Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and entity information [abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | TKC |
Entity Registrant Name | TURKCELL ILETISIM HIZMETLERI A S |
Entity Central Index Key | 0001071321 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 2,200,000,000 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Property, plant and equipment | ₺ 11,116,316 | ₺ 9,665,408 |
Right-of-use assets | 1,649,602 | |
Intangible assets | 10,050,172 | 8,340,410 |
Telecommunication licenses | 5,774,763 | 5,720,398 |
Computer software | 3,057,143 | 2,346,236 |
Other intangible assets | 1,218,266 | 273,776 |
Investment properties | 15,425 | 980 |
Trade receivables | 115,001 | 155,634 |
Receivables from financial services | 884,686 | 1,297,597 |
Contract assets | 3,513 | |
Deferred tax assets | 152,732 | 96,060 |
Investments in equity accounted investees | 19,413 | |
Held to maturity investments | 654 | |
Other non-current assets | 421,306 | 356,620 |
Total non-current assets | 24,428,166 | 19,913,363 |
Inventories | 180,434 | 104,102 |
Trade receivables | 2,505,990 | 2,848,572 |
Due from related parties | 13,533 | 5,299 |
Receivables from financial services | 3,286,243 | 2,950,523 |
Contract assets | 711,928 | |
Derivative financial instruments | 1,356,062 | 981,396 |
Held to maturity investments | 11,338 | |
Financial asset at fair value through profit or loss | 9,409 | |
Financial asset at fair value through other comprehensive income | 42,454 | |
Cash and cash equivalents | 7,419,239 | 4,712,333 |
Other current assets | 1,091,512 | 1,160,605 |
Subtotal | 16,616,804 | 12,774,168 |
Assets classified as held for sale | 1,720,305 | 1,294,938 |
Total current assets | 18,337,109 | 14,069,106 |
Total assets | 42,765,275 | 33,982,469 |
Equity | ||
Share capital | 2,200,000 | 2,200,000 |
Share premium | 269 | 269 |
Treasury shares | (141,534) | (56,313) |
Additional paid-in capital | 35,026 | 35,026 |
Reserves | 2,503,537 | 1,542,679 |
Remeasurements of employee termination benefit | (34,871) | (44,776) |
Retained earnings | 11,359,317 | 11,312,276 |
Total equity attributable to equity holders of Turkcell Iletisim Hizmetleri AS ("the Company") | 15,921,744 | 14,989,161 |
Non-controlling interests | 131,810 | 55,927 |
Total equity | 16,053,554 | 15,045,088 |
Liabilities | ||
Borrowings | 13,119,636 | 8,257,995 |
Employee benefit obligations | 224,747 | 197,666 |
Provisions | 268,722 | 197,418 |
Deferred tax liabilities | 862,360 | 651,122 |
Contract liabilities | 131,598 | |
Other non-current liabilities | 364,610 | 409,337 |
Total non-current liabilities | 14,971,673 | 9,713,538 |
Borrowings | 7,035,909 | 4,278,154 |
Current tax liabilities | 133,597 | 103,105 |
Trade and other payables | 3,788,174 | 3,696,466 |
Due to related parties | 45,331 | 6,980 |
Deferred revenue | 8,948 | 193,831 |
Provisions | 307,068 | 835,199 |
Contract liabilities | 255,756 | |
Derivative financial instruments | 165,265 | 110,108 |
Total current liabilities | 11,740,048 | 9,223,843 |
Total liabilities | 26,711,721 | 18,937,381 |
Total equity and liabilities | ₺ 42,765,275 | ₺ 33,982,469 |
Consolidated Statement of Profi
Consolidated Statement of Profit or Loss - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [abstract] | |||
Revenue | ₺ 20,350,557 | ₺ 17,026,401 | ₺ 14,100,863 |
Revenue from financial services | 941,918 | 605,663 | 184,698 |
Total revenue | 21,292,475 | 17,632,064 | 14,285,561 |
Cost of revenue | (13,785,448) | (11,073,465) | (9,166,384) |
Cost of revenue from financial services | (360,545) | (276,709) | (70,223) |
Total cost of revenue | (14,145,993) | (11,350,174) | (9,236,607) |
Gross profit | 6,565,109 | 5,952,936 | 4,934,479 |
Gross profit from financial services | 581,373 | 328,954 | 114,475 |
Total gross profit | 7,146,482 | 6,281,890 | 5,048,954 |
Other income | 241,435 | 74,438 | 78,569 |
Selling and marketing expenses | (1,626,714) | (2,005,420) | (1,910,947) |
Administrative expenses | (673,370) | (645,196) | (721,849) |
Net impairment losses on financial and contract assets | (346,390) | ||
Other expenses | (381,582) | (773,329) | (312,801) |
Operating profit | 4,359,861 | 2,932,383 | 2,181,926 |
Finance income | 1,932,133 | 818,436 | 961,642 |
Finance costs | (3,619,091) | (1,141,302) | (1,134,441) |
Net finance costs | (1,686,958) | (322,866) | (172,799) |
Share of loss of equity accounted investees | (87) | ||
Profit before income tax | 2,672,816 | 2,609,517 | 2,009,127 |
Income tax expense | (495,481) | (571,758) | (423,160) |
Profit from continuing operations | 2,177,335 | 2,037,759 | 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 | 2,021,065 | 1,979,129 | 1,492,088 |
Non-controlling interests | 156,270 | 58,630 | 51,715 |
Profit for the year | ₺ 2,177,335 | ₺ 2,037,759 | ₺ 1,543,803 |
Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) | ₺ 0.93 | ₺ 0.90 | ₺ 0.68 |
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 |
Basic and diluted earnings/(losses) per share for profit /(loss) from discontinued operations attributable to owners of the Company (in full TL) | ₺ (0.02) |
Consolidated Statement of Other
Consolidated Statement of Other Comprehensive Income - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement [LineItems] | |||
Owners of Turkcell Iletisim Hizmetleri AS | ₺ 2,398,930 | ₺ 1,968,102 | ₺ 1,594,465 |
Profit for the year | 2,177,335 | 2,037,759 | 1,543,803 |
Items that will not be reclassified to profit or loss: | |||
Remeasurements of employee termination benefits | 12,699 | (3,738) | (34,532) |
Income tax relating to remeasurements of employee termination benefits | (2,794) | 748 | 7,066 |
Remeasurements of employee benefits, net of tax | 9,905 | (2,990) | (27,466) |
Items that may be reclassified to profit or loss: | |||
Exchange differences on translation of foreign operations | 424,817 | 27,959 | 63,920 |
Exchange differences arising from discontinued operations | 425,371 | 72,190 | 154,552 |
Cash flow hedges - effective portion of changes in fair value | 630,191 | ||
Cash flow hedges - reclassified to profit or loss | (611,035) | ||
Cost of hedging reserve - changes in fair value | (390,267) | ||
Cost of hedging reserve - reclassified to profit or loss | 42,665 | ||
Income tax relating to these items | (154,409) | (107,299) | (87,381) |
-Income tax relating to exchange differences | (226,667) | (107,299) | (87,381) |
-Income tax relating to cash flow hedges | 72,258 | ||
Items that may be reclassified to profit or loss, net of tax | 367,333 | (7,150) | 131,091 |
Other comprehensive income (loss) for the year, net of income tax | 377,238 | (10,140) | 103,625 |
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 Turkcell Iletisim Hizmetleri AS | 2,398,930 | 1,968,102 | 1,594,465 |
Non-controlling interests | 155,643 | 59,517 | 52,963 |
Total comprehensive income for the year | 2,554,573 | 2,027,619 | 1,647,428 |
Owners of Turkcell Iletisim Hizmetleri AS | 2,398,930 | 1,968,102 | 1,594,465 |
Continuing operations [member] | |||
Statement [LineItems] | |||
Owners of Turkcell Iletisim Hizmetleri AS | 1,957,396 | 1,903,109 | 1,496,209 |
Total comprehensive income for the year is attributable to: | |||
Owners of Turkcell Iletisim Hizmetleri AS | 1,957,396 | 1,903,109 | 1,496,209 |
Owners of Turkcell Iletisim Hizmetleri AS | 1,957,396 | 1,903,109 | 1,496,209 |
Discontinued operations [member] | |||
Statement [LineItems] | |||
Owners of Turkcell Iletisim Hizmetleri AS | 441,534 | 64,993 | 98,256 |
Total comprehensive income for the year is attributable to: | |||
Owners of Turkcell Iletisim Hizmetleri AS | 441,534 | 64,993 | 98,256 |
Owners of Turkcell Iletisim Hizmetleri AS | ₺ 441,534 | ₺ 64,993 | ₺ 98,256 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - TRY (₺) ₺ in Thousands | Total | Share capital [member] | Treasury shares [member] | Additional paid-in capital [member] | Share premium [member] | Legal reserve [member] | [1] | Hedging reserve [member] | Cost of hedging reserve [member] | Reserve for non-controlling interest put option [member] | [1] | Foreign currency translation reserve [member] | [1] | Remeasurements of employee termination benefits [member] | Retained earnings [member] | Total [member] | Non-controlling interests [member] |
Beginning balance at Dec. 31, 2015 | ₺ 14,418,902 | ₺ 2,200,000 | ₺ 35,026 | ₺ 269 | ₺ 1,211,352 | ₺ (489,065) | ₺ 138,824 | ₺ (14,320) | ₺ 11,272,731 | ₺ 14,354,817 | ₺ 64,085 | ||||||
Total comprehensive income/(loss) | |||||||||||||||||
Profit for the year | 1,543,803 | 1,492,088 | 1,492,088 | 51,715 | |||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||
Foreign currency translation differences | 131,091 | (133,222) | 263,065 | 129,843 | 1,248 | ||||||||||||
Remeasurements of employee termination benefits | (27,466) | (27,466) | (27,466) | ||||||||||||||
Other comprehensive income (loss) for the year, net of income tax | 103,625 | (133,222) | 263,065 | (27,466) | 102,377 | 1,248 | |||||||||||
Total comprehensive income for the year | 1,647,428 | (133,222) | 263,065 | (27,466) | 1,492,088 | 1,594,465 | 52,963 | ||||||||||
Transfer to legal reserves | (16,148) | 16,148 | |||||||||||||||
Acquisition of treasury shares (-) (Note 25) | (65,607) | ₺ (65,607) | (65,607) | ||||||||||||||
Dividends paid | (51,416) | (51,416) | |||||||||||||||
Change in fair value of non-controlling interests | 128,090 | 128,090 | 128,090 | ||||||||||||||
Transactions with non-controlling interests | (9,000) | (9,000) | |||||||||||||||
Ending balance at Dec. 31, 2016 | 16,068,397 | 2,200,000 | (65,607) | 35,026 | 269 | 1,195,204 | (494,197) | 401,889 | (41,786) | 12,780,967 | 16,011,765 | 56,632 | |||||
Total comprehensive income/(loss) | |||||||||||||||||
Profit for the year | 2,037,759 | 1,979,129 | 1,979,129 | 58,630 | |||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||
Foreign currency translation differences | (7,150) | (45,848) | 37,811 | (8,037) | 887 | ||||||||||||
Remeasurements of employee termination benefits | (2,990) | (2,990) | (2,990) | ||||||||||||||
Other comprehensive income (loss) for the year, net of income tax | (10,140) | (45,848) | 37,811 | (2,990) | (11,027) | 887 | |||||||||||
Total comprehensive income for the year | 2,027,619 | (45,848) | 37,811 | (2,990) | 1,979,129 | 1,968,102 | 59,517 | ||||||||||
Transfer to legal reserves | 447,820 | (447,820) | |||||||||||||||
Dividends paid | (3,050,928) | 9,294 | (3,000,000) | (2,990,706) | (60,222) | ||||||||||||
Ending balance at Dec. 31, 2017 | 15,045,088 | 2,200,000 | (56,313) | 35,026 | 269 | 1,643,024 | (540,045) | 439,700 | (44,776) | 11,312,276 | 14,989,161 | 55,927 | |||||
Changes in accounting policy (Note 2) | 518,874 | 518,874 | 518,874 | ||||||||||||||
Restated total equity | 15,563,962 | 2,200,000 | (56,313) | 35,026 | 269 | 1,643,024 | (540,045) | 439,700 | (44,776) | 11,831,150 | 15,508,035 | 55,927 | |||||
Total comprehensive income/(loss) | |||||||||||||||||
Profit for the year | 2,177,335 | 2,021,065 | 2,021,065 | 156,270 | |||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||
Foreign currency translation differences | 623,521 | (270,147) | 894,295 | 624,148 | (627) | ||||||||||||
Remeasurements of employee termination benefits | 9,905 | 9,905 | 9,905 | ||||||||||||||
Change in cash flow hedge reserve | (256,188) | ₺ (271,130) | ₺ 14,942 | (256,188) | |||||||||||||
Other comprehensive income (loss) for the year, net of income tax | 377,238 | (271,130) | 14,942 | (270,147) | 894,295 | 9,905 | 377,865 | (627) | |||||||||
Total comprehensive income for the year | 2,554,573 | (271,130) | 14,942 | (270,147) | 894,295 | 9,905 | 2,021,065 | 2,398,930 | 155,643 | ||||||||
Transfer to legal reserves | 592,898 | (592,898) | |||||||||||||||
Acquisition of treasury shares (-) (Note 25) | (94,620) | (94,620) | (94,620) | ||||||||||||||
Disposal of subsidiaries | (20,982) | (20,982) | |||||||||||||||
Dividends paid | (1,949,379) | 9,399 | (1,900,000) | (1,890,601) | (58,778) | ||||||||||||
Ending balance at Dec. 31, 2018 | ₺ 16,053,554 | ₺ 2,200,000 | ₺ (141,534) | ₺ 35,026 | ₺ 269 | ₺ 2,235,922 | ₺ (271,130) | ₺ 14,942 | ₺ (810,192) | ₺ 1,333,995 | ₺ (34,871) | ₺ 11,359,317 | ₺ 15,921,744 | ₺ 131,810 | |||
[1] | Included in Reserves in the consolidated statement of financial position. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit before income tax from | |||
Continuing operations | ₺ 2,177,335 | ₺ 2,037,759 | ₺ 1,585,967 |
Discontinued operations | (42,164) | ||
Profit before income tax including discontinued operations | 2,177,335 | 2,037,759 | 1,543,803 |
Adjustments for: | |||
Depreciation and impairment of property, plant and equipment and investment properties | 1,894,445 | 1,501,579 | 1,281,539 |
Amortization of intangible assets | 2,393,529 | 1,095,401 | 921,812 |
Net finance (income)/expense | 983,881 | 165,387 | (117,598) |
Fair value adjustments to derivatives | (1,719,610) | (562,562) | (383,452) |
Income tax expense | 495,481 | 571,758 | 423,160 |
Gain on sale of property, plant and equipment | (43,727) | (33,837) | (25,010) |
Unrealized foreign exchange losses on operating assets | 2,954,304 | 966,340 | 545,287 |
Provisions | 796,520 | 980,040 | 197,543 |
Share of profits of discontinued operations | 42,164 | ||
Share of equity accounted investees | 87 | ||
(Gain) on sale of subsidiary | (110,308) | ||
Deferred revenue | 54,391 | 131,486 | (20,350) |
Adjustments to reconcile profit (loss) | 9,876,328 | 6,853,351 | 4,408,898 |
Change in trade receivables | 273,110 | 613,404 | 1,197,053 |
Change in due from related parties | (5,870) | 1,107 | 7,514 |
Change in receivables from financial services | (69,991) | (1,931,538) | (2,396,372) |
Change in inventories | (76,883) | 27,871 | (62,090) |
Change in other current assets | 53,957 | (198,268) | 643,444 |
Change in other non-current assets | 142,133 | 15,012 | 78,770 |
Change in due to related parties | 40,072 | (4,099) | 4,302 |
Change in trade and other payables | (501,980) | (507,043) | (2,733,901) |
Change in other non-current liabilities | (242,384) | (82,018) | (14,477) |
Change in employee benefit obligations | (32,764) | (18,627) | 15,151 |
Change in short term contract asset | (711,928) | ||
Change in long term contract asset | (3,513) | ||
Change in short term contract liability | 255,756 | ||
Change in long term contract liability | 131,598 | ||
Changes in other working capital | (981,764) | (265,518) | 29,286 |
Cash generated from operations | 8,145,877 | 4,503,634 | 1,177,578 |
Interest paid | (1,658,308) | (909,881) | (434,521) |
Income tax paid | (657,715) | (492,487) | (135,920) |
Net cash inflow from operating activities | 5,829,854 | 3,101,266 | 607,137 |
Cash flows from investing activities: | |||
Acquisition of property, plant and equipment | (2,960,648) | (2,937,195) | (2,572,401) |
Acquisition of intangible assets | (2,264,912) | (1,172,847) | (855,097) |
Proceeds from sale of property, plant and equipment | 103,864 | 58,740 | 49,639 |
Proceeds from advances given for acquisition of property, plant and equipment | (204,817) | 205,580 | (209,686) |
Contribution of increase of share capital in joint ventures/associates | (19,500) | ||
Proceeds from sale of subsidiary | 118,528 | ||
Payments for held to maturity investment | (11,992) | ||
Payment for financial asset at fair value through profit or loss | 2,577 | ||
Payment for financial asset at fair value through other comprehensive income | (42,454) | ||
Interest received | 731,793 | 553,066 | 610,837 |
Net cash outflow from investing activities | (4,535,569) | (3,304,648) | (2,976,708) |
Cash flows from financing activities: | |||
Dividends received for treasury share | 9,399 | ||
Capital decrease in subsidiaries | (9,000) | ||
Proceeds from derivative instruments | 1,054,345 | ||
Repayments of derivative instruments | (710,522) | ||
Proceeds from issues of loans and borrowings | 44,341,070 | 24,102,643 | 9,381,318 |
Proceeds from issues of bonds | 2,188,313 | 209,808 | 167,500 |
Repayment of borrowings | (43,987,127) | (22,265,088) | (4,932,768) |
Repayment of bonds | (191,312) | (379,660) | |
Dividends paid to shareholders | (1,900,000) | (2,990,706) | |
Dividends paid to non-controlling interest in subsidiaries | (58,778) | (60,222) | (51,416) |
Acquisition of treasury shares | (94,620) | (65,607) | |
(Increase)/decrease in cash collateral related to loans | (20,272) | (183,518) | 349,004 |
Payments of lease liabilities | (1,164,879) | ||
Net cash (outflow)/inflow from financing activities | (534,383) | (1,566,743) | 4,839,031 |
Net (decrease)/increase in cash and cash equivalents | 759,902 | (1,770,125) | 2,469,460 |
Cash and cash equivalents at 1 January | 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 | ₺ 7,419,239 | ₺ 4,712,333 | ₺ 6,052,352 |
Reporting entity
Reporting entity | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Reporting entity | 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 IMT-2000/UMTS A-Type 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 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. |
Basis of preparation and summar
Basis of preparation and summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Basis of preparation and summary of significant accounting policies | 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 (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 non-monetary non-monetary 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. (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. 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. 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” 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” 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. (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. (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 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 non-controlling acquisition-by-acquisition non-controlling 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. (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 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 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 (iii) Changes in ownership interests The Group treats transactions with non-controlling non-controlling non-controlling 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 Where a put option is written by the Group on shares in an existing subsidiary held by non-controlling non-controlling non-controlling Reserve for put option over shares relating to non-controlling non-controlling non-controlling (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. (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. (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: • Where the hedged item subsequently results in the recognition of a non-financial • The gain or loss relating to the effective portion of the interest rate swaps hedging variable rate borrowings is recogn |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Financial risk management | 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 non-derivative 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 paid-in 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). 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. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Segment information | 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 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. Turkcell Turkey Turkcell International All other segments Intersegment eliminations Consolidated 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Total segment revenue 18,265,777 15,450,136 1,456,980 1,067,078 1,933,831 1,187,454 (364,113 ) (72,604 ) 21,292,475 17,632,064 Inter-segment revenue (42,344 ) (31,690 ) (69,657 ) (40,897 ) (252,112 ) (17 ) 364,113 72,604 — — Revenues from external customers 18,223,433 15,418,446 1,387,323 1,026,181 1,681,719 1,187,437 — — 21,292,475 17,632,064 Adjusted EBITDA 7,534,291 5,593,837 612,697 263,962 665,470 374,314 (24,476 ) (3,859 ) 8,787,982 6,228,254 Bad debt expense (248,171 ) 49,468 (4,088 ) (6,070 ) (94,131 ) (79,676 ) — — (346,390 ) (36,278 ) Turkcell Turkey Turkcell International All other segments Intersegment Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Total segment revenue 15,450,136 12,787,592 1,067,078 874,692 1,187,454 661,923 (72,604 ) (38,646 ) 17,632,064 14,285,561 Inter-segment revenue (31,690 ) (19,680 ) (40,897 ) (18,964 ) (17 ) (2 ) 72,604 38,646 — — Revenues from external customers 15,418,446 12,767,912 1,026,181 855,728 1,187,437 661,921 — — 17,632,064 14,285,561 Adjusted EBITDA 5,593,837 4,160,861 263,962 235,348 374,314 222,849 (3,859 ) 451 6,228,254 4,619,509 Bad debt expense 49,468 (195,472 ) (6,070 ) (5,956 ) (79,676 ) (9,956 ) — — (36,278 ) (211,384 ) 2018 2017 2016 Profit for the period 2,177,335 2,037,759 1,543,803 Add(Less): Profit/(loss) from discontinued operations — — 42,164 Profit from continuing operations 2,177,335 2,037,759 1,585,967 Income tax expense 495,481 571,758 423,160 Finance income (1,932,133 ) (818,436 ) (961,642 ) Finance costs 3,619,091 1,141,302 1,134,441 Other income (241,435 ) (74,438 ) (78,569 ) Other expenses 381,582 773,329 312,801 Depreciation and amortization 4,287,974 2,596,980 2,203,351 Share of loss of equity accounted investees 87 — — Consolidated adjusted EBITDA 8,787,982 6,228,254 4,619,509 Geographical information 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. 2018 2017 2016 Revenues Turkey 19,636,682 16,431,863 13,321,503 Ukraine 923,181 664,643 573,951 Belarus 293,181 209,884 149,005 Azerbaijan 268,471 174,021 108,329 Turkish Republic of Northern Cyprus 169,014 148,637 129,785 Germany 1,580 3,016 2,988 Netherlands 366 — — 21,292,475 17,632,064 14,285,561 31 December 31 December Non-current Turkey 21,037,351 18,098,228 Ukraine 2,751,277 1,408,783 Belarus 293,622 141,802 Turkish Republic of Northern Cyprus 177,380 138,371 Azerbaijan — 13,663 Unallocated non-current 168,536 112,516 24,428,166 19,913,363 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
