risk contacts. Turkcell Enterprise Risk 
Management team aims to develop an approach, where risk 
management process is conducted in an integrated manner 
with the fundamental management processes. While enabling 
this, a framework associated with the process was identified in 
accordance with an Enterprise Risk Management procedure as 
per the COSO ERM framework and ISO 31000 standard. Group-
wide risks are categorized establishing a risk library and standard 
risk definitions are created for each category. The risks that may 
be encountered in the business processes with functions are 
determined by taking into account the worst case scenario of 
each risk identified and included in the risk library with the business 
owners. By making the internal audit of the business owners, the 
controls they made to reduce the risk, the findings that caused the 
weaknesses and the action plans to eliminate these weaknesses 

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED FINANCIAL STATEMENTS FOR THE 
YEAR ENDED 31 DECEMBER 2018 AND INDEPENDENT 
AUDITOR’S REPORT

This report is 119 pages

Report of Independent Registered Public Accounting Firm 

To the Shareholders and Boards of Directors of Turkcell İletişim Hizmetleri A.Ş.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated statements of financial position of Turkcell İletişim Hizmetleri A.Ş. (the “Company”) and its subsidiaries 
as of December 31, 2018 and 2017, and the related consolidated statements of profit or loss, other comprehensive income, changes in equity, and cash 
flows for each of the three years in the period ended December 31, 2018, including the related notes (collectively referred to as the “consolidated financial 
statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in 
Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as 
of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018 
in conformity with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Also in our opinion, the 
Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in 
Internal Control - Integrated Framework (2013) issued by the COSO. 

Change in Accounting Principle

As discussed in Note 2 to the consolidated financial statements, the Company changed the manner in which it accounts for revenues from contracts with 
customers and the manner in which it accounts for leases in 2018.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting 
and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control 
Over Financial Reporting appearing on Item 15b of the 2018 Annual Report to Shareholders. Our responsibility is to express opinions on the Company’s 
consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting 
firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the 
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the 
PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain 
reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether 
effective internal control over financial reporting was maintained in all material respects. 

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated 
financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a 
test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting 
principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. 
Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that 
a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits 
also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis 
for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting 
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal 
control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately 
and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as 
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures 
of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable 
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material 
effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation 
of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of 
compliance with the policies or procedures may deteriorate.

 
 
159

TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2018

(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO 
THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)

Note

31 December 2018

31 December 2017

Assets

Property, plant and equipment
Right-of-use assets
Intangible assets

Telecommunication licenses
Computer software
Other intangible assets

Investment properties
Trade receivables
Receivables from financial services
Contract assets
Deferred tax assets
Investments in equity accounted investees
Held to maturity investments
Other non-current assets

Total non-current assets

Inventories
Trade receivables 
Due from related parties
Receivables from financial services
Contract assets
Derivative financial instruments
Held to maturity investments
Financial asset at fair value through profit or loss
Financial asset at fair value through other comprehensive income
Cash and cash equivalents
Other current assets

Subtotal
Assets classified as held for sale

Total current assets

Total assets

Equity

Share capital
Share premium
Treasury shares 
Additional paid-in capital
Reserves
Remeasurements of employee termination benefit 
Retained earnings

Total equity attributable to equity holders of
Turkcell Iletisim Hizmetleri AS (“the Company”)

Non-controlling interests

Total equity

11
15
12

14
19
20
21
18

17

22
19
38
20
21
34

24
23

16

25

25

11,116,316
1,649,602
10,050,172
5,774,763
3,057,143
1,218,266
15,425
115,001
884,686
3,513
152,732
19,413
-
421,306
24,428,166

180,434
2,505,990
13,533
3,286,243
711,928
1,356,062
-
9,409
42,454
7,419,239
1,091,512
16,616,804
1,720,305

9,665,408
-
8,340,410
5,720,398
2,346,236
273,776
980
155,634
1,297,597
-
96,060
-
654
356,620
19,913,363

104,102
2,848,572
5,299
2,950,523
-
981,396
11,338
-
-
4,712,333
1,160,605
12,774,168
1,294,938

18,337,109

14,069,106

42,765,275

33,982,469

2,200,000
269
(141,534)
35,026
2,503,537
(34,871)
11,359,317

15,921,744

2,200,000
269
(56,313)
35,026
1,542,679
(44,776)
11,312,276

14,989,161

131,810

55,927

16,053,554

15,045,088

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

F1

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018 
160

TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2018

(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO 
THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)

Liabilities

Borrowings

Employee benefit obligations

Provisions

Deferred tax liabilities

Contract liabilities

Other non-current liabilities

Total non-current liabilities

Borrowings

Current tax liabilities

Trade and other payables

Due to related parties

Deferred revenue

Provisions

Contract liabilities

Derivative financial instruments

Total current liabilities

Total liabilities

Total equity and liabilities

Note

31 December 2018

31 December 2017

28

29

32

18

31

27

28

33

38

30

32

31

34

13,119,636

224,747

268,722

862,360

131,598

364,610

14,971,673

7,035,909

133,597

3,788,174

45,331

8,948

307,068

255,756

165,265

11,740,048

8,257,995

197,666

197,418

651,122

-

409,337

9,713,538

4,278,154

103,105

3,696,466

6,980

193,831

835,199

-

110,108

9,223,843

26,711,721

18,937,381

42,765,275

33,982,469

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

F2

TURKCELL ANNUAL REPORT 2018161

TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED 31 DECEMBER 2018

(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO 
THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)

Revenue

Revenue from financial services

Total revenue

Cost of revenue

Cost of revenue from financial services

Total cost of revenue

Gross profit 

Gross profit from financial services

Total gross profit

Other income

Selling and marketing expenses

Administrative expenses

Net impairment losses on financial and contract assets

Other expenses

Operating profit

Finance income

Finance costs

Net finance costs

Share of loss of equity accounted investees

Profit before income tax

Income tax expense

Profit from continuing operations 

Note

2018

2017

2016

5

5

10

10

6

10

10

10

6

8

8

9

20,350,557

941,918

17,026,401

605,663

14,100,863

184,698

21,292,475

17,632,064

14,285,561

(13,785,448)

(11,073,465)

(360,545)

(276,709)

(9,166,384)

(70,223)

(14,145,993)

(11,350,174)

(9,236,607)

6,565,109

581,373

7,146,482

5,952,936

328,954

6,281,890

241,435

74,438

(1,626,714)

(2,005,420)

(673,370)

(346,390)

(381,582)

4,359,861

1,932,133

(3,619,091)

(1,686,958)

(645,196)

-

(773,329)

2,932,383

818,436

(1,141,302)

(322,866)

4,934,479

114,475

5,048,954

78,569

(1,910,947)

(721,849)

-

(312,801)

2,181,926

961,642

(1,134,441) 

(172,799)

(87)

-

-

2,672,816

2,609,517

2,009,127

(495,481)

2,177,335

(571,758)

2,037,759

(423,160)

1,585,967

(Loss) from discontinued operations (attributable to owners of the Company) 

-

-

(42,164)

Profit for the year

2,177,335

2,037,759

1,543,803

Profit for the year is attributable to:
Owners of the Company

Non-controlling interests 

Total

Basic and diluted earnings per share for profit attributable to owners of the 
Company (in full TL)

Basic and diluted earnings per share for profit from continuing operations 
attributable to owners of the Company (in full TL) 

Basic and diluted earnings/(losses) per share for profit /(loss) from discontinued 
operations attributable to owners of the Company (in full TL)

2,021,065

156,270

2,177,335

1,979,129

58,630

1,492,088

51,715

2,037,759

1,543,803

26

26

0.93

0.93

-

0.90

0.90

-

0.68

0.70

(0.02)

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

F3

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018162

TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED 31 DECEMBER 2018

(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO 
THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)

Profit for the year

Other comprehensive income/(expense):

Items that will not be reclassified to profit or loss:
Remeasurements of employee termination benefits

Income tax relating to remeasurements of employee termination benefits

Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations

Exchange differences arising from discontinued operations

Cash flow hedges – effective portion of changes in fair value

Cash flow hedges – reclassified to profit or loss

Cost of hedging reserve – changes in fair value

Cost of hedging reserve – reclassified to profit or loss

Income tax relating to these items
-Income tax relating to exchange differences

-Income tax relating to cash flow hedges

Other comprehensive income/(loss) for the year, net of income tax

Note

2018

2017

2016

2,177,335

2,037,759

1,543,803

12,699

(2,794)

9,905

(3,738)

748 

(2,990)

(34,532)

7,066

(27,466)

424,817

425,371

630,191

(611,035)

(390,267)

42,665

(154,409)
(226,667)

72,258

367,333

377,238

27,959 

72,190 

63,920

154,552

-

-

-

-

(107,299)
(107,299)

-

(7,150)

(10,140)

-

-

-

-

(87,381)
(87,381)

-

131,091

103,625

34

34

Total comprehensive income for the year

2,554,573 

2,027,619

1,647,428

Total comprehensive income for the year is attributable to: 
Owners of the Company

Non-controlling interests

Total

Total comprehensive income for the year attributable to owners of the 
Company arises from:
Continuing operations

Discontinued operations

Total

2,398,930

155,643

1,968,102 

1,594,465

59,517 

52,963

2,554,573 

2,027,619

1,647,428

1,957,396

441,534

1,903,109 

1,496,209

64,993 

98,256

2,398,930 

1,968,102

1,594,465

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

F4

TURKCELL ANNUAL REPORT 2018 
 
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F5

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
 
  
  
  
  
  
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
  
  
  
  
 
  
  
  
 
 
 
 
  
  
  
 
  
  
  
  
 
 
 
 
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
164

TURKCELL İLETİŞİM HİZMETLERİ A.Ş.
CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2018

(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO 
THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)

Note

2018

2017

2016

Cash flows from operating activities:
Profit before income tax from
Continuing operations
Discontinued operations

Profit before income tax including discontinued operations
Adjustments for:
Depreciation and impairment of property, plant and equipment and investment properties
Amortization of intangible assets
Net finance (income)/expense
Fair value adjustments to derivatives
Income tax expense
Gain on sale of property, plant and equipment
Unrealized foreign exchange losses on operating assets
Provisions
Share of profits of discontinued operations
Share of equity accounted investees
(Gain) on sale of subsidiary
Deferred revenue

Change in operating assets/liabilities 
Change in trade receivables
Change in due from related parties
Change in receivables from financial services
Change in inventories
Change in other current assets
Change in other non-current assets
Change in due to related parties
Change in trade and other payables
Change in other non-current liabilities
Change in employee benefit obligations
Change in short term contract asset
Change in long term contract asset
Change in short term contract liability
Change in long term contract liability
Changes in other working capital
Cash generated from operations

Interest paid
Income tax paid
Net cash inflow from operating activities

Cash flows from investing activities:
Acquisition of property, plant and equipment
Acquisition of intangible assets
Proceeds from sale of property, plant and equipment
Proceeds from advances given for acquisition of property, plant and equipment 
Contribution of increase of share capital in joint ventures/associates
Proceeds from sale of subsidiary
Payments for held to maturity investment
Payment for financial asset at fair value through profit or loss
Payment for financial asset at fair value through other comprehensive income
Interest received
Net cash outflow from investing activities

Cash flows from financing activities:
Dividends received for treasury share
Capital decrease in subsidiaries
Proceeds from derivative instruments
Repayments of derivative instruments
Proceeds from issues of loans and borrowings
Proceeds from issues of bonds
Repayment of borrowings 
Repayment of bonds
Dividends paid to shareholders
Dividends paid to non-controlling interest in subsidiaries
Acquisition of treasury shares
(Increase)/decrease in cash collateral related to loans
Payments of lease liabilities
Net cash (outflow)/inflow from financing activities

Net (decrease)/increase  in cash and cash equivalents

Cash and cash equivalents at 1 January

11-14
12

9

30

19
38
20
22
23
17
38
33
27
29
21
21
31
31

11
12

2,177,335
-
2,177,335

1,894,445
2,393,529
983,881 
(1,719,610)
495,481
(43,727)
2,954,304 
796,520
-
87
(110,308)
54,391
9,876,328

273,110  
(5,870)
(69,991)
(76,883)
53,957 
142,133
40,072
(501,980)
(242,384)
(32,764)
(711,928)
(3,513)
 255,756
 131,598 
(981,764)
8,145,877 

  (1,658,308)
 (657,715)
5,829,854

(2,960,648)
(2,264,912)
103,864
(204,817)
(19,500)
118,528
-
2,577
(42,454)
731,793
(4,535,569)

9,399
-
1,054,345
(710,522)
44,341,070 
2,188,313
(43,987,127)
(191,312)
(1,900,000)
(58,778)
(94,620)
(20,272)
(1,164,879)
(534,383) 

2,037,759
-
2,037,759

1,501,579
1,095,401
165,387
(562,562)
571,758
(33,837)
966,340
980,040
-
-
-
131,486
6,853,351

613,404
1,107
(1,931,538)
27,871
(198,268)
15,012
(4,099)
(507,043)
(82,018)
(18,627)
-
-
-
-
(265,518)
4,503,634

(909,881)
(492,487)
3,101,266

(2,937,195)
(1,172,847)
58,740
205,580
-
-
(11,992)
-
-
553,066
(3,304,648)

-
-
-
-
24,102,643
209,808
(22,265,088)
(379,660)
(2,990,706)
(60,222)
-
(183,518)
-
(1,566,743)

1,585,967
(42,164)
1,543,803

1,281,539
921,812
(117,598)
(383,452)
423,160
(25,010)
545,287
197,543
42,164
-
-
(20,350)
4,408,898

1,197,053
7,514
(2,396,372)
(62,090)
643,444
78,770
4,302
(2,733,901)
(14,477)
15,151
-
-
-
-
29,286
1,177,578

(434,521)
(135,920)
607,137

(2,572,401)
(855,097)
49,639
(209,686)
-
-
-
-
-
610,837
(2,976,708)

-
(9,000)
-
-
9,381,318
167,500
(4,932,768)
-
-
(51,416)
(65,607)
349,004
-
4,839,031

759,902

(1,770,125)

2,469,460

4,712,333

6,052,352

2,918,796

Effects of exchange rate changes on cash and cash equivalents

1,947,004

430,106

664,096

Cash and cash equivalents at 31 December

24

7,419,239

4,712,333

6,052,352

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

F6

TURKCELL ANNUAL REPORT 2018Notes to the consolidated financial statements

1. Reporting entity 
2. Basis of preparation and summary of significant accounting policies 
3. Financial risk management 
4. Segment information 
5. Revenue 
6. Other income and expenses 
7. Employee benefit expenses 
8. Finance income and costs 
9. Income tax expense 
10. Expenses by nature 
11. Property, plant and equipment 
12. Intangible assets 
13. Impairment of assets 
14. Investment property 
15. Right of use assets 
16. Asset held for sale discontinued operation 
17. Other non-current assets 
18. Deferred tax assets and liabilities 
19. Trade receivables and accrued revenue 
20. Receivables from financial services 
21. Contract assets  
22. Inventory 
23. Other current assets  
24. Cash and cash equivalents 
25. Equity 
26. Earnings per share 
27. Other non-current liabilities 
28. Loans and borrowings 
29. Employee benefit 
30. Deferred revenue 
31. Contract liabilities 
32. Provisions 
33. Trade and other payables 
34. Derivative financial instruments 
35. Financial instruments 
36. Guarantees and purchase obligations 
37. Commitments and contingencies 
38. Related parties 
39. Subsidiaries 
40. Cash flow information 
41. Subsequent events 

165

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F7

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
166

1. Reporting entity

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 and Infrastructure 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 rates, offer a variety of service and pricing packages, issue invoices directly 
to subscribers, collect payments and deal directly with subscribers. Following the 3G tender held by the Information Technologies and 
Communications Authority (“ICTA”) regarding the authorization for providing IMT-2000/UMTS services and infrastructure, the Company 
has been granted the A-Type license (the “3G License”) providing the widest frequency band, at a consideration of EUR 358,000 
(excluding Value Added Tax (“VAT”)). Payment of the 3G license was made in cash, following the necessary approvals, on 30 April 2009.

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.

The Company is obliged to pay the ICTA a monthly treasury share equal to 90% of 15% of gross revenue and 10% is paid for a universal 
service fund. In addition, the Company pays annual contributions in an amount equal to 0.35% of net revenue to the ICTA’s expenses 
and 5% of net revenue to ICTA as a frequency fee (TRx).

The Company’s parent is Turkcell Holding A.S., which holds 51% of the Company’s shares as of 31 December 2018. 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. On 29 March 2018, in accordance with the shareholder 
proposal at the Ordinary General Assembly, 3 new members were elected to serve for 3 years instead of 3 members who are 
appointed by the CMB and meet the independence criteria. Since a member of board of directors resigned from his assignment as 
of 11 July 2018, Turkcell’s Board of Directors consists of a total of 6 non-executive members including 3 independent members as of 31 
December 2018.

F8

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
167

1. Reporting entity (continued)

The consolidated financial statements of the Company as at and for the year ended 31 December 2018 comprise the Company and its 
subsidiaries (together referred to as the “Group”) and the Group’s interest in associates and a joint venture. Subsidiaries of the Company, 
their locations and their nature of operations are disclosed in Note 39. The Company’s and each of its subsidiaries’ and associate’s 
financial statements are prepared as at and for the year ended 31 December 2018.

2. Basis of preparation and summary of significant accounting policies

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 İletişim Hizmetleri A.Ş. 
and its subsidiaries and the Group’s interest in associates and a joint venture.

(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 accounting policies, presentation and methods of computation are consistent with those of the previous financial year and 
corresponding reporting period, unless otherwise stated.

The Group adopted IFRS 9, “Financial Instruments” and IFRS 15, “Revenue from Contracts with Customers” for the first time for the year 
commencing 1 January 2018. The Group also elected to early adopt IFRS 16, “Leases” for the first time for the year commencing 1 
January 2018. 

The impacts of adoption of IFRS 9, IFRS 15 and IFRS 16 on the consolidated financial statements are explained in Note 2.ae.i.

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 2017 were authorized for issue by the Board of Directors on 15 February 2018. 

The consolidated financial statements as at and for the year ended 31 December 2018 were authorized for issue by the Board of 
Directors on 20 February 2019 and updated to reflect subsequent events after the original date of authorisation for inclusion in its 
annual report on Form 20-F.  

(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

F9

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
168

2. Basis of preparation and summary of significant accounting policies (continued)

(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 assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional 
currency using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities 
carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and 
liabilities such as equities held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss 
and translation differences on non-monetary assets such as equities classified as at fair value through other comprehensive income 
are recognised in other comprehensive income.

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 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.

F10

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
169

2. Basis of preparation and summary of significant accounting policies (continued)

(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 receivables, 
receivables from financial services and other receivables; when there was objective evidence of impairment as a result of one or 
more events that occurred after the initial recognition of asset a loss event and that loss event had an impact on the estimated future 
cash flows of the financial asset or group of financial assets that could be reliably estimated. 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. 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.

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.

F11

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
170

2. Basis of preparation and summary of significant accounting policies (continued)

(d) Use of estimates and judgments (continued)

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.

Multiple performance obligations and price allocation

In arrangements which include multiple elements where the Group acts as principal, the Group considers these bundled elements 
involve consideration in the form of a fixed fee or a fixed fee coupled with a continuing payment stream. A good or service is distinct if 
both of the following criteria are met:

•  the good or service is capable of being distinct  
•  the promise to transfer the good or service is distinct within the context of the contract.

