Turkcell is a telecommunications company established in 1994 in Turkey that has the third largest number of subscribers in Europe. It has traded on the Istanbul and New York stock exchanges since 2000. Some of Turkcell's achievements include awards for customer relationship management and mobile advertising. Financial analysis shows that Turkcell has strong liquidity and debt coverage ratios compared to competitors like Vodafone and Zain. While profit margins have remained healthy, there is still room for improving profitability through innovating new services.

1. TURKCELL
The Only Turk in NYSE
Ahmad Bahaa-Eldin
Ahmad Abd-Elmonem
Amgad Azim-Eldin
Amr Kamel
Mustafa Ahmed

2. Company Overview

3. Company Overview
 Established in 1994 with 25 years GSM license
agreement.
 The third largest operator in Europe in terms of
number of subscribers.
 It has Traded shares on Istanbul and NY stock
exchange since 2000.
 83th in INFO Tech 100 list, Bloomberg
Businessweek
 International and rooming services agreements
with over than 260 operators.

4. Achievements
 Gartner CRM Excellence Award
 Oscar of the best Mobile Advertising Service “Tone &
Win”
 Best New Service category in World Communication
Awards 2002, with its "GPRSLand" service.
 Ranked among the top 5 companies in Europe by its
Financial Disclosure Procedures.
 CSR initiatives (Snowdrops) project.

5. Financial Statements

6. Financial Ratios

7. TURKCELL Vodafone ZAIN
Liquidity
2010 2009 2008 2010 2010
Current Ratio 2.45 1.85 1.93 0.50 1.58
Quick Ratio 2.43 1.84 1.92 0.48 1.65
Conclusions
•TURKCELL has relatively high liquidity which indicates an area of improvement
for employing this treasure.
•In telecom service industry the inventory is small, so Current Ratio is nearly
equal the Quick Ratio.
Liquidity Ratios
Current Ratio = Current Assets / Current Liabilities
Quick Ratio = (Current Assets - Inventories) / Current Liabilities

8. TURKCELL Vodafone ZAIN
2010 2009 2008 2010 2010
Debt Ratio 36% 37% 33% 42% 26%
Times Interest Earned 11.2 6.5 13.9 6.3 4.2
A/R Turnover 7.5 8.4 -- 5.4 0.86
Average Collection Period 49 44 -- 68 425
Conclusions
•TURKCELL has very good Times Interest Earned ratio gives it a good window for
more debts to finance more projects.

9. TURKCELL Vodafone ZAIN
Profitability
2010 2009 2008 2010 2010
Gross Profit Margin 44% 47% 51% 34% 74%
Profit Margin 24% 25% 33% 20% 23%
Return on Total Asset 15% 16% 29% 6% 2%
Return on Capital Employed 18% 21% 39% 7% 3%
Return on Owner’s Equity 23% 25% 42% 10% 3%
ROI 25% 27% 10% 3%
Conclusions:-
•Revenue in Telecom Service Providers are affected negatively because of fast
decrease in voice services prices caused by tough competition which affects the
profitability.
•The profitability still has a room for improvement through innovating services.

10. Conclusions

11. Profit Margin
35% 33%
30%
25% 24%
25%
20%
15%
10%
5%
0%
2008 2009 2010

12. Profit Ratios
80%
74%
70%
60%
50%
44%
Gross Profit
40%
34% Profit Margin
30% ROI
24% 25% 23%
20%
20%
10%
10%
3%
0%
Turkcell Vodafone ZAIN

13. Current and Debt Ratios
16.00
14.00 13.87
12.00 Current Ratio
11.21
10.00 Debt Ratio
8.00
Times Interest
6.53 Earned
6.00
4.00
2.45
2.00 1.93 1.85
0.00 33% 37% 36%
2008 2009 2010