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Revenue | 5. Revenue Turkcell Turkey Turkcell International Other Intersegment Consolidated 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Telecommunication services 16,752,587 14,236,174 1,281,595 952,246 — — 56,485 72,604 17,977,697 15,115,816 Equipment revenues 1,337,495 1,089,699 101,350 69,801 — — — — 1,438,845 1,159,500 Revenue from financial services — — — — 941,918 605,663 — — 941,918 605,663 Call center revenues — — 9,763 7,706 211,195 224,973 17,786 — 203,172 232,679 Commission fees on betting business — — — — 200,315 181,886 — — 200,315 181,886 Revenue from betting business — — — — 268,470 174,021 — — 268,470 174,021 Other 175,695 124,263 64,272 37,325 311,933 911 289,842 — 262,058 162,499 Total 18,265,777 15,450,136 1,456,980 1,067,078 1,933,831 1,187,454 364,113 72,604 21,292,475 17,632,064 Turkcell Turkey Turkcell International Other Intersegment Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Telecommunication services 14,236,174 12,126,395 952,246 796,225 — — 72,604 38,646 15,115,816 12,883,974 Equipment revenues 1,089,699 579,820 69,801 44,532 — — — — 1,159,500 624,352 Revenue from financial services — — — — 605,663 184,698 — — 605,663 184,698 Call center revenues — — 7,706 7,084 224,973 191,480 — — 232,679 198,564 Commission fees on betting business — — — — 181,886 176,167 — — 181,886 176,167 Revenue from betting business — — — — 174,021 108,329 — — 174,021 108,329 Other 124,263 81,377 37,325 26,851 911 1,249 — — 162,499 109,477 Total 15,450,136 12,787,592 1,067,078 874,692 1,187,454 661,923 72,604 38,646 17,632,064 14,285,561 2018 Turkcell Turkcell Other Intersegment Consolidated Telecommunication Services 16,752,587 1,281,595 — 56,485 17,977,697 At a point in time 267,329 — — 7,493 259,836 Over time 16,485,258 1,281,595 — 48,992 17,717,861 Equipment Related 1,337,495 101,350 — — 1,438,845 At a point in time 1,330,808 101,350 — — 1,432,158 Over time 6,687 — — — 6,687 Call Center — 9,763 211,195 17,786 203,172 At a point in time — — — — — Over time — 9,763 211,195 17,786 203,172 Commision fees on betting business — — 200,315 — 200,315 At a point in time — — — — — Over time — — 200,315 — 200,315 Revenue from betting business — — 268,470 — 268,470 At a point in time — — — — — Over time — — 268,470 — 268,470 Revenue from financial operations — — 941,918 — 941,918 At a point in time — — 38,955 — 38,955 Over time — — 902,963 — 902,963 All other segments 175,695 64,272 311,933 289,842 262,058 At a point in time 12,211 8,556 7,576 — 28,343 Over time 163,484 55,716 304,357 289,842 233,715 Total 18,265,777 1,456,980 1,933,831 364,113 21,292,475 At a point in time 1,610,348 109,906 46,531 7,493 1,759,292 Over time 16,655,429 1,347,074 1,887,300 356,620 19,533,183 |
Other income and expense
Other income and expense | 12 Months Ended |
Dec. 31, 2018 | |
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Other income and expense | 6. Other income and expense 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). |
Employee benefit expenses
Employee benefit expenses | 12 Months Ended |
Dec. 31, 2018 | |
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Employee benefit expenses | 7. Employee benefit expenses 2018 2017 2016 Wages and salaries (*) 2,030,641 1,746,147 1,450,262 Employee termination benefits (**) 29,140 32,862 32,977 Defined contribution plans 9,361 8,107 7,722 2,069,142 1,787,116 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. |
Finance income and costs
Finance income and costs | 12 Months Ended |
Dec. 31, 2018 | |
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Finance income and costs | Finance income and costs Recognized in the statement of profit or loss: 2018 2017 2016 Fair value gains on derivative financial instruments and interest 654,933 317,542 282,408 Cash flow hedges – reclassified to profit or loss 568,370 — — Interest income on bank deposits 395,045 278,599 158,206 Interest income on financial assets measured at amortized cost 204,191 185,004 445,943 Credit finance income 50,828 36,186 74,522 Other 58,766 1,105 563 Finance income 1,932,133 818,436 961,642 Net foreign exchange losses (2,695,045 ) (718,501 ) (782,463 ) Interest expenses for financial liabilities measured at amortized cost (807,120 ) (385,386 ) (343,290 ) Late payment interest expense — (29,115 ) — Other (116,926 ) (8,300 ) (8,688 ) Finance costs (3,619,091 ) (1,141,302 ) (1,134,441 ) Net finance costs (1,686,958 ) (322,866 ) (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. |
Income tax expense
Income tax expense | 12 Months Ended |
Dec. 31, 2018 | |
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Income tax expense | 9. Income tax expense 2018 2017 2016 Current income tax expense (654,953 ) (437,967 ) (200,663 ) Deferred income tax (expense)/credit 159,472 (133,791 ) (222,497 ) Total income tax expense (495,481 ) (571,758 ) (423,160 ) Income tax expense is attributable to profit from continuing operations. Income tax relating to each component of other comprehensive income Before tax Tax (expense)/ credit Net of tax 2018 Foreign currency translation differences 850,188 (226,667 ) 623,521 Change in cash flow hedge reserve 19,156 (4,214 ) 14,942 Change in cost of hedging reserve (347,602 ) 76,472 (271,130 ) Remeasurements of employee termination benefits 12,699 (2,794 ) 9,905 534,441 (157,203 ) 377,238 2017 Foreign currency translation differences 100,149 (107,299 ) (7,150 ) Remeasurements of employee termination benefits (3,738 ) 748 (2,990 ) 96,411 (106,551 ) (10,140 ) 2016 Foreign currency translation differences 218,472 (87,381 ) 131,091 Remeasurements of employee termination benefits (34,532 ) 7,066 (27,466 ) 183,940 (80,315 ) 103,625 Reconciliation of income tax expense 2018 2017 2016 Profit from continuing operations before income tax expense 2,672,816 2,609,517 2,009,127 (Loss) from discontinued operations before income tax expense — — (42,164 ) Profit before income tax expense 2,672,816 2,609,517 1,966,963 Tax at the Turkey’s tax rate (588,020 ) (521,903 ) (393,393 ) Difference in overseas tax rates 7,617 4,133 (15,935 ) Effect of exemptions (*) 198,160 73,916 104,244 Effect of amounts which are not deductible (91,778 ) (102,102 ) (78,571 ) Tax exemption from subsidiary sale(**) 24,268 — — Utilization of previously unrecognized tax losses — — 1,253 Change in unrecognized deferred tax assets (***) (50,551 ) (41,340 ) (30,616 ) Adjustments for current tax of prior years 2,510 11,280 (8,176 ) Tax effect of investment in associate — — — Other 2,313 4,258 (1,966 ) Total income tax expense (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 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. 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 • for the resident real persons and institutions, • Income from the sale of non-resident • Participation income from non-resident • 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 • for the resident real persons and institutions, income from the liquidation of non-resident non-resident |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2018 | |
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Expenses by nature | 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: 2018 2017 2016 Depreciation and amortization (4,287,974 ) (2,596,980 ) (2,203,351 ) Treasury share (1,884,556 ) (1,669,807 ) (1,491,503 ) Interconnection and termination expenses (1,763,414 ) (1,607,079 ) (1,420,233 ) Employee benefit expenses (1,202,485 ) (1,046,544 ) (859,143 ) Cost of goods sold (1,108,734 ) (870,226 ) (551,656 ) Frequency expenses (622,390 ) (278,727 ) (229,396 ) Radio expenses (508,884 ) (844,941 ) (828,222 ) Cost of revenue from financial services (*) (348,492 ) (270,366 ) (68,546 ) Transmission expenses (326,080 ) (218,221 ) (139,185 ) Universal service fund (256,454 ) (221,431 ) (192,045 ) Roaming expenses (226,806 ) (177,258 ) (128,429 ) Billing and archiving expenses (50,929 ) (55,185 ) (61,647 ) Others (1,558,795 ) (1,493,409 ) (1,063,251 ) (14,145,993 ) (11,350,174 ) (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: 2018 2017 2016 Selling expenses (555,158 ) (898,936 ) (757,869 ) Marketing expenses (551,127 ) (532,989 ) (518,382 ) Employee benefit expenses (440,976 ) (394,421 ) (354,380 ) Frequency usage fees related to prepaid subscribers (**) — (82,994 ) (186,530 ) Others (79,453 ) (96,080 ) (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. Administrative expenses: 2018 2017 2016 Employee benefit expenses (425,681 ) (346,151 ) (277,438 ) Travel and entertainment expenses (38,406 ) (30,957 ) (18,913 ) Consultancy expenses (38,252 ) (50,247 ) (54,315 ) Collection expenses (37,525 ) (20,415 ) (20,827 ) Maintenance and repair expenses (26,867 ) (24,342 ) (20,315 ) Rent expenses — (36,280 ) (30,314 ) Net impairment expense recognized on receivables — (36,278 ) (211,384 ) Other (106,639 ) (100,526 ) (88,343 ) (673,370 ) (645,196 ) (721,849 ) Net impairment losses on financial and contract assets: 2018 2017 Net impairment losses on financial and contract assets (346,390 ) — (346,390 ) — |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
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Property, plant and equipment | 11. Property, plant and equipment Balance as at Additions Disposals Transfers Impairment Disposal of Effects of Transfer to Balance as at Cost Network infrastructure (All operational) 15,480,128 650,610 (232,888 ) 2,270,262 — (15,081 ) 979,247 — 19,132,278 Land and buildings 786,058 28,828 (2,535 ) 156,540 — — 6,831 (45,821 ) 929,901 Equipment, fixtures and fittings 728,202 59,311 (15,827 ) 10,712 — (4,041 ) 25,143 — 803,500 Motor vehicles 37,216 3,121 (775 ) — — (1,400 ) 1,944 — 40,106 Leasehold improvements 314,867 5,998 (547 ) 3,123 — (1,639 ) 5,690 — 327,492 Construction in progress 672,294 2,260,360 (670 ) (2,448,448 ) (10,744 ) — 39,295 — 512,087 Total 18,018,765 3,008,228 (253,242 ) (7,811 ) (10,744 ) (22,161 ) 1,058,150 (45,821 ) 21,745,364 Accumulated depreciation Network infrastructure (All operational) 7,326,559 1,693,374 (218,894 ) — 23,568 (6,887 ) 628,497 — 9,446,217 Land and buildings 209,918 50,514 (274 ) — 9 — 4,686 (25,765 ) 239,088 Equipment, fixtures and fittings 539,827 77,694 (10,839 ) — 49 (2,694 ) 29,470 — 633,507 Motor vehicles 31,306 2,637 (712 ) — — (918 ) 1,917 — 34,230 Leasehold improvements 245,747 30,233 (547 ) — 12 (1,639 ) 2,200 — 276,006 Total 8,353,357 1,854,452 (231,266 ) — 23,638 (12,138 ) 666,770 (25,765 ) 10,629,048 Net book amount 9,665,408 1,153,776 (21,976 ) (7,811 ) (34,382 ) (10,023 ) 391,380 (20,056 ) 11,116,316 Depreciation expenses for the years ended 31 December 2018, 2017 and 2016 amounting to TL 1,888,834, TL 1,499,242 and TL 1,278,009, respectively include impairment losses and are recognized in cost of revenue. Impairment losses on property, plant and equipment for the years ended 31 December 2018, 2017 and 2016 are TL 34,382, TL 39,721 and TL 43,198, respectively and are recognized in depreciation expenses. Capitalization rates and amounts other than borrowings made specifically for the purpose of acquiring a qualifying asset are 6.8%, 10.0% and 9.9%, TL 75,054 and TL 66,513 and TL 76,899 for the years ended 31 December 2018, 2017 and 2016 respectively. Impaired network infrastructure mainly consists of damaged or technologically inadequate mobile and fixed network infrastructure investments. The network infrastructure mainly consists of mobile and fixed network infrastructure investments. Balance as at Additions Disposals Transfers Impairment Effects of Transfer from Balance as at Cost Network infrastructure (All operational) 13,897,308 574,301 (1,009,922 ) 1,907,022 — 111,419 — 15,480,128 Land and buildings 519,702 162,206 (1,340 ) 39,130 — 1,766 64,594 786,058 Equipment, fixtures and fittings 617,732 117,087 (10,854 ) 2,209 — 2,028 — 728,202 Motor vehicles 34,136 4,415 (1,719 ) — — 384 — 37,216 Leasehold improvements 311,761 7,400 (5,041 ) 486 — 261 — 314,867 Construction in progress 566,523 2,063,329 — (1,949,000 ) (14,535 ) 5,977 — 672,294 Total 15,947,162 2,928,738 (1,028,876 ) (153 ) (14,535 ) 121,835 64,594 18,018,765 Accumulated depreciation Network infrastructure (All operational) 6,843,580 1,353,419 (990,719 ) — 23,589 96,690 — 7,326,559 Land and buildings 159,351 26,295 (221 ) — 1,482 645 22,366 209,918 Equipment, fixtures and fittings 497,606 48,393 (8,202 ) — 115 1,915 — 539,827 Motor vehicles 30,252 2,276 (1,642 ) — — 420 — 31,306 Leasehold improvements 220,668 29,138 (4,417 ) — — 358 — 245,747 Total 7,751,457 1,459,521 (1,005,201 ) — 25,186 100,028 22,366 8,353,357 Net book amount 8,195,705 1,469,217 (23,675 ) (153 ) (39,721 ) 21,807 42,228 9,665,408 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
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Intangible assets | 12. Intangible assets Turkcell - 2G License On 27 April 1998, the Company was granted a 25-year 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 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). Balance at Impact of Additions Disposals Transfers Impairment Disposal of Effects of movements Balance at 31 December Cost Telecommunication licenses 8,139,628 — 6,394 (220,986 ) 466,379 — — 331,583 8,722,998 Computer software 7,117,116 — 1,175,040 (4,822 ) 159,453 — (18,370 ) 110,621 8,539,038 Transmission line software 71,820 — 1,319 — — — — — 73,139 Central betting system operating right 11,981 — — — — — — — 11,981 Indefeasible right of usage 112,556 — 5,062 — — — — — 117,618 Brand name 7,040 — — — — — — — 7,040 Customer base 15,512 — — — — — — — 15,512 Goodwill 32,834 — — — — — — — 32,834 Subscriber acquisition cost — 1,431,901 583,809 — — — — 18,343 2,034,053 Other 42,749 — 7,473 (37 ) 11 — (191 ) — 50,005 Construction in progress 127,637 — 485,815 — (618,032 ) — — 22,587 18,007 Total 15,678,873 1,431,901 2,264,912 (225,845 ) 7,811 — (18,561 ) 483,134 19,622,225 Accumulated amortization Telecommunication licenses 2,419,230 — 533,311 (184,582 ) — — — 180,276 2,948,235 Computer software 4,770,880 — 663,967 (3,071 ) — 3,232 (12,793 ) 59,680 5,481,895 Transmission line software 62,468 — 4,549 — — — — — 67,017 Central betting system operating right 11,491 — 583 — — — — — 12,074 Indefeasible right of usage 23,274 — 8,581 — — — — — 31,855 Brand name 6,512 — 528 — — — — — 7,040 Customer base 11,774 — 437 — — — — — 12,211 Subscriber acquisition cost — 601,890 360,232 — — — — 12,078 974,200 Other 32,834 — 4,899 (31 ) — — (176 ) — 37,526 Total 7,338,463 601,890 1,577,087 (187,684 ) — 3,232 (12,969 ) 252,034 9,572,053 Net book amount 8,340,410 830,011 687,825 (38,161 ) 7,811 (3,232 ) (5,592 ) 231,100 10,050,172 Amortization expenses for the years ended 31 December 2018, 2017 and 2016 amounting to TL 1,580,319, TL 1,095,401and TL 921,812, respectively include impairment losses and are recognized in cost of revenue. Impairment losses on intangible assets for the years ended 31 December 2018, 2017 and 2016 are TL 3,232, TL 1,986 and TL 3,181 respectively and are recognized in amortization expenses. Computer software includes capitalized software development costs that meet the definition of an intangible asset. The amount of capitalized development costs is TL 171,442 for the year ended 31 December 2018 (31 December 2017: TL 124,504). The amortization expenses related to capitalized software development costs for the years ended 31 December 2018, 2017 and 2016 amounting to TL 40,934, TL 37,532 and TL 30,148, respectively are recognized in cost of revenue. Balance at Additions Disposals Transfers Effects of movements Balance at 31 December 2017 Cost Telecommunication licenses 8,039,431 10,154 — 69,945 — 20,098 8,139,628 Computer software 6,076,405 470,457 (8,624 ) 569,153 — 9,725 7,117,116 Transmission line software 71,602 218 — — — — 71,820 Central betting system operating right 11,981 — — — — — 11,981 Indefeasible right of usage 46,017 66,539 — — — — 112,556 Brand name 7,040 — — — — — 7,040 Customer base 15,512 — — — — — 15,512 Goodwill 32,834 — — — — — 32,834 Other 38,321 5,016 — (588 ) — — 42,749 Construction in progress 142,875 620,463 — (638,357 ) — 2,656 127,637 Total 14,482,018 1,172,847 (8,624 ) 153 — 32,479 15,678,873 Accumulated amortization Telecommunication licenses 1,878,895 537,162 — — — 3,173 2,419,230 Computer software 4,237,996 537,805 (8,120 ) — 1,219 1,980 4,770,880 Transmission line software 58,203 3,498 — — 767 — 62,468 Central betting system operating right 10,588 903 — — — — 11,491 Indefeasible right of usage 18,785 4,489 — — — — 23,274 Brand name 5,808 704 — — — — 6,512 Customer base 11,286 488 — — — — 11,774 Other 24,468 8,366 — — — — 32,834 Total 6,246,029 1,093,415 (8,120 ) — 1,986 5,153 7,338,463 Net book amount 8,235,989 79,432 (504 ) 153 (1,986 ) 27,326 8,340,410 |
Impairment of assets
Impairment of assets | 12 Months Ended |
Dec. 31, 2018 | |
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Impairment of assets | 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 six-year Sensitivity analysis was performed on the change in WACC by +0.5%/-0.5% +0.5%/-0.5%). The assumptions used in recoverable amount calculations of lifecell for the year 2018 and 2017 were respectively: A post-tax post-tax 6-year A post-tax post-tax 6-year 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% +0.5%/-0.5%). The assumptions used in recoverable amount calculations of Belarusian Telecom for the year 2018 and 2017 were respectively: A post-tax post-tax 6-year A post-tax post-tax 5-year 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. |
Investment properties
Investment properties | 12 Months Ended |
Dec. 31, 2018 | |