The arrangement consideration is allocated to each performance obligation identified in the contract on a relative stand-alone selling 
prices. If an element of a transaction is not a distinct, then it is accounted for as an integral part of the remaining elements 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.

F12

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
171

2. Basis of preparation and summary of significant accounting policies (continued)

(d) Use of estimates and judgments (continued)

Provisions, contingent liabilities and contingent assets

As detailed and disclosed in Note 37, 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” and disclosed or accounted 
in the consolidated financial statements. Future results or outcome of these investigations and litigations might differ from Group 
Management’s expectations. As at the reporting date, the Group Management believes that appropriate recognition criteria and 
measurement basis are applied to provisions, contingent liabilities and contingent assets and that sufficient information is disclosed in 
the notes to enable users to understand their nature, timing and amount by considering current conditions and circumstances.

Annual impairment review 

The Company tests annually whether goodwill and intangible asset not yet available for use have suffered any impairment in 
accordance with IAS 36 “Impairment of Assets”. Additionally, the carrying amounts of Company’s nonfinancial assets are reviewed at 
each reporting date to determine whether there is an indication of impairment. If any indication exists the assets recoverable amount is 
estimated based on fair value less cost of disposal calculations. These calculations require the use of estimates as discussed in Note 13.

As at 31 December 2014, the Company has impaired its assets in Crimea region amounting to TL 19,897. As at 31 December 2018, there is 
no impairment on assets in Luhansk and Donetsk regions (31 December 2017: 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 Company 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 Company’s expectations. As at 31 December 2018, 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 Company’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 Company uses market-observable data to the extent it is available. Where Level 1 and 2 inputs are not 
available, the Company can engage third party qualified experts to perform the valuation, if necessary. The management works 
closely with the qualified external experts 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 35.

F13

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
172

2. Basis of preparation and summary of significant accounting policies (continued)

(e) Changes in accounting policies

Other than the adoption of the new and revised standards as explained in Note 2(ae), the Group did not make any significant changes 
to its accounting policies during the current year. 

As at 31 December 2018, interest expense/income and fair value of derivative financial instruments are shown netted off on 
consolidated statement of profit or loss (Note 8). The Company has presented financials of 31 December 2017 and 2016 accordingly. 
This classification has no impact on operating profit, profit for the year and cash flow statement. 

Interest expense and income for derivative financial instruments and option premium charges are shown net of under finance income 
(Note 8).

(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.

F14

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
173

2. Basis of preparation and summary of significant accounting policies (continued)

(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 equity interest in the subsidiary.

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 interest in the acquired entity, 
and acquisition-date fair value of any previously held equity interest in the acquired entity over the fair value of the net identifiable 
assets acquired. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is 
recognized directly in profit or loss as a bargain purchase. The Group recognizes any non-controlling interest in the acquired entity on 
an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net 
identifiable assets.

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. 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.

F15

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
174

2. Basis of preparation and summary of significant accounting policies (continued)

(h) Principles of consolidation and equity accounting (continued)

(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 interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss, 
statement of comprehensive income, statement of changes in equity and statement of financial position respectively.

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 shareholder.

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 similarly 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, third financial loans amounting to TL 90,272 on 16 February 2018 and 
fourth financial loans amounting to TL 56,716 on 20 December 2018. 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 of the related assets from its consolidated 
financial statements. Moreover, the Company did not consolidate the Fund since the activities of the Fund are not controlled by the 
Company and the Fund has been defined as a structured entity.

F16

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
175

2. Basis of preparation and summary of significant accounting policies (continued)

(h) Principles of consolidation and equity accounting (continued) 

(iii) Changes in ownership interests

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of 
the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling 
interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to the non-controlling 
and any consideration paid or received is recognized in a separate reserve within equity attributable to owners of the Company. 

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.

(v) Put option over shares relating to non-controlling interests

Where a put option is written by the Group on shares in an existing subsidiary held by non-controlling interests, the Group recognizes 
a financial liability at the present value of the redemption amount to reflect the put option. If the ownership risks and rewards of the 
shares relating to the put option is attributable to Group, the non-controlling interest is derecognized. The difference between the put 
option liability and the non-controlling interests derecognized is recognized in equity. For business combinations after 1 January 2009, 
subsequent changes in the fair value of the put option liability are recognized in profit or loss.

Reserve for put option over shares relating to non-controlling interests included in equity arises from the difference between the fair 
value of the put option written by Fintur Holdings B.V. (“Fintur”) on non-controlling shares in one of its subsidiaries and the derecognized 
non-controlling interests relating to that put option.

F17

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
176

2. Basis of preparation and summary of significant accounting policies (continued)

(h) Principles of consolidation and equity accounting (continued) 

(vi) Investments in associates and joint ventures 

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.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of 
the joint arrangement. The results and assets and liabilities of joint ventures are incorporated in these consolidated financial statements 
using the equity method of accounting.

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 16). 
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

From 1 January 2018, the Group classifies its financial assets in the following measurement categories:

- those to be measured subsequently at fair value (either through OCI or through profit or loss), and
- those to be measured at amortised cost.

The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the cash 
flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments 
that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition 
to account for the equity investment at fair value through other comprehensive income (FVOCI).

The Group reclassifies debt investments when and only when its business model for managing those assets changes.

F18

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
177

2. Basis of preparation and summary of significant accounting policies (continued)

(i) Financial instruments (continued)

(ii) 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.

(iii) 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 (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of 
financial assets carried at FVPL are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely 
payment of principal and interest.

Debt instruments

Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow 
characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:

- Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of 
principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using 
the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss. 

- FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows 
represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, 
except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised 
in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from 
equity to profit or loss. Interest income from these financial assets is included in finance income using the effective interest rate method. 

- FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a debt instruments 
that is subsequently measured at FVPL is recognised in profit or loss in the period in which it arises.

Equity instruments

The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair 
value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or 
loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other 
income when the Group’s right to receive payments is established.

Changes in the fair value of financial assets at FVPL are recognised in the statement of profit or loss as applicable. Impairment losses 
(and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair 
value.

F19

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 178

2. Basis of preparation and summary of significant accounting policies (continued)

(i) Financial instruments (continued)

(iv) Impairment

From 1 January 2018, the Group assesses on a forward looking basis the expected credit losses associated with its debt instruments 
carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase 
in credit risk.

Loss allowances are measured on either the following bases.

•  12 month expected credit losses (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.

The Group applies lifetime ECL measurement for all group companies except Turkcell Finansman A.S. which applies both 12 month and 
lifetime ECL (general approach).

(v) Derivatives and hedging activities 

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to 
their fair value at the end of each reporting period. 

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.

The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if 
so, the nature of the item being hedged. The group designates certain derivatives as hedges of a particular risk associated with the 
cash flows of recognised assets and liabilities and highly probable forecast transactions (cash flow hedges).

At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged 
items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of 
hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions.

Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in 
the cash flow hedge reserve within equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.

Gains or losses relating to the effective portion of the change in intrinsic value of the options are recognised in the cash flow hedge 
reserve within equity. The changes in the time value of the options that relate to the hedged item (‘aligned time value’) are recognised 
within OCI in the costs of hedging reserve within equity.

Amounts accumulated in equity are reclassified in the periods when the hedged item affects profit or loss, as follows: 

F20

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 179

2. Basis of preparation and summary of significant accounting policies (continued)

(i) Financial instruments (continued)

(v) Derivatives and hedging activities (continued)

Cash flow hedges that qualify for hedge accounting (continued)

- Where the hedged item subsequently results in the recognition of a non-financial asset, both the deferred hedging gains and losses 
and the deferred time value of the option contracts or deferred forward points, if any, are included within the initial cost of the asset. 
The deferred amounts are ultimately recognised in profit or loss as the hedged item affects profit or loss.

- The gain or loss relating to the effective portion of the interest rate swaps hedging variable rate borrowings is recognised in profit or 
loss within finance cost at the same time as the interest expense on the hedged borrowings.

When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any 
cumulative deferred gain or loss and deferred costs of hedging in equity at that time remains in equity until the forecast transaction 
occurs, resulting in the recognition of a non-financial asset. When the forecast transaction is no longer expected to occur, the 
cumulative gain or loss and deferred costs of hedging that were reported in equity are immediately reclassified to profit or loss.

Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not 
qualify for hedge accounting are recognised immediately in profit or loss.

(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.

Financial instruments - Accounting policies applied until 31 December 2017

The Group has applied IFRS 9 retrospectively, but has elected not to restate comparative information for prior periods. As a result, 
the comparative information provided continues to be accounted for in accordance with the Group’s previous accounting policy. 
Accounting policies that changed on adoption of IFRS 9 are as follows. The Group’s new accounting policies are explained above.

i) Classification

Until 31 December 2017, the Group classified its financial assets in the following categories:

•  financial assets at fair value through profit or loss,
•  loans and receivables,
•  held-to-maturity investments, and
•  available-for-sale financial assets.

The classification depended on the purpose for which the investments were acquired. Management determined the classification of 
its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluated this designation at the end of 
each reporting period.

F21

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
180

2. Basis of preparation and summary of significant accounting policies (continued)

(i) Financial instruments (continued)

Financial instruments - Accounting policies applied until 31 December 2017 (continued)

(ii) Reclassification

The Group could choose to reclassify a non-derivative trading financial asset out of the held for trading category if the financial asset 
was no longer held for the purpose of selling it in the near term. Financial assets other than loans and receivables were permitted to 
be reclassified out of the held for trading category only in rare circumstances arising from a single event that was unusual and highly 
unlikely to recur in the near term. In addition, the Group could choose to reclassify financial assets that would meet the definition of 
loans and receivables out of the held for trading or available-for-sale categories if the Group had the intention and ability to hold 
these financial assets for the foreseeable future or until maturity at the date of reclassification.

Reclassifications were made at fair value as of the reclassification date. Fair value became the new cost or amortized cost as 
applicable, and no reversals of fair value gains or losses recorded before reclassification date were subsequently made. Effective 
interest rates for financial assets reclassified to loans and receivables and held-to-maturity categories were determined at the 
reclassification date. Further increases in estimates of cash flows adjusted effective interest rates prospectively.

(iii) Subsequent measurement

The measurement at initial recognition did not change on adoption of IFRS 9.

Subsequent to initial recognition, loans and receivables and held-to-maturity investments were carried at amortized cost using the 
effective interest method.

Available-for-sale financial assets and financial assets at fair value through profit or loss were subsequently carried at fair value. Gains 
or losses arising from changes in the fair value were recognized as follows:

•  for ‘financial assets at fair value through profit or loss’ – in profit or loss 
•  for available-for-sale financial assets that are monetary securities denominated in a foreign currency – translation differences 
related to changes in the amortized cost of the security were recognized in profit or loss and other changes in the carrying 
amount were recognized in other comprehensive income

•  for other monetary and non-monetary securities classified as available-for-sale – in other comprehensive income 

Details on how the fair value of financial instruments is determined are disclosed in Note 35.

(iv) Impairment

The Group assessed at the end of each reporting period whether there was objective evidence that a financial asset or group of 
financial assets was impaired. A financial asset or a group of financial assets was impaired and impairment losses were incurred only 
if there was 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 had an impact on the estimated future cash flows of the financial asset or group of financial assets 
that could be reliably estimated. In the case of equity investments classified as available-for-sale, a significant or prolonged decline in 
the fair value of the security below its cost was considered an indicator that the assets were impaired. 

F22

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
181

2. Basis of preparation and summary of significant accounting policies (continued)

(i) Financial instruments (continued)

Financial instruments - Accounting policies applied until 31 December 2017 (continued)

(iv) Impairment (continued)

For loans and receivables, the amount of the loss was 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 was reduced and the amount of the loss was recognised in 
profit or loss. If a loan or held-to-maturity investment had a variable interest rate, the discount rate for measuring any impairment loss 
was the current effective interest rate determined under the contract. As a practical expedient, the Group could measure impairment 
on the basis of an instrument’s fair value using an observable market price.

If, in a subsequent period, the amount of the impairment loss decreased and the decrease could 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 was recognized in profit or loss.

Impairment testing of trade receivables is described in Note 35.

If there was objective evidence of impairment for available-for-sale financial assets, the cumulative loss – measured as the difference 
between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in profit 
or loss – was removed from equity and recognized in profit or loss.

Impairment losses on equity instruments that were recognised in profit or loss were not reversed through profit or loss in a subsequent 
period.

If the fair value of a debt instrument classified as available-for-sale increased in a subsequent period and the increase could be 
objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss was reversed 
through profit or loss.

(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 
assets.

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 35 for a description of the Group’s impairment policies.

F23

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
182

2. Basis of preparation and summary of significant accounting policies (continued)

(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.

F24

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
183

2. Basis of preparation and summary of significant accounting policies (continued)

(l) Property, plant and equipment (continued)

(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

Mobile network infrastructure

Fixed network infrastructure

Call center equipment

Equipment, fixtures and fittings

Motor vehicles

Central betting terminals

Leasehold improvements

21 – 25 years

4 – 20 years

3 – 25 years

4 – 8 years

2 – 10 years

4 – 6 years

5 – 10 years

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.

(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

F25

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
184

2. Basis of preparation and summary of significant accounting policies (continued)

(m) Intangible assets (continued)

(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 

(iii) Other intangible assets

3 – 8 years

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.

F26

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
185

5 – 10 years

 7 – 10years

 2 – 15 years

 9 – 10 years

 15 years

2. Basis of preparation and summary of significant accounting policies (continued)

(m) Intangible assets (continued)

(iii) Other intangible assets (continued)

Amortization

The Group amortizes intangible assets with a limited useful life using the straight-line method over the following periods:

Transmission line software

Central betting system operating right

Customer base

Brand name

Indefeasible right of use

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.

(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. 

F27

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
186

2. Basis of preparation and summary of significant accounting policies (continued)

(n) Investment properties (continued)

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.

(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 2018 and 2017, inventories mainly 
consisted of mobile phones, sim-cards, and other devices. 

(p) Impairment of assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for 
impairment, 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 assets other than goodwill that suffered an impairment are reviewed for possible 
reversal of the impairment at the end of each reporting period.

(r) Employee benefits

(i) Short-term obligations

Liabilities for salaries including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the 
period in which the employees render the related service are recognized in respect of employees’ services up to the end of the 
reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as 
trade and other payables in the statement of financial position.

(ii) Termination benefits

In accordance with the labor law in Turkey, the Company and its subsidiaries in Turkey are required to make lump-sum payments to 
employees who have completed one year of service and whose employment is terminated without cause or who retire, are called 
up for military service or die. Such payments are calculated on the basis of 30 days’ pay up to a of maximum full TL 5,434 as at 31 
December 2018 (31 December 2017: TL 4,732), per year of employment at the rate of pay applicable at the date of retirement or 
termination. Termination benefits paid to key executive officers are presented as other expenses. Reserve for employee termination 
benefits is computed and reflected in the consolidated financial statements on a current basis. Discount rate used for calculating 
employee termination benefit as of 31 December 2018 is 4.41% (31 December 2017: 3.33%).The reserve is calculated by estimating the 
present value of future probable obligation of the Company and its subsidiaries in Turkey arising from retirement of employees. Reserve 
for employee termination benefits is calculated annually by independent actuaries using the projected unit credit method.

F28

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
187

2. Basis of preparation and summary of significant accounting policies (continued)

(r) Employee benefits (continued)

(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 at each reporting date and at the settlement date. Any changes in fair value are 
recognized in profit or loss for the period. 

(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.

(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 rate that reflects 
current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the 
passage of time is recognized as interest expense. 

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 discount rate that reflects current market assessments of the time value of money and the risks specific to the liability.

F29

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 188

2. Basis of preparation and summary of significant accounting policies (continued)

(t) Revenue

Revenue is recognized at the amount of the transaction price that is allocated to the performance obligation. The transaction price 
is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a 
customer. Revenue is recognized when control is transferred to the customer.

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. An entity transfers control of a service over 
time and, therefore, satisfies a performance obligation and recognizes revenue from telecommunication services over time. 

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. 

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. A good or service is distinct if both of the following criteria are met:

•  the good or service is capable of being distinct 
•  the promise to transfer the good or service is distinct within the context of the contract.

The arrangement consideration is allocated to each performance obligation identified in the contract on a relative stand-alone selling 
prices. If an element of a transaction is not a distinct, then it is accounted for as an integral part of the remaining elements of the 
transaction.

Revenue from device sales is recognized when control of the device has transferred, being when delivered to the end customer. For 
device sales made to intermediaries, revenue is recognized when control of the device has transferred, being when the products 
are delivered to the intermediary and the intermediary has no general right to return the device to receive a refund. If control is 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. 

F30

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 189

2. Basis of preparation and summary of significant accounting policies (continued)

(t) Revenue (continued)

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.

Call center revenues are recognized at the time services are rendered during the contractual period.

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 described 
below such judgements impact the amount of reported revenue and operating costs but do not impact reported assets, liabilities or 
cash flows:

Indicators that an entity is a principal:

•  the entity is primarily responsible for fulfilling the promise to provide the specified good or service.
•  the entity has inventory risk before the specified good or service has been transferred to a customer or after transfer of control to 

the customer

•  the entity has discretion in establishing the price for the specified good or service.

F31

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 190

2. Basis of preparation and summary of significant accounting policies (continued)

(t) Revenue (continued)

The Company and the Ministry of Transport and Infrastructure of Turkey, Directorate General of Communications signed a contract 
to continue the contract to establish and operate mobile communication infrastructure and operation in uncovered areas, until 31 
December 2019 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. As of 31 December 2018, the Company has recognized TL 376,765  
(31 December 2017: 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.

Contract costs eligible for capitalization as incremental costs of obtaining a contract comprise commission on sale relating to postpaid 
contracts with acquired or retained subscribers. Contract costs are capitalized in the month of service activation if the Group expects 
to recover those costs. Contract costs comprise sales commissions to dealers and to own salesforce which can be directly attributed 
to an acquired or retained contract. Contract costs are classified as intangible assets in the consolidated financial statements. The 
asset is amortised on a straight line basis over the customer life time it relates to consistent with the pattern of recognition of the 
associated revenue.

Revenue - Accounting policies applied until 31 December 2017

The Group adopted 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 1 January, 2018, to retained earnings and not restate prior years. 
As a result, the comparative information provided continues to be accounted for in accordance with the Group’s previous accounting 
policy. Accounting policies that changed on adoption of IFRS 15 are as follows. The Group’s new accounting policies are explained 
above.

Contract cost

Contract costs were capitalized under prepaid expenses and amortised on a straight line basis over the contact term.

(u) 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.

(v) 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 assets transferred or liabilities assumed, is recognized in profit or loss. 

F32

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 191

2. Basis of preparation and summary of significant accounting policies (continued)

(w) 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.

(x) 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.

F33

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
192

2. Basis of preparation and summary of significant accounting policies (continued)

(y) 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 liabilities as deferred government grants and 
are credited to profit or loss on a straight-line basis over the expected useful lives of the related assets.

(z) Non-current asset held for sale and discontinued operations 

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather 
than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair 
value less costs of disposal.

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 asset is recognized at 
the date of derecognition.

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 assets classified as held for sale are presented separately from the other assets in the statement of financial position. 

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 plan to dispose of such a line of 
business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are 
presented separately in the statement of profit or loss.

(aa) 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 plan, the 
consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to 
the owners of the Company as treasury shares until the shares are cancelled or reissued. Where such ordinary shares are subsequently 
reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is 
included in equity attributable to the owners of the Company.

F34

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
193

2. Basis of preparation and summary of significant accounting policies (continued)

(ab) 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.

(ac) 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.

(ad) Leases

At inception of a contract, the Group assesses whether a contract is, or contains a lease. A contract is, or contains, a lease if the 
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess 
whether a contract conveys the right to control the use of an identified asset, The Group assess whether: 

-  the contract involved the use of an identified asset – this may be specified explicitly or implicitly
-  the asset should be physically distinct or represent substantially all of the capacity of a physically
  distinct asset. If the supplier has a substantive substitution right, the asset is not identified;
-  the Group has the right to obtain substantially all of the economic benefits from the use of an asset throughout the period of use; 

and 

-  the Group has the right to direct use of the asset. The Group has the right when it has the decision-making rights that are most 

relevant to changing the how and for what purpose the asset is used is predetermined, the Group has the right the use of asset if 
either:
-  the Group has the right to operate the asset or; 
-  the Group designed the asset in a way that predetermines how and for what purpose it is used. 

At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract 
to each lease component on the basis of their relative stand-alone prices. 

Right of use asset 

The Group recognizes a right-of use asset and a lease liability at the lease commencement date. 

The right of use asset is initially recognized at cost comprising of:

-  amount of the initial measurement of the lease liability;
-  any lease payments made at or before the commencement date, less any lease incentives received;
-  any initial direct costs incurred by the Group; and

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the 
end date of the useful life of the right-of-use asset of the end date of the lease term. The estimated useful lives of right-of-use assets 
are determined on the same basis as those property and equipment. In addition, the right-of-use asset is periodically reduced by 
impairment losses, if any, and adjusted for certain remeasurements of the lease liability (Note 28). 

F35

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
194

2. Basis of preparation and summary of significant accounting policies (continued)

(ad) Leases

Lease Liability 

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, 
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’ incremental borrowing 
rate. Group uses its incremental borrowing rate as the discount rate. 

Lease payments included in the measurement of the lease liability comprise the following: 
-  fixed payments, including in-substance fixed payments;
-  variable lease payments that depend on an index or a rate, initially measured using the index or rate as the commencement date;
-  amounts expected to be payable under a residual value guarantee; and 
-  the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewable 
period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the 
Group is reasonably certain to terminate early. 

After initial recognition, the lease liability is measured (a) increasing the carrying amount to reflect interest on lease liability; (b) reducing 
the carrying amount to reflect the lease payments made; and (c) remeasuring the carrying amount to reflect any reassessment or 
lease modifications or to reflect revised in-substance fixed lease payments.

Where, (a) there is a change in the lease term as a result of reassessment of certainty to exercise an exercise option, or not to exercise 
a termination option as discussed above; or (b) there is a change in the assessment of an option to purchase the underlying asset, 
assessed considering the events and circumstances in the context of a purchase option, the Group remeasures the lease liabilities to 
reflect changes to lease payments by discounting the revised lease payments using a revised discount rate. The Group determines the 
revised discount rate as the interest rate implicit in the lease for the remainder of the lease term, if that rate can be readily determined, 
or the its incremental borrowing rate at the date of reassessment, if the interest rate implicit in the lease cannot be readily determined.

Where, (a) there is a change in the amounts expected to be payable under a residual value guarantee; or (b) there is a change in the 
future lease payments resulting from a change in an index or a rate used to determine those payments, including change to reflect 
changes in market rental rates following a market rent review, the Group remeasures the lease liabilities by discounting the revised 
lease payments using an unchanged discount rate, unless the change in lease payments results from a change in floating interest rates. 
In such case, the Group use revised discount rate that reflects changes in the interest rate.

The Group recognises the amount of the remeasurement of lease liability as an adjustment to the right of use asset. Where the 
carrying amount of the right of use asset is reduced zero and there is further reduction in the measurement of the lease liability, the 
Group recognises any remaining amount of the remeasurement in profit or loss.

The Group accounts for a lease modification as a separate lease if both:
-  the modification increases the scope of the lease by adding the right to use one or more underlying assets; and
-  the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any 

appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.

F36

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
195

2. Basis of preparation and summary of significant accounting policies (continued)

(ad) Leases (continued)

The Group as a Lessor 

When the Group acts an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses 
the lease classification of a sub-lease with reference to the right-of-use-asset arising from the head lease, not with reference to the 
underlying asset. 

If an arrangement contains lease and non-lease components, the Group applies IFRS 15 to allocate the consideration in the contract. 

Leases - Accounting policies applied until 31 December 2017

The Group adopted IFRS 16 using modified retrospective approach - option 2 application under which the cumulative effect of initially 
applying the Standard recognised at the date of initial application at 1 January 2018. As a result, the comparative information provided 
continues to be accounted for in accordance with the Group’s previous accounting policy. Accounting policies that changed on 
adoption of IFRS 16 are as follows. The Group’s new accounting policies are explained above.

Leases of property, plant and equipment where the group, as lessee, had substantially all the risks and rewards of ownership were 
classified as finance leases. Finance leases were capitalised 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, were included in other 
short-term and long-term payables. Each lease payment was allocated between the liability and finance cost. The finance cost was 
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 and equipment acquired under finance leases was depreciated over the asset’s useful life or 
over the shorter of the asset’s useful life and the lease term if there was 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 were not transferred to the Group as lessee were classified 
as operating leases. Payments made under operating leases (net of any incentives received from the lessor) were charged to profit or 
loss on a straight-line basis over the period of the lease.

(ae) New standards and interpretations

i) Amendments to IFRSs affecting amounts reported and/or disclosures in the consolidated financial statements

This note explains the impact of the adoption of IFRS 9 Financial Instruments, IFRS 15 Revenue from Contracts with Customers and IFRS 
16 Leases on the Group’s consolidated financial statements.

The impacts of adoption of IFRS 9, IFRS 15 and IFRS 16 on the consolidated financial statements as at 31 December 2018 are stated as 
below. The adoptions of these standards do not have a significant impact on the consolidated other comprehensive income (OCI) and 
consolidated statement of cash flows.

The following tables show the adjustments recognised for each individual line item. Line items that were not affected by the changes 
have not been included. As a result, the sub-totals and totals disclosed cannot be recalculated from the numbers provided. The 
adjustments are explained in more detail by standard below.

F37

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
196

Assets

Property, plant and equipment
Right-of-use assets
Intangible assets
Investment properties
Trade receivables
Contract assets
Receivables from financial services
Deferred tax assets
Investments in equity accounted investees
Other non-current assets

Total non-current assets

Inventories
Trade receivables
Due from related parties
Receivables from financial services
Derivative financial instruments
Held to maturity investments
Financial asset at fair value through profit or loss
Financial asset at fair value through other comprehensive 
income
Contract assets
Cash and cash equivalents
Other current assets

Subtotal
Assets classified as held for sale

31 December 
2018 As 
reported

Effect Of 
Change 
Due to 
IFRS 9

Effect Of 
Change 
Due to 
IFRS 15

11,116,316
1,649,602
10,050,172
15,425
115,001
3,513
884,686
152,732
19,413
421,306

24,428,166

180,434
2,505,990
13,533
3,286,243
1,356,062
-
9,409

42,454
711,928
7,419,239
1,091,512

16,616,804
1,720,305

-
-
-
-
(608)
-
-
-
-
(228)

(836)

-
49,567
67
(40,463)
-
(51,863)
9,409

42,454
-
(2,364)
87

6,894
-

-
-
1,059,866
-
(3,513)
3,513
-
-
-
(10,849)

1,049,017

-
(703,742)
-
-
-
-
-

-
711,928
-
(137,997)

(129,811)
-

Effect Of 
Change 
Due to 
IFRS 16

-
1,649,602
-
-
-
-
-
14,696
-
(161,426)

1,502,872

-
6,926
-
-
-
-
-

-
-
-
(312,872)

(305,946)
-

31 December 
2018 without 
Adoptions

11,116,316
-
8,990,306
15425
119,122
-
884,686
138,036
19,413
593,809

21,877,113

180,434
3,153,239
13,466
3,326,706
1,356,062
51,863
-

-
-
7,421,603
1,542,294

17,045,667
1,720,305

Total current assets

18,337,109

6,894

(129,811)

(305,946)

18,765,972

Total assets

Equity

42,765,275

6,058

919,206

1,196,926

40,643,085

Share capital
Share premium
Treasury shares (-)
Additional paid in capital
Reserves
Remeasurements of employee termination benefit
Retained earnings

Total equity attributable to equity holders of Turkcell Iletisim 
Hizmetleri AS (“the Company”)
Non-controlling interests
Total equity

2,200,000
269
(141,534)
35,026
2,503,537
(34,871)
11,359,317

15,921,744
131,810
16,053,554

-
-
-
-
(154)
-
4,989

4,835
-
4,835

-
-
-
-
8,958
-
667,946

676,904
-
676,904

-
-
-
-
(740)
-
(71,464)

(72,204)
-
(72,204)

2,200,000
269
(141,534)
35,026
2,495,473
(34,871)
10,757,846

15,312,209
131,810
15,444,019

F38

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 197

Liabilities

Borrowings

Employee benefit obligations

Provisions

Deferred tax liabilities

Contract liabilities

Other non-current liabilities

Total non-current liabilities

Borrowings

Current tax liabilities

Trade and other payables

Due to related parties

Contract liabilities

Deferred revenue

Provisions

Derivative financial instruments

Total current liabilities

31 December 
2018 As 
reported

Effect Of 
Change 
Due to 
IFRS 9

Effect Of 
Change 
Due to 
IFRS 15

Effect Of 
Change 
Due to 
IFRS 16

31 December 
2018 without 
Adoptions

13,119,636

224,747

268,722

862,360

131,598

364,610

14,971,673

7,035,909

133,597

3,788,174

45,331

255,756

8,948

307,068

165,265

11,740,048

-

-

-

1,223

-

-

1,223

-

-

-

-

-

-

-

-

-

-

-

-

193,854

131,598

(102,887)

222,565

-

-

1,786

17,951

255,756

(255,756)

-

-

902,285

12,217,351

-

-

-

-

-

224,747

268,722

667,283

-

467,497

902,285

13,845,600

366,845

-

-

-

-

-

-

-

6,669,064

133,597

3,786,388

27,380

-

264,704

307,068

165,265

19,737

366,845

11,353,466

Total liabilities

26,711,721

1,223

242,302

1,269,130

25,199,066

Total equity and liabilities

42,765,275

6,058

919,206

1,196,926

40,643,085

F39

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 198

Revenue

Revenue from financial services

Total revenue

Cost of revenue

Cost of revenue from financial services

Total cost of revenue

Gross profit

Gross profit from financial services

Total gross profit

Other income

Selling and marketing expenses

Administrative expenses

Net impairment losses on financial and contract assets

Other expenses

Operating profit

Finance income

Finance costs

Net finance costs

Share of profit of equity accounted investees

Profit before income tax

Income tax expense

Profit for the period 

Profit for the year is attributable to:

Owners of the Company

Non-controlling interests (*)

Total

31 December 
2018 As 
reported

20,350,557

941,918

21,292,475

 (13,785,448)

 (360,545)

(14,145,993)

6,565,109

581,373

7,146,482

241,435

(1,626,714)

(673,370)

(346,390)

(381,582)

4,359,861

1,932,133

(3,619,091)

(1,686,958)

(87)

2,672,816

(495,481)

2,177,335

2,021,065

156,270

2,177,335

Effect Of 
Change 
Due to 
IFRS 9

-

-

-

-

-

-

-

-

-

-

141,527

225,778

(346,390)

-

20,915

-

(14)

(14)

-

20,901

(4,764)

16,137

16,137

-

16,137

Effect Of 
Change 
Due to 
IFRS 15

 (18,132)

308

 (17,824)

Effect Of 
Change 
Due to 
IFRS 16

-

-

-

31 December 
2018 without 
Adoptions

20,368,689

941,610

21,310,299

 (329,447)

51,098

 (13,507,099)

-

-

 (360,545)

(329,447)

51,098

(13,867,644)

(347,579)

308

(347,271)

-

523,210

-

-

-

175,939

-

-

-

-

51,098

-

6,861,590

581,065

51,098

7,442,655

35,012

51,208

50,724

-

(44,431)

143,611

892

(230,663)

(229,771)

206,423

(2,342,659)

(949,872)

-

(337,151)

4,019,396

1,931,241

(3,388,414)

(1,457,173)

-

(87)

175,939

(86,160)

2,562,136

(38,015)

137,924

14,696

(71,464)

(467,398)

2,094,738

137,924

-

(71,464)

-

1,938,468

156,270

137,924

(71,464)

2,094,738

Basic and diluted earnings per share for profit attributable to 
owners of the Company (in full TL)

0.93

0.01

0.06

(0.03)

0.89

F40

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 199

2. Basis of preparation and summary of significant accounting policies (continued)

(ae) New standards and interpretations (continued)

i) Amendments to IFRSs affecting amounts reported and/or disclosures in the consolidated financial statements (continued)

IFRS 9 Financial Instruments – Impact of adoption

IFRS 9 replaces the provisions of IAS 39 that relate to the recognition, classification and measurement of financial assets and financial 
liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting.

The Group has taken 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 are recognized in retained earnings and reserves as at 1 January 2018.

The adoption of IFRS 9 Financial Instruments from 1 January 2018 resulted in changes in accounting policies and adjustments to the 
amounts recognised in the consolidated financial statements as stated below:

The total impact on the Group’s retained earnings as at 1 January 2018 is as follows:

Retained Earnings Opening – 31 December 2017
Increase in provision for receivables from financial services

Decrease in provision for other financial assets

Deferred tax effect

Total impact of adoption in accordance with IFRS 9

Retained Earnings Opening – 1 January 2018 (Including IFRS 9- excluding IFRS 15)

1 January 2018

11,312,276 
(52,951) 

38,384

3,419

(11,148)

11,301,128

On the date of initial application, 1 January 2018, the financial instruments of the Company were as follows, with any reclassifications 
noted;

Non-current financial assets
Trade receivables

Original (IAS 39)
Amortized cost

New (IFRS 9)
Amortized cost

Receivables from financial services

Amortized cost

Amortized cost

Held to maturity investments

Held to maturity

Amortized cost

Current financial assets
Trade receivables

Due from related parties

Amortized cost

Amortized cost

Amortized cost

Amortized cost

Receivables from financial services

Amortized cost

Amortized cost

Derivatives

FVPL

FVPL

Cash and cash equivalents

Amortized cost

Amortized cost

Held to maturity investments

Held to maturity

Amortized cost

Original
155,634

1,297,597

654

2,848,572

5,299

2,950,523

981,396

4,712,333

11,338

New
154,392

1,297,597

654

2,888,862

5,522

2,897,572

981,396

4,711,452

11,332

Difference
(1,242)

-

-

40,290

223

(52,951)

-

(881)

(6)

Current financial liabilities
Derivatives

FVPL

FVPL

110,108

110,108

-

F41

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 200

2. Basis of preparation and summary of significant accounting policies (continued)

(ae) New standards and interpretations (continued)

i) Amendments to IFRSs affecting amounts reported and/or disclosures in the consolidated financial statements (continued)

IFRS 9 Financial Instruments – Impact of adoption (continued)

Impairment of financial assets

The group recognizes impairment charges for financial assets that are subject to the expected credit loss model in accordance with 
IFRS 9 as below:

• Trade receivables resulting from operations
• Financial services receivables
• Cash and cash equivalents
• Financial investments 
• Other receivables 
• Other assets

Financial services receivables

On 1 January 2018, credit risks were assessed for these loans in accordance with the impairment methodology and TL (52,951) has 
been recognized under retained earnings.

The reconciliation of impairment provision and opening balances for financial services receivables as of 1 January 2018 is stated as 
below:

At 1 January 2018 (calculated under IAS 39)
Amounts restated through opening retained earnings

At 1 January 2018 (calculated under IFRS 9)
Current year provision at profit or loss statement – IFRS 9

Current year provision at profit or loss statement if IAS 39 was applied

Other financial assets

1 January 2018

72,992 
52,951

125,943 
190,509

202,998

The group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance 
for its financial assets comprising of trade receivables and contract assets.

The reconciliation of impairment provision and opening balances for other financial assets as of 1 January 2018 is stated as below:

At 1 January 2018 (calculated under IAS 39)
Amounts restated through opening retained earnings

At 1 January 2018 (calculated under IFRS 9)
Current year provision at profit or loss statement-IFRS 9

Current year provision at profit or loss statement if IAS 39 was applied

1 January 2018

705,440 
(38,384) 

667,056 
418,799

427,211

F42

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 201

2. Basis of preparation and summary of significant accounting policies (continued)

(ae) New standards and interpretations (continued)

i) Amendments to IFRSs affecting amounts reported and/or disclosures in the consolidated financial statements (continued)

IFRS 15 Revenue from Contracts with Customers – Impact of adoption

The Group adopted 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 1 January 2018 to retained earnings and not restate prior years.

The impact of adoption of IFRS 15, “Revenue from contracts with customers” on retained earnings as of 1 January 2018 is stated as 
below:

Retained earnings 1 January 2018 - (including IFRS 9 effects-excluding IFRS 15 effects)
Recognition of asset for subscriber acquisition cost

Decrease in current assets and non-current assets

Deferred tax effect

Other

Adjustment to retained earnings from adoption of IFRS 15

Opening retained earnings 1 January 2018 - (including IFRS 9 and IFRS 15 effects)

1 January 2018

11,301,128
830,011

(132,920)

(144,632) 

(22,437)

530,022

11,831,150

Contract costs capitalized prior to IFRS 15 have been classified under prepaid expenses. As of 1 January 2018, contract costs excluding 
the new incremental costs amounting to 156,879 TL has been classified from prepaid expenses to intangible assets.

Details of contract costs and related accumulated depreciation for the period 1 January - 31 December 2018 has been disclosed under 
Note 12.

IFRS 16 Leases – Impact of adoption

Details of adoption on IFRS16 for the period 1 January - 31 December 2018 has been disclosed under Note 15.

The Group early adopted IFRS 16 with a date of initial application of 1 January 2018. 

The Group adopted IFRS 16 using modified retrospective approach - option 2 application under which the cumulative effect of initially 
applying the Standard recognised at the date of initial application at 1 January 2018.

The amount of TL 542,179 of the right to use of the asset is attributable to the classification of the prepaid lease expenses accounted 
for under prepaid expenses before the application of IFRS 16.

F43

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 202

2. Basis of preparation and summary of significant accounting policies (continued)

(ae) New standards and interpretations (continued) 

i) Amendments to IFRSs affecting amounts reported and/or disclosures in the consolidated financial statements (continued)

IFRS 16 Leases – Impact of adoption (continued)

On transition to IFRS 16, the Group elected to apply practical expedient to grandfather the assessment of which transitions are leases. 
It applied IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 
and IFRIC 4 were not reassessed for whether there is a lease. Therefore, the definition of a lease under IFRS 16 was applied only to 
contracts entered into or changed on or after 1 January 2018.

On transition the Group did not elect to apply recognition exemption for short-term leases by class of underlying assets and leases for 
low-value items which shall be applied lease-by-lease basis on both transition and subsequently.

As a lessee, the Group previously classified leases as operating and finance leases based on its assessment of whether the lease 
transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Group. At transition lease 
liabilities were measured at the present value of the remaining lease payments, discounted at the Group’s incremental borrowing 
rate at 1 January 2018. The Group measured right-of-use assets at an amount equal to the lease liability, adjusted by the amount of 
any prepaid or accrued lease payments under IFRS 16 modified retrospective approach option 2 application and used the following 
practical expedients;

-  Group applied a single discount rate to a portfolio of leases with similar characteristics

-  Adjusted the right-of-use assets by the amount of IAS 37 onerous contract provision immediately before the date of initial 

application

-  Excluded initial direct costs from measuring the right-of-use asset at the date of initial application

Used hindsight when determining the lease term when the contract contains options to renew or terminate the lease.