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Investment properties | 14. Investment properties 31 December 31 December 2017 Cost Opening balance 99,938 165,472 Disposal — (940 ) Transfer to property, plant and equipment (*) 45,821 (64,594 ) Closing balance 145,759 99,938 Accumulated depreciation Opening balance (98,958 ) (119,202 ) Transfer to property, plant and equipment (25,765 ) 22,366 Depreciation and impairment charges during the year (5,611 ) (2,337 ) Disposal — 215 Other — — Closing balance (130,334 ) (98,958 ) Net book amount 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 income capitalization approach, replacement cost approach market approach 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: 31 December 2018 Level 1 Level 2 Level 3 Valuation Method Investment properties in Gebze — — 17,960 Income capitalization approach Investment properties in Ankara — — 15,915 Market approach Investment properties in Istanbul — — 13,800 Market approach Investment properties in Aydın — — 2,110 Market approach — — 49,785 31 December 2017 Level 1 Level 2 Level 3 Valuation Method Investment properties in Izmir — — 52,110 Replacement cost approach Investment properties in Gebze — — 16,690 Income capitalization approach Investment properties in Ankara — — 15,160 Market approach Investment properties in Istanbul — — 13,000 Market approach Investment properties in Adana — — 3,150 Replacement cost approach Investment properties in Balıkesir — — 3,112 Replacement cost approach Other investment properties — — 3,970 Replacement cost approach Other investment properties — — 2,146 Market approach — — 109,338 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. |
Right of use assets
Right of use assets | 12 Months Ended |
Dec. 31, 2018 | |
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Right of use assets | 15. Right of use assets As of 1 January 2018, The Company provided a right of use asset equal to the lease liability adjusted for prepaid or accrued rent payments. In accordance with this methodology, application of IFRS 16 does not have an impact on the Group’s retained earnings as of 1 January 2018. Closing balances of right of use assets as of 1 January and 31 December 2018 and depreciation and amortization expenses for the years ended 31 December 2018 is stated as below: Tangible Intangible Site Rent Building Network Other Total Right License Total Total Balance at 1 January 1,077,517 146,826 226,243 115,652 1,566,238 12,321 — 12,321 1,578,559 Depreciation and amortization charge for the year (451,850 ) (43,563 ) (181,741 ) (81,325 ) (758,479 ) (6,458 ) (48,273 ) (54,731 ) (813,210 ) Balance at 31 December 1,021,638 135,158 50,538 109,883 1,317,217 8,643 323,742 332,385 1,649,602 As at 31 December 2018, additions to right of use assets amount to TL 1,156,973 and interest expense on lease liabilities is TL 210,200. |
Asset held for sale and discont
Asset held for sale and discontinued operations | 12 Months Ended |
Dec. 31, 2018 | |
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Asset held for sale and discontinued operations | 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 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. The reconciliation of statement of profit or loss statement of Fintur is listed below (The financial statements are presented in USD); 1 January - Revenue 617,214 Cost of sales (369,104 ) Gross profit 248,110 Selling and marketing expenses (69,983 ) General and administrative expenses (69,818 ) Other operating (expenses), net (31,258 ) Operating profit 77,051 Finance (expense)/income, net (61,203 ) Profit before income tax 15,848 Total income tax (30,947 ) (Loss)/profit for period (15,099 ) Attributable to: -owners of the parent (28,695 ) -non-controlling 13,596 (Loss)/profit for period (15,099 ) |
Other non-current assets
Other non-current assets | 12 Months Ended |
Dec. 31, 2018 | |
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Other non-current assets | 17. Other non-current 2018 2017 Advances given for property, plant and equipment 216,894 12,078 Prepaid expenses 89,603 197,431 Receivables from the Public Administration 72,848 72,848 Deposits and guarantees given 27,071 23,999 VAT receivable 2,318 4,429 Others 12,572 45,835 421,306 356,620 |
Deferred tax assets and liabili
Deferred tax assets and liabilities | 12 Months Ended |
Dec. 31, 2018 | |
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Deferred tax assets and liabilities | 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: Assets Liabilities Net 2018 2017 2018 2017 2018 2017 Property, plant and equipment and intangible assets (*) 106,128 41,903 (936,167 ) (680,134 ) (830,039 ) (638,231 ) Investment 32,926 32,926 — — 32,926 32,926 Derivative instruments 15,380 1,492 (429,162 ) (182,806 ) (413,782 ) (181,314 ) Reserve for employee termination benefits and provisions 155,132 202,112 (45,581 ) (64 ) 109,551 202,048 Asset classified as held for sale — — — (92,327 ) — (92,327 ) Tax losses carried forward 224,179 — — — 224,179 — Tax allowances 20,554 10,775 — — 20,554 10,775 Other assets and liabilities (**) 248,251 545,968 (101,268 ) (434,907 ) 146,983 111,061 Deferred tax assets/(liabilities) 802,550 835,176 (1,512,178 ) (1,390,238 ) (709,628 ) (555,062 ) Offsetting (649,818 ) (739,116 ) 649,818 739,116 — — Net deferred tax assets/ (liabilities) 152,732 96,060 (862,360 ) (651,122 ) (709,628 ) (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: 2018 2017 Opening balance (555,062 ) (406,905 ) IFRS 9 and 15 effects (141,213 ) — Income statement charge 159,472 (133,791 ) Tax charge relating to components of other comprehensive income (157,203 ) (6,449 ) Prior year corporate tax base differences (8,608 ) (2,729 ) Exchange differences (7,014 ) (5,188 ) Closing balance, net (709,628 ) (555,062 ) 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 Amount 2019 808 2020 581 2021 646 2022 368,109 2023 172,264 2024 303,045 2025 1,023,650 2026 47,466 2027 488,572 2028 308,541 Indefinite 2,596,318 Total 5,310,000 |
Trade receivables and accrued r
Trade receivables and accrued revenue | 12 Months Ended |
Dec. 31, 2018 | |
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Trade receivables and accrued revenue | 19. Trade receivables and accrued revenue 31 December 31 December Receivables from subscribers 1,634,427 1,369,948 Accounts and notes receivable 560,665 498,397 Undue assigned contracted receivables 271,306 347,596 Accrued revenue — 632,631 Other 39,592 — 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 |
Receivables from financial serv
Receivables from financial services | 12 Months Ended |
Dec. 31, 2018 | |
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Receivables from financial services | 20. Receivables from financial services 31 December 31 December Current receivables from financial services 3,286,243 2,950,523 Non-current 884,686 1,297,597 4,170,929 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. |
Contract assets
Contract assets | 12 Months Ended |
Dec. 31, 2018 | |
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Contract assets | 21. Contract assets Current contract assets: 31 December 31 December Contract assets 711,928 — 711,928 — Non-current 31 December 31 December Contract assets 3,513 — 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. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2018 | |
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Inventory | 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). |
Other current assets
Other current assets | 12 Months Ended |
Dec. 31, 2018 | |
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Other current assets | Other current assets 31 December 31 December Receivables from the Ministry of Transport and Infrastructure of Turkey 415,524 143,669 Restricted cash 204,077 183,806 Advances given to suppliers 92,715 55,754 Receivables from tax office 83,392 93,917 Prepaid expenses 79,149 322,388 VAT receivable 65,123 38,934 Subscriber acquisition costs — 138,177 Special communication tax to be collected from subscribers — 38,318 Other 151,532 145,642 1,091,512 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. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2018 | |
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Cash and cash equivalents | 24. Cash and cash equivalents 31 December 31 December Cash in hand 144 192 Banks 7,413,113 4,712,141 - Demand deposits 587,007 603,553 - Time deposits 6,826,106 4,108,588 Other cash and cash equivalents 5,982 — Cash and cash equivalents 7,419,239 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). |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
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Equity | 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: 31 December 2018 31 December 2017 (%) TL (%) TL Turkcell Holding A.Ş. (“Turkcell Holding”) 51.00 1,122,000 51.00 1,122,000 Public Share 48.95 1,077,004 48.95 1,077,004 Other 0.05 996 0.05 996 Total 100.00 2,200,000 100.00 2,200,000 Inflation adjustment to share capital (52,352 ) (52,352 ) Inflation adjusted capital 2,147,648 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 paid-in paid-in Treasury shares During 2018, the Company purchased 8,434,204 of its shares on-market buy-back 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. 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 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. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
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Earnings per share | 26. Earnings per share 2018 2017 2016 Numerator: Profit attributable to owners of the Company 2,021,065 1,979,129 1,492,088 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 attributable to owners of the Company (in full TL) 0.93 0.90 0.68 (*) Refer to Note 25 - Treasury shares 2018 2017 2016 Numerator: 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 |
Other non-current liabilities
Other non-current liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Other non-current liabilities | 27. non-current 2018 2017 Consideration payable in relation to the acquisition of Belarusian Telecom 358,304 323,691 Deferred revenue 2,497 85,646 Deposits and guarantees received from dealers 3,809 — 364,610 409,337 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%). |
Loans and borrowings
Loans and borrowings | 12 Months Ended |
Dec. 31, 2018 | |
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Loans and borrowings | 28. Loans and borrowings 31 December 31 December Non-current Unsecured bank loans 7,244,992 6,376,981 Secured bank loans 1,862 2,368 Finance lease liabilities — 108,164 Lease liabilities 1,026,955 — Debt securities issued 4,845,827 1,770,482 13,119,636 8,257,995 Current liabilities Unsecured bank loans 3,737,393 2,643,112 Current portion of unsecured bank loans 2,544,462 1,513,425 Current portion of secured bank loans 2,318 2,022 Current portion of finance lease liabilities — 14,556 Current portion of lease liabilities 20,156 — Current portion of long-term debt securities issued 289,738 105,039 Debt securities issued 74,997 — Lease liabilities 366,845 — 7,035,909 4,278,154 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 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 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. Terms and conditions of outstanding loans are as follows: 31 December 2018 31 December 2017 Currency Interest Nominal interest rate Payment Carrying Nominal interest Rate Payment Carrying Unsecured bank loans (*) USD Floating Libor+2.0%-Libor+4.1% 2019-2026 4,589,157 Libor+2,0%-Libor+3,3% 2018-2020 2,880,615 Unsecured bank loans (*) EUR Floating Euribor+1.2%- 2019-2026 6,975,890 Euribor+1.2%- 2018-2026 5,511,579 Unsecured bank loans TL Fixed 12.6%-25.0% 2019 873,914 11.1%-15.5% 2018-2019 1,620,391 Unsecured bank loans UAH Fixed 21.5%-22.5% 2019 894,511 11%-14.5% 2018 520,933 Unsecured bank loans RMB Fixed 5.5% 2019-2026 193,375 — — — Secured bank loans (**) BYN Fixed 12-16% 2019-2020 4,180 12%-16% 2018-2020 4,390 Debt securities issued USD Fixed 5.8% 2019-2028 5,135,565 5.8% 2018-2025 1,875,521 Debt securities issued TL Fixed 24.5% 2019 74,997 — — — Finance lease liabilities EUR Fixed — — — 3.4% 2018-2024 116,797 Finance lease liabilities USD Fixed — — — 22.5% 2018 41 Finance lease liabilities TL Fixed — — — 27.5%-27.7% 2018-2020 5,882 Lease liabilities EUR Fixed 1.0%-7.9% 2019-2031 194,645 — — — Lease liabilities TL Fixed 16.1%-45.0% 2019-2048 719,718 — — — Lease liabilities USD Fixed 3.9%-10.8% 2019-2027 40,351 — — — Lease liabilities UAH Fixed 16.6%-24.0% 2019-2067 418,390 — — — Lease liabilities BYN Fixed 12.0%-15.0% 2019-2028 40,852 — — — 20,155,545 12,536,149 (*) Turkcell Finansman’s liabilities originated from banks abroad are subject to certain reserve requirements as obliged by Central Bank of the Republic of Turkey (CBRT). As at 31 December 2018, blocked deposit in connection with the foreign currency loans utilized by Turkcell Finansman from banks outside of Turkey amounting to TL TL 204,077 is accounted in other current assets. (**) Belarusian Telecom pledged its certain property, plant and equipment to secure these bank loans. Also, these bank loans are secured by the Government of the Republic of Belarus. (Note 36) 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 |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2018 | |
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Employee benefits | 29. Employee benefits 31 December 31 December Retirement pay liability provision 160,613 149,449 Unused vacation provision 64,134 48,217 224,747 197,666 Provision for annual leave 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: 2018 2017 1 January 149,449 120,755 Service cost 26,971 32,696 Remeasurements (12,699 ) 3,738 Interest expense 16,957 13,877 Benefit payments (20,065 ) (21,617 ) 31 December 160,613 149,449 The sensitivity of provision for employee termination benefits to changes in the significant actuarial assumptions is: 31 December 2018 Discount Rate Inflation Rate Sensivity Level 1% increase 1% decrease 1% increase 1% decrease Change in assumption (13.0 %) 15.7 % 16.5 % (13.7 %) Impact on provision for employee termination benefits (20,880 ) 25,216 26,501 (22,004 ) 31 December 2017 Discount Rate Inflation Rate Sensivity Level 1% increase 1% decrease 1% increase 1% decrease Change in assumption (14.6 %) 18.1 % 18.3 % (14.3 %) Impact on provision for employee termination benefits (21,820 ) 27,050 27,349 (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 As of 31 December 2018, the Group recognized expenses of TL 26,224 regarding this plan (31 December 2017: TL 29,413). |
Deferred revenue
Deferred revenue | 12 Months Ended |
Dec. 31, 2018 | |
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Deferred revenue | 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. |
Contract liabilities
Contract liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Contract liabilities | 31. Current contract liabilities: 31 December 31 December Contract liabilities 255,756 — 255,756 — Non-current 31 December 31 December Contract liabilities 131,598 — 131,598 — 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; 31 December Mobile telecommunications service 101,006 Other (*) 429,889 Total 530,895 (*) In consist of Hospital Revenue 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. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Provisions | 32. Non - current provisions: Legal claims Obligations for dismantling, removing and Total Balance at 1 January 2018 8,887 188,531 197,418 Provisions recognized 5,859 47,580 53,439 Unwinding of discount — 9,760 9,760 Transfer to current provisions (5,382 ) — (5,382 ) Effect of changes in exchange rates — 13,487 13,487 Balance at 31 December 2018 9,364 259,358 268,722 Legal claims Obligations for Total Balance at 1 January 2017 6,889 180,652 187,541 Provisions recognized/(reversed) 4,256 (8,461 ) (4,205 ) Unwinding of discount — 15,328 15,328 Transfer to current provisions (2,258 ) — (2,258 ) Effect of changes in exchange rates — 1,012 1,012 Balance at 31 December 2017 8,887 188,531 197,418 Provision for legal claims are recognized for the probable cash outflows related to legal disputes. Refer to Note 37. 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 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 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: Legal claims Bonus Total Balance at 1 January 2018 605,679 229,520 835,199 Provisions recognized/(reversed) (3,520 ) 408,740 405,220 Payments (626,214 ) (338,650 ) (964,864 ) Transfers from non-current 5,381 — 5,381 Unwinding of discount 26,185 — 26,185 Disposal of subsidiaries — (2,070 ) (2,070 ) Effect of changes in exchange rates 1,082 935 2,017 Balance at 31 December 2018 8,593 298,475 307,068 Legal claims Bonus(*) Other Total Balance at 1 January 2017 18,266 173,391 785 192,442 Provisions recognized/(reversed)(**) 583,788 318,603 (785 ) 901,606 Payments (1,188 ) (263,080 ) — (264,268 ) Transfer from non-current 2,258 — — 2,258 Unwinding of discount 2,531 — — 2,531 Effect of changes in exchange rates 24 606 — 630 Balance at 31 December 2017 605,679 229,520 — 835,199 (*) Includes share-based payment (Note 29). (**) Refer to Note 37.1 and 37.3 for legal claim. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Trade and other payables | 33. Trade and other payables 2018 2017 Payable to suppliers 2,372,512 2,527,152 Taxes payable 465,966 415,650 Accrued treasury share, universal service fund contribution and contributions to the ICTA’s expenses 455,496 305,208 Accrued selling and marketing expenses 91,747 79,011 Other 402,453 369,445 3,788,174 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. 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. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Derivative financial instruments | 34. Derivative financial instruments Fair value of derivative financial instruments at 31 December 2018 and 2017 are attributable to the following: 31 December 2018 31 December 2017 Assets Liabilities Assets Liabilities Held for trading 709,617 131,097 961,665 17,724 Derivatives used for hedging 730,924 — — — Total 1,440,541 131,097 961,665 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 Currency Notional Fair Maturity Participating cross currency TL 1,650,000 EUR 500,000 208,462 23 October 2025 TL 275,850 EUR 60,000 64,670 22 April 2026 TL 435,000 USD 150,000 167,116 16 September 2020 TL 293,500 USD 100,000 108,777 16 September 2020 TL 194,000 USD 50,000 39,394 16 September 2020 TL 386,500 USD 100,000 79,688 16 September 2020 TL 113,400 USD 20,000 9,234 22 April 2026 Cross currency swap contracts TL 123,878 RMB 202,600 53,583 22 April 2026 Derivatives used for hedge accounting financial assets 730,924 EUR 500,000 participating cross currency swap contracts includes TL 690,146 guarantees after CSA agreement. 