F44

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 203

2. Basis of preparation and summary of significant accounting policies (continued)

(ae) New standards and interpretations (continued)

ii) Standards, amendments and interpretations applicable as at 31 December 2018

-  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 amended standard will: 

-  give all companies that issue insurance contracts the option to recognise 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.

-  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.

-  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.

F45

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
204

2. Basis of preparation and summary of significant accounting policies (continued)

(ae) New standards and interpretations (continued)

iii) Standards, amendments and interpretations that are issued but not effective as at 31 December 2018

-  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, a gain or loss 
should be recognised immediately in profit or loss. The gain or loss is calculated as the difference between the original contractual 
cash flows and the modified cash flows discounted at the original effective interest rate. This means that the difference cannot be 
spread over the remaining life of the instrument which may be a change in practice from IAS 39. 

-  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. 

-  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.

-  IFRS 17, ‘Insurance contracts’; effective from annual periods beginning on or after 1 January 2021. This standard replaces IFRS 4, 
which currently permits a wide variety of practices in accounting for insurance contracts. IFRS 17 will fundamentally change the 
accounting by all entities that issue insurance contracts and investment contracts with discretionary participation features. 

F46

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 205

2. Basis of preparation and summary of significant accounting policies (continued)

(ae) New standards and interpretations (continued)

iii) Standards, amendments and interpretations that are issued but not effective as at 31 December 2018 (continued)

-  Annual improvements 2015-2017; effective from annual periods beginning on or after 1 January 2019. These amendments include 

minor changes to:

•  IFRS 3, ‘Business combinations’, – a company remeasures its previously held interest in a joint operation when it obtains control of 

the business.

•  IFRS 11, ‘Joint arrangements’, – a company does not remeasure its previously held interest in a joint operation when it obtains joint 

control of the business.

•  IAS 12, ‘Income taxes’ – a company accounts for all income tax consequences of dividend payments in the same way.
•  IAS 23, ‘Borrowing costs’ – a company treats as part of general borrowings any borrowing originally made to develop an asset 

when the asset is ready for its intended use or sale.

-  Amendments to IAS 19, ‘Employee benefits’ on plan amendment, curtailment or settlement’; effective from annual periods beginning 

on or after 1 January 2019. These amendments require an entity to:

•  use updated assumptions to determine current service cost and net interest for the reminder of the period after a plan 

amendment, curtailment or settlement; and

•  recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus, even if that 

surplus was not previously recognised because of the impact of the asset ceiling.

-  Amendments to IAS 1 and IAS 8 on the definition of material; effective from Annual periods beginning on or after 1 January 2020. 
These amendments to IAS 1, ‘Presentation of financial statements’, and IAS 8, ‘Accounting policies, changes in accounting estimates 
and errors’, and consequential amendments to other IFRSs:

-   i) use a consistent definition of materiality throughout IFRSs and the Conceptual Framework for Financial Reporting; 
-  ii) clarify the explanation of the definition of material; and 
-  iii) incorporate some of the guidance in IAS 1 about immaterial information.

-  Amendments to IFRS 3 - definition of a business; effective from Annual periods beginning on or after 1 January 2020. This 

amendment revises the definition of a business. According to feedback received by the IASB, application of the current guidance is 
commonly thought to be too complex, and it results in too many transactions qualifying as business combinations.

The Company does not expected material impact of new standards and interpretations on Company’s accounting policies.

F47

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 206

3. Financial risk management

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 with the Group’s operating 
units. The Audit Committee provides written principles for overall risk management, as well as policies covering specific areas, such 
as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, 
and investment of excess liquidity. In addition, Risk Early Detection Committee was established in accordance with the New Turkish 
Commercial Code effective from 1 July 2012.

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, financial asset at fair value through profit or loss , derivative financial instruments, trade 
receivables, receivables from financial services, due from related parties and other assets (Note 35).

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 a loss event. 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 capital and/or shareholders equity. Policies are in place to review the paid-in capital and rating of counterparties 
periodically to ensure credit worthiness.

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 2018, guarantees of TL 
4,988,580 were outstanding (31 December 2017: TL 3,720,954).

F48

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
207

3. Financial risk management (continued)

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 587,007 (2017: TL 603,553) 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 35) and cash and cash equivalents (Note 24) 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 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, EUR and RMB. 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 and as of 1 July 2018 the Company applies hedge accounting. 

Foreign exchange risk arising from the net assets of the subsidiary Fintur is not managed by the Group.

Details of Company’s foreign exchange risk is disclosed in Note 35.

(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 35) 
and to that extent are also exposed to the risk of future changes in market interest rates.

F49

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
208

4. Segment information

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 Dijital Is Servisleri Hizmetleri A.S. (“Turkcell Satis”), group call center operations of Global Bilgi Pazarlama Danismanlık 
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”), Lifecell LLC (“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”) and Lifecell Digital Limited (“Lificell Digital”). 
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 call center operations of Turkcell Global Bilgi, Turkcell Finansman A.Ş.(“ Turkcell Finansman”), Turkcell 
Özel Finansman A.Ş. (“TÖFAŞ”), Turkcell Enerji Cozumleri ve Elektrik Satıs Ticaret A.S (“Turkcell Enerji”) Paycell LLC (“Paycell”), Turkcell 
Sigorta Aracılık Hizmetleri A.Ş (“Turkcell Sigorta”), Türkiye’nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş.(“Türkiye’nin Otomobili”) and 
Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş.(“Sofra”).

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.

F50

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) d
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F51

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
210

4. Segment information (continued)

Profit for the period 

Add(Less):

2018

2,177,335

2017

2,037,759

 2016

1,543,803

Profit/(loss) from discontinued operations

-

-

42,164

Profit from continuing operations 
Income tax expense

Finance income

Finance costs

Other income

Other expenses

Depreciation and amortization

Share of loss of equity accounted investees

Consolidated adjusted EBITDA

Geographical information

2,177,335
495,481

(1,932,133)

3,619,091

(241,435)

381,582

4,287,974

87

2,037,759
571,758

(818,436)

1,141,302

(74,438)

773,329

2,596,980

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1,585,967 
423,160 

(961,642)

1,134,441

(78,569)

312,801

2,203,351

-

8,787,982

6,228,254

 4,619,509

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.

Revenues
Turkey

Ukraine

Belarus

Azerbaijan

Turkish Republic of Northern Cyprus

Germany

Netherlands

Non-current assets
Turkey

Ukraine

Belarus

Turkish Republic of Northern Cyprus

Azerbaijan

Unallocated non-current assets 

F52

2018

2017

2016

19,636,682

16,431,863

13,321,503

923,181

293,181

268,471

169,014

1,580

366

664,643

209,884

174,021

148,637

3,016

-

573,951

149,005

108,329

129,785

2,988

-

21,292,475

17,632,064

14,285,561

31 December 
2018
21,037,351

2,751,277

293,622

177,380

-

168,536

24,428,166

31 December 
2017
18,098,228

1,408,783

141,802

138,371

13,663

112,516

19,913,363

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) d
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5

211

F53

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
212

5. Revenue (continued)

2018

Turkcell Turkey

Turkcell 
International

Other

Intersegment 
eliminations

Consolidated

Telecommunication Services

16,752,587 

1,281,595 

At a point in time

Over time

Equipment Related

At a point in time

Over time

Call Center

At a point in time

Over time

Commision fees on betting business

At a point in time

Over time

Revenue from betting business

At a point in time

Over time

Revenue from financial operations

At a point in time

Over time

All other segments

At a point in time

Over time

Total

At a point in time

Over time

6. Other income and expense

267,329 

16,485,258 

1,337,495 

1,330,808 

6,687 

-

-

-

-

-

-

-

-

-

-

-

-

- 

1,281,595 

101,350 

101,350 

-

9,763 

-

9,763 

-

-

-

-

-

-

-

-

-

175,695 

12,211 

163,484 

64,272 

8,556 

55,716 

18,265,777 

1,456,980 

1,610,348 

16,655,429 

109,906

1,347,074 

-

-

-

-

-

-

211,195 

-

211,195 

200,315 

-

200,315 

268,470 

-

268,470 

941,918 

38,955 

902,963 

311,933 

7,576 

304,357 

1,933,831 

46,531 

1,887,300 

56,485 

7,493 

48,992

-

-

-

17,786 

-

17,786 

-

-

-

-

-

-

-

-

-

289,842 

-

289,842 

364,113 

7,493 

356,620 

17,977,697 

259,836 

17,717,861 

1,438,845 

1,432,158 

6,687 

203,172 

-

203,172 

200,315 

-

200,315 

268,470 

-

268,470 

941,918 

38,955 

902,963 

262,058 

28,343 

233,715 

21,292,475 

1,759,292

19,533,183 

Other income amounted to TL 241,435, TL 74,438 and TL 78,569 for the years ended 31 December 2018, 2017 and 2016, respectively.

Other expenses amounted to TL 381,582, TL 773,329 and TL 312,801 for years ended 31 December 2018, 2017 and 2016, respectively.

Other income for the years ended 31 December 2018 mainly consist of reversal of legal provisions, gain on sale of investments and 
fixed assets and gain on modification of lease contract .

Other income for the years ended 31 December 2017 and 2016 mainly consist of gain on sale of fixed assets and reversal of legal 
provisions (Note 37).

Other expenses for the year ended 31 December 2018 mainly consist of donations and litigation expenses, loss on modification of lease 
contract.

Other income for the year ended 31 December 2017 and 2016 mainly consist of donations and litigation expenses (Note 37). 

F54

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 213

7. Employee benefit expenses

Wages and salaries (*)
Employee termination benefits (**)
Defined contribution plans

2018
2,030,641

29,140

9,361

2,069,142

2017
1,746,147

32,862

8,107

1,787,116

2016
1,450,262

32,977

7,722

1,490,961

(*) Wages and salaries include compulsory social security contributions, bonuses and share based payments.
(**) Remeasurements of employee termination benefits for the years ended 31 December 2018, 2017 and 2016 amounting to TL (12,699), 
TL 3,738 and TL 34,532 respectively are reflected in other comprehensive income.

Employee benefit expenses are recognized in cost of revenue, selling and marketing expenses and administrative expenses.

8. Finance income and costs

Recognized in the statement of profit or loss:

Fair value gains on derivative financial instruments and interest

Cash flow hedges – reclassified to profit or loss

Interest income on bank deposits

Interest income on financial assets measured at amortized cost

Credit finance income

Other 

Finance income

Net foreign exchange losses

Interest expenses for financial liabilities measured at amortized cost

Late payment interest expense

Other

Finance costs

Net finance costs

2018
654,933

568,370

395,045

204,191

50,828

58,766

1,932,133

(2,695,045)

(807,120)

-

(116,926)

(3,619,091)

(1,686,958)

2017
317,542

-

278,599

185,004

36,186

1,105

818,436

(718,501)

(385,386)

(29,115)

(8,300)

(1,141,302)

(322,866)

2016
282,408

-

158,206

445,943

74,522

563

961,642

(782,463)

(343,290)

-

(8,688)

(1,134,441)

(172,799)

Finance incomes for the years ended 31 December 2018, 2017 and 2016 are mainly attributable to interest income on contracted 
handset sales, changes in fair value of derivative financial instruments, interest income on bank deposits and cash flow hedge.

Foreign exchange losses mainly include foreign exchange losses on borrowings and bonds issued amounting to TL 2,378,910 and TL 
1,335,308 as of 31 December 2018.

Finance costs for year ended 31 December 2018 and 2017 mainly attributable to the financing costs of borrowings, foreign exchange 
losses from operating and financing activities.

Finance costs for year ended 2016 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. 

F55

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 214

9. Income tax expense

Current income tax expense

Deferred income tax (expense)/credit

Total income tax expense

Income tax expense is attributable to profit from continuing operations. 

Income tax relating to each component of other comprehensive income

2018
Foreign currency translation differences

Change in cash flow hedge reserve

Change in cost of hedging reserve

Remeasurements of employee termination benefits

2017
Foreign currency translation differences

Remeasurements of employee termination benefits

2016
Foreign currency translation differences

Remeasurements of employee termination benefits

2018
(654,953)

159,472

(495,481)

2017
(437,967)

(133,791)

(571,758)

2016
(200,663)

(222,497)

(423,160)

Before tax
850,188

19,156

(347,602)

12,699

534,441

100,149 

(3,738) 

96,411 

218,472

(34,532)

183,940

Tax (expense)/
credit
(226,667)

(4,214)

76,472

(2,794)

(157,203)

(107,299) 

748

(106,551)

(87,381)

7,066

(80,315)

Net of tax
623,521

14,942

(271,130)

9,905

377,238

(7,150)

(2,990)

(10,140)

131,091

(27,466)

103,625

F56

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
215

9. Income tax expense (continued)

Reconciliation of income tax expense

Profit from continuing operations before income tax expense 

(Loss) from discontinued operations before income tax expense 

Profit before income tax expense

Tax at the Turkey’s tax rate 
Difference in overseas tax rates
Effect of exemptions (*)
Effect of amounts which are not deductible 
Tax exemption from subsidiary sale(**)
Utilization of previously unrecognized tax losses
Change in unrecognized deferred tax assets (***)
Adjustments for current tax of prior years

Tax effect of investment in associate

Other

Total income tax expense

2018
2,672,816

-

2017
2,609,517

-

2,672,816

2,609,517

(588,020)
7,617

198,160

(91,778)

24,268

-

(50,551)

2,510

-

2,313

(521,903)
4,133

73,916

(102,102)

-

-

(41,340)

11,280

-

4,258

2016
2,009,127

(42,164)

1,966,963

(393,393)
(15,935)

104,244

(78,571)

-

1,253

(30,616)

(8,176)

-

(1,966)

(495,481)

(571,758)

(423,160)

(*) Mainly comprises of research and development tax credit and the exemption effect of Fintur amounted to TL 76,164.
(**)The Group’s transfer of its total shareholding in Azerinteltek controlled by Inteltek to one of other shareholder of Azerinteltek, Baltech Investment LLC (Not 39)
(***) Mainly comprises of tax losses for which no deferred tax asset has been recognized.

The Turkish entities within the Group are subject to corporate tax at the rate of 20%. Corporate tax is applied on taxable corporate 
income, which is calculated from the statutory accounting profit by adding back non-deductible expenses, and by deducting tax 
exempt income. 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. 

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.

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.

F57

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 216

9. Income tax expense (continued)

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 to 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, under the scope of 
provisions of an applicable double taxation 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. 

Pursuant to Article 10/13-h of Law No.7143 which was published in the Official Gazette dated 18 May 2018 and numbered 30425; 

•  for the resident real persons and institutions,
-  Income from the sale of non-resident subsidiary shares,
-  Participation income from non-resident subsidiaries, 
-  Commercial income through permanent establishment and permanent representatives abroad,

including those obtained until the date 31 October 2018, are exempted from income tax or corporation tax under condition that 
incomes are transferred from the effective date of Article until 31December 2018. In accordance with the President Decision dated 29 
August 2018 and numbered 48, the terms of the Article has been extended for 6 months. In this way, including those obtained until the 
date 30 April 2019, income from the sale of non-resident subsidiary’s shares are exempted from corporation tax under condition that 
incomes are transferred until 30 June 2019.  

•  for the resident real persons and institutions, income from the liquidation of non-resident institutions are exempt from income tax 
or corporation tax under condition that incomes are transferred to Turkey until the date 31 December 2018. In accordance with 
the President Decision dated 29 August 2018 and numbered 48, the terms of the Article has been extended for 6 months. In this 
way, income from the liquidation of non-resident institutions are exempted from corporation tax under condition that incomes are 
transferred until 30 June 2019. 

F58

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 217

10. Expenses by nature

Breakdown of expenses by nature for the years ended 31 December 2018, 2017 and 2016 is as follows:

Cost of revenue:

Depreciation and amortization 

Treasury share

Interconnection and termination expenses

Employee benefit expenses 

Cost of goods sold

Frequency expenses

Radio expenses
Cost of revenue from financial services (*)
Transmission expenses

Universal service fund

Roaming expenses

Billing and archiving expenses

Others

2018
(4,287,974)

(1,884,556)

(1,763,414)

(1,202,485)

(1,108,734)

(622,390)

(508,884)

(348,492)

(326,080)

(256,454)

(226,806)

(50,929)

2017
(2,596,980)

(1,669,807)

(1,607,079)

(1,046,544)

(870,226)

(278,727)

(844,941)

(270,366)

(218,221)

(221,431)

(177,258)

(55,185)

2016
(2,203,351)

(1,491,503)

(1,420,233)

(859,143)

(551,656)

(229,396)

(828,222)

(68,546)

(139,185)

(192,045)

(128,429)

(61,647)

(1,558,795)

(14,145,993)

(1,493,409)

(11,350,174)

(1,063,251)

(9,236,607)

(*) As at 31 December 2018, depreciation and amortization expenses includes depreciation and amortization expenses related to the financial services amounting to TL 12,053 (31 
December 2017: TL 6,343; 31 December 2016: TL 1,677).

Selling and marketing expenses:

Selling expenses 

Marketing expenses

Employee benefit expenses
Frequency usage fees related to prepaid subscribers (**)
Others 

2018
(555,158)

(551,127)

(440,976)

-

(79,453)

2017
(898,936)

(532,989)

(394,421)

(82,994)

(96,080)

2016
(757,869)

(518,382)

(354,380)

(186,530)

(93,786)

(1,626,714)

(2,005,420)

(1,910,947)

(**) As of 31 December 2018, Frequency usage fees related to prepaid subscribers are shown under net impairment losses on financial and contract assets according to IFRS 9.

F59

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
2018
(425,681)

(38,406)

(38,252)

(37,525)

(26,867)

-

-

(106,639)

(673,370)

2017
(346,151)

(30,957)

(50,247)

(20,415)

(24,342)

(36,280)

(36,278)

(100,526)

(645,196)

2018
(346,390)

(346,390)

2016
(277,438)

(18,913)

(54,315)

(20,827)

(20,315)

(30,314)

(211,384)

(88,343)

(721,849)

2017
-

-

218

10. Expenses by nature (continued)

Administrative expenses:

Employee benefit expenses

Travel and entertainment expenses

Consultancy expenses

Collection expenses

Maintenance and repair expenses

Rent expenses

Net impairment expense recognized on receivables

Other 

Net impairment losses on financial and contract assets:

Net impairment losses on financial and contract assets

F60

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) f
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TURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
221

12. Intangible assets

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 195,425 at 31 December 2018 (31 December 2017: TL 241,407) 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 397,543 at 31 December 2018 (31 December 2017: TL 436,014) 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. 

The carrying amount of the 4.5G License is TL 4,125,743 at 31 December 2018 (31 December 2017: TL 4,528,254).

F63

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
222

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SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
224

13. Impairment of assets

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 2018. None of these CGUs 
contains goodwill or an intangible asset with an indefinite useful life.

lifecell 

At 31 December 2018, 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 2017: +0.5%/-0.5%). 

The assumptions used in recoverable amount calculations of lifecell for the year 2018 and 2017 were respectively:

A post-tax WACC rate of 27.0% for the period from 2019 to 2024, a post-tax WACC rate of 26.3% for the period after 2024 and a 
terminal growth rate of 5.3% were used to extrapolate cash flows beyond the 6-year forecasts period based on the business plans. 

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. 

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 2018, 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 2017: +0.5%/-0.5%). 

F66

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 225

13. Impairment of assets (continued)

The assumptions used in recoverable amount calculations of Belarusian Telecom for the year 2018 and 2017 were respectively:

A post-tax WACC rate of 22.8% for the period from 2019 to 2024, a post-tax WACC rate of 22.4% for the period after 2024, and a 
terminal growth rate of 5.0% were used to extrapolate cash flows beyond the 6-year forecast period based on the business plan.

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. 

As the recoverable amount of Belarusian Telecom was higher than its carrying amount, no impairment charge was recognized. 

Turkcell Superonline

As at 31 December 2018, the aggregate carrying amount of goodwill allocated to Turkcell Superonline is TL 32,834 (31 December 2017: 
TL 32,834). No impairment test was performed for goodwill allocated to Turkcell Superonline on the grounds of materiality.

14. Investment properties

Cost
Opening balance 

Disposal
Transfer to property, plant and equipment (*)
Closing balance 

Accumulated depreciation
Opening balance 

Transfer to property, plant and equipment

Depreciation and impairment charges during the year 

Disposal

Other

Closing balance 

Net book amount 

31 December 2018

31 December 2017

99,938

-

45,821

145,759

(98,958)

(25,765)

(5,611)

-

-

(130,334)

165,472

(940)

(64,594)

99,938

(119,202)

22,366

(2,337)

215

-

(98,958)

15,425

980

(*) During the year ended 31 December 2017, 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 experts, authorized by the Capital Markets Board of Turkey, to perform the valuation of 
investment properties. Management works closely with the qualified external experts 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 and income capitalization approach, replacement cost approach and market approach. In estimating the fair 
values of the properties, the highest and best use of the property is its current use.

F67

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
226

14. Investment properties (continued)

Rent income from investment properties during the year ended 31 December 2018 is TL 3,092 (31 December 2017: TL 2,821 and 31 
December 2016: TL 2,317). There is no direct operating expense for investment properties during the year ended 31 December 2018 (31 
December 2017: TL 22 and 31 December 2016: TL 22).

The Group’s investment properties and their fair values at 31 December 2018 and 2017 are as follows:

 Level 1
-

Level 2
-

Level 3
17,960

Valuation Method
Income capitalization approach 

-

-

-

-

-

-

-

-

15,915

13,800

2,110

49,785

Market approach

Market approach

Market approach

 Level 1
-

Level 2
-

Level 3
52,110

Valuation Method
 Replacement cost approach

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

16,690

Income capitalization approach

15,160

13,000

Market approach

Market approach

3,150 

Replacement cost approach

3,112

3,970

2,146

109,338

Replacement cost approach

Replacement cost approach

Market approach

31 December 2018
Investment properties in Gebze

Investment properties in Ankara

Investment properties in Istanbul

Investment properties in Aydın

31 December 2017
Investment properties in Izmir

Investment properties in Gebze

Investment properties in Ankara

Investment properties in Istanbul

Investment properties in Adana

Investment properties in Balıkesir

Other investment properties

Other investment properties

F68

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 227

14. Investment properties (continued)

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.

F69

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
228

.

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l

TURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
229

16. Asset held for sale and discontinued operations

Disposal of Fintur 

In 2016, the Group has committed to plan to exit from Fintur operations in relevant jurisdictions and initiated an active program to 
locate a buyer for its associate. In this regard, Fintur has been classified as held for sale and reported as discontinued operation 
starting from 1 October 2016.

Equity accounting for Fintur ceased starting 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 to sell. 

The delay during 2018 in the sales process was caused by events and circumstances beyond the Company’s control.

Fintur, has transferred its total shareholding in Azertel Telekomunikasyon Yatırım Dış Ticaret A.Ş (“Azertel”) to Azerbaijan International 
Telecom LLC (“Azintelecom”) at the price of EUR 221,687 on 5 March 2018. The signing of definitive agreement, the transfer of shares to 
Azintelecom and the transfer of proceeds to Fintur were completed simultaneously. The transaction has no impact on consolidated 
financial statements since Fintur is classified as “assets held for sale” in the statement of financial position. 

Fintur has completed the transfer of all its shares 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.

Fintur, has transferred its total shareholding in Kcell JSC to Kazakhtelecom JSC (“Kazakhtelecom”), established in Kazakhstan, a fixed 
line operator controlled by the government of the Republic of Kazakhstan through sovereign wealth fund Samruk-Kazyna for a total 
consideration of USD 302,571. The definitive agreement has been signed on 12 December 2018. The transfer of shares to Kazakhtelecom 
and the transfer of proceeds to Fintur were completed simultaneously on 21 December 2018. The transaction has no impact on 
consolidated financial statements since Fintur is classified as “assets held for sale” in the statement of financial position.

The Company has signed the definitive agreement on 12 December 2018 to transfer its total shareholding in Fintur to other shareholder 
of Fintur, Sonera Holding B.V. (“Sonera Holding”). Transfer to Sonera Holding will be completed subsequent to obtainment of regulatory 
approvals, the value of transaction will be finalized on closing date of the transaction. Closing is expected in 2019. 

F71

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
230

16. Asset held for sale and discontinued operations (continued)

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
617,214

(369,104)

248,110

(69,983)

(69,818)

(31,258)

77,051

(61,203)

15,848

(30,947)

(15,099)

 (28,695)

13,596

(15,099)

2017
12,078

197,431

72,848

23,999

4,429

45,835

356,620

2018
216,894

89,603

72,848

27,071

2,318

12,572

421,306

Revenue

Cost of sales

Gross profit

Selling and marketing expenses

General and administrative expenses

Other operating (expenses), net

Operating profit

Finance (expense)/income, net

Profit before income tax

Total income tax

(Loss)/profit for period

Attributable to:

-owners of the parent

-non-controlling interests

(Loss)/profit for period

17. Other non-current assets

Advances given for property, plant and equipment

Prepaid expenses

Receivables from the Public Administration

Deposits and guarantees given

VAT receivable

Others

F72

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 231

18. Deferred tax assets and liabilities

Recognized deferred tax assets and liabilities

Deferred tax assets and liabilities at 31 December 2018 and 2017 are attributable to the following:

Property, plant and equipment and 
intangible assets (*)
Investment

Derivative instruments

Reserve for employee termination benefits 
and provisions

Asset classified as held for sale

Tax losses carried forward 

Tax allowances
Other assets and liabilities (**)

Deferred tax assets/(liabilities)
Offsetting

Net deferred tax assets/(liabilities)

2018

106,128

32,926

15,380

155,132

-

224,179

20,554

248,251

802,550
(649,818)

152,732

Assets

Liabilities

Net

2017

41,903

32,926

1,492

2018

2017

2018

2017

(936,167)

(680,134)

(830,039)

(638,231)

-

-

(429,162)

(182,806)

32,926

(413,782)

32,926

(181,314)

202,112

(45,581)

(64)

109,551

202,048

-

-

10,775

545,968

835,176
(739,116)

96,060

-

-

-

(92,327)

-

(92,327)

(101,268)

(434,907)

(1,512,178)
649,818

(862,360)

(1,390,238)
739,116

(651,122)

-

-

224,179

20,554

146,983

(709,628)
-

(709,628)

-

10,775

111,061

(555,062)
-

(555,062)

(*)The impact of adoption of IFRS 15, “Revenue from contracts with customers” is accounted under Property, plant and equipment and intangible assets (Not 2)
(**)Mainly comprises of loans and bonds’ deferred tax assets.

Movement in deferred tax assets/ (liabilities) for the years ended 31 December 2018 and 2017 were as follows:

Opening balance
IFRS 9 and 15 effects

Income statement charge

Tax charge relating to components of other comprehensive income

Prior year corporate tax base differences

Exchange differences

Closing balance, net

2018

(555,062)
(141,213)

159,472

(157,203)

(8,608)

(7,014)

2017

(406,905)
-

(133,791)

(6,449)

(2,729)

(5,188)

(709,628)

(555,062)

F73

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
232

18. Deferred tax assets and liabilities (continued)

The Group did not recognise deferred income tax assets of TL 5,310,000 in respect of tax losses amounting to TL 972,730 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
2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

Indefinite

Total

19. Trade receivables and accrued revenue

Receivables from subscribers

Accounts and notes receivable

Undue assigned contracted receivables

Accrued revenue

Other

Amount
808

581

646

368,109

172,264

303,045

1,023,650

47,466

488,572

308,541

2,596,318

5,310,000

31 December 2018
1,634,427

31 December 2017
1,369,948

560,665 

271,306 

-

39,592

498,397

347,596

632,631

-

2,505,990

2,848,572

Trade receivables are shown net of provision for impairment amounting to TL 738,181, at 31 December 2018 (31 December 2017: TL 
705,213). Movements in provision for impairment of trade receivables and due from related parties are disclosed in Note 35. 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 35.

Letters of guarantee received with respect to the accounts and notes receivable amounted to TL 174,975 and TL 339,543 at 31 
December 2018 and 2017, 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. The 
undue assigned contracted receivables related to handset campaigns, which will be billed after one year is presented under non-
current trade receivable amounting to TL 115,001. 

F74

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 233

20. Receivables from financial services

Current receivables from financial services

Non-current receivables from financial services

31 December 2018
3,286,243

31 December 2017
2,950,523

884,686

4,170,929

1,297,597

4,248,120

Movements in provision for impairment of receivables from financial services are disclosed in Note 35.

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.

21. Contract assets

Current contract assets: 

Contract assets

Non-current contract assets: 

Contract assets

31 December 2018
711,928

31 December 2017
-

711,928

-

31 December 2018
3,513

31 December 2017
-

3,513

-

The contract assets represents  contract assets 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 long term contract assets.

22. Inventory

As of 31 December 2018 inventories amounting to TL 180,434 which consist of mainly mobile phone, modem, tablet, sim card and tower 
construction materials (31 December 2017: TL 104,102).

F75

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
 
234

23. Other current assets

Receivables from the Ministry of Transport and Infrastructure of Turkey

31 December 2018
415,524

31 December 2017
143,669

Restricted cash

Advances given to suppliers

Receivables from tax office

Prepaid expenses

VAT receivable

Subscriber acquisition costs

Special communication tax to be collected from subscribers

Other

204,077

92,715

83,392

79,149

65,123

-

-

151,532

1,091,512

183,806

55,754

93,917

322,388

38,934

138,177

38,318

145,642

1,160,605

As at 31 December 2018, restricted cash amounting to TL 204,077 represents the deposits as guarantees in connection with the foreign 
currency loans utilized by Turkcell Finansman.

24. Cash and cash equivalents

Cash in hand

Banks

- Demand deposits

- Time deposits

Other cash and cash equivalents

Cash and cash equivalents 

31 December 2018
144

31 December 2017
192

7,413,113

587,007

6,826,106

5,982

7,419,239

4,712,141

603,553

4,108,588

-

4,712,333

As at 31 December 2018, the average effective interest rates of TL, USD and EUR time deposits are 22.5%, 5.9% and 3.3% (31 December 
2017: 14.3%, 5.8% and 2.2%) respectively.

As at 31 December 2018, average maturity of time deposits is 35 days (31 December 2017: 32 days).

F76

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 235

25. Equity

Share capital

As at 31 December 2018, share capital represents 2,200,000,000 (31 December 2017: 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 is entitled to one vote at a meeting in person or by proxy.

Companies with their shareholding percentage are as follows:

Turkcell Holding A.Ş. (“Turkcell Holding”)

Public Share

Other

Total
Inflation adjustment to share capital

Inflation adjusted capital

31 December 2018

31 December 2017

(%)
51.00

48.95

0.05

100.00

TL
1,122,000

1,077,004

996

2,200,000
(52,352)

2,147,648

(%)
51.00

48.95

0.05

100.00

TL
1,122,000

1,077,004

996

2,200,000
(52,352)

2,147,648

As at 31 December 2018, total number of shares pledged as security is 995,509 (2017: 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 2018, the Company purchased 8,434,204 of its shares on-market with prices ranging from full TL 10.01 to full TL 12.33. The buy-
back was approved by the Board of Directors on 27 July 2016 and 30 January 2017. Total cost of TL 94,620 was deducted from equity 
(2017: None).

Dividends

Turkcell:

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.

F77

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
236

25. Equity (continued)

Dividends (continued)

Turkcell (continued):

On 29 March 2018, the Company’s General Assembly has approved a dividend distribution for the year ended 31 December 2017 
amounting to TL 1,900,000; this represents a gross cash dividend of full TL 0.86364 per share. The Company paid TL 1,900,000 in total 
including withholding taxes in three instalments on 18 June, 17 September and 17 December 2018 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.

According to Board of Directors Resolution of Inteltek dated 18 December 2017 the advanced dividend payment has been made 
in January 2018 amounting to TL 28,402 for the first nine months of 2017 profit. According to the resolution of the Ordinary General 
Assembly Meeting of Inteltek dated 30 March 2018, the shareholders resolved to pay a dividend amount equal to TL 60,011 out of 
profits for the year ended 31 December 2017 (remaining amount after deducting interim dividends for the nine-month period ended 
30 September 2017 amounting to TL 28,402) and a dividend out legal reserves amount equal to TL 9,507. The aggregate amount of 
dividends has been paid on May 2018.

Azerinteltek:

According to the resolution of the General Assembly Meeting of Azerinteltek dated 10 April 2017 and 30 April 2018, Board of Directors 
have decided to pay dividend amounting to AZN 34,797 (31 December 2018: TL 56,111) from the profit realized for the last quarter of 
2017, first and second quarter of 2018. Dividend payment was made in 2018.

F78

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 237

26. Earnings per share

Numerator:

Profit attributable to owners of the Company

Denominator:
Weighted average number of shares (*)

2018

2017

2016

2,021,065

1,979,129

1,492,088

2,184,750,233

2,193,184,437

2,193,184,437

Basic and diluted earnings per share for profit attributable to owners of 
the Company (in full TL)

0.93 

0.90

0.68

(*) Refer to Note 25 - Treasury shares

Numerator:

2018

2017

2016

Profit from continuing operations attributable to owners of the Company

2,021,065

1,979,129

1,534,252

Denominator:
Weighted average number of shares (*)

2,184,750,233

2,193,184,437

2,193,184,437

Basic and diluted earnings per share for profit from continuing operations 
attributable to owners of the Company (in full TL)

0.93 

0.90

0.70

(*) Refer to Note 25 - Treasury shares

F79

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 238

27. Other non-current liabilities

Consideration payable in relation to the acquisition of Belarusian Telecom

Deferred revenue

Deposits and guarantees received from dealers

2018
358,304

2,497

3,809

364,610

2017
323,691

85,646

-

409,337

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 526,090 as of 31 December 2018) 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 2023 (31 December 2017: the first quarter of 2021). Discount rate used for calculating present value of the consideration 
payable in relation to the acquisition of Belarusian Telecom as of 31 December 2018 is 9.5% (31 December 2017: 4.8%).

28. Loans and borrowings

Non-current liabilities

Unsecured bank loans

Secured bank loans

Finance lease liabilities

Lease liabilities

Debt securities issued

Current liabilities

Unsecured bank loans

Current portion of unsecured bank loans

Current portion of secured bank loans

Current portion of finance lease liabilities

Current portion of lease liabilities

Current portion of long-term debt securities issued

Debt securities issued

Lease liabilities

31 December 2018

31 December 2017

7,244,992

1,862

-

1,026,955

4,845,827

13,119,636

3,737,393

2,544,462

2,318

-

20,156

289,738

74,997 

366,845

6,376,981

2,368

108,164

-

1,770,482

8,257,995

2,643,112

1,513,425

2,022

14,556

-

105,039

-

-

The sale process of the bond issuance of the Company with an aggregate principal amount of USD 500,000, 10 year maturity, a 
redemption date of 11 April 2028 and a re-offer price of 97.8 % with a fixed coupon rate of 5.80% per annum to qualified investors 
abroad was completed on 11 April 2018 and the notes are listed on the official list of Euronext Dublin (Irish Stock Exchange). 

7,035,909

4,278,154

F80

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
239

28. Loans and borrowings (continued)

The scope of the EUR 690,000 unutilized portion of the EUR 750,000 loan agreement signed with China Development Bank (CDB) has 
been expanded. In this respect, in addition to Turkcell, the Company’s subsidiaries Turkcell Superonline, Turkcell Finansman and lifecell 
LLC will also be able to utilize the corresponding loan. Furthermore, in addition to the right to utilize in EUR terms, relevant loan may 
also be utilized in USD and Renminbi (RMB) with respective annual interest rates of LIBOR + 2.2% and 5.5%. There have been no changes 
to maturity and the repayment schedule of the loan. As at 31 December 2018, the Company has utilized RMB 251,089 (equivalent to 
TL 191,337 as at 31 December 2018), USD 140,000 (equivalent to TL 736,526 as at 31 December 2018) and EUR 100,000 (equivalent to TL 
602,800 as at 31 December 2018) comparatively, under this agreement. 

One of the main reason of increase in borrowings arises from funds received by Turkcell Finansman in order to provide loans to its 
customers and bond issuance. 

Within the scope of buy-back decisions on 27 July 2016 and 30 January 2017, the Company purchased their debt securities issued with 
a total nominal value of USD 15,500 as at 31 December 2018.

In the year 2018, the Company has approved issuance of management agreement based lease certificates in accordance with 
capital markets legislation through KT Sukuk Varlık Kiralama A.S. in the domestic market, in Turkish Lira terms, at an amount of up to 
TL 300,000, on various dates and at various amounts without public offering, as private placement and/or to be sold to institutional 
investors. As at 31 March 2018, the Company has issued management agreement based lease certificates amounting to TL 125,000 (not 
discounted), as at 30 September 2018, issued management agreement based lease certificates was redeemed. As at 31 December 
2018, the Company has issued management agreement based lease certificates through KT Sukuk Varlık Kiralama A.S amounting to TL 
75,000 (not discounted).

In the year 2019, the Company has approved issuance of management agreement based lease certificates in accordance with capital 
markets legislation in the domestic market, in Turkish Lira terms, at an amount of up to TL 500,000, on various dates and at various 
amounts without public offering, as private placement and/or to be sold to institutional investors.

F81

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 240

.

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(

TURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
241

28. Loans and borrowings (continued)

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 35.

29. Employee benefits

Retirement pay liability provision

Unused vacation provision

Provision for annual leave

31 December 2018
160,613

31 December 2017
149,449

64,134 

224,747 

48,217 

197,666 

As 31 December 2018 and 2017, provision for annual leave amounted to TL 64,134 and TL 48,217, respectively.

Provision for employee termination benefits

Movements in provision for employee termination benefits are as follows:

1 January

Service cost

Remeasurements

Interest expense

Benefit payments 

31 December

2018
149,449 

26,971 

(12,699) 

16,957 

(20,065) 

160,613 

2017
120,755 

32,696 

3,738 

13,877 

(21,617) 

149,449 

The sensitivity of provision for employee termination benefits to changes in the significant actuarial assumptions is:

31 December 2018

Sensivity Level
Change in assumption

Impact on provision for employee termination benefits

Discount Rate

Inflation Rate

1% increase
(13.0%)

(20,880)

1% decrease
15.7%

25,216

1% increase
16.5%

26,501

1% decrease
(13.7%)

(22,004)

F83

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 242

29. Employee benefits (continued)

31 December 2017

Sensivity Level
Change in assumption

Impact on provision for employee termination benefits

Discount Rate

Inflation Rate

1% increase
(14.6%)

(21,820) 

1% decrease
18.1%

1% increase
18.3%

27,050 

27,349 

1% decrease
(14.3%)

(21,371)

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 9,361, TL 8,107 and TL 7,722 in relation to defined contribution retirement plan for the years ended 31 
December 2018, 2017 and 2016, 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 2018, the Group recognized expenses of TL 26,224 regarding this plan (31 December 2017: TL 29,413).