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 Currency Notional Currency Notional Fair Maturity Currency Swap TL 266,760 USD 50,000 (3,715 ) 2 January 2019 TL 266,510 USD 50,000 (3,465 ) 2 January 2019 TL 719,996 USD 135,000 (9,774 ) 2 January 2019 TL 212,736 USD 40,000 (2,300 ) 2 January 2019 TL 265,925 USD 50,000 (2,880 ) 2 January 2019 TL 1,366 USD 253 (48 ) 19 March 2019 TL 4,199 USD 680 (939 ) 16 January 2019 TL 5,681 USD 920 (1,277 ) 22 January 2019 TL 6,040 EUR 1,000 (41 ) 2 January 2019 USD 68,654 EUR 60,000 (861 ) 15 January 2019 USD 11,462 EUR 10,000 (4 ) 8 January 2019 Cross currency swap contracts TL 6,159 USD 1,000 (912 ) 28 January 2019 TL 6,159 USD 1,000 (910 ) 24 January 2019 TL 130,488 USD 24,000 (9,365 ) 20 March 2023 TL 268,200 USD 50,000 (5,791 ) 14 June 2019 TL 128,436 USD 24,000 (2,652 ) 19 June 2019 TL 169,368 EUR 24,000 (24,895 ) 8 January 2019 TL 118,800 EUR 18,000 (22,051 ) 23 September 2021 TL 111,732 EUR 18,867 1,920 14 February 2019 TL 185,100 EUR 30,000 (8,296 ) 22 April 2026 TL 183,300 EUR 30,000 (8,642 ) 22 April 2026 Participating cross currency swap contracts TL 193,800 EUR 30,000 (7,148 ) 16 September 2020 TL 91,700 USD 20,000 (17,051 ) 22 April 2026 Total Held for trading derivative financial liabilities (131,097 ) Held for trading Buy Sell Currency Notional Currency Notional Fair Maturity Cross currency swap contracts TL 67,410 USD 18,000 27,928 28 January 2019 TL 95,550 USD 25,000 36,751 24 January 2019 TL 52,164 USD 14,620 27,870 16 July 2019 TL 69,744 USD 19,780 38,636 22 July 2019 TL 242,873 USD 70,500 160,594 16 September 2020 TL 269,451 USD 70,500 131,437 22 December 2020 TL 191,300 USD 50,000 74,095 13 February 2019 TL 98,625 EUR 25,000 57,161 13 June 2019 TL 203,600 EUR 50,000 109,610 23 July 2019 TL 97,997 EUR 21,500 37,825 19 December 2019 TL 105,280 EUR 18,800 7,710 23 September 2021 Total held for trading derivative financial assets 709,617 Participating cross currency swap and FX swap Buy Sell Currency Notional Currency Notional Fair Maturity USD 47,304 EUR 39,835 1,005 02 January 2018 TL 69,680 USD 20,000 6,554 27 August 2018 TL 81,480 EUR 20,000 9,965 14 December 2018 TL 95,550 USD 25,000 72 24 January 2019 TL 67,410 USD 18,000 1,498 28 January 2019 TL 98,625 EUR 25,000 17,354 13 June 2019 TL 52,164 USD 14,620 4,465 16 July 2019 TL 69,744 USD 19,780 6,996 22 July 2019 TL 203,600 EUR 50,000 27,198 23 July 2019 TL 435,000 USD 150,000 142,085 16 September 2020 TL 386,500 USD 100,000 (4,645 ) 16 September 2020 TL 293,500 USD 100,000 90,071 16 September 2020 TL 242,873 USD 70,500 33,535 16 September 2020 TL 194,000 USD 50,000 (2,951 ) 16 September 2020 TL 1,650,000 EUR 500,000 627,385 25 October 2025 TL 275,850 EUR 60,000 1,078 22 April 2026 Total derivative financial assets 961,665 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 Buy Sell Currency Notional Currency Notional Fair value Maturity TL 470,232 USD 122,680 (2,465 ) 2 January 2018 TL 180,023 USD 47,250 (545 ) 2 January 2018 TL 141,001 USD 36,786 (726 ) 3 January 2018 TL 219,162 USD 57,245 (1,043 ) 4 January 2018 TL 115,022 USD 30,150 (435 ) 5 January 2018 TL 17,204 USD 4,500 (284 ) 10 January 2018 TL 15,916 EUR 3,500 (157 ) 10 January 2018 TL 91,556 EUR 20,140 (620 ) 22 January 2018 TL 137,834 EUR 30,400 (601 ) 05 February 2018 TL 82,013 EUR 17,860 (1,413 ) 19 February 2018 TL 1,143 EUR 250 (25 ) 5 Mart 2018 TL 97,997 EUR 21,500 (2,154 ) 19 December 2019 TL 269,451 USD 70,500 (5,010 ) 22 December 2020 Total derivative financial liabilities (15,478 ) Currency forward contracts at 31 December 2017 Buy Currency Notional amount Fair value Maturity USD 50,000 (2,246 ) 30 January 2018 Total derivative financial liabilities (2,246 ) At 31 December 2017, total derivative financial liabilities of TL 110,108 also include net accrued interest expense of TL 92,384. 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. Fair values 31 December 31 December Fair Value Valuation Techniques a)Participating cross currency swap contracts (*) 653,142 950,862 Level 3 Pricing models based on discounted cash Present value of the estimated future cash flows based on unobservable yield curves and end period FX rates -Held for trading (24,199 ) 950,862 -Derivatives used for hedging 677,341 — b)FX swap contracts 656,302 (4,675 ) Level 2 Present value of the estimated future cash flows based on observable yield curves and end period FX rates -Held for trading 602,719 (4,675 ) -Derivatives used for hedging 53,583 — c)Currency forward contracts — (2,246 ) Level 2 Forward exchange rates at the balance sheet date -Held for trading — (2,246 ) (*) 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 bid- There were no transfers between fair value hierarchy levels during the year. The following table presents the Group’s financial assets and financial liabilities measured and recognised at fair value at 31 December 2018 and 2017 on a hedge accounting basis: Fair values Participating cross currency swap Nominal Maturity Date 31 December 31 December Fair Hedge Change in value of Change in EUR Contracts 500,000 23 October 2025 208,462 627,385 Level 3 1:1 359,400 (359,400 ) EUR Contracts 60,000 22 April 2026 64,670 1,078 Level 3 1:1 43,128 (43,128 ) — USD Contracts 400,000 16 September 2020 394,975 224,560 Level 3 1:1 179,388 (179,388 ) USD Contracts 20,000 10 April 2026 9,234 — Level 3 1:1 13,519 (13,519 ) CNY Contracts 202,600 22 April 2026 53,583 — Level 2 1:1 15,600 (15,600 ) 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: 31 December 31 December Opening balance 950,862 382,054 Cash flow effect (612,466 ) — Total gain/loss: Gains recognized in profit or loss 314,746 568,808 Closing balance 653,142 950,862 Net off / Offset 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) mark-to-market mark-to-market With respect to the valuations on a bi-weekly mark-to-market 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. 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; 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. Profit or Loss Equity, net of tax 100 bp 100 bp 100 bp 100 bp 31 December 2018 Participating cross currency swap contracts 937,845 9,455 (360,596 ) (259,066 ) Cross currency swap contracts 31,584 320 1,452 4,765 Cash Flow sensitivity (net) 969,429 9,775 (359,144 ) (254,301 ) Cash flow hedges 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. 2018 Hedging Reserve Cost of Hedging Balance at 1 January 2018 — — Cash Flow Hedges Changes in fair value: 683,706 (448,833 ) Foreign currency risk 612,733 (448,833 ) Interest rate risk 70,973 — Amount reclassified into profit or loss: (664,550 ) 101,231 Foreign currency risk (611,035 ) 101,231 Interest rate risk (53,515 ) — Tax on movements during the year: (4,214 ) 76,472 Balance at 31 December 2018 14,942 (271,130 ) |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Financial instruments | 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: 2018 2017 Trade receivables 19 2,620,991 3,004,206 Contract assets 715,441 — Receivables from financial services 20 4,170,929 4,248,120 Cash and cash equivalents* 24 7,419,095 4,712,141 Participating cross currency swap and FX swap contracts 32 1,356,062 981,396 Other current assets** 22 287,469 316,042 Held to maturity investments — 11,992 Financial asset at fair value through profit or loss 9,409 — Financial asset at fair value through other comprehensive income 42,454 — Due from related parties 37 13,533 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 Credit quality: The maximum exposure to credit risk for trade and subscriber receivables, other assets and cash and cash equivalent arising from sales transactions including those classified as due from related parties at the reporting date by type of customer is: Other Assets at 31 December 2018(*) Not Due More Than More Than More Than More Than More Than More Than 150 Days -3 More Than More Than Total Gross Carrying Amount 8,656,954 214,351 80,762 57,761 43,038 25,543 755,982 272,547 319,298 10,426,236 Loss Allowance 24,864 4,567 5,238 4,900 6,368 6,028 214,893 182,431 281,522 730,811 (*) Other Assets includes trade receivables, subscriber receivables, other assets, cash and cash equivalent and due from related parties. Contract Assets at 31 December 2018 Not Due More Than More Than More Than More Than More Than More Than 150 Days - 3 More Than More Than Total Gross Carrying Amount 715,441 — — — — — — — — 715,441 Loss Allowance 7,370 — — — — — — — — 7,370 Credit quality: Other Assets as at 1 January Not Due More Than More Than More Than More Than More Than More Than 150 Days - 3 years More Than More Than Total Gross Carrying Amount 6,021,990 194,517 81,804 35,799 52,851 20,493 823,359 208,127 141,717 7,580,657 Loss Allowance 24,936 6,136 5,662 4,279 9,766 7,076 323,124 158,198 122,751 661,928 (*) Other Assets includes trade receivables, subscriber receivables and other assets. Contract Assets as at 1 January 2018 Not Due More Than More Than More Than More Than More Than More Than 150 Days - 3 More Than More Than Total Gross Carrying Amount 514,223 — — — — — — — — 514,223 Loss Allowance 5,128 — — — — — — — — 5,128 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: 31 December 2018 Contract Asset 31 December Opening balance — 705,440 IFRS 9 effect 5,128 (43,512 ) Provision for impairment recognized during the year 2,242 416,557 Amounts collected — (166,641 ) Unused amount reversed (*) — (73,023 ) Receivables written off during the year as uncollectible — (118,553 ) Exchange differences — 10,540 Disposal of subsidiaries — 3 Closing balance 7,370 730,811 31 December 2017 Contract Asset 31 December Opening balance — 964,311 Provision for impairment recognized during the year — 180,948 Amounts collected — (224,460 ) Unused amount reversed (*) — (79,958 ) Receivables written off during the year as uncollectible — (138,529 ) Exchange differences — 3,128 Closing balance — 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. Movements in the provision for impairment of receivables from financial services are as follows: 31 December 2018 31 December Opening balance 72,992 10,170 IFRS 9 effect 52,951 — Provision for impairment recognized during the year 190,509 117,293 Amounts collected (96,278 ) (37,503 ) Unused amount reversed (*) (19,901 ) (16,968 ) Closing balance 200,273 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. . Liquidity risk The table below analyses the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities for: • all non-derivative • gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows, 31 December 2018 31 December 2017 Carrying Contractual 6 months 6-12 1-2 2-5 More than Carrying Contractual 6 months 6-12 1-2 2-5 More than Amount cash flows or less Months years years Years Amount cash flows or less months years years Years Non-derivative Secured bank loans 4,180 (4,712 ) (1,272 ) (1,209 ) (2,231 ) — — 4,390 (5,011 ) — (1,117 ) (2,045 ) (1,849 ) — Unsecured bank loans 13,526,847 (14,353,989 ) (4,354,548 ) (2,065,424 ) (3,587,398 ) (2,503,531 ) (1,843,088 ) 10,533,518 (11,094,697 ) (3,275,230 ) (955,637 ) (2,575,807 ) (3,035,914 ) (1,252,109 ) Finance lease liabilities — — — — — — — 122,720 (133,570 ) (18 ) (17,429 ) (16,789 ) (38,933 ) (60,401 ) Debt securities issued 5,210,562 (7,733,943 ) (228,838 ) (149,564 ) (299,128 ) (897,385 ) (6,159,028 ) 1,875,521 (2,753,486 ) (54,221 ) (54,221 ) (108,442 ) (325,326 ) (2,211,276 ) Lease liabilities 1,413,956 (2,497,426 ) (372,682 ) (273,273 ) (410,826 ) (666,760 ) (773,885 ) — — — — — — — Trade and other payables* 2,372,512 (2,440,300 ) (2,440,300 ) — — — — 2,527,152 (2,548,365 ) (2,548,365 ) — — — — Due to related parties 45,331 (45,331 ) (45,331 ) — — — — 6,980 (6,980 ) (6,980 ) — — — — Consideration payable in relation to acquisition of Belarusian Telecom (Note 35) 358,304 (526,090 ) — — — (526,090 ) — 323,691 (377,190 ) — — — (377,190 ) — Derivative financial liabilities Participating Cross Currency Swap and FX swap contracts 165,265 97,761 55,377 — 12,960 14,522 14,902 107,862 23,428 18,982 — 4,446 — — Buy 3,444,271 2,519,383 — 193,800 249,288 481,800 1,838,554 1,471,106 — 367,448 — — Sell (3,346,510 ) (2,464,006 ) — (180,840 ) (234,766 ) (466,898 ) (1,815,126 ) (1,452,124 ) — (363,002 ) — — Currency forward contracts — — — — — — — 2,246 (2,246 ) (2,246 ) — — — — Buy 190,185 190,185 — — — — Sell (192,431 ) (192,431 ) — — — — TOTAL 23,096,957 (27,504,030 ) (7,387,594 ) (2,489,470 ) (4,286,623 ) (4,579,244 ) (8,761,099 ) 15,504,080 (16,898,117 ) (5,868,078 ) (1,028,404 ) (2,698,637 ) (3,779,212 ) (3,523,786 ) * Advances received, license fee accruals, taxes and withholding taxes payable are excluded from trade and other payables. 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: 31 December 2018 USD EUR RMB Foreign currency denominated assets Other non-current 222 11 — Financial asset at fair value through other comprehensive income — 7,043 — Due from related parties-current 1,965 223 — Trade receivables and contract assets 15,786 52,140 — Other current assets 70,710 18,977 — Cash and cash equivalents 786,322 384,800 — 875,005 463,194 — Foreign currency denominated liabilities Loans and borrowings-non (481,438 ) (748,142 ) (224,519 ) Debt securities issued-non- (921,102 ) — — Lease obligations-non-current (4,719 ) (24,068 ) — Other non-current (68,107 ) — — Loans and borrowings-current (390,876 ) (523,595 ) (29,244 ) Debt securities issued-current (55,074 ) — — Rent lease obligations-current (2,951 ) (8,223 ) — Trade and other payables-current (233,805 ) (32,946 ) (70,553 ) Due to related parties (686 ) (52 ) — (2,158,758 ) (1,337,026 ) (324,316 ) Exposure related to derivative instruments Participating cross currency swap and FX swap contracts 1,082,036 811,167 202,600 Net exposure (201,717 ) (62,665 ) (121,716 ) 31 December 2017 USD EUR Foreign currency denominated assets Other non-current 72 2,681 Due from related parties-current 571 407 Trade receivables and accrued income 18,890 57,283 Other current assets 43,039 35,049 Cash and cash equivalents 688,717 237,697 751,289 333,117 Foreign currency denominated liabilities Loans and borrowings-non (557,180 ) (960,629 ) Debt securities issued-non- (469,387 ) — Other non-current (85,816 ) — Loans and borrowings-current (206,535 ) (285,827 ) Debt securities issued-current (27,848 ) — Trade and other payables-current (328,323 ) (29,442 ) Due to related parties (1,172 ) (394 ) (1,676,261 ) (1,276,292 ) Exposure related to derivative instruments Participating cross currency swap and FX swap contracts 937,011 748,650 Currency forward contracts 50,000 — Net exposure 62,039 (194,525 ) 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. Sensitivity analysis 31 December 2018 Profit/(Loss) Equity Appreciation of Depreciation of Appreciation of Depreciation of 1- (106,121 ) 106,121 — — 2- — — (9,596 ) 9,596 3- (106,121 ) 106,121 (9,596 ) 9,596 4- (37,775 ) 37,775 — — 5- — — (23,613 ) 23,613 6- (37,775 ) 37,775 (23,613 ) 23,613 7- (9,275 ) 9,275 — — 8- — — 364 (364 ) 9- (9,275 ) 9,275 364 (364 ) Total (3+6+9) (153,171 ) 153,171 (32,845 ) 32,845 Sensitivity analysis 31 December 2017 Profit/(Loss) Equity Appreciation of Depreciation of Appreciation of Depreciation of 1- 23,400 (23,400 ) — — 2- — — — — 3- 23,400 (23,400 ) — — 4- (87,838 ) 87,838 — — 5- — — — — 6- (87,838 ) 87,838 — — 7- — — — — 8- — — — — 9- — — — — Total (3+6+9) (64,438 ) 64,438 — — 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: 31 December 2018 31 December 2017 Effective Carrying Effective Carrying Interest interest Note Rate Amount rate Amount Variable rate instruments 28 USD floating rate loans 4.3 % (4,589,157 ) 3.2 % (2,880,615 ) EUR floating rate loans 2.1 % (6,975,890 ) 2.1 % (5,511,579 ) Sensitivity analysis 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: Profit or loss Equity 100 bps 100 bps 100 bps 100 bps 31 December 2018 Variable rate instruments (financial liability) (234,196 ) 234,196 — — Cash flow sensitivity (net) (234,196 ) 234,196 — — 31 December 2017 Variable rate instruments (financial liability) (83,922 ) 83,922 — — Cash flow sensitivity (net) (83,922 ) 83,922 — — Fair values 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. 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 Unobservable Inputs 31 December 31 December Relationship of unobservable inputs to fair Contingent consideration 358,304 323,691 Risk-adjusted discount rate 9,5% 4,8% A change in the discount rate by 100 bps would increase/decrease FV by TL (13,582) and TL 14,250 respectively, Expected settlement date first quarter of 2023 first quarter of 2021 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: 2018 2017 Opening balance 323,691 295,062 Gains recognized in profit or loss 34,613 28,629 Closing balance 358,304 323,691 Financial assets: 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. |
Guarantees and purchase obligat
Guarantees and purchase obligations | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Guarantees and purchase obligations | 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). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following disclosures comprise of material legal lawsuits, investigations and in-depth 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 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. 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 GSM-900, GSM-1800, CDMA-800. Wi-fi (LTE-2600, LTE-1800) GSM-1800 SS-7 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 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 at 31 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 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 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. 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 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). 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). 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 31 December 2018 31 December 2017 31 December 2018 31 December 2017 Disputes related with ICTA 13,367 13,367 — — 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). |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Related parties | 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 31 December 31 December 31 December Short-term benefits (*) 92,341 74,696 50,001 Termination benefits 121 604 10,064 Long-term benefits 755 548 479 93,217 75,848 60,544 (*) Includes share-based payment, The following balances are outstanding at the end of the reporting period in relation to transactions with related parties: Due from related parties 31 December 31 December Vimpelcom OJSC (“Vimpelcom”) 9,138 — Telia Sonera International Carrier AB (“Telia”) 1,741 1,256 Kyivstar GSM JSC (“Kyivstar”) 210 1,061 GSM Kazakhstan Ltd (“Kazakcell”) 2 830 Azercell Telekom MMC (“Azercell”) — 364 Other 2,442 1,788 13,533 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. Due to related parties 31 December 31 December Turkcell Vakfı 39,544 — Kyivstar GSM JSC (“Kyivstar”) 3,591 2,346 Wind Telecomunicazioni S,P,A, 886 1,738 Teliasonera International Carrier Switzerland Ag 523 — Vimpelcom (Bvı) Ltd, 3 1,552 Geocell LLC (“Geocell”) 2 447 Other 782 897 45,331 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 2018 2017 2016 Sales to Kyivstar Telecommunications services 52,946 30,875 30,964 Sales to Telia Telecommunications services 7,941 10,020 15,761 Sales to Vimpelcom Telecommunications services 5,418 7,230 20,775 Sales to Azercell(****) Telecommunication services 256 1,583 2,585 Sales to Krea (*) Call center services, fixed line services, rent and interest charges — — 3,422 Sales to Millenicom (**) Telecommunication services — — 997 Sales to other related parties 7,920 11,324 14,922 74,481 61,032 89,426 Related party expenses 2018 2017 2016 Charges from Kyivstar Telecommunications services 77,174 49,178 47,595 Charges from Turkcell Vakfı Donation 44,247 — — Charges from Telia Telecommunications services 6,047 3,120 2,499 Charges from Wind Telecomunicazioni Telecommunications services 4,812 — — Charges from Vimpelcom Telecommunications services 2,751 10,853 2,721 Charges from Azercell (****) Telecommunications services 79 734 1,361 Charges from Hobim (***) Invoicing and archiving services — 16,993 31,832 Charges from Krea Digital television broadcasting services — — 5,975 Charges from other related parties 9,799 17,001 11,659 144,909 97,879 103,642 (*) 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. 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 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. |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
Investments accounted for using equity method [abstract] | |
Subsidiaries | 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: Effective Ownership Interest Subsidiaries Name Country of Business 31 December 31 December Kibris Telekom Turkish Republic of Northern Cyprus Telecommunications 100 100 Turkcell Global Bilgi Turkey Customer relations and human resources management 100 100 Turktell Turkey Information technology, value added GSM services and entertainment investments 100 100 Turkcell Superonline Turkey Telecommunications, television services and content services 100 100 Turkcell Satis Turkey Sales, delivery and digital sales services 100 100 Eastasia Netherlands Telecommunications investments 100 100 Turkcell Teknoloji Turkey Research and development 100 100 Global Tower Turkey Telecommunications infrastructure business 100 100 Rehberlik Turkey Directory Assistance 100 100 Financell( 5 Netherlands Financing business — 100 Lifecell Ventures Netherlands Telecommunications investments 100 100 Beltel Turkey Telecommunications investments 100 100 Turkcell Gayrimenkul Turkey Property investments 100 100 Global LLC Ukraine Customer relations management 100 100 UkrTower Ukraine Telecommunications infrastructure business 100 100 Turkcell Europe Germany Telecommunications 100 100 Turkcell Odeme Turkey Payment services and e-money 100 100 lifecell Ukraine Telecommunications 100 100 Turkcell Finansman Turkey Consumer financing services 100 100 Beltower Republic of Belarus Telecommunications Infrastructure business 100 100 Turkcell Enerji Turkey Electricity energy trade and wholesale and retail electricity sales 100 100 Paycell Ukraine Consumer financing services 100 100 Lifecell Digital Turkish Republic of Telecommunications 100 100 TÖFAŞ ( 1 Turkey Interest free consumer financing services 100 — Turkcell Sigorta( 3 Turkey Insurance agency activities 100 — Belarusian Telecom Republic of Belarus Telecommunications 80 80 Lifetech Republic of Belarus Information technology, programming and technical support 80 80 Inteltek Turkey Information and Entertainment Services 55 55 Azerinteltek ( 6 Azerbaijan Information and Entertainment Services — 28 Effective Ownership Interest Associates Name Country of Incorporation Business 31 December 31 December Fintur Netherlands Telecommunications investments 41 41 Türkiye’nin Otomobili ( 2 Turkey Electric passenger car development, production and trading activities 19 — Effective Ownership Interest Joint Venture Name Country of Business 31 December 31 December Sofra ( 4 Turkey Meal coupons and cards 33 — (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. (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 (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 non-controlling Name of subsidiary Place of Proportion of ownership non-controlling Profit/(loss) allocated to non-controlling Accumulated non- 31 31 31 31 31 31 Inteltek Turkey 45,00 % 45,00 % 105,112 35,924 131,506 46,072 Individually immaterial subsidiaries with non –controlling interest 51,158 22,706 304 9,855 156,270 58,630 131,810 55,927 Summarized financial information in respect of Inteltek is set out below. The summarized financial information below represents amounts before intragroup eliminations. Inteltek 31 December 31 December Current assets 403,427 223,119 Non-current 9,043 9,290 Current liabilities 115,080 125,286 Non-current 5,154 4,742 Equity attributable to owners 292,236 102,381 2018 2017 Revenue 208,239 184,025 (Expenses) / Income (net) (93,133 ) (104,194 ) Gain on Sale of Investments 118,476 — Profit for the year 233,582 79,831 Other comprehensive income/(loss) for the year 179 172 Dividend paid to non-controlling 31,283 (46,582 ) Net cash inflow from operating activities 31,380 73,575 Net cash inflow from investing activities 158,946 19,930 Net cash outflow from financing activities (69,518 ) (75,113 ) Effects of foreign exchange rate fluctuations on cash and cash equivalents 56,949 8,574 Net cash inflow 177,757 26,966 |
Cash flow information
Cash flow information | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Cash flow information | 40. Cash flow information Net debt reconciliation: Debt securities Loans Financial Total Balance at 1 January 2017 1,922,656 7,810,392 48,114 9,781,162 Cash inflows 209,808 24,030,222 72,421 24,312,451 Cash outflows (503,391 ) (22,768,911 ) (1,068 ) (23,273,370 ) Other non-cash 246,448 1,466,205 3,253 1,715,906 Balance at 31 December 2017 1,875,521 10,537,908 122,720 12,536,149 Cash and cash equivalents 4,712,333 Net debt (7,823,816 ) Debt securities Loans Total Balance at 1 January 2018 1,875,521 10,537,908 122,720 12,536,149 Increase in rent lease obligations (IFRS 16) — — 1,036,380 1,036,380 Cash inflows 2,188,313 43,728,604 — 45,916,917 Cash outflows (432,140 ) (44,339,377 ) (1,180,831 ) (45,952,348 ) Other non-cash 1,578,868 3,603,892 1,435,687 6,618,447 Balance at 31 December 2018 5,210,562 13,531,027 1,413,956 20,155,545 Cash and cash equivalents 7,419,239 Net debt (12,736,306 ) |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Subsequent events | Subsequent events On 2 January, the Company purchased 827,750 of its shares on-market buy-back Our 55% owned subsidiary İnteltek İnternet Teknoloji Yatĺrĺm ve Danĺşmanlĺk 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. |
Basis of preparation and summ_2
Basis of preparation and summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Compliance with IFRS | (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. |
Historical cost convention | (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 |
Functional and presentation currency | (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 non-monetary non-monetary 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. |
Use of estimates and judgments | (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. 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. 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” 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” 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. |
Changes in accounting policies | (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). |
Changes in accounting estimates | (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. |
Comparative information and revision of prior period financial statements | (g) Comparative information and revision of prior period financial statements The consolidated financial statements of the Group have been prepared consistent with prior periods. |
Principles of consolidation and equity accounting | (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 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 non-controlling acquisition-by-acquisition non-controlling 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. (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 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 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 (iii) Changes in ownership interests The Group treats transactions with non-controlling non-controlling non-controlling 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 Where a put option is written by the Group on shares in an existing subsidiary held by non-controlling non-controlling non-controlling Reserve for put option over shares relating to non-controlling non-controlling non-controlling (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. |
Financial instruments | (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. (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. (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: • Where the hedged item subsequently results in the recognition of a non-financial • 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 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 • available-for-sale 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 (ii) Reclassification The Group could choose to reclassify a non-derivative available-for-sale 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 (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 Available-for-sale • for ‘financial assets at fair value through profit or loss’ – in profit or loss • for available-for-sale • for other monetary and non-monetary available-for-sale 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, 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 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 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 |
Cash and cash equivalents | (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. |
Trade receivables | (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 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. |
Property, plant and equipment | (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. (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 21 – 25 years Mobile network infrastructure 4 – 20 years Fixed network infrastructure 3 – 25 years Call center equipment 4 – 8 years Equipment, fixtures and fittings 2 – 10 years Motor vehicles 4 – 6 years Central betting terminals 5 – 10 years Leasehold improvements 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. |
Intangible assets | (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 ( 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 3 –8 years (iii) Other intangible assets 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. Amortization The Group amortizes intangible assets with a limited useful life using the straight-line method over the following periods: Transmission line software 5 –10 years Central betting system operating right 7 – 10 years Customer base 2 – 15 years Brand name 9 – 10 years Indefeasible right of use 15 years 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. |
Investment properties | (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. 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. |
Inventories | (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, |
Impairment of assets | (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 |
Employee benefits | (r) Employee benefits (i) Short-term obligations Liabilities for salaries including non-monetary (ii) Termination benefits In accordance with the labor law in Turkey, the Company and its subsidiaries in Turkey are required to make lump-sum (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 (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. |
Provisions | (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 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 |
Revenue | (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. 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. 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. |
Trade and other payables | (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. |
Borrowings | (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 |
Income taxes | (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. |
Earnings per share | (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. |
Government grants | (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 |
Non-current asset held for sale and discontinued operations | (z) Non-current Non-current 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 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 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 |
Equity | (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 |
Dividends | (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. |
Subsequent events | (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. |
Leases | (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 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 right-of-use right-of-use right-of-use (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 • 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 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. 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 sub-lease right-of-use-asset If an arrangement contains lease and non-lease 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. |
New standards and interpretations | (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 31 December Effect Of Effect Of Effect Of 31 December Assets Property, plant and equipment 11,116,316 — — — 11,116,316 Right-of-use 1,649,602 — — 1,649,602 — Intangible assets 10,050,172 — 1,059,866 — 8,990,306 Investment properties 15,425 — — — 15425 Trade receivables 115,001 (608 ) (3,513 ) — 119,122 Contract assets 3,513 — 3,513 — — Receivables from financial services 884,686 — — — 884,686 Deferred tax assets 152,732 — — 14,696 138,036 Investments in equity accounted investees 19,413 — — — 19,413 Other non-current 421,306 (228 ) (10,849 ) (161,426 ) 593,809 Total non-current 24,428,166 (836 ) 1,049,017 1,502,872 21,877,113 Inventories 180,434 — — — 180,434 Trade receivables 2,505,990 49,567 (703,742 ) 6,926 3,153,239 Due from related parties 13,533 67 — — 13,466 Receivables from financial services 3,286,243 (40,463 ) — — 3,326,706 Derivative financial instruments 1,356,062 — — — 1,356,062 Held to maturity investments — (51,863 ) — — 51,863 Financial asset at fair value through profit or loss 9,409 9,409 — — — Financial asset at fair value through other comprehensive income 42,454 42,454 — — — Contract assets 711,928 — 711,928 — — Cash and cash equivalents 7,419,239 (2,364 ) — — 7,421,603 Other current assets 1,091,512 87 (137,997 ) (312,872 ) 1,542,294 Subtotal 16,616,804 6,894 (129,811 ) (305,946 ) 17,045,667 Assets classified as held for sale 1,720,305 — — — 1,720,305 Total current assets 18,337,109 6,894 (129,811 ) (305,946 ) 18,765,972 Total assets 42,765,275 6,058 919,206 1,196,926 40,643,085 Equity Share capital 2,200,000 — — — 2,200,000 Share premium 269 — — — 269 Treasury shares (-) (141,534 ) — — — (141,534 ) Additional paid in capital 35,026 — — — 35,026 Reserves 2,503,537 (154 ) 8,958 (740 ) 2,495,473 Remeasurements of employee termination benefit (34,871 ) — — — (34,871 ) Retained earnings 11,359,317 4,989 667,946 (71,464 ) 10,757,846 Total equity attributable to equity holders of Turkcell Iletisim Hizmetleri AS (“the Company”) 15,921,744 4,835 676,904 (72,204 ) 15,312,209 Non-controlling 131,810 — — — 131,810 Total equity 16,053,554 4,835 676,904 (72,204 ) 15,444,019 31 December Effect Of Effect Of Effect Of 31 December Liabilities Borrowings 13,119,636 — — 902,285 12,217,351 Employee benefit obligations 224,747 — — — 224,747 Provisions 268,722 — — — 268,722 Deferred tax liabilities 862,360 1,223 193,854 — 667,283 Contract liabilities 131,598 — 131,598 — — Other non-current 364,610 — (102,887 ) — 467,497 Total non-current 14,971,673 1,223 222,565 902,285 13,845,600 Borrowings 7,035,909 — — 366,845 6,669,064 Current tax liabilities 133,597 — — — 133,597 Trade and other payables 3,788,174 — 1,786 — 3,786,388 Due to related parties 45,331 — 17,951 — 27,380 Contract liabilities 255,756 — 255,756 — — Deferred revenue 8,948 — (255,756 ) — 264,704 Provisions 307,068 — — — 307,068 Derivative financial instruments 165,265 — — — 165,265 Total current liabilities 11,740,048 — 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 31 December Effect Of Effect Of Effect Of 31 December Revenue 20,350,557 — (18,132 ) — 20,368,689 Revenue from financial services 941,918 — 308 — 941,610 Total revenue 21,292,475 — (17,824 ) — 21,310,299 Cost of revenue (13,785,448 ) — (329,447 ) 51,098 (13,507,099 ) Cost of revenue from financial services (360,545 ) — — — (360,545 ) Total cost of revenue (14,145,993 ) — (329,447 ) 51,098 (13,867,644 ) Gross profit 6,565,109 — (347,579 ) 51,098 6,861,590 Gross profit from financial services 581,373 — 308 — 581,065 Total gross profit 7,146,482 — (347,271 ) 51,098 7,442,655 Other income 241,435 — — 35,012 206,423 Selling and marketing expenses (1,626,714 ) 141,527 523,210 51,208 (2,342,659 ) Administrative expenses (673,370 ) 225,778 — 50,724 (949,872 ) Net impairment losses on financial and contract assets (346,390 ) (346,390 ) — — — Other expenses (381,582 ) — — (44,431 ) (337,151 ) Operating profit 4,359,861 20,915 175,939 143,611 4,019,396 Finance income 1,932,133 — — 892 1,931,241 Finance costs (3,619,091 ) (14 ) — (230,663 ) (3,388,414 ) Net finance costs (1,686,958 ) (14 ) — (229,771 ) (1,457,173 ) Share of profit of equity accounted investees (87 ) — — — (87 ) Profit before income tax 2,672,816 20,901 175,939 (86,160 ) 2,562,136 Income tax expense (495,481 ) (4,764 ) (38,015 ) 14,696 (467,398 ) Profit for the period 2,177,335 16,137 137,924 (71,464 ) 2,094,738 Profit for the year is attributable to: Owners of the Company 2,021,065 16,137 137,924 (71,464 ) 1,938,468 Non-controlling 156,270 — — — 156,270 Total 2,177,335 16,137 137,924 (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 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: 1 January 2018 Retained Earnings Opening – 31 December 2017 11,312,276 Increase in provision for receivables from financial services (52,951 ) Decrease in provision for other financial assets 38,384 Deferred tax effect 3,419 Total impact of adoption in accordance with IFRS 9 (11,148 ) Retained Earnings Opening – 1 January 2018 (Including IFRS 9- 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 Original (IAS 39) New (IFRS 9) Original New Difference Trade receivables Amortized cost Amortized cost 155,634 154,392 (1,242 ) Receivables from financial services Amortized cost Amortized cost 1,297,597 1,297,597 — Held to maturity investments Held to maturity Amortized cost 654 654 — Current financial assets Trade receivables Amortized cost Amortized cost 2,848,572 2,888,862 40,290 Due from related parties Amortized cost Amortized cost 5,299 5,522 223 Receivables from financial services Amortized cost Amortized cost 2,950,523 2,897,572 (52,951 ) Derivatives FVPL FVPL 981,396 981,396 — Cash and cash equivalents Amortized cost Amortized cost 4,712,333 4,711,452 (881 ) Held to maturity investments Held to maturity Amortized cost 11,338 11,332 (6 ) Current financial liabilities Derivatives FVPL FVPL 110,108 110,108 — 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: 1 January 2018 At 1 January 2018 (calculated under IAS 39) 72,992 Amounts restated through opening retained earnings 52,951 At 1 January 2018 (calculated under IFRS 9) 125,943 Current year provision at profit or loss statement – IFRS 9 190,509 Current year provision at profit or loss statement if IAS 39 was applied 202,998 Other financial assets 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: 1 January 2018 At 1 January 2018 (calculated under IAS 39) 705,440 Amounts restated through opening retained earnings (38,384 ) At 1 January 2018 (calculated under IFRS 9) 667,056 Current year provision at profit or loss statement-IFRS 9 418,799 Current year provision at profit or loss statement if IAS 39 was applied 427,211 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: 1 January 2018 Retained earnings 1 January 2018 - (including IFRS 9 effects-excluding 11,301,128 Recognition of asset for subscriber acquisition cost 830,011 Decrease in current assets and non-current (132,920 ) Deferred tax effect (144,632 ) Other (22,437 ) Adjustment to retained earnings from adoption of IFRS 15 530,022 Opening retained earnings 1 January 2018 - (including IFRS 9 and IFRS 15 effects) 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. 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 lease-by-lease 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 • Group applied a single discount rate to a portfolio of leases with similar characteristics • Adjusted the right-of-use • Excluded initial direct costs from measuring the right-of-use Used hindsight when determining the lease term when the contract contains options to renew or terminate the lease. • Amendments to IFRS 4, ‘Insurance contracts’ • 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’ • Amendments to IFRS 2, ‘Share based payments’ • Annual improvements 2014-2016; • 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’; iii) Standards, amendments and interpretations that are issued but not effective as at 31 December 2018 • Amendment to IFRS 9, ‘Financial instruments’; de-recognition, • Amendment to IAS 28, ‘Investments in associates and joint venture’; • IFRIC 23, ‘Uncertainty over income tax treatments’; • IFRS 17, ‘Insurance contracts’; • Annual improvements 2015-2017; • 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’; • 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; • 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; The Company does not expected material impact of new standards and interpretations on Company’s accounting policies. |