30. Deferred revenue

Deferred revenue primarily consists of loan application fee and it is classified as current at 31 December 2018 and 2017. The amount of 
deferred revenue is TL 8,948 and TL 193,381 as at 31 December 2018 and 2017, respectively.

31. Contract liabilities

Current contract liabilities: 

Contract liabilities

Non-current contract liabilities:  

Contract liabilities

F84

31 December 2018
255,756

31 December 2017
-

255,756

-

31 December 2018
131,598

31 December 2017
-

131,598

-

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
243

31. Contract liabilities (continued)

Contract liabilities primarily consists of right of use sold but not used by prepaid subscribers. The following table shows unrealized 
performance obligation result as of 31 December, 2018;

Mobile telecommunications service
Other (*)

Total

(*) In consist of Hospital Revenue

31 December 2018
101,006

429,889

530,895

Management expects that 75% of the transaction price allocated to the unsatisfied contracts at of 31 December 2018 will be 
recognized as revenue during the next reporting period. The remaining 25% will be recognized in the 2019 financial year.

Revenue recognized in the current reporting period relates to carried forward contract liabilities is TL181,710.

32. Provisions 

Non-current provisions:

Balance at 1 January 2018
Provisions recognized

Unwinding of discount

Transfer to current provisions

Effect of changes in exchange rates

Balance at 31 December 2018

Balance at 1 January 2017
Provisions recognized/(reversed)

Unwinding of discount

Transfer to current provisions

Effect of changes in exchange rates

Balance at 31 December 2017

Legal claims

Obligations for 
dismantling, removing 
and site restoration

8,887 
5,859 

-

(5,382) 

-

9,364 

188,531
47,580

9,760

-

13,487

259,358

Legal claims

Obligations for 
dismantling, removing 
and site restoration

6,889 
4,256 

-

(2,258)

-

8,887 

180,652
(8,461)

15,328

-

1,012

188,531

Provision for legal claims are recognized for the probable cash outflows related to legal disputes. Refer to Note 37.

Total

197,418
53,439

9,760

(5,382)

13,487

268,722

Total

187,541
(4,205)

15,328

(2,258)

1,012

197,418

F85

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
 
 
 
 
244

32. Provisions (continued)

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 5.1% at 31 December 2018 (31 
December 2017: 5.6%).

Current provisions:

Balance at 1 January 2018
Provisions recognized/(reversed)

Payments

Transfers from non-current provisions

Unwinding of discount

Disposal of subsidiaries

Effect of changes in exchange rates

Balance at 31 December 2018

Balance at 1 January 2017
Provisions recognized/(reversed)(**)
Payments

Transfer from non-current provisions

Unwinding of discount

Effect of changes in exchange rates

Balance at 31 December 2017

(*) Includes share-based payment (Note 29).
(**) Refer to Note 37.1 and 37.3 for legal claim.

33. Trade and other payables

Payable to suppliers

Taxes payable

Legal claims

605,679
(3,520)

(626,214)

5,381

26,185

-

1,082

8,593

Bonus(*)
173,391
318,603

(263,080)

-

-

606

229,520

Legal claims

18,266
583,788

(1,188)

2,258

2,531

24

605,679

Accrued treasury share, universal service fund contribution and contributions to the ICTA’s expenses 

Accrued selling and marketing expenses 

Other

Bonus

229,520
408,740 

(338,650) 

-

-

(2,070) 

935 

298,475 

Other

785
(785)

-

-

-

-

-

2018
2,372,512

465,966

455,496

91,747

402,453

3,788,174

Total

835,199
405,220

(964,864)

5,381

26,185

(2,070)

2,017

307,068

Total

192,442
901,606

(264,268)

2,258

2,531

630

835,199

2017
2,527,152

415,650

305,208

79,011

369,445

3,696,466

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.

F86

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
 
 
 
 
 
 
245

33. Trade and other payables (continued)

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.

34. Derivative financial instruments

Fair value of derivative financial instruments at 31 December 2018 and 2017 are attributable to the following:

Held for trading

Derivatives used for hedging

Total

31 December 2018

31 December 2017

Assets
709,617

730,924

1,440,541

Liabilities
131,097

-

131,097

Assets
961,665

-

961,665

Liabilities
17,724

-

17,724

At 31 December 2018, total held for trading derivative financial assets of TL 1,356,062 also include net accrued interest expense of TL 
84,479 and total held for trading derivative financial liabilities of TL 131,097 also include net accrued interest expense of TL 34,168.

Derivatives used for hedging

Participating cross currency swap and FX swap contracts

The notional amount and the fair value of participating cross currency swap and FX swap contracts for hedging purposes at 31 
December 2018 are as follows:

Buy

Sell

Currency

Notional amount

Currency

Notional amount

Fair Value

Maturity

Participating cross currency swap contracts

TL

TL

TL

TL

TL

TL

TL

Cross currency swap contracts

TL

1,650,000

275,850

435,000

293,500

194,000

386,500

113,400

123,878

EUR

EUR

USD

USD

USD

USD

USD

RMB

500,000

60,000

150,000

100,000

50,000

100,000

20,000

202,600

Derivatives used for hedge accounting financial assets

208,462

23 October 2025

64,670

167,116

22 April 2026

16 September 2020

108,777

16 September 2020

39,394

79,688

9,234

16 September 2020

16 September 2020

22 April 2026

53,583

730,924

22 April 2026

EUR 500,000 participating cross currency swap contracts includes TL 690,146 guarantees after CSA agreement.

F87

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
 
 
246

34. Derivative financial instruments (continued)

Held for trading

Currency swap, cross currency swap and participating cross currency swap contracts

The notional amount and the fair value of currency swap, participating cross currency swap and FX swap contracts for hedging 
purposes at 31 December 2018 are as follows:

Buy

Sell

Notional amount

Currency

Notional amount

Fair Value

Maturity

USD

USD

USD

USD

USD

USD

USD

USD

EUR

EUR

EUR

USD

USD

USD

USD

USD

EUR

EUR

EUR

EUR

EUR

EUR

USD

50,000

50,000

135,000

40,000

50,000

253

680

920

1,000

60,000

10,000

1,000

1,000

24,000

50,000

24,000

24,000

18,000

18,867

30,000

30,000

30,000

20,000

(3,715)

(3,465)

(9,774)

(2,300)

(2,880)

(48)

(939)

(1,277)

(41)

(861)

(4)

(912)

(910)

(9,365)

(5,791)

(2,652)

(24,895)

(22,051)

1,920

(8,296)

(8,642)

(7,148)

(17,051)

 (131,097)

2 January 2019

2 January 2019

2 January 2019

2 January 2019

2 January 2019

19 March 2019

16 January 2019

22 January 2019

2 January 2019

15 January 2019

8 January 2019

28 January 2019

24 January 2019

20 March 2023

14 June 2019

19 June 2019

8 January 2019

23 September 2021

14 February 2019

22 April 2026

22 April 2026

16 September 2020

22 April 2026

Currency
Currency Swap 

TL

TL

TL

TL

TL

TL

TL

TL

TL

USD

USD

Cross currency swap contracts

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

266,760

266,510

719,996

212,736

265,925

1,366

4,199

5,681

6,040

68,654

11,462

6,159

6,159

130,488

268,200

128,436

169,368

118,800

111,732

185,100

183,300

Participating cross currency swap contracts

TL

TL

193,800

91,700

Total Held for trading derivative financial liabilities

F88

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 247

34. Derivative financial instruments (continued)

Held for trading

Buy

Sell

Currency

Notional amount

Currency

Notional amount

Fair Value

Maturity

Cross currency swap contracts

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

67,410

95,550

52,164

69,744

242,873

269,451

191,300

98,625

203,600

97,997

105,280

USD

USD

USD

USD

USD

USD

USD

EUR

EUR

EUR

EUR

18,000

25,000

14,620

19,780

70,500

70,500

50,000

25,000

50,000

21,500

18,800

Total held for trading derivative financial assets

Participating cross currency swap and FX swap contracts 
at 31 December 2017

Buy

Sell

27,928

36,751

27,870

38,636

28 January 2019

24 January 2019

16 July 2019

22 July 2019

160,594

16 September 2020

22 December 2020

13 February 2019

13 June 2019

23 July 2019

19 December 2019

23 September 2021

131,437

74,095

57,161

109,610

37,825

7,710

709,617

Currency

USD

Notional amount
47,304

Currency
EUR

Notional amount
39,835

Fair value
1,005

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

69,680

81,480

95,550

67,410

98,625

52,164

69,744

203,600

435,000

386,500

293,500

242,873

194,000

1,650,000

275,850

USD

EUR

USD

USD

EUR

USD

USD

EUR

USD

USD

USD

USD

USD

EUR

EUR

20,000

20,000

25,000

18,000

25,000

14,620

19,780

50,000

150,000

100,000

100,000

70,500

50,000

500,000

60,000

Total derivative financial assets

Maturity
02 January 2018

27 August 2018

14 December 2018

24 January 2019

28 January 2019

13 June 2019

16 July 2019

22 July 2019

23 July 2019

6,554

9,965

72

1,498

17,354

4,465

6,996

27,198

142,085

16 September 2020

(4,645)

90,071

33,535

(2,951)

627,385

1,078

961,665

16 September 2020

16 September 2020

16 September 2020

16 September 2020

25 October 2025

22 April 2026

F89

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 248

34. Derivative financial instruments (continued)

Held for trading

At 31 December 2017, total derivative financial assets of TL 981,396 also include net accrued interest income of TL 19,731.

Participating cross currency swap and FX swap contracts 
at 31 December 2017

Buy

Sell

Currency
TL

Notional amount
470,232

Currency
USD

Notional amount
122,680

Fair value 
(2,465)

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

TL

180,023

141,001

219,162

115,022

17,204

15,916

91,556

137,834

82,013

1,143

97,997

269,451

USD

USD

USD

USD

USD

EUR

EUR

EUR

EUR

EUR

EUR

USD

47,250

36,786

57,245

30,150

4,500

3,500

20,140

30,400

17,860

250

21,500

70,500

Total derivative financial liabilities

Currency forward contracts at 31 December 2017

Buy

Maturity
2 January 2018

2 January 2018

3 January 2018

4 January 2018

5 January 2018

10 January 2018

10 January 2018

22 January 2018

05 February 2018

19 February 2018

5 Mart 2018

(545)

(726)

(1,043)

(435)

(284)

(157)

(620)

(601)

(1,413)

(25)

(2,154)

19 December 2019

(5,010)

22 December 2020

(15,478)

Currency

USD

Total derivative financial liabilities

Notional amount

Fair value

Maturity

50,000

(2,246)

(2,246)

30 January 2018

At 31 December 2017, total derivative financial liabilities of TL 110,108 also include net accrued interest expense of TL 92,384.

F90

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
 
 
 
 
249

34. Derivative financial instruments (continued)

Fair value of derivative instruments and risk management

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. 

31 December 
2018

31 December 
2017

Fair Value 
hierarchy

Fair values

a)Participating cross currency swap 
contracts (*)
-Held for trading

-Derivatives used for hedging

653,142
(24,199)

677,341

950,862
950,862

-

Level 3

Valuation Techniques
Pricing models based on 
discounted cash Present value of 
the estimated future cash flows 
based on unobservable yield 
curves and end period FX rates

b)FX swap contracts
-Held for trading

-Derivatives used for hedging

c)Currency forward contracts
-Held for trading

656,302
602,719

53,583

-
-

(4,675)
(4,675)

-

(2,246)
(2,246)

Present value of the estimated 
future cash flows based on 
observable yield curves and end 
period FX rates

Level 2

Level 2

Forward exchange rates at the 
balance sheet date

(*)TL 118,647 accrual of net interest expense has been reflected to consolidated financial statements as at 31 December 2018 (31 December 2017: TL 72,653). 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 123,995 lower as at 31 December 2018 (31 
December 2017: TL 129,870).

There were no transfers between fair value hierarchy levels during the year. 

F91

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 250

.

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TURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
251

34. Derivative financial instruments (continued)

Fair value of derivative instruments and risk management (continued)

EUR 500,000 participating cross currency swap contracts includes TL 690,146 guarantees after CSA agreement.

Movements in the participating cross currency swap contracts for the years ended 31 December 2018 and 31 December 2017 are stated 
below: 

Opening balance

Cash flow effect
Total gain/loss:

Gains recognized in profit or loss

Closing balance

Net off / Offset

31 December 2018
950,862

31 December 2017
382,054

(612,466)

314,746

653,142

-

568,808

950,862

The Company signed a Credit Support Annex (CSA) against default risk of the parties in respect of a EUR 500,000 participating cross 
currency swap transaction executed on 15 July 2016 and restructured respectively on 26 May 2017 and 9 August 2018. As per the CSA, 
the swap’s current (mark-to-market) value will be determined on the 10th and 24th calendar day of each calendar month and if the 
mark-to-market value is positive and exceeds a certain threshold, the bank will be posting cash collateral to the Company which will 
be equal to an amount exceeding the threshold (i.e. if the mark-to-market value is negative, the Company would be required to post 
collateral to the bank by an amount exceeding the threshold).

With respect to the valuations on a bi-weekly basis, a transfer will take place between the parties only if the mark-to-market value 
changes by at least EUR 1,000. Following the execution of CSA, the bank transferred EUR 153,540 as collateral to the Company (31 
December 2018: TL 925,539) which was the amount exceeding the threshold (EUR 10,000) and the Company transferred EUR 39,050 
as collateral to the bank (31 December 2018: TL 235,393) which was the amount exceeding the threshold (EUR 10,000). The Company 
clarified this with the derivative assets included in the statement of financial position because it has the legal right to offset the 
collateral amount TL 690,146 that it recognizes under the borrowings and intends to pay according to the net fair value. This amount 
was netted from the borrowings and deducted from the derivative instruments in the balance sheet. As of 31 December 2018, If this 
transaction was not conducted, derivative financial instruments assets would have been TL 2,046,208 and current borrowings would 
have been TL 7,726,055.

Market risk

The Group uses various types of derivatives to manage market risks. All such transactions are carried out within the guidelines set by 
the treasury and risk management department. Generally, the Group seeks to apply hedge accounting to manage volatility in profit or 
loss.

F93

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 252

34. Derivative financial instruments (continued)

Fair value of derivative instruments and risk management (continued)

Currency risk

The Group’s risk management policy is to hedge its estimated foreign currency exposure in respect of borrowing payments with various 
maturities at any point in time. The Group uses participating cross currency contracts to hedge its currency risk, most with a maturity of 
more than one year from the reporting date. These contracts are generally designated as cash flow hedges.

The Group designates the hedge ratio, between the amount of hedged item and the hedging instrument is 1:1 to hedge its currency risk.

The time value of options in participating cross currency swap contracts are included in the designation of the hedging instrument and 
are separately accounted for as a cost of hedging, which is recognised in equity in a cost of hedging reserve. The Group’s policy is for 
the critical terms of the participating cross currency contracts to align with the hedged item.

The Group determines the existence of an economic relationship between the hedging instruments and hedged item based on the 
currency, amount and timing of their respective cash flows. The Group assesses whether the derivative designated in each hedging 
relationship is expected to be and has been effective in offsetting changes in cash flows of the hedged item using the hypothetical 
derivative method.

In these hedge relationships, the main sources of ineffectiveness are;
 – the effect of the counterparties’ credit risk on the fair value of the swap contracts, which is not part of the hedged risk and 
associated credit risk considered to be very low at inception in the fair value of the hedged cash flows attributable to the change in 
exchange rates; 

– the entire fair value of the derivative contracts including currency basis was designated as the hedging instrument in cash flow 
hedge. The hypothetical derivative is modelled to exclude the impact of currency basis.

Interest rate risk

The Group adopts a policy of ensuring that its interest rate risk exposure is at a fixed rate. This is achieved partly by entering into 
fixed-rate instruments and partly by borrowing at a floating rate and using cross currency and interest rate swaps as hedges of the 
variability in cash flows attributable to movements in interest rates. The Group applies a hedge ratio of 1:1.

The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the 
reference interest rates, tenors, repricing dates and maturities and the notional or par amounts.

The Group assesses whether the derivative designated in each hedging relationship is expected to be effective in offsetting changes in 
cash flows of the hedged item using the hypothetical derivative method.

In these hedge relationships, the main sources of ineffectiveness are:

– the effect of the counterparties’ credit risk on the fair value of the swap contracts, which is not part of the hedged risk and 
associated credit risk considered to be very low at inception in the fair value of the hedged cash flows attributable to the change in 
interest rates; 

F94

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
253

34. Derivative financial instruments (continued)

Fair value of derivative instruments and risk management (continued)

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates and 10 % change in foreign exchange currency at the reporting date 
would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, 
remain constant.

31 December 2018
Participating cross currency swap contracts 

Cross currency swap contracts

Cash Flow sensitivity (net)

Cash flow hedges

Profit or Loss

Equity, net of tax

100 bp increase

100 bp decrease

100 bp increase

100 bp decrease

 937,845 

 31,584 

 969,429 

 9,455 

 320 

9,775 

(360,596) 

 1,452 

 (359,144) 

 (259,066) 

 4,765 

 (254,301) 

The following table provides a reconciliation by risk category of components of equity and analysis of OCI items, net of tax, resulting 
from cash flow hedge accounting.

Balance at 1 January 2018

Cash Flow Hedges
Changes in fair value:
Foreign currency risk

Interest rate risk

Amount reclassified into profit or loss:
Foreign currency risk

Interest rate risk

Tax on movements during the year:

Balance at 31 December 2018

2018

Hedging 
Reserve

Cost of Hedging 
Reserve

-

-

 683,706 
612,733

70,973

(664,550)
(611,035)

(53,515)

(4,214)

 14,942

(448,833)
(448,833)

-

101,231
101,231

-

76,472

 (271,130)

F95

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
254

35. Financial instruments

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:

Trade receivables 

Contract assets

Receivables from financial services

Cash and cash equivalents*

Participating cross currency swap and FX swap contracts

Other current assets**

Held to maturity investments

Financial asset at fair value through profit or loss

Financial asset at fair value through other comprehensive income

Due from related parties

19

20

24

32

22

37

2018
2,620,991

715,441

4,170,929

7,419,095

1,356,062

287,469

-

9,409

42,454

13,533

2017
3,004,206

-

4,248,120

4,712,141

981,396

316,042

11,992

-

-

5,299

16,635,383

13,279,196

* Cash in hand is excluded from cash and cash equivalents.
** Prepaid expenses, receivable from personnel, receivable from the Ministry of Transport and Infrastructure of Turkey, other and advances given are excluded from other current 
assets and other non-current assets. 

F96

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) e
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F97

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
256

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TURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
257

35. Financial instruments (continued)

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 objective evidence that an impairment has been incurred but not yet 
is 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 net impairment losses on financial and contract assets (Note 10). Subsequent 
recoveries of amounts previously written off are credited against Net impairment losses on financial and contract assets (Note 10).