Basis of preparation and summ_3
Basis of preparation and summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Disclosure of Estimated Useful Lives for the Current and Comparative | The estimated useful lives are as follows: Buildings 21 – 25 years Mobile network infrastructure 4 – 20 years Fixed network infrastructure 3 – 25 years Call center equipment 4 – 8 years Equipment, fixtures and fittings 2 – 10 years Motor vehicles 4 – 6 years Central betting terminals 5 – 10 years Leasehold improvements 3 – 5 years |
Disclosure of Useful Lives for the Intangible Assets | The Group amortizes intangible assets with a limited useful life using the straight-line method over the following periods: Transmission line software 5 –10 years Central betting system operating right 7 – 10 years Customer base 2 – 15 years Brand name 9 – 10 years Indefeasible right of use 15 years |
Disclosure of Estimated Useful Lives for Investment Properties | The estimated useful lives are as follows: Investment Property 25 -45 years |
Summary of Impacts of Adoption of IFRS 9, IFRS 15 and IFRS 16 on Consolidated Financial Statements | 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 31 December Effect Of Effect Of Effect Of 31 December Assets Property, plant and equipment 11,116,316 — — — 11,116,316 Right-of-use 1,649,602 — — 1,649,602 — Intangible assets 10,050,172 — 1,059,866 — 8,990,306 Investment properties 15,425 — — — 15425 Trade receivables 115,001 (608 ) (3,513 ) — 119,122 Contract assets 3,513 — 3,513 — — Receivables from financial services 884,686 — — — 884,686 Deferred tax assets 152,732 — — 14,696 138,036 Investments in equity accounted investees 19,413 — — — 19,413 Other non-current 421,306 (228 ) (10,849 ) (161,426 ) 593,809 Total non-current 24,428,166 (836 ) 1,049,017 1,502,872 21,877,113 Inventories 180,434 — — — 180,434 Trade receivables 2,505,990 49,567 (703,742 ) 6,926 3,153,239 Due from related parties 13,533 67 — — 13,466 Receivables from financial services 3,286,243 (40,463 ) — — 3,326,706 Derivative financial instruments 1,356,062 — — — 1,356,062 Held to maturity investments — (51,863 ) — — 51,863 Financial asset at fair value through profit or loss 9,409 9,409 — — — Financial asset at fair value through other comprehensive income 42,454 42,454 — — — Contract assets 711,928 — 711,928 — — Cash and cash equivalents 7,419,239 (2,364 ) — — 7,421,603 Other current assets 1,091,512 87 (137,997 ) (312,872 ) 1,542,294 Subtotal 16,616,804 6,894 (129,811 ) (305,946 ) 17,045,667 Assets classified as held for sale 1,720,305 — — — 1,720,305 Total current assets 18,337,109 6,894 (129,811 ) (305,946 ) 18,765,972 Total assets 42,765,275 6,058 919,206 1,196,926 40,643,085 Equity Share capital 2,200,000 — — — 2,200,000 Share premium 269 — — — 269 Treasury shares (-) (141,534 ) — — — (141,534 ) Additional paid in capital 35,026 — — — 35,026 Reserves 2,503,537 (154 ) 8,958 (740 ) 2,495,473 Remeasurements of employee termination benefit (34,871 ) — — — (34,871 ) Retained earnings 11,359,317 4,989 667,946 (71,464 ) 10,757,846 Total equity attributable to equity holders of Turkcell Iletisim Hizmetleri AS (“the Company”) 15,921,744 4,835 676,904 (72,204 ) 15,312,209 Non-controlling 131,810 — — — 131,810 Total equity 16,053,554 4,835 676,904 (72,204 ) 15,444,019 31 December Effect Of Effect Of Effect Of 31 December Liabilities Borrowings 13,119,636 — — 902,285 12,217,351 Employee benefit obligations 224,747 — — — 224,747 Provisions 268,722 — — — 268,722 Deferred tax liabilities 862,360 1,223 193,854 — 667,283 Contract liabilities 131,598 — 131,598 — — Other non-current 364,610 — (102,887 ) — 467,497 Total non-current 14,971,673 1,223 222,565 902,285 13,845,600 Borrowings 7,035,909 — — 366,845 6,669,064 Current tax liabilities 133,597 — — — 133,597 Trade and other payables 3,788,174 — 1,786 — 3,786,388 Due to related parties 45,331 — 17,951 — 27,380 Contract liabilities 255,756 — 255,756 — — Deferred revenue 8,948 — (255,756 ) — 264,704 Provisions 307,068 — — — 307,068 Derivative financial instruments 165,265 — — — 165,265 Total current liabilities 11,740,048 — 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 31 December Effect Of Effect Of Effect Of 31 December Revenue 20,350,557 — (18,132 ) — 20,368,689 Revenue from financial services 941,918 — 308 — 941,610 Total revenue 21,292,475 — (17,824 ) — 21,310,299 Cost of revenue (13,785,448 ) — (329,447 ) 51,098 (13,507,099 ) Cost of revenue from financial services (360,545 ) — — — (360,545 ) Total cost of revenue (14,145,993 ) — (329,447 ) 51,098 (13,867,644 ) Gross profit 6,565,109 — (347,579 ) 51,098 6,861,590 Gross profit from financial services 581,373 — 308 — 581,065 Total gross profit 7,146,482 — (347,271 ) 51,098 7,442,655 Other income 241,435 — — 35,012 206,423 Selling and marketing expenses (1,626,714 ) 141,527 523,210 51,208 (2,342,659 ) Administrative expenses (673,370 ) 225,778 — 50,724 (949,872 ) Net impairment losses on financial and contract assets (346,390 ) (346,390 ) — — — Other expenses (381,582 ) — — (44,431 ) (337,151 ) Operating profit 4,359,861 20,915 175,939 143,611 4,019,396 Finance income 1,932,133 — — 892 1,931,241 Finance costs (3,619,091 ) (14 ) — (230,663 ) (3,388,414 ) Net finance costs (1,686,958 ) (14 ) — (229,771 ) (1,457,173 ) Share of profit of equity accounted investees (87 ) — — — (87 ) Profit before income tax 2,672,816 20,901 175,939 (86,160 ) 2,562,136 Income tax expense (495,481 ) (4,764 ) (38,015 ) 14,696 (467,398 ) Profit for the period 2,177,335 16,137 137,924 (71,464 ) 2,094,738 Profit for the year is attributable to: Owners of the Company 2,021,065 16,137 137,924 (71,464 ) 1,938,468 Non-controlling 156,270 — — — 156,270 Total 2,177,335 16,137 137,924 (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 |
Summary of Impact on Retained Earnings | The total impact on the Group’s retained earnings as at 1 January 2018 is as follows: 1 January 2018 Retained Earnings Opening – 31 December 2017 11,312,276 Increase in provision for receivables from financial services (52,951 ) Decrease in provision for other financial assets 38,384 Deferred tax effect 3,419 Total impact of adoption in accordance with IFRS 9 (11,148 ) Retained Earnings Opening – 1 January 2018 (Including IFRS 9- 11,301,128 |
Summary of Reclassification of Financial Instruments on the Date of Initial Application | On the date of initial application, 1 January 2018, the financial instruments of the Company were as follows, with any reclassifications noted; Non-current Original (IAS 39) New (IFRS 9) Original New Difference Trade receivables Amortized cost Amortized cost 155,634 154,392 (1,242 ) Receivables from financial services Amortized cost Amortized cost 1,297,597 1,297,597 — Held to maturity investments Held to maturity Amortized cost 654 654 — Current financial assets Trade receivables Amortized cost Amortized cost 2,848,572 2,888,862 40,290 Due from related parties Amortized cost Amortized cost 5,299 5,522 223 Receivables from financial services Amortized cost Amortized cost 2,950,523 2,897,572 (52,951 ) Derivatives FVPL FVPL 981,396 981,396 — Cash and cash equivalents Amortized cost Amortized cost 4,712,333 4,711,452 (881 ) Held to maturity investments Held to maturity Amortized cost 11,338 11,332 (6 ) Current financial liabilities Derivatives FVPL FVPL 110,108 110,108 — |
Summary of Reconciliation of Impairment Provision for Financial Services Receivables | The reconciliation of impairment provision and opening balances for financial services receivables as of 1 January 2018 is stated as below: 1 January 2018 At 1 January 2018 (calculated under IAS 39) 72,992 Amounts restated through opening retained earnings 52,951 At 1 January 2018 (calculated under IFRS 9) 125,943 Current year provision at profit or loss statement – IFRS 9 190,509 Current year provision at profit or loss statement if IAS 39 was applied 202,998 |
Summary of Reconciliation of Impairment Provision for Other Financial Assets | The reconciliation of impairment provision and opening balances for other financial assets as of 1 January 2018 is stated as below: 1 January 2018 At 1 January 2018 (calculated under IAS 39) 705,440 Amounts restated through opening retained earnings (38,384 ) At 1 January 2018 (calculated under IFRS 9) 667,056 Current year provision at profit or loss statement-IFRS 9 418,799 Current year provision at profit or loss statement if IAS 39 was applied 427,211 |
Summary of Impact of Adoption of IFRS 15 Revenue from Contract with Customers | The impact of adoption of IFRS 15, “Revenue from contracts with customers” on retained earnings as of 1 January 2018 is stated as below: 1 January 2018 Retained earnings 1 January 2018 - (including IFRS 9 effects-excluding 11,301,128 Recognition of asset for subscriber acquisition cost 830,011 Decrease in current assets and non-current (132,920 ) Deferred tax effect (144,632 ) Other (22,437 ) Adjustment to retained earnings from adoption of IFRS 15 530,022 Opening retained earnings 1 January 2018 - (including IFRS 9 and IFRS 15 effects) 11,831,150 |
GSM and other telecommunication operating licenses [member] | |
Statement [LineItems] | |
Disclosure of Useful Lives for the Intangible Assets | The useful lives for telecommunication licenses are as follows: Telecommunications licenses 3 – 25 years |
Computer software [member] | |
Statement [LineItems] | |
Disclosure of Useful Lives for the Intangible Assets | 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 3 –8 years |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Reconciliation of Adjusted EBITDA to Consolidated Profit Before Income Tax and Profit | Reconciliation of Adjusted EBITDA to the consolidated profit for the year is included in the accompanying notes. Turkcell Turkey Turkcell International All other segments Intersegment eliminations Consolidated 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Total segment revenue 18,265,777 15,450,136 1,456,980 1,067,078 1,933,831 1,187,454 (364,113 ) (72,604 ) 21,292,475 17,632,064 Inter-segment revenue (42,344 ) (31,690 ) (69,657 ) (40,897 ) (252,112 ) (17 ) 364,113 72,604 — — Revenues from external customers 18,223,433 15,418,446 1,387,323 1,026,181 1,681,719 1,187,437 — — 21,292,475 17,632,064 Adjusted EBITDA 7,534,291 5,593,837 612,697 263,962 665,470 374,314 (24,476 ) (3,859 ) 8,787,982 6,228,254 Bad debt expense (248,171 ) 49,468 (4,088 ) (6,070 ) (94,131 ) (79,676 ) — — (346,390 ) (36,278 ) Turkcell Turkey Turkcell International All other segments Intersegment Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Total segment revenue 15,450,136 12,787,592 1,067,078 874,692 1,187,454 661,923 (72,604 ) (38,646 ) 17,632,064 14,285,561 Inter-segment revenue (31,690 ) (19,680 ) (40,897 ) (18,964 ) (17 ) (2 ) 72,604 38,646 — — Revenues from external customers 15,418,446 12,767,912 1,026,181 855,728 1,187,437 661,921 — — 17,632,064 14,285,561 Adjusted EBITDA 5,593,837 4,160,861 263,962 235,348 374,314 222,849 (3,859 ) 451 6,228,254 4,619,509 Bad debt expense 49,468 (195,472 ) (6,070 ) (5,956 ) (79,676 ) (9,956 ) — — (36,278 ) (211,384 ) 2018 2017 2016 Profit for the period 2,177,335 2,037,759 1,543,803 Add(Less): Profit/(loss) from discontinued operations — — 42,164 Profit from continuing operations 2,177,335 2,037,759 1,585,967 Income tax expense 495,481 571,758 423,160 Finance income (1,932,133 ) (818,436 ) (961,642 ) Finance costs 3,619,091 1,141,302 1,134,441 Other income (241,435 ) (74,438 ) (78,569 ) Other expenses 381,582 773,329 312,801 Depreciation and amortization 4,287,974 2,596,980 2,203,351 Share of loss of equity accounted investees 87 — — Consolidated adjusted EBITDA 8,787,982 6,228,254 4,619,509 |
Summary of Geographical Information | 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. 2018 2017 2016 Revenues Turkey 19,636,682 16,431,863 13,321,503 Ukraine 923,181 664,643 573,951 Belarus 293,181 209,884 149,005 Azerbaijan 268,471 174,021 108,329 Turkish Republic of Northern Cyprus 169,014 148,637 129,785 Germany 1,580 3,016 2,988 Netherlands 366 — — 21,292,475 17,632,064 14,285,561 31 December 31 December Non-current Turkey 21,037,351 18,098,228 Ukraine 2,751,277 1,408,783 Belarus 293,622 141,802 Turkish Republic of Northern Cyprus 177,380 138,371 Azerbaijan — 13,663 Unallocated non-current 168,536 112,516 24,428,166 19,913,363 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Revenue | Turkcell Turkey Turkcell International Other Intersegment Consolidated 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Telecommunication services 16,752,587 14,236,174 1,281,595 952,246 — — 56,485 72,604 17,977,697 15,115,816 Equipment revenues 1,337,495 1,089,699 101,350 69,801 — — — — 1,438,845 1,159,500 Revenue from financial services — — — — 941,918 605,663 — — 941,918 605,663 Call center revenues — — 9,763 7,706 211,195 224,973 17,786 — 203,172 232,679 Commission fees on betting business — — — — 200,315 181,886 — — 200,315 181,886 Revenue from betting business — — — — 268,470 174,021 — — 268,470 174,021 Other 175,695 124,263 64,272 37,325 311,933 911 289,842 — 262,058 162,499 Total 18,265,777 15,450,136 1,456,980 1,067,078 1,933,831 1,187,454 364,113 72,604 21,292,475 17,632,064 Turkcell Turkey Turkcell International Other Intersegment Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Telecommunication services 14,236,174 12,126,395 952,246 796,225 — — 72,604 38,646 15,115,816 12,883,974 Equipment revenues 1,089,699 579,820 69,801 44,532 — — — — 1,159,500 624,352 Revenue from financial services — — — — 605,663 184,698 — — 605,663 184,698 Call center revenues — — 7,706 7,084 224,973 191,480 — — 232,679 198,564 Commission fees on betting business — — — — 181,886 176,167 — — 181,886 176,167 Revenue from betting business — — — — 174,021 108,329 — — 174,021 108,329 Other 124,263 81,377 37,325 26,851 911 1,249 — — 162,499 109,477 Total 15,450,136 12,787,592 1,067,078 874,692 1,187,454 661,923 72,604 38,646 17,632,064 14,285,561 |
Summary of Revenue by Recognition | 2018 Turkcell Turkcell Other Intersegment Consolidated Telecommunication Services 16,752,587 1,281,595 — 56,485 17,977,697 At a point in time 267,329 — — 7,493 259,836 Over time 16,485,258 1,281,595 — 48,992 17,717,861 Equipment Related 1,337,495 101,350 — — 1,438,845 At a point in time 1,330,808 101,350 — — 1,432,158 Over time 6,687 — — — 6,687 Call Center — 9,763 211,195 17,786 203,172 At a point in time — — — — — Over time — 9,763 211,195 17,786 203,172 Commision fees on betting business — — 200,315 — 200,315 At a point in time — — — — — Over time — — 200,315 — 200,315 Revenue from betting business — — 268,470 — 268,470 At a point in time — — — — — Over time — — 268,470 — 268,470 Revenue from financial operations — — 941,918 — 941,918 At a point in time — — 38,955 — 38,955 Over time — — 902,963 — 902,963 All other segments 175,695 64,272 311,933 289,842 262,058 At a point in time 12,211 8,556 7,576 — 28,343 Over time 163,484 55,716 304,357 289,842 233,715 Total 18,265,777 1,456,980 1,933,831 364,113 21,292,475 At a point in time 1,610,348 109,906 46,531 7,493 1,759,292 Over time 16,655,429 1,347,074 1,887,300 356,620 19,533,183 |
Employee benefit expenses (Tabl
Employee benefit expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Employee Benefit Expenses | 2018 2017 2016 Wages and salaries (*) 2,030,641 1,746,147 1,450,262 Employee termination benefits (**) 29,140 32,862 32,977 Defined contribution plans 9,361 8,107 7,722 2,069,142 1,787,116 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. |
Finance income and costs (Table
Finance income and costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Statement of Profit or Loss | Recognized in the statement of profit or loss: 2018 2017 2016 Fair value gains on derivative financial instruments and interest 654,933 317,542 282,408 Cash flow hedges – reclassified to profit or loss 568,370 — — Interest income on bank deposits 395,045 278,599 158,206 Interest income on financial assets measured at amortized cost 204,191 185,004 445,943 Credit finance income 50,828 36,186 74,522 Other 58,766 1,105 563 Finance income 1,932,133 818,436 961,642 Net foreign exchange losses (2,695,045 ) (718,501 ) (782,463 ) Interest expenses for financial liabilities measured at amortized cost (807,120 ) (385,386 ) (343,290 ) Late payment interest expense — (29,115 ) — Other (116,926 ) (8,300 ) (8,688 ) Finance costs (3,619,091 ) (1,141,302 ) (1,134,441 ) Net finance costs (1,686,958 ) (322,866 ) (172,799 ) |
Income tax expense (Tables)
Income tax expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Income Tax Expense | 2018 2017 2016 Current income tax expense (654,953 ) (437,967 ) (200,663 ) Deferred income tax (expense)/credit 159,472 (133,791 ) (222,497 ) Total income tax expense (495,481 ) (571,758 ) (423,160 ) |
Summary of Income Tax Relating to Each Component of Other Comprehensive Income | Income tax expense is attributable to profit from continuing operations. Income tax relating to each component of other comprehensive income Before tax Tax (expense)/ credit Net of tax 2018 Foreign currency translation differences 850,188 (226,667 ) 623,521 Change in cash flow hedge reserve 19,156 (4,214 ) 14,942 Change in cost of hedging reserve (347,602 ) 76,472 (271,130 ) Remeasurements of employee termination benefits 12,699 (2,794 ) 9,905 534,441 (157,203 ) 377,238 2017 Foreign currency translation differences 100,149 (107,299 ) (7,150 ) Remeasurements of employee termination benefits (3,738 ) 748 (2,990 ) 96,411 (106,551 ) (10,140 ) 2016 Foreign currency translation differences 218,472 (87,381 ) 131,091 Remeasurements of employee termination benefits (34,532 ) 7,066 (27,466 ) 183,940 (80,315 ) 103,625 |
Summary of Reconciliation of Effective Income Tax Expense | Reconciliation of income tax expense 2018 2017 2016 Profit from continuing operations before income tax expense 2,672,816 2,609,517 2,009,127 (Loss) from discontinued operations before income tax expense — — (42,164 ) Profit before income tax expense 2,672,816 2,609,517 1,966,963 Tax at the Turkey’s tax rate (588,020 ) (521,903 ) (393,393 ) Difference in overseas tax rates 7,617 4,133 (15,935 ) Effect of exemptions (*) 198,160 73,916 104,244 Effect of amounts which are not deductible (91,778 ) (102,102 ) (78,571 ) Tax exemption from subsidiary sale(**) 24,268 — — Utilization of previously unrecognized tax losses — — 1,253 Change in unrecognized deferred tax assets (***) (50,551 ) (41,340 ) (30,616 ) Adjustments for current tax of prior years 2,510 11,280 (8,176 ) Tax effect of investment in associate — — — Other 2,313 4,258 (1,966 ) Total income tax expense (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. |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Expenses by Cost of Sales | Breakdown of expenses by nature for the years ended 31 December 2018, 2017 and 2016 is as follows: Cost of revenue: 2018 2017 2016 Depreciation and amortization (4,287,974 ) (2,596,980 ) (2,203,351 ) Treasury share (1,884,556 ) (1,669,807 ) (1,491,503 ) Interconnection and termination expenses (1,763,414 ) (1,607,079 ) (1,420,233 ) Employee benefit expenses (1,202,485 ) (1,046,544 ) (859,143 ) Cost of goods sold (1,108,734 ) (870,226 ) (551,656 ) Frequency expenses (622,390 ) (278,727 ) (229,396 ) Radio expenses (508,884 ) (844,941 ) (828,222 ) Cost of revenue from financial services (*) (348,492 ) (270,366 ) (68,546 ) Transmission expenses (326,080 ) (218,221 ) (139,185 ) Universal service fund (256,454 ) (221,431 ) (192,045 ) Roaming expenses (226,806 ) (177,258 ) (128,429 ) Billing and archiving expenses (50,929 ) (55,185 ) (61,647 ) Others (1,558,795 ) (1,493,409 ) (1,063,251 ) (14,145,993 ) (11,350,174 ) (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). |
Summary of Expenses by Nature Selling and Marketing Expenses | Selling and marketing expenses: 2018 2017 2016 Selling expenses (555,158 ) (898,936 ) (757,869 ) Marketing expenses (551,127 ) (532,989 ) (518,382 ) Employee benefit expenses (440,976 ) (394,421 ) (354,380 ) Frequency usage fees related to prepaid subscribers (**) — (82,994 ) (186,530 ) Others (79,453 ) (96,080 ) (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. |
Summary of Expenses by Nature Administrative Expenses | Administrative expenses: 2018 2017 2016 Employee benefit expenses (425,681 ) (346,151 ) (277,438 ) Travel and entertainment expenses (38,406 ) (30,957 ) (18,913 ) Consultancy expenses (38,252 ) (50,247 ) (54,315 ) Collection expenses (37,525 ) (20,415 ) (20,827 ) Maintenance and repair expenses (26,867 ) (24,342 ) (20,315 ) Rent expenses — (36,280 ) (30,314 ) Net impairment expense recognized on receivables — (36,278 ) (211,384 ) Other (106,639 ) (100,526 ) (88,343 ) (673,370 ) (645,196 ) (721,849 ) |
Summary of Net Impairment Losses on Financial and Contract Assets | Net impairment losses on financial and contract assets: 2018 2017 Net impairment losses on financial and contract assets (346,390 ) — (346,390 ) — |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment | Balance as at Additions Disposals Transfers Impairment Disposal of Effects of Transfer to Balance as at Cost Network infrastructure (All operational) 15,480,128 650,610 (232,888 ) 2,270,262 — (15,081 ) 979,247 — 19,132,278 Land and buildings 786,058 28,828 (2,535 ) 156,540 — — 6,831 (45,821 ) 929,901 Equipment, fixtures and fittings 728,202 59,311 (15,827 ) 10,712 — (4,041 ) 25,143 — 803,500 Motor vehicles 37,216 3,121 (775 ) — — (1,400 ) 1,944 — 40,106 Leasehold improvements 314,867 5,998 (547 ) 3,123 — (1,639 ) 5,690 — 327,492 Construction in progress 672,294 2,260,360 (670 ) (2,448,448 ) (10,744 ) — 39,295 — 512,087 Total 18,018,765 3,008,228 (253,242 ) (7,811 ) (10,744 ) (22,161 ) 1,058,150 (45,821 ) 21,745,364 Accumulated depreciation Network infrastructure (All operational) 7,326,559 1,693,374 (218,894 ) — 23,568 (6,887 ) 628,497 — 9,446,217 Land and buildings 209,918 50,514 (274 ) — 9 — 4,686 (25,765 ) 239,088 Equipment, fixtures and fittings 539,827 77,694 (10,839 ) — 49 (2,694 ) 29,470 — 633,507 Motor vehicles 31,306 2,637 (712 ) — — (918 ) 1,917 — 34,230 Leasehold improvements 245,747 30,233 (547 ) — 12 (1,639 ) 2,200 — 276,006 Total 8,353,357 1,854,452 (231,266 ) — 23,638 (12,138 ) 666,770 (25,765 ) 10,629,048 Net book amount 9,665,408 1,153,776 (21,976 ) (7,811 ) (34,382 ) (10,023 ) 391,380 (20,056 ) 11,116,316 Depreciation expenses for the years ended 31 December 2018, 2017 and 2016 amounting to TL 1,888,834, TL 1,499,242 and TL 1,278,009, respectively include impairment losses and are recognized in cost of revenue. Impairment losses on property, plant and equipment for the years ended 31 December 2018, 2017 and 2016 are TL 34,382, TL 39,721 and TL 43,198, respectively and are recognized in depreciation expenses. Capitalization rates and amounts other than borrowings made specifically for the purpose of acquiring a qualifying asset are 6.8%, 10.0% and 9.9%, TL 75,054 and TL 66,513 and TL 76,899 for the years ended 31 December 2018, 2017 and 2016 respectively. Impaired network infrastructure mainly consists of damaged or technologically inadequate mobile and fixed network infrastructure investments. The network infrastructure mainly consists of mobile and fixed network infrastructure investments. Balance as at Additions Disposals Transfers Impairment Effects of Transfer from Balance as at Cost Network infrastructure (All operational) 13,897,308 574,301 (1,009,922 ) 1,907,022 — 111,419 — 15,480,128 Land and buildings 519,702 162,206 (1,340 ) 39,130 — 1,766 64,594 786,058 Equipment, fixtures and fittings 617,732 117,087 (10,854 ) 2,209 — 2,028 — 728,202 Motor vehicles 34,136 4,415 (1,719 ) — — 384 — 37,216 Leasehold improvements 311,761 7,400 (5,041 ) 486 — 261 — 314,867 Construction in progress 566,523 2,063,329 — (1,949,000 ) (14,535 ) 5,977 — 672,294 Total 15,947,162 2,928,738 (1,028,876 ) (153 ) (14,535 ) 121,835 64,594 18,018,765 Accumulated depreciation Network infrastructure (All operational) 6,843,580 1,353,419 (990,719 ) — 23,589 96,690 — 7,326,559 Land and buildings 159,351 26,295 (221 ) — 1,482 645 22,366 209,918 Equipment, fixtures and fittings 497,606 48,393 (8,202 ) — 115 1,915 — 539,827 Motor vehicles 30,252 2,276 (1,642 ) — — 420 — 31,306 Leasehold improvements 220,668 29,138 (4,417 ) — — 358 — 245,747 Total 7,751,457 1,459,521 (1,005,201 ) — 25,186 100,028 22,366 8,353,357 Net book amount 8,195,705 1,469,217 (23,675 ) (153 ) (39,721 ) 21,807 42,228 9,665,408 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Intangible Assets and Goodwill | Balance at Impact of Additions Disposals Transfers Impairment Disposal of Effects of movements Balance at 31 December Cost Telecommunication licenses 8,139,628 — 6,394 (220,986 ) 466,379 — — 331,583 8,722,998 Computer software 7,117,116 — 1,175,040 (4,822 ) 159,453 — (18,370 ) 110,621 8,539,038 Transmission line software 71,820 — 1,319 — — — — — 73,139 Central betting system operating right 11,981 — — — — — — — 11,981 Indefeasible right of usage 112,556 — 5,062 — — — — — 117,618 Brand name 7,040 — — — — — — — 7,040 Customer base 15,512 — — — — — — — 15,512 Goodwill 32,834 — — — — — — — 32,834 Subscriber acquisition cost — 1,431,901 583,809 — — — — 18,343 2,034,053 Other 42,749 — 7,473 (37 ) 11 — (191 ) — 50,005 Construction in progress 127,637 — 485,815 — (618,032 ) — — 22,587 18,007 Total 15,678,873 1,431,901 2,264,912 (225,845 ) 7,811 — (18,561 ) 483,134 19,622,225 Accumulated amortization Telecommunication licenses 2,419,230 — 533,311 (184,582 ) — — — 180,276 2,948,235 Computer software 4,770,880 — 663,967 (3,071 ) — 3,232 (12,793 ) 59,680 5,481,895 Transmission line software 62,468 — 4,549 — — — — — 67,017 Central betting system operating right 11,491 — 583 — — — — — 12,074 Indefeasible right of usage 23,274 — 8,581 — — — — — 31,855 Brand name 6,512 — 528 — — — — — 7,040 Customer base 11,774 — 437 — — — — — 12,211 Subscriber acquisition cost — 601,890 360,232 — — — — 12,078 974,200 Other 32,834 — 4,899 (31 ) — — (176 ) — 37,526 Total 7,338,463 601,890 1,577,087 (187,684 ) — 3,232 (12,969 ) 252,034 9,572,053 Net book amount 8,340,410 830,011 687,825 (38,161 ) 7,811 (3,232 ) (5,592 ) 231,100 10,050,172 Amortization expenses for the years ended 31 December 2018, 2017 and 2016 amounting to TL 1,580,319, TL 1,095,401and TL 921,812, respectively include impairment losses and are recognized in cost of revenue. Impairment losses on intangible assets for the years ended 31 December 2018, 2017 and 2016 are TL 3,232, TL 1,986 and TL 3,181 respectively and are recognized in amortization expenses. Computer software includes capitalized software development costs that meet the definition of an intangible asset. The amount of capitalized development costs is TL 171,442 for the year ended 31 December 2018 (31 December 2017: TL 124,504). The amortization expenses related to capitalized software development costs for the years ended 31 December 2018, 2017 and 2016 amounting to TL 40,934, TL 37,532 and TL 30,148, respectively are recognized in cost of revenue. Balance at Additions Disposals Transfers Effects of movements Balance at 31 December 2017 Cost Telecommunication licenses 8,039,431 10,154 — 69,945 — 20,098 8,139,628 Computer software 6,076,405 470,457 (8,624 ) 569,153 — 9,725 7,117,116 Transmission line software 71,602 218 — — — — 71,820 Central betting system operating right 11,981 — — — — — 11,981 Indefeasible right of usage 46,017 66,539 — — — — 112,556 Brand name 7,040 — — — — — 7,040 Customer base 15,512 — — — — — 15,512 Goodwill 32,834 — — — — — 32,834 Other 38,321 5,016 — (588 ) — — 42,749 Construction in progress 142,875 620,463 — (638,357 ) — 2,656 127,637 Total 14,482,018 1,172,847 (8,624 ) 153 — 32,479 15,678,873 Accumulated amortization Telecommunication licenses 1,878,895 537,162 — — — 3,173 2,419,230 Computer software 4,237,996 537,805 (8,120 ) — 1,219 1,980 4,770,880 Transmission line software 58,203 3,498 — — 767 — 62,468 Central betting system operating right 10,588 903 — — — — 11,491 Indefeasible right of usage 18,785 4,489 — — — — 23,274 Brand name 5,808 704 — — — — 6,512 Customer base 11,286 488 — — — — 11,774 Other 24,468 8,366 — — — — 32,834 Total 6,246,029 1,093,415 (8,120 ) — 1,986 5,153 7,338,463 Net book amount 8,235,989 79,432 (504 ) 153 (1,986 ) 27,326 8,340,410 |
Investment properties (Tables)
Investment properties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Increase (Decrease) in Fair Value | 31 December 31 December 2017 Cost Opening balance 99,938 165,472 Disposal — (940 ) Transfer to property, plant and equipment (*) 45,821 (64,594 ) Closing balance 145,759 99,938 Accumulated depreciation Opening balance (98,958 ) (119,202 ) Transfer to property, plant and equipment (25,765 ) 22,366 Depreciation and impairment charges during the year (5,611 ) (2,337 ) Disposal — 215 Other — — Closing balance (130,334 ) (98,958 ) Net book amount 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. |
Summary of Investment Properties and Information About Fair Value Hierarchy | The Group’s investment properties and their fair values at 31 December 2018 and 2017 are as follows: 31 December 2018 Level 1 Level 2 Level 3 Valuation Method Investment properties in Gebze — — 17,960 Income capitalization approach Investment properties in Ankara — — 15,915 Market approach Investment properties in Istanbul — — 13,800 Market approach Investment properties in Aydın — — 2,110 Market approach — — 49,785 31 December 2017 Level 1 Level 2 Level 3 Valuation Method Investment properties in Izmir — — 52,110 Replacement cost approach Investment properties in Gebze — — 16,690 Income capitalization approach Investment properties in Ankara — — 15,160 Market approach Investment properties in Istanbul — — 13,000 Market approach Investment properties in Adana — — 3,150 Replacement cost approach Investment properties in Balıkesir — — 3,112 Replacement cost approach Other investment properties — — 3,970 Replacement cost approach Other investment properties — — 2,146 Market approach — — 109,338 |
Right of use assets (Tables)
Right of use assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Closing Balances of Right of Use Assets and Depreciation and Amortization Expenses | Closing balances of right of use assets as of 1 January and 31 December 2018 and depreciation and amortization expenses for the years ended 31 December 2018 is stated as below: Tangible Intangible Site Rent Building Network Other Total Right License Total Total Balance at 1 January 1,077,517 146,826 226,243 115,652 1,566,238 12,321 — 12,321 1,578,559 Depreciation and amortization charge for the year (451,850 ) (43,563 ) (181,741 ) (81,325 ) (758,479 ) (6,458 ) (48,273 ) (54,731 ) (813,210 ) Balance at 31 December 1,021,638 135,158 50,538 109,883 1,317,217 8,643 323,742 332,385 1,649,602 |
Asset held for sale and disco_2
Asset held for sale and discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Reconciliation of Statement of Profit or Loss Statement | The reconciliation of statement of profit or loss statement of Fintur is listed below (The financial statements are presented in USD); 1 January - Revenue 617,214 Cost of sales (369,104 ) Gross profit 248,110 Selling and marketing expenses (69,983 ) General and administrative expenses (69,818 ) Other operating (expenses), net (31,258 ) Operating profit 77,051 Finance (expense)/income, net (61,203 ) Profit before income tax 15,848 Total income tax (30,947 ) (Loss)/profit for period (15,099 ) Attributable to: -owners of the parent (28,695 ) -non-controlling 13,596 (Loss)/profit for period (15,099 ) |
Other non-current assets (Table
Other non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Other Non-Current Assets | 2018 2017 Advances given for property, plant and equipment 216,894 12,078 Prepaid expenses 89,603 197,431 Receivables from the Public Administration 72,848 72,848 Deposits and guarantees given 27,071 23,999 VAT receivable 2,318 4,429 Others 12,572 45,835 421,306 356,620 |
Deferred tax assets and liabi_2
Deferred tax assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Recognized Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at 31 December 2018 and 2017 are attributable to the following: Assets Liabilities Net 2018 2017 2018 2017 2018 2017 Property, plant and equipment and intangible assets (*) 106,128 41,903 (936,167 ) (680,134 ) (830,039 ) (638,231 ) Investment 32,926 32,926 — — 32,926 32,926 Derivative instruments 15,380 1,492 (429,162 ) (182,806 ) (413,782 ) (181,314 ) Reserve for employee termination benefits and provisions 155,132 202,112 (45,581 ) (64 ) 109,551 202,048 Asset classified as held for sale — — — (92,327 ) — (92,327 ) Tax losses carried forward 224,179 — — — 224,179 — Tax allowances 20,554 10,775 — — 20,554 10,775 Other assets and liabilities (**) 248,251 545,968 (101,268 ) (434,907 ) 146,983 111,061 Deferred tax assets/(liabilities) 802,550 835,176 (1,512,178 ) (1,390,238 ) (709,628 ) (555,062 ) Offsetting (649,818 ) (739,116 ) 649,818 739,116 — — Net deferred tax assets/ (liabilities) 152,732 96,060 (862,360 ) (651,122 ) (709,628 ) (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. |
Summary of Movement in Temporary Differences | Movement in deferred tax assets/ (liabilities) for the years ended 31 December 2018 and 2017 were as follows: 2018 2017 Opening balance (555,062 ) (406,905 ) IFRS 9 and 15 effects (141,213 ) — Income statement charge 159,472 (133,791 ) Tax charge relating to components of other comprehensive income (157,203 ) (6,449 ) Prior year corporate tax base differences (8,608 ) (2,729 ) Exchange differences (7,014 ) (5,188 ) Closing balance, net (709,628 ) (555,062 ) |
Summary of Expiration of Unrecognized Tax Losses | Unused tax losses will expire at the following dates: Expiration Date Amount 2019 808 2020 581 2021 646 2022 368,109 2023 172,264 2024 303,045 2025 1,023,650 2026 47,466 2027 488,572 2028 308,541 Indefinite 2,596,318 Total 5,310,000 |
Trade receivables and accrued_2
Trade receivables and accrued revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Trade Receivables and Accrued Income | 31 December 31 December Receivables from subscribers 1,634,427 1,369,948 Accounts and notes receivable 560,665 498,397 Undue assigned contracted receivables 271,306 347,596 Accrued revenue — 632,631 Other 39,592 — 2,505,990 2,848,572 |
Receivables from financial se_2
Receivables from financial services (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Receivables From Financial Services | 31 December 31 December Current receivables from financial services 3,286,243 2,950,523 Non-current 884,686 1,297,597 4,170,929 4,248,120 |
Contract assets (Tables)
Contract assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Contract Assets | Current contract assets: 31 December 31 December Contract assets 711,928 — 711,928 — Non-current 31 December 31 December Contract assets 3,513 — 3,513 — |
Other current assets (Tables)
Other current assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Other Current Assets | 31 December 31 December Receivables from the Ministry of Transport and Infrastructure of Turkey 415,524 143,669 Restricted cash 204,077 183,806 Advances given to suppliers 92,715 55,754 Receivables from tax office 83,392 93,917 Prepaid expenses 79,149 322,388 VAT receivable 65,123 38,934 Subscriber acquisition costs — 138,177 Special communication tax to be collected from subscribers — 38,318 Other 151,532 145,642 1,091,512 1,160,605 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Cash and Cash Equivalents | 31 December 31 December Cash in hand 144 192 Banks 7,413,113 4,712,141 - Demand deposits 587,007 603,553 - Time deposits 6,826,106 4,108,588 Other cash and cash equivalents 5,982 — Cash and cash equivalents 7,419,239 4,712,333 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Shareholding Percentage | Companies with their shareholding percentage are as follows: 31 December 2018 31 December 2017 (%) TL (%) TL Turkcell Holding A.Ş. (“Turkcell Holding”) 51.00 1,122,000 51.00 1,122,000 Public Share 48.95 1,077,004 48.95 1,077,004 Other 0.05 996 0.05 996 Total 100.00 2,200,000 100.00 2,200,000 Inflation adjustment to share capital (52,352 ) (52,352 ) Inflation adjusted capital 2,147,648 2,147,648 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Disclosure of Calculations of Basic Earnings Per Share | 2018 2017 2016 Numerator: Profit attributable to owners of the Company 2,021,065 1,979,129 1,492,088 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 attributable to owners of the Company (in full TL) 0.93 0.90 0.68 (*) Refer to Note 25 - Treasury shares 2018 2017 2016 Numerator: 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 |
Other non-current liabilities (
Other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Disclosure of Other Non-Current Liabilities | 2018 2017 Consideration payable in relation to the acquisition of Belarusian Telecom 358,304 323,691 Deferred revenue 2,497 85,646 Deposits and guarantees received from dealers 3,809 — 364,610 409,337 |
Loans and borrowings (Tables)
Loans and borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Borrowings | 31 December 31 December Non-current Unsecured bank loans 7,244,992 6,376,981 Secured bank loans 1,862 2,368 Finance lease liabilities — 108,164 Lease liabilities 1,026,955 — Debt securities issued 4,845,827 1,770,482 13,119,636 8,257,995 Current liabilities Unsecured bank loans 3,737,393 2,643,112 Current portion of unsecured bank loans 2,544,462 1,513,425 Current portion of secured bank loans 2,318 2,022 Current portion of finance lease liabilities — 14,556 Current portion of lease liabilities 20,156 — Current portion of long-term debt securities issued 289,738 105,039 Debt securities issued 74,997 — Lease liabilities 366,845 — 7,035,909 4,278,154 |
Summary of Terms and Conditions of Outstanding Loans | Terms and conditions of outstanding loans are as follows: 31 December 2018 31 December 2017 Currency Interest Nominal interest rate Payment Carrying Nominal interest Rate Payment Carrying Unsecured bank loans (*) USD Floating Libor+2.0%-Libor+4.1% 2019-2026 4,589,157 Libor+2,0%-Libor+3,3% 2018-2020 2,880,615 Unsecured bank loans (*) EUR Floating Euribor+1.2%- 2019-2026 6,975,890 Euribor+1.2%- 2018-2026 5,511,579 Unsecured bank loans TL Fixed 12.6%-25.0% 2019 873,914 11.1%-15.5% 2018-2019 1,620,391 Unsecured bank loans UAH Fixed 21.5%-22.5% 2019 894,511 11%-14.5% 2018 520,933 Unsecured bank loans RMB Fixed 5.5% 2019-2026 193,375 — — — Secured bank loans (**) BYN Fixed 12-16% 2019-2020 4,180 12%-16% 2018-2020 4,390 Debt securities issued USD Fixed 5.8% 2019-2028 5,135,565 5.8% 2018-2025 1,875,521 Debt securities issued TL Fixed 24.5% 2019 74,997 — — — Finance lease liabilities EUR Fixed — — — 3.4% 2018-2024 116,797 Finance lease liabilities USD Fixed — — — 22.5% 2018 41 Finance lease liabilities TL Fixed — — — 27.5%-27.7% 2018-2020 5,882 Lease liabilities EUR Fixed 1.0%-7.9% 2019-2031 194,645 — — — Lease liabilities TL Fixed 16.1%-45.0% 2019-2048 719,718 — — — Lease liabilities USD Fixed 3.9%-10.8% 2019-2027 40,351 — — — Lease liabilities UAH Fixed 16.6%-24.0% 2019-2067 418,390 — — — Lease liabilities BYN Fixed 12.0%-15.0% 2019-2028 40,852 — — — 20,155,545 12,536,149 (*) Turkcell Finansman’s liabilities originated from banks abroad are subject to certain reserve requirements as obliged by Central Bank of the Republic of Turkey (CBRT). As at 31 December 2018, blocked deposit in connection with the foreign currency loans utilized by Turkcell Finansman from banks outside of Turkey amounting to TL TL 204,077 is accounted in other current assets. (**) Belarusian Telecom pledged its certain property, plant and equipment to secure these bank loans. Also, these bank loans are secured by the Government of the Republic of Belarus. (Note 36) |