Movements in the provision for impairment of trade receivables and due from related parties are as follows:

Opening balance 

IFRS 9 effect

Provision for impairment recognized during the year

Amounts collected
Unused amount reversed (*)
Receivables written off during the year as uncollectible

Exchange differences

Disposal of subsidiaries

Closing balance

Opening balance 

Provision for impairment recognized during the year

Amounts collected
Unused amount reversed (*)
Receivables written off during the year as uncollectible

Exchange differences

Closing balance

31 December 2018 
Contract Asset
-

31 December 2018 
Other Asset**
705,440 

5,128 

2,242 

- 

- 

- 

- 

- 

 7,370

(43,512) 

416,557 

(166,641) 

(73,023) 

(118,553) 

10,540 

3 

730,811 

31 December 2017 
Contract Asset
-

31 December 2017 
Other Asset**
964,311

-

-

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-

-

-

180,948

(224,460)

(79,958)

(138,529)

3,128

705,440

(*) 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. 
(**) Other Assets includes trade receivables, subscriber receivables and other assets.

F99

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 258

35. Financial instruments (continued)

Impairment losses (continued)

Movements in the provision for impairment of receivables from financial services are as follows:

Opening balance 

IFRS 9 effect

Provision for impairment recognized during the year

Amounts collected
Unused amount reversed (*)
Closing balance

31 December 2018
72,992 

31 December 2017 
10,170

52,951 

190,509 

(96,278) 

(19,901) 

200,273 

-

117,293

(37,503)

(16,968)

72,992

(*) 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.
. 

F100

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
259

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F101

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
260

35. Financial instruments (continued)

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:

Foreign currency denominated assets
Other non-current assets
Financial asset at fair value through other comprehensive income
Due from related parties-current
Trade receivables and contract assets
Other current assets 
Cash and cash equivalents

Foreign currency denominated liabilities
Loans and borrowings-non current
Debt securities issued-non- current
Lease obligations-non-current
Other non-current liabilities
Loans and borrowings-current
Debt securities issued-current
Rent lease obligations-current
Trade and other payables-current
Due to related parties

Exposure related to derivative instruments
Participating cross currency swap and FX swap contracts
Net exposure

Foreign currency denominated assets
Other non-current assets
Due from related parties-current
Trade receivables and accrued income
Other current assets 
Cash and cash equivalents

Foreign currency denominated liabilities
Loans and borrowings-non current
Debt securities issued-non- current
Other non-current liabilities
Loans and borrowings-current
Debt securities issued-current
Trade and other payables-current
Due to related parties

Exposure related to derivative instruments
Participating cross currency swap and FX swap contracts
Currency forward contracts
Net exposure

F102

 31 December 2018

USD

EUR

RMB

222
-
1,965
15,786
70,710
786,322
875,005

(481,438)
(921,102)
(4,719)
(68,107)
(390,876)
(55,074)
(2,951)
(233,805)
(686)
(2,158,758)

11
7,043
223
52,140
18,977
384,800
463,194

(748,142)
-
(24,068)
-
(523,595)
-
(8,223)
(32,946)
(52)
(1,337,026)

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(224,519)
-
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(29,244)
-
-
(70,553)
-
(324,316)

1,082,036
(201,717)

811,167
(62,665)

202,600
(121,716)

31 December 2017

USD

EUR

72
571
18,890
43,039
688,717
751,289

(557,180)
(469,387)
(85,816)
(206,535)
(27,848)
(328,323)
(1,172)
(1,676,261)

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50,000
62,039

2,681
407
57,283
35,049
237,697
333,117

(960,629)
-
-
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-
(29,442)
(394)
(1,276,292)

748,650
-
(194,525)

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 261

35. Financial instruments (continued)

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/weakening of the TL, UAH, BYN against the following currencies at 31 December 2018 and 31 December 2017 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.

1- USD net asset/liability
2- Hedged portion of USD risk (-)

3- USD net effect (1+2)

4- EUR net asset/liability
5- Hedged portion of EUR risk (-)

6- EUR net effect (4+5)

7- Other foreign currency net asset/liability (RMB)
8- Hedged portion of other foreign currency risk (-) 
(RMB)

9- Other foreign currency net effect (7+8)
Total (3+6+9)

1- USD net asset/liability
2- Hedged portion of USD risk (-)

3- USD net effect (1+2)

4- EUR net asset/liability
5- Hedged portion of EUR risk (-)

6- EUR net effect (4+5)

7- Other foreign currency net asset/liability (RMB)
8- Hedged portion of other foreign currency risk (-) 
(RMB)

9- Other foreign currency net effect (7+8)
Total (3+6+9)

Sensitivity analysis
31 December 2018

Profit/(Loss)

Equity

Appreciation of 
foreign currency
(106,121)
-
(106,121)

Depreciation of 
foreign currency
106,121
-
106,121

Appreciation of 
foreign currency
-
(9,596)
(9,596)

Depreciation of 
foreign currency
-
9,596
9,596

(37,775)
-
(37,775)

(9,275)

-

(9,275)
(153,171)

37,775
-
37,775

9,275

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9,275
153,171

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(23,613)
(23,613)

-

364

364
(32,845)

-
23,613
23,613

-

(364)

(364)
32,845

Sensitivity analysis
31 December 2017

Profit/(Loss)

Equity

Appreciation of 
foreign currency
23,400
-
23,400

Depreciation of 
foreign currency
(23,400)
-
(23,400)

Appreciation of 
foreign currency
-
-
-

Depreciation of 
foreign currency
-
-
-

(87,838)
-
(87,838)

-

-

-
(64,438)

87,838
-
87,838

-

-

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64,438

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-
-

-

-

-
-

-
-
-

-

-

-
-

F103

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
 
262

35. Financial instruments (continued)

Interest rate risk

As at 31 December 2018 and 2017 the interest rate profile of the Group’s variable rate interest-bearing financial instruments was:

Variable rate instruments
USD floating rate loans

EUR floating rate loans

Sensitivity analysis

Note

28

31 December 2018

31 December 2017

Effective
Interest
Rate

Carrying 
Amount

Effective
interest
rate

Carrying 
Amount

4.3%

2.1%

(4,589,157)

(6,975,890)

3.2%

2.1%

(2,880,615)

(5,511,579)

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 2018 and 2017:

31 December 2018
Variable rate instruments (financial liability)

Cash flow sensitivity (net)

31 December 2017
Variable rate instruments (financial liability)

Cash flow sensitivity (net)

Fair values 

Profit or loss

Equity

100 bps 
increase

100 bps 
decrease

100 bps 
increase

100 bps 
decrease

(234,196)

(234,196)

(83,922)

(83,922)

234,196

234,196

83,922

83,922

-

-

-

-

-

-

-

-

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.

F104

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
263

35. Financial instruments (continued)

Fair values (continued)

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 
2018

31 December 
2017

Unobservable 
Inputs

31 December 
2018

31 December 
2017

Contingent 
consideration 

358,304

323,691

Risk-adjusted 
discount rate

9,5%

4,8%

Expected 
settlement date

first quarter of 
2023

first quarter of 
2021

Relationship of 
unobservable inputs to 
fair value
A change in the discount 
rate by 100 bps would 
increase/decrease FV by 
TL (13,582) and TL 14,250 
respectively,

If expected settlement 
date changes by 1 year 
FV would increase/
decrease by TL 
(31,047) and TL 33,896 
respectively,

Changes in the consideration payable in relation to acquisition of Belarusian Telecom for the years ended 31 December 2018 and  
31 December 2017 are stated below: 

Opening balance

Gains recognized in profit or loss

Closing balance

Financial assets: 

2018
323,691

34,613

358,304

2017
295,062

28,629

323,691

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 2018, the fair value of debt securities issued by the Company in 2015 with a nominal value of USD 500,000 and 
fixed interest rate (Note 28), is TL 2,380,855 (31 December 2017:2,063,972).

As at 31 December 2018, the fair value of debt securities issued by the Company in 2018 with a nominal value of USD 500,000 and 
fixed interest rate (Note 28), is TL 2,329,011 (31 December 2017:None).

Fair value of cash and cash equivalents and debt securities issued are classified as level 1 and fair value of other financial assets and 
liabilities are classified as level 2.

F105

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
264

36. Guarantees and purchase obligations 

At 31 December 2018, outstanding purchase commitments with respect to property, plant and equipment, inventory, advertising and 
sponsorship amount to TL 1,353,789 (31 December 2017: TL 592,956). Payments for these commitments will be made within 5 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 6,530,374 at 31 December 2018 (31 December 2017:  
TL 4,926,916).

At 31 December 2018, there is no commitments regarding lifecell’s 3G (31 December 2017: UAH 217,793).

37. Commitments and Contingencies 

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 USD 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 646 out of a total 
of 22,552 settlements. 

F106

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
265

37. Commitments and Contingencies (continued) 

License Agreements (continued)

lifecell:

lifecell owns eleven activity licenses, for GSM 900, 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, 2018, lifecell owned 29 frequency use licenses 
for IMT (LTE-2600, LTE-1800, IMT-2000 (UMTS), GSM-900, GSM-1800, CDMA-800. Wi-fi and microwave Radiorelay and Broadband 
Radio Access, which are regional and national. Licenses for IMT (LTE-2600, LTE-1800) and GSM-1800 were issued on 4G tenders, held 
in Q1’2018. Additionally, lifecell holds a specific number range – three NDC codes for mobile networks, twenty one 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:

Our affiliate, Inteltek Internet Teknoloji Yatırım ve Danılşmanlık Ticaret A.Ş. (“Inteltek”), on which the Company holds 55% of its shares, 
has been incorporated in order to establish and operate central system for games of chance through multi-access electronic platforms. 
Until 1 March 2009, İnteltek operated games of chance basing on the agreement executed with Spor Toto Directorate (“Spor Toto”) 
dated 29 August 2008. Inteltek gave the best offer at the new tender which allowed private companies to organize games of chance 
and signed a new contract with Spor Toto, for a term of ten years. Under this agreement, the commission rate was 1.4% and the 
targeted payout was 50% of the turnover balance including VAT. As at 31 December 2018, Inteltek has a letter of guarantee of  
TL 159,572 (31 December 2017: TL 159,752) provided to Spor Toto.

As the term of the agreement executed between Spor Toto and İnteltek dated 29 August 2008 has been expired on 29 August 2018 
and the new tender has not been concluded yet, an agreement of “procurement through bargaining” has been signed between İnteltek 
and Spor-Toto being effective from 29 August 2018 and for a term of up to 1 year as per to the article 26 of the Law on the Transfer 
of Rights to Organize Fixed Odds and Paramutual Betting Games Based on Sports Competitions to Private Legal Entities numbered 
5738. The agreement of “procurement through bargaining” is a follow-up of the agreement which currently exists and the terms and 
conditions of this agreement are generally same with the agreement which has been expired as of 29 August 2018.

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 at31 December 2018, Inteltek has provided a letter of guarantee of TL 
25,000 (31 December 2017: TL 25,000) provided to Spor Toto for mobile agency agreement. 

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.

F107

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 266

37. Commitments and Contingencies (continued)

License Agreements (continued)

Kibris Telekom (continued): 

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.

37.1 Dispute on Treasury Share Amounts 

The Undersecretariat of Treasury and ICTA alleged that Company made deficient treasury share and contribution to the authority 
expenses payments in the past, the Company objected to these claims.

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 for relevant 
years’ legal payment amounts 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. In some of the cases, the Courts already granted 
decisions in line with the petitions submitted by the Company and in the other pending cases, it is expected that the Courts shall grant 
decisions in line with 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 total payment including interest on installments is TL 436,300 and the payments have been made in 6 equal 
installments in 2018. 

No liabilities remain in the consolidated financial statements as at and for the period ended 31 December 2018 (31 December 2017: TL 
417,668).

37.2 Disputes on Special Communication Tax and Value Added Tax

a) Disputes on SCT for the year 2011 

Large Tax Payers Office levied Special Communication Tax (SCT) and tax penalty on the Company as a result of the Tax Investigation 
for the year 2011. The Company filed lawsuits for the cancellation of the notification regarding the aforementioned SCT assessment. 
The court partially accepted and partially rejected the cases and 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, while the cases are pending before the court of appeal. Tax Office rejected the application for the year 2011. The Company 
also filed a case for the cancellation of aforementioned rejection act of the Tax Office for the year 2011. The case is pending as well as 
the cases regarding the cancellation of the SCT assessment for the year 2011.

F108

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
267

37. Commitments and Contingencies (continued)

37.2 Disputes on Special Communication Tax and Value Added Tax

b) Disputes on SCT for the years 2013 and 2014 and effects of Law No. 7143 

Tax assessments for prepaid card sales for 2013 and 2014 have been completed. The Company has been notified of the tax audit 
reports prepared at the end of the said investigations. The Company management has decided to benefit from Law No. 7143, which 
provides advantageous payment and discount provisions, regarding the criticized issues in the tax audit reports and TL 39,362 has been 
paid (31 December 2017: TL 24,175).

c)  Disputes on SCT and VAT for the years 2015 and 2016 

Turkish telecom sector players including Turkcell has been subjected to a limited tax audit with respect from VAT and SCT for 2015 
and 2016. At the end of the tax audit process for the Company no issues to be criticized were identified for 2015. However, some of 
bundle offers and some services offered by the Company are subjected to criticism by tax authority for 2016. As of 31 December 2018, 
respectively tax claims arising from SCT and VAT amounting to TL 134,537 and TL 113,367 including the principal and penalty amounts 
have been notified to the Company. Administrative process has been initiated in accordance with the relevant legislation while 
reserving right to take legal action.

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 2018 (31 December 
2017: None).

37.3 Tax Base Increase due to Law Serial No. 7143

The Company Management decided to apply for VAT and corporate tax base increase mechanism for 2017 due to Law Serial No. 7143 
and TL 35,443 payment has been made on 1 October 2018. No liabilities remain in the consolidated financial statements as at and for 
the period ended 31 December 2018 (31 December 2017: None).  

37.4 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 37.1 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. The Courts granted 
decisions in line with the petitions submitted by the Company.

The total amount, including principal and interest, calculated within the scope of clause 2 is TL 158,340. The total payment including 
interest on instalments is TL 166,257 and the payments have been made in 6 equal instalments in 2018.

No liabilities have been remained in the consolidated financial statements as at and for the period ended 31 December 2018 (31 
December 2017: TL 157,446).

F109

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
268

37. Commitments and Contingencies (continued)

37.5 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 Court rejected the case. The Company appealed the 
decision with the request of the stay of the execution. 

Three private companies filed a lawsuits against the Company in relation with this case claiming in total of TL 112,084 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.

As a result of the abovementioned investigation, Competition Board concluded that the Company did not determine retail prices and 
there was no need to impose an administrative fines on this issue. After the lawsuit filed by a third party, this part of Competition 
Board’s judgement was reversed by the Council of State and Competition Board launched a new process. Consequently, the Board 
decided on January 2019 that the Company determined the retail prices of units and to apply administrative fine amounting to 
TL 91,942 on the Company. After the receiving of the reasoned decision, the Company will take legal action.

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 2018 (31 December 2017: 
None).

37.6 Ministry of Trade Administrative Fine

Ministry of Trade prepared a report upon the investigation initiated against the Company on subscriber agreements, distance contracts, 
value added services and commitment campaigns including device procurement for the year 2015. The Company filed a lawsuit for 
the stay of execution and cancellation of the Notice of Administrative Fine imposed by Istanbul Governorship Directorate of Commerce 
based to the aforementioned report of the Ministry, amounting to TL 138,173 and the Decision of Administrative Fine of Istanbul 
Governorship Directorate of Commerce. Furthermore, the Company demanded the Court to recourse to the Constitutional Court for the 
cancellation of the related part of the 19th paragraph of the article 77 of the Law on the Protection of Consumers numbered 6502.

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 2018 (31 December 2017: 
None). 

F110

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
269

37. Commitments and Contingencies (continued)

37.7 Other ongoing lawsuits and tax investigations

Within consolidated financial statements prepared as of 31 December 2018, obligations which are related to following ongoing disputes 
have been evaluated. 

Subject
Disputes related with ICTA

31 December 2018 
Anticipated Maximum 
Risk (excluding accrued 
interest)
13,367

31 December 2017 
Anticipated Maximum 
Risk (excluding accrued 
interest)
13,367

Provision
31 December 2018
-

Provision
31 December 2017
-

The Company is under tax investigation with respect to application of the Turkish Special Communication Tax to prepaid TL/card sales 
made via its sales channels for the years 2015, 2016 and 2017. Investigation has been started on December 2018.

In addition following tax and treasury share investigations have started in the Company: (i) for FY 2017 with regard to SCT, (ii) FY 
2018 with regard to SCT, Corporate Income Tax and Value Added Tax, (iii) treasury share investigation with regard to 2018 October-
December period.

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 2018 (31 December 
2017: None).

F111

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
270

38. Related parties 

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 2018 and 2017.

The Group provide additional benefits to key management personnel and contribution to retirement plans based on a pre-determined 
ratio of compensation.

Short-term benefits (*)
Termination benefits

Long-term benefits

(*) Includes share-based payment,

31 December 2018
92,341 

31 December 2017
74,696

31 December 2016
50,001

121 

755 

93,217 

604 

548 

75,848 

10,064

479

60,544 

The following balances are outstanding at the end of the reporting period in relation to transactions with related parties: 

Due from related parties 
Vimpelcom OJSC (“Vimpelcom”)

Telia Sonera International Carrier AB (“Telia”)

Kyivstar GSM JSC (“Kyivstar”)

GSM Kazakhstan Ltd (“Kazakcell”)

Azercell Telekom MMC (“Azercell”)

Other

31 December 2018
9,138

31 December 2017
-

1,741

210

2

-

2,442

13,533

1,256

1,061

830

364

1,788

5,299

There is no net of allowance for doubtful receivables of due from related parties at 31 December 2018 (31 December 2017: TL 227).

Due from Telia, Vimpelcom, Azercell and Kyivstar resulted from telecommunications services.

Due from Kazakcell, mainly resulted from software services and telecommunications services.

F112

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 271

38. Related parties (continued)

Due to related parties 
Turkcell Vakfı

Kyivstar GSM JSC (“Kyivstar”) 

Wind Telecomunicazioni S,P,A,

Teliasonera International Carrier Switzerland Ag

Vimpelcom (Bvı) Ltd,

Geocell LLC (“Geocell”)

Other

31 December 2018
39,544

31 December 2017
-

3,591

886

523

3

2

782

45,331

2,346

1,738

-

1,552

447

897

6,980

Due to Kyivstar, 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 35.

The following transactions occurred with related parties:

Revenue from related parties
Sales to Kyivstar

Telecommunications services

Sales to Telia

Telecommunications services

Sales to Vimpelcom

Telecommunications services
Sales to Azercell(****)
Telecommunication services
Sales to Krea (*)
Call center services, fixed line services, rent

and interest charges
Sales to Millenicom (**)
Telecommunication services

Sales to other related parties

2018

52,946 

7,941 

5,418 

256 

-

-

7,920 

74,481 

2017

30,875 

10,020 

7,230 

1,583 

-

-

11,324 

61,032 

2016

30,964

15,761

20,775

2,585

3,422

997

14,922

89,426

F113

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 272

38. Related parties (continued)

Related party expenses
Charges from Kyivstar

Telecommunications services

Charges from Turkcell Vakfı 

Donation

Charges from Telia

Telecommunications services

Charges from Wind Telecomunicazioni 

Telecommunications services

Charges from Vimpelcom

Telecommunications services
Charges from Azercell (****)
Telecommunications services
Charges from Hobim (***)
Invoicing and archiving services

Charges from Krea 

Digital television broadcasting services

Charges from other related parties

2018

2017

2016

77,174 

49,178 

47,595

44,247 

-

-

6,047 

3,120 

2,499

4,812 

2,751 

79

-

-

9,799 

144,909 

-

10,853 

734 

-

2,721

1,361

16,993 

31,832

-

17,001 

97,879 

5,975

11,659

103,642

Transactions with Krea include transactions until 26 August 2016,
Transactions with Millenicom include transactions until 21 January 2016,

(*) 
(**) 
(***)   Transactions with Hobim include transactions until 20 June 2017,
(****)   Transactions with Azercell include transactions until 5 March 2018,

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 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.

F114

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
273

38. Related parties (continued)

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 Turkcell Vakfı:

On 11 October 2018, Turkcell Vakfı, was incorporated for rendering social responsibility and donation transaction.

Transactions with Wind:

Wind, an entity under common control with Alfa, is rendering and receiving telecommunications services such as interconnection and 
roaming.

F115

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 274

39. Subsidiaries

The Group’s ultimate parent company is Turkcell Holding, Subsidiaries, associates and a joint venture of the Company as at 31 
December 2018 and 31 December 2017 are as follows:

Subsidiaries Name
Kibris Telekom

Country of Incorporation
Turkish Republic of Northern Cyprus 

Turkcell Global Bilgi 

Turktell

Turkcell Superonline 
Turkcell Satis 
Eastasia
Turkcell Teknoloji 
Global Tower
Rehberlik 
Financell(5)
Lifecell Ventures 
Beltel 
Turkcell Gayrimenkul 
Global LLC 
UkrTower
Turkcell Europe 
Turkcell Odeme 
lifecell
Turkcell Finansman
Beltower 

Turkcell Enerji 
Paycell 
Lifecell Digital 
TÖFAŞ (1)
Turkcell Sigorta(3)
Belarusian Telecom

Lifetech 
Inteltek
Azerinteltek (6)

Turkey 

Turkey 

Turkey 
Turkey 
Netherlands 
Turkey
Turkey
Turkey 
Netherlands 
Netherlands 
Turkey 
Turkey 
Ukraine
Ukraine
Germany
Turkey 
Ukraine 
Turkey
Republic of Belarus

Turkey
Ukraine
Turkish Republic of Northern Cyprus
Turkey
Turkey
Republic of Belarus

Republic of Belarus
Turkey 
Azerbaijan

Business
Telecommunications
Customer relations and human resources 
management
Information technology, value added GSM services 
and entertainment investments
Telecommunications, television services and 
content services
Sales, delivery and digital sales services
Telecommunications investments
Research and development
Telecommunications infrastructure  business
Directory Assistance
Financing business
Telecommunications investments
Telecommunications investments
Property investments
Customer relations management
Telecommunications infrastructure business
Telecommunications
Payment services and e-money license
Telecommunications
Consumer financing services
Telecommunications Infrastructure business
Electricity energy trade and wholesale and retail 
electricity sales
Consumer financing services
Telecommunications
Interest free consumer financing services
Insurance agency activities
Telecommunications
Information technology, programming and 
technical support
Information and Entertainment Services
Information and Entertainment Services

Effective Ownership Interest

31 December 2018 (%)
100

31 December 2017 (%)
100

100

100

100
100
100
100
100
100
-
100
100
100
100
100
100
100
100
100
100

100
100
100
100
100
80

80
55
-

100

100

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

100
100
100
-
-
80

80
55
28

Associates Name
Fintur

Country of Incorporation
Netherlands 

Türkiye’nin Otomobili (2)

Turkey

Business
Telecommunications investments
Electric passenger car development, production 
and trading activities

Joint Venture Name
Sofra (4)

Country of Incorporation
Turkey

Business
Meal coupons and cards

Effective  Ownership Interest

31 December 2018 (%)
41

31 December 2017 (%)
41

19

-

Effective Ownership Interest

31 December 2018 (%)
33

31 December 2017 (%)
-

(1) On 16 February 2018, Turkcell Ozel Finansman A,S, which will grant loans within the framework of Islamic financing principles for purchases of goods and services, was 
incorporated under the laws of Republic of Turkey. 

F116

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
 
275

39. Subsidiaries (continued)

(2) On 28 June 2018, Türkiye’nin Otomobili, which will develop and produce mainly electric passenger car and to carry out trading activities, was incorporated and accounted under 
investments in equity accounted investees in the consolidated financial statements as at 31 December 2018.
(3) On 25 June 2018, Turkcell Sigorta Aracılık Hizmetleri A,S,, which will engage in insurance agency activities, was incorporated.
(4) On 30 July 2018, Sofra, which will provide services via various means such as service coupons, meal coupons, meal card, electronic coupon and/or smart card, in vehicle payment, 
smart key, was incorporated and accounted under investments in equity accounted investees in the consolidated financial statements as at 31 December 2018, Turkcell Ödeme ve 
Elektronik Para Hizmetleri A,Ş, BELBİM Elektronik Para ve Ödeme Hizmetleri A,Ş, and Posta ve Telgraf Teşkilatı A,Ş, (“PTT”) holds equal shareholding ratios of Sofra.
(5) The liquidation process of Financell B.V., which is a wholly owned subsidiary of the Company incorporated in the Netherlands and which is non-operational since December 2015, 
has been completed as of 14 August 2018.
(6) The Group has transferred its total shareholding in Azerinteltek controlled by Inteltek to one of other shareholder of Azerinteltek, Baltech Investment LLC (“Baltech”), for a total 
consideration of EUR 19,530. The share purchase agreement was signed on 15 November 2018 and the transfer of proceeds to Inteltek was completed on 27 December 2018. Group 
have lost the control over the subsidiary unconditionally on 27 December 2018 with transfer of money. The transfer of shares to Baltech was completed subsequently on 11 January 
2019. The Due to the divestment of holding in Azerinteltek, the Group has recognized gain on sale of subsidiary amounting to TL 110,308 for the year ended 31 December 2018.

Details of non-wholly owned subsidiaries that have material non-controlling interests to the Company are disclosed below:

Name of subsidiary

Inteltek

Individually immaterial 
subsidiaries with non –
controlling interest 

Place of 
incorporation 
and principal 
place of 
business

Proportion of ownership 
interests and voting rights 
held by non-controlling 
interest

Profit/(loss) allocated to 
non-controlling interests

Accumulated 
non-controlling interests

31 December 
2018
45,00%

31 December 
2017
45,00%

31 December 
2018
105,112

31 December 
2017
35,924

31 December 
2018
131,506

31 December 
2017
46,072

Turkey

51,158

156,270

22,706

58,630

304

131,810

9,855

55,927

F117

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 276

39. Subsidiaries (continued)

Summarized financial information in respect of Inteltek is set out below. The summarized financial information below represents 
amounts before intragroup eliminations.

Inteltek

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Equity attributable to owners

Revenue

(Expenses) / Income (net)

Gain on Sale of Investments

Profit for the year

Other comprehensive income/(loss) for the year

Dividend paid to non-controlling interests

Net cash inflow from operating activities

Net cash inflow from investing activities

Net cash outflow from financing activities

Effects of foreign exchange rate fluctuations on cash and cash equivalents

Net cash inflow 

31 December 2018
403,427

31 December 2017
223,119

9,043

115,080

5,154

292,236

2018
208,239

(93,133)

118,476

233,582

179

31,283

31,380

158,946

(69,518)

56,949

177,757

9,290

125,286

4,742

102,381

2017
184,025

(104,194)

-

79,831

172

(46,582)

73,575

19,930

(75,113)

8,574

26,966

F118

TURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.)  
 
 
277

40. Cash flow information

Net debt reconciliation:

Balance at 1 January 2017

Cash inflows

Cash outflows

Other non-cash movements

Balance at 31 December 2017

Cash and cash equivalents

Net debt

Balance at 1 January 2018

Increase in rent lease obligations (IFRS 16)

Cash inflows

Cash outflows

Other non-cash movements

Balance at 31 December 2018

Cash and cash equivalents

Net debt

41. Subsequent events

Debt securities 
issued
1,922,656

209,808

(503,391)

246,448

1,875,521

Loans
7,810,392

24,030,222

(22,768,911)

1,466,205

10,537,908

 Debt securities 
issued
1,875,521

-

2,188,313

(432,140)

1,578,868

5,210,562

Loans
10,537,908

-

43,728,604

(44,339,377)

3,603,892

13,531,027

Financial 
Leasings
48,114

72,421

(1,068)

3,253

122,720

Lease 
liabilities
122,720

1,036,380

-

(1,180,831)

1,435,687

1,413,956

Total
 9,781,162

24,312,451

(23,273,370)

1,715,906

12,536,149

4,712,333

(7,823,816)

Total
12,536,149

1,036,380

45,916,917

(45,952,348)

6,618,447

20,155,545

7,419,239

(12,736,306)

On 2 January 2019, the Company purchased 827,750 of its shares on-market with prices ranging from full TL 11.89 to full TL 12.24 and 
total cost was TL 9,997. The buy-back was approved by the Board of Directors on 27 July 2016 and 30 January 2017. 

Our 55% owned subsidiary İnteltek İnternet Teknoloji Yatırım ve Danışmanlık Ticaret A.Ş. (“İnteltek”) has been notified that the “Tender 
on Fixed Odds and Pari-Mutuel Betting Games Based on Sports Competitions Shall Be Made by Spor Toto Directorate through Private 
Legal Entities” is concluded. The tender was awarded to the other bidder. The respective revenues comprise 1% of our consolidated 
revenues while 2019 contribution is expected to be lower considering our ongoing contract and the transfer process.

İnteltek, which has been operating İddaa game since 2004, has been one of the greatest supporters of the sports since its 
establishment, and contributed significantly to the development of the sports industry. With respect to the tender process, our rights 
stemming from the law will be exercised by Inteltek within the respective time frame. Inteltek, under its “procurement agreement 
through bargaining” will continue its activities together with its activities in digital gaming sector.

F119

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018TURKCELL İLETİŞİM HİZMETLERİ A.Ş.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018(ALL AMOUNTS DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES HAVE BEEN ROUNDED OFF TO THE NEAREST THOUSAND CURRENCY UNITS AND ARE EXPRESSED IN TURKISH LIRAS UNLESS OTHERWISE STATED.) 278

OUR OFFICES

CITY 

ISTANBUL

ISTANBUL

ISTANBUL

ISTANBUL

ISTANBUL

ISTANBUL

ISTANBUL

ISTANBUL

ADANA

LOCATION

 ADDRESS 

KÜÇÜKYALI HEADQUARTERS

Aydınevler Mah. İnönü Cad. No: 20 B Blok Maltepe-Istanbul

KARTAL PLAZA

MALTEPE NDC

Topselvi Mah. Dipçik Sok. No: 31 Kartal-Istanbul

Yeni Mah. Pamukkale Sok. No: 3 Soğanlık Mevkii Kartal-Istanbul

MALTEPE TECHNOLOGY PLAZA

Yenimahalle Pamukkale Sok. No: 11 Cevizli Kartal-Istanbul

TEPEBAŞI PLAZA

Meşrutiyet Cad. No: 71 Tepebaşı Beyoğlu-Istanbul

MAHMUTBEY NDC

Mahmutbey Mah. İnönü Cad. No: 89 Bağcılar-Istanbul

DAVUTPAŞA NDC

Maltepe Mah. Davutpaşa Cad. Serçekale Sok. No: 2 Zeytinburnu-Istanbul

DUDULLU DC

ADANA PLAZA

Dudullu OSB Nato Yolu 4. Cadde No: 1 Ümraniye-Istanbul

Turhan Cemal Berikel Bulvarı No: 212 Seyhan-Adana

ADAPAZARI

SAKARYA OFFICE

Bahçelievler Mah. Cumhuriyet Cad. Kamelya Sok. No: 14 Sakarya-Adapazarı

ANKARA

ANKARA

ANTALYA

BURSA

ANKARA PLAZA

BAŞKENT NDC

ANTALYA PLAZA

BURSA PLAZA

Eskişehir Yolu 9. Km No: 265 Söğütözü-Ankara

Başkent İvedik Mah. 1323. Cad. No: 37 Yenimahalle-Ankara

Kızıltoprak Mah. 915 Sok. No: 3 Muratpaşa-Antalya

Organize Sanayi Bölge Müd. Kırmızı Cad. No: 4 Nilüfer-Bursa

DİYARBAKIR

DİYARBAKIR PLAZA

Urfa Bulvarı Bağcılar Mah. No: 184 Bağlar-Diyarbakir 

EDİRNE

EDİRNE NDC

Şükrü Paşa Mah. Kıyık Cad. Hilly Otel Yanı No: 254 Edirne

ERZURUM

ERZURUM NDC

Ilıca Yolu Organize Sanayi Bölgesi 4. Sok No: 10 Erzurum

GAZİANTEP

GAZİANTEP NDC

Kocaoğlan Mah. Demokrasi Bulvarı No: 185/1 Şahinbey-Gaziantep

HATAY

IZMIR

IZMIR

KAYSERİ

KOCAELİ

KOCAELİ

KONYA

HATAY NDC

Güzelbirlik Mah. Yunus Emre Cad. No: 11-B Güzelburç-Hatay

BORNOVA NDC

Ankara Asfaltı No: 64 Bornova-Izmir 

IZMIR PLAZA

KAYSERİ NDC

GEBZE DC

İZMİT NDC

Kazım Dirik Mah. 367/7 Sokak No: 12 Bornova-Izmir

Kayseri Organize Sanayi Bölgesi 13. Cadde No: 16 Melikgazi-Kayseri

Gebze OSB, Tembelova Mevkii Mah. 3300 Sok. No: 3314 Gebze-Kocaeli

Yahya Kaptan Mah. Bahçeşehir Sok. No: 30 İzmit-Kocaeli

KONYA OFFICE

Selçuker Center Parsana Mah. Zümrütova Sok. No: 18. Kat Selçuklu-Konya

MALATYA

MALATYA NDC

Hoca Ahmet Yesevi Mah. 7. Sok. Mahrukatçılar Sitesi No: 34 Merkez-Malatya

MERSİN

MUĞLA

MUĞLA

MERSİN NDC

MUĞLA NDC

Portakal Mah. 80050 Sok. No: 3 Toroslar-Mersin

Musluhittin Mah. Atatürk Bulvarı No: 61 Muğla

BODRUM OFFICE

Atatürk Bulvarı No: 213 Koçtaş Yanı Konacık Bodrum-Muğla

SAMSUN

SAMSUN NDC

Mimar Sinan Mah. 160. Sok. No: 18 Atakum-Samsun

TEKİRDAĞ

ÇORLU NDC

Yulaflı Mah. Hacı Şeremet Mevkii Çorlu-Tekirdağ

TRABZON

TRABZON PLAZA

Mısırlı Mah. Hasan Turfanda Yolu No: 1 Çukurçayır-Trabzon

VAN

VAN NDC

İpek Yolu 8 km Yeni Mah. Sahil Sok. No: 27 Edremit-Van

TURKCELL ANNUAL REPORT 2018GLOSSARY

279

ABBREVIATION

EXPLANATION

2G

3G

4.5G

5G

The second generation telecommunication system, which used digital data stream for the first time, 
additionally providing packet-based data communication and voice and data services.

A third generation mobile telecommunication system established according to IMT-2000/UMTS 
standards, or standards developed based on these standards.

A generation containing technologies of more advanced features than standard 4G technology.

A generation containing technologies that having more advanced features than standard 4G technology.

AAC (Advanced Audio Coding)

Audio code with better sound quality and compression ratio than MP3 Access Transport Access 
Transport Access and carrier network type providing high capacity

ARPU

Average monthly revenue generated per mobile subscriber.

Base Station

CELTIC

DSS

EUREKA (Exceptional 
Unconventional Research 
Enabling Knowledge 
Acceleration) 

A fixed transceiver device in each cell of a mobile communications network enabling 
communication between mobile phones and radio signals within the cell.

EUREKA Cluster focusing on the Information and Communications Technology and Telecommunications

Digital Service Provider

 It is an intergovernmental R&D organization financed by governments of more than forty countries.

GHz (Giga Hertz)

A frequency unit 

Gbps (Giga bits per second)

A data transmission speed unit 

GSM

GSMA

This is a digital mobile communication system, standardized by the European Communications 
Standards Institute and based on digital transmission with roaming and the cellular network 
structure being used in Europe, Japan and various other countries.

The GSM Association is a community consisting of mobile operators and telecom-related companies 
with the aim of standardizing and developing the Mobile Telecommunications Sector.

HD (High Definition)

High Definition Broadcast

IoT (Internet of Things)

The mobilization, interpretation and communication/interaction of the data received through sensors

Information Technologies (IT)

Tools for generating, collecting, accumulating, processing, recovering, disseminating, protecting, and 
assisting

ITEA

IMT Network

IDC

IMS 

EUREKA Cluster programme supporting innovative, industry-driven, pre-competitive R&D projects in 
the area of Software-intensive Systems & Services 

A spectrum that has been allocated to mobile operators by related regulatory bodies on a certain 
basis and which has been offered to their use for a limited/unlimited period of time.

International Data Corporation - American market research company examine the development of 
technology

IP multimedia subsystem - platform to provide a new generation of wired, wireless service providers

SECTORAL AND FINANCIAL INFORMATIONTURKCELL ANNUAL REPORT 2018280

GLOSSARY

ABBREVIATION

EXPLANATION

ITU

IVR

IVVR

LTE

The International Telecommunication Union An international standardization institution with 
headquarters in Geneva that determines many standards in telecommunication.

Interactive Voice Response

Interactive Voice & Video Response

Technology that ensures to achieve very high speeds by combining carriers in the same or 
different frequency bands.

LTE-Advanced

A mobile communications standard comprising advanced features such as carrier coupling, which 
enables mobile broadband speed of over 150 MBps in LTE.

M2M

MHz

Machine to Machine is the general name of the technology that allows devices to exchange 
information and conduct transactions without human intervention.

A unit of frequency. 

NB-IoT (Narrow Band Internet of 
Things)

A technology defined by 3GPP for Internet of Things

Network Slicing

Powerful virtualization capability and one of the key capabilities as it allows multiple logical 
networks to be created on top of a common shared physical infrastructure

NGMN (The Next Generation 
Mobile Networks)

It is an organization, which has world’s leading operators as members including Turkcell, suppliers 
and universities around the world and that guides the technology standards and companies 
producing technology in accordance with operator needs.

NPS

Roaming

RTM 

(Net Promoter Score) – The score that measures whether or not customers recommend the 
products they use to others

A mobile communications feature enabling the subscribers of a network to use their own mobile 
phones and numbers within the coverage area of another operator.

Real Time Monitoring -  24/7 monitoring and reporting system on the system

SON (Self Organizing Networks)

Networks that can organize/optimize themselves

SMS

UNESCO

UNICEF

USAID

VoLTE

A mobile communication system allowing users to receive and send messages that can be 
constituted of both alphabetic and numerical characters of up to 160 characters, to and from 
mobile phones through a short message service.

United Nations Educational, Scientific and Cultural Organization

United Nations International Children’s Emergency Fund

United States Agengy for International Development

IP based high quality audio technology through a 4.5G network.

TURKCELL ANNUAL REPORT 2018Proudly produced by FİNAR.
www.finarkurumsal.com

158

Turkcell İletişim Hizmetleri A.Ş.
Turkcell Küçükyalı Plaza, Aydınevler Mahallesi İnönü Caddesi No: 20 Küçükyalı Ofispark B Blok - Maltepe/Istanbul
Tel: +90 (212) 313 1000
Fax: +90 (216) 504 4058
Customer Services Tel: 532 or +90 (532) 532 0000
www.turkcell.com.tr
Trade Register Number: 304844

TURKCELL ANNUAL REPORT 2018