Employee benefits (Tables)
Employee benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Employee Benefits Provisions | 31 December 31 December Retirement pay liability provision 160,613 149,449 Unused vacation provision 64,134 48,217 224,747 197,666 |
Summary of Movement in Provision for Employee Termination Benefits | Movements in provision for employee termination benefits are as follows: 2018 2017 1 January 149,449 120,755 Service cost 26,971 32,696 Remeasurements (12,699 ) 3,738 Interest expense 16,957 13,877 Benefit payments (20,065 ) (21,617 ) 31 December 160,613 149,449 |
Summary of Sensitivity of Provision for Employee Termination Benefits to Changes in the Significant Actuarial Assumptions | The sensitivity of provision for employee termination benefits to changes in the significant actuarial assumptions is: 31 December 2018 Discount Rate Inflation Rate Sensivity Level 1% increase 1% decrease 1% increase 1% decrease Change in assumption (13.0 %) 15.7 % 16.5 % (13.7 %) Impact on provision for employee termination benefits (20,880 ) 25,216 26,501 (22,004 ) 31 December 2017 Discount Rate Inflation Rate Sensivity Level 1% increase 1% decrease 1% increase 1% decrease Change in assumption (14.6 %) 18.1 % 18.3 % (14.3 %) Impact on provision for employee termination benefits (21,820 ) 27,050 27,349 (21,371 ) |
Contract liabilities (Tables)
Contract liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Current and Non-current Contract Liabilities | Current contract liabilities: 31 December 31 December Contract liabilities 255,756 — 255,756 — Non-current 31 December 31 December Contract liabilities 131,598 — 131,598 — |
Summary of Unrealized Performance Obligation of Contract Liabilities | The following table shows unrealized performance obligation result as of 31 December, 2018; 31 December Mobile telecommunications service 101,006 Other (*) 429,889 Total 530,895 (*) In consist of Hospital Revenue |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Non-current provision [member] | |
Statement [LineItems] | |
Summary of Current Provisions | Non - current provisions: Legal claims Obligations for dismantling, removing and Total Balance at 1 January 2018 8,887 188,531 197,418 Provisions recognized 5,859 47,580 53,439 Unwinding of discount — 9,760 9,760 Transfer to current provisions (5,382 ) — (5,382 ) Effect of changes in exchange rates — 13,487 13,487 Balance at 31 December 2018 9,364 259,358 268,722 Legal claims Obligations for Total Balance at 1 January 2017 6,889 180,652 187,541 Provisions recognized/(reversed) 4,256 (8,461 ) (4,205 ) Unwinding of discount — 15,328 15,328 Transfer to current provisions (2,258 ) — (2,258 ) Effect of changes in exchange rates — 1,012 1,012 Balance at 31 December 2017 8,887 188,531 197,418 |
Current provision [member] | |
Statement [LineItems] | |
Summary of Current Provisions | Current provisions: Legal claims Bonus Total Balance at 1 January 2018 605,679 229,520 835,199 Provisions recognized/(reversed) (3,520 ) 408,740 405,220 Payments (626,214 ) (338,650 ) (964,864 ) Transfers from non-current 5,381 — 5,381 Unwinding of discount 26,185 — 26,185 Disposal of subsidiaries — (2,070 ) (2,070 ) Effect of changes in exchange rates 1,082 935 2,017 Balance at 31 December 2018 8,593 298,475 307,068 Legal claims Bonus(*) Other Total Balance at 1 January 2017 18,266 173,391 785 192,442 Provisions recognized/(reversed)(**) 583,788 318,603 (785 ) 901,606 Payments (1,188 ) (263,080 ) — (264,268 ) Transfer from non-current 2,258 — — 2,258 Unwinding of discount 2,531 — — 2,531 Effect of changes in exchange rates 24 606 — 630 Balance at 31 December 2017 605,679 229,520 — 835,199 (*) Includes share-based payment (Note 29). (**) Refer to Note 37.1 and 37.3 for legal claim. |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Trade and Other Payables | 2018 2017 Payable to suppliers 2,372,512 2,527,152 Taxes payable 465,966 415,650 Accrued treasury share, universal service fund contribution and contributions to the ICTA’s expenses 455,496 305,208 Accrued selling and marketing expenses 91,747 79,011 Other 402,453 369,445 3,788,174 3,696,466 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Fair Value of Derivative Financial Instruments | Fair value of derivative financial instruments at 31 December 2018 and 2017 are attributable to the following: 31 December 2018 31 December 2017 Assets Liabilities Assets Liabilities Held for trading 709,617 131,097 961,665 17,724 Derivatives used for hedging 730,924 — — — Total 1,440,541 131,097 961,665 17,724 |
Details of Participating Cross Currency Swap and FX Swap Contracts | 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 Currency Notional Fair Maturity Participating cross currency TL 1,650,000 EUR 500,000 208,462 23 October 2025 TL 275,850 EUR 60,000 64,670 22 April 2026 TL 435,000 USD 150,000 167,116 16 September 2020 TL 293,500 USD 100,000 108,777 16 September 2020 TL 194,000 USD 50,000 39,394 16 September 2020 TL 386,500 USD 100,000 79,688 16 September 2020 TL 113,400 USD 20,000 9,234 22 April 2026 Cross currency swap contracts TL 123,878 RMB 202,600 53,583 22 April 2026 Derivatives used for hedge accounting financial assets 730,924 EUR 500,000 participating cross currency swap contracts includes TL 690,146 guarantees after CSA agreement. 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 Currency Notional Currency Notional Fair Maturity Currency Swap TL 266,760 USD 50,000 (3,715 ) 2 January 2019 TL 266,510 USD 50,000 (3,465 ) 2 January 2019 TL 719,996 USD 135,000 (9,774 ) 2 January 2019 TL 212,736 USD 40,000 (2,300 ) 2 January 2019 TL 265,925 USD 50,000 (2,880 ) 2 January 2019 TL 1,366 USD 253 (48 ) 19 March 2019 TL 4,199 USD 680 (939 ) 16 January 2019 TL 5,681 USD 920 (1,277 ) 22 January 2019 TL 6,040 EUR 1,000 (41 ) 2 January 2019 USD 68,654 EUR 60,000 (861 ) 15 January 2019 USD 11,462 EUR 10,000 (4 ) 8 January 2019 Cross currency swap contracts TL 6,159 USD 1,000 (912 ) 28 January 2019 TL 6,159 USD 1,000 (910 ) 24 January 2019 TL 130,488 USD 24,000 (9,365 ) 20 March 2023 TL 268,200 USD 50,000 (5,791 ) 14 June 2019 TL 128,436 USD 24,000 (2,652 ) 19 June 2019 TL 169,368 EUR 24,000 (24,895 ) 8 January 2019 TL 118,800 EUR 18,000 (22,051 ) 23 September 2021 TL 111,732 EUR 18,867 1,920 14 February 2019 TL 185,100 EUR 30,000 (8,296 ) 22 April 2026 TL 183,300 EUR 30,000 (8,642 ) 22 April 2026 Participating cross currency swap contracts TL 193,800 EUR 30,000 (7,148 ) 16 September 2020 TL 91,700 USD 20,000 (17,051 ) 22 April 2026 Total Held for trading derivative financial liabilities (131,097 ) Held for trading Buy Sell Currency Notional Currency Notional Fair Maturity Cross currency swap contracts TL 67,410 USD 18,000 27,928 28 January 2019 TL 95,550 USD 25,000 36,751 24 January 2019 TL 52,164 USD 14,620 27,870 16 July 2019 TL 69,744 USD 19,780 38,636 22 July 2019 TL 242,873 USD 70,500 160,594 16 September 2020 TL 269,451 USD 70,500 131,437 22 December 2020 TL 191,300 USD 50,000 74,095 13 February 2019 TL 98,625 EUR 25,000 57,161 13 June 2019 TL 203,600 EUR 50,000 109,610 23 July 2019 TL 97,997 EUR 21,500 37,825 19 December 2019 TL 105,280 EUR 18,800 7,710 23 September 2021 Total held for trading derivative financial assets 709,617 Participating cross currency swap and FX swap Buy Sell Currency Notional Currency Notional Fair Maturity USD 47,304 EUR 39,835 1,005 02 January 2018 TL 69,680 USD 20,000 6,554 27 August 2018 TL 81,480 EUR 20,000 9,965 14 December 2018 TL 95,550 USD 25,000 72 24 January 2019 TL 67,410 USD 18,000 1,498 28 January 2019 TL 98,625 EUR 25,000 17,354 13 June 2019 TL 52,164 USD 14,620 4,465 16 July 2019 TL 69,744 USD 19,780 6,996 22 July 2019 TL 203,600 EUR 50,000 27,198 23 July 2019 TL 435,000 USD 150,000 142,085 16 September 2020 TL 386,500 USD 100,000 (4,645 ) 16 September 2020 TL 293,500 USD 100,000 90,071 16 September 2020 TL 242,873 USD 70,500 33,535 16 September 2020 TL 194,000 USD 50,000 (2,951 ) 16 September 2020 TL 1,650,000 EUR 500,000 627,385 25 October 2025 TL 275,850 EUR 60,000 1,078 22 April 2026 Total derivative financial assets 961,665 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 Buy Sell Currency Notional Currency Notional Fair value Maturity TL 470,232 USD 122,680 (2,465 ) 2 January 2018 TL 180,023 USD 47,250 (545 ) 2 January 2018 TL 141,001 USD 36,786 (726 ) 3 January 2018 TL 219,162 USD 57,245 (1,043 ) 4 January 2018 TL 115,022 USD 30,150 (435 ) 5 January 2018 TL 17,204 USD 4,500 (284 ) 10 January 2018 TL 15,916 EUR 3,500 (157 ) 10 January 2018 TL 91,556 EUR 20,140 (620 ) 22 January 2018 TL 137,834 EUR 30,400 (601 ) 05 February 2018 TL 82,013 EUR 17,860 (1,413 ) 19 February 2018 TL 1,143 EUR 250 (25 ) 5 Mart 2018 TL 97,997 EUR 21,500 (2,154 ) 19 December 2019 TL 269,451 USD 70,500 (5,010 ) 22 December 2020 Total derivative financial liabilities (15,478 ) |
Details of Currency Forward Contracts | Currency forward contracts at 31 December 2017 Buy Currency Notional amount Fair value Maturity USD 50,000 (2,246 ) 30 January 2018 Total derivative financial liabilities (2,246 ) |
Summary of Fair Value of Financial Assets and Financial Liabilities | 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. An explanation of each level is as follows: Fair values 31 December 31 December Fair Value Valuation Techniques a)Participating cross currency swap contracts (*) 653,142 950,862 Level 3 Pricing models based on discounted cash Present value of the estimated future cash flows based on unobservable yield curves and end period FX rates -Held for trading (24,199 ) 950,862 -Derivatives used for hedging 677,341 — b)FX swap contracts 656,302 (4,675 ) Level 2 Present value of the estimated future cash flows based on observable yield curves and end period FX rates -Held for trading 602,719 (4,675 ) -Derivatives used for hedging 53,583 — c)Currency forward contracts — (2,246 ) Level 2 Forward exchange rates at the balance sheet date -Held for trading — (2,246 ) (*) 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 bid- |
Summary of Financial Assets and Financial Liabilities Measured and Recognised at Fair Value | The following table presents the Group’s financial assets and financial liabilities measured and recognised at fair value at 31 December 2018 and 2017 on a hedge accounting basis: Fair values Participating cross currency swap Nominal Maturity Date 31 December 31 December Fair Hedge Change in value of Change in EUR Contracts 500,000 23 October 2025 208,462 627,385 Level 3 1:1 359,400 (359,400 ) EUR Contracts 60,000 22 April 2026 64,670 1,078 Level 3 1:1 43,128 (43,128 ) — USD Contracts 400,000 16 September 2020 394,975 224,560 Level 3 1:1 179,388 (179,388 ) USD Contracts 20,000 10 April 2026 9,234 — Level 3 1:1 13,519 (13,519 ) CNY Contracts 202,600 22 April 2026 53,583 — Level 2 1:1 15,600 (15,600 ) |
Summary of 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: Profit or loss Equity 100 bps 100 bps 100 bps 100 bps 31 December 2018 Variable rate instruments (financial liability) (234,196 ) 234,196 — — Cash flow sensitivity (net) (234,196 ) 234,196 — — 31 December 2017 Variable rate instruments (financial liability) (83,922 ) 83,922 — — Cash flow sensitivity (net) (83,922 ) 83,922 — — |
Summary of Reconciliation by Risk Category of Components of Equity and Analysis of OCI Items, Net of Tax | 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. 2018 Hedging Reserve Cost of Hedging Balance at 1 January 2018 — — Cash Flow Hedges Changes in fair value: 683,706 (448,833 ) Foreign currency risk 612,733 (448,833 ) Interest rate risk 70,973 — Amount reclassified into profit or loss: (664,550 ) 101,231 Foreign currency risk (611,035 ) 101,231 Interest rate risk (53,515 ) — Tax on movements during the year: (4,214 ) 76,472 Balance at 31 December 2018 14,942 (271,130 ) |
Interest rate risk and currency risk [member] | |
Statement [LineItems] | |
Summary of Cash Flow Sensitivity Analysis for Variable Rate Instruments | Profit or Loss Equity, net of tax 100 bp 100 bp 100 bp 100 bp 31 December 2018 Participating cross currency swap contracts 937,845 9,455 (360,596 ) (259,066 ) Cross currency swap contracts 31,584 320 1,452 4,765 Cash Flow sensitivity (net) 969,429 9,775 (359,144 ) (254,301 ) |
Participating cross currency swap contracts [member] | |
Statement [LineItems] | |
Summary of Fair Value of Financial Assets and Financial Liabilities | Movements in the participating cross currency swap contracts for the years ended 31 December 2018 and 31 December 2017 are stated below: 31 December 31 December Opening balance 950,862 382,054 Cash flow effect (612,466 ) — Total gain/loss: Gains recognized in profit or loss 314,746 568,808 Closing balance 653,142 950,862 |
Consideration payable in relation to acquisition of Belarusian telecom [member] | |
Statement [LineItems] | |
Summary of Fair Value of Financial Assets and Financial Liabilities | 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: 2018 2017 Opening balance 323,691 295,062 Gains recognized in profit or loss 34,613 28,629 Closing balance 358,304 323,691 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Disclosure of Credit Risk | The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is: 2018 2017 Trade receivables 19 2,620,991 3,004,206 Contract assets 715,441 — Receivables from financial services 20 4,170,929 4,248,120 Cash and cash equivalents* 24 7,419,095 4,712,141 Participating cross currency swap and FX swap contracts 32 1,356,062 981,396 Other current assets** 22 287,469 316,042 Held to maturity investments — 11,992 Financial asset at fair value through profit or loss 9,409 — Financial asset at fair value through other comprehensive income 42,454 — Due from related parties 37 13,533 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 |
Summary of Maximum Exposure to Credit Risk for Trade and Subscriber Receivables, Other Assets and Cash and Cash Equivalent Arising from Sales Transactions Including those Classified as Due from Related Parties | The maximum exposure to credit risk for trade and subscriber receivables, other assets and cash and cash equivalent arising from sales transactions including those classified as due from related parties at the reporting date by type of customer is: Other Assets at 31 December 2018(*) Not Due More Than More Than More Than More Than More Than More Than 150 Days -3 More Than More Than Total Gross Carrying Amount 8,656,954 214,351 80,762 57,761 43,038 25,543 755,982 272,547 319,298 10,426,236 Loss Allowance 24,864 4,567 5,238 4,900 6,368 6,028 214,893 182,431 281,522 730,811 (*) Other Assets includes trade receivables, subscriber receivables, other assets, cash and cash equivalent and due from related parties. Contract Assets at 31 December 2018 Not Due More Than More Than More Than More Than More Than More Than 150 Days - 3 More Than More Than Total Gross Carrying Amount 715,441 — — — — — — — — 715,441 Loss Allowance 7,370 — — — — — — — — 7,370 Credit quality: Other Assets as at 1 January Not Due More Than More Than More Than More Than More Than More Than 150 Days - 3 years More Than More Than Total Gross Carrying Amount 6,021,990 194,517 81,804 35,799 52,851 20,493 823,359 208,127 141,717 7,580,657 Loss Allowance 24,936 6,136 5,662 4,279 9,766 7,076 323,124 158,198 122,751 661,928 (*) Other Assets includes trade receivables, subscriber receivables and other assets. Contract Assets as at 1 January 2018 Not Due More Than More Than More Than More Than More Than More Than 150 Days - 3 More Than More Than Total Gross Carrying Amount 514,223 — — — — — — — — 514,223 Loss Allowance 5,128 — — — — — — — — 5,128 |
Summary of Movements in Provision for Impairment of Receivables from Financial Services, Trade Receivables and Due from Related Parties | Movements in the provision for impairment of trade receivables and due from related parties are as follows: 31 December 2018 Contract Asset 31 December Opening balance — 705,440 IFRS 9 effect 5,128 (43,512 ) Provision for impairment recognized during the year 2,242 416,557 Amounts collected — (166,641 ) Unused amount reversed (*) — (73,023 ) Receivables written off during the year as uncollectible — (118,553 ) Exchange differences — 10,540 Disposal of subsidiaries — 3 Closing balance 7,370 730,811 31 December 2017 Contract Asset 31 December Opening balance — 964,311 Provision for impairment recognized during the year — 180,948 Amounts collected — (224,460 ) Unused amount reversed (*) — (79,958 ) Receivables written off during the year as uncollectible — (138,529 ) Exchange differences — 3,128 Closing balance — 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. Movements in the provision for impairment of receivables from financial services are as follows: 31 December 2018 31 December Opening balance 72,992 10,170 IFRS 9 effect 52,951 — Provision for impairment recognized during the year 190,509 117,293 Amounts collected (96,278 ) (37,503 ) Unused amount reversed (*) (19,901 ) (16,968 ) Closing balance 200,273 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. |
Summary of Analysis of Group's Financial Liabilities into Relevant Maturity Groupings Based on Contractual Maturities | The table below analyses the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities for: • all non-derivative • gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows, 31 December 2018 31 December 2017 Carrying Contractual 6 months 6-12 1-2 2-5 More than Carrying Contractual 6 months 6-12 1-2 2-5 More than Amount cash flows or less Months years years Years Amount cash flows or less months years years Years Non-derivative Secured bank loans 4,180 (4,712 ) (1,272 ) (1,209 ) (2,231 ) — — 4,390 (5,011 ) — (1,117 ) (2,045 ) (1,849 ) — Unsecured bank loans 13,526,847 (14,353,989 ) (4,354,548 ) (2,065,424 ) (3,587,398 ) (2,503,531 ) (1,843,088 ) 10,533,518 (11,094,697 ) (3,275,230 ) (955,637 ) (2,575,807 ) (3,035,914 ) (1,252,109 ) Finance lease liabilities — — — — — — — 122,720 (133,570 ) (18 ) (17,429 ) (16,789 ) (38,933 ) (60,401 ) Debt securities issued 5,210,562 (7,733,943 ) (228,838 ) (149,564 ) (299,128 ) (897,385 ) (6,159,028 ) 1,875,521 (2,753,486 ) (54,221 ) (54,221 ) (108,442 ) (325,326 ) (2,211,276 ) Lease liabilities 1,413,956 (2,497,426 ) (372,682 ) (273,273 ) (410,826 ) (666,760 ) (773,885 ) — — — — — — — Trade and other payables* 2,372,512 (2,440,300 ) (2,440,300 ) — — — — 2,527,152 (2,548,365 ) (2,548,365 ) — — — — Due to related parties 45,331 (45,331 ) (45,331 ) — — — — 6,980 (6,980 ) (6,980 ) — — — — Consideration payable in relation to acquisition of Belarusian Telecom (Note 35) 358,304 (526,090 ) — — — (526,090 ) — 323,691 (377,190 ) — — — (377,190 ) — Derivative financial liabilities Participating Cross Currency Swap and FX swap contracts 165,265 97,761 55,377 — 12,960 14,522 14,902 107,862 23,428 18,982 — 4,446 — — Buy 3,444,271 2,519,383 — 193,800 249,288 481,800 1,838,554 1,471,106 — 367,448 — — Sell (3,346,510 ) (2,464,006 ) — (180,840 ) (234,766 ) (466,898 ) (1,815,126 ) (1,452,124 ) — (363,002 ) — — Currency forward contracts — — — — — — — 2,246 (2,246 ) (2,246 ) — — — — Buy 190,185 190,185 — — — — Sell (192,431 ) (192,431 ) — — — — TOTAL 23,096,957 (27,504,030 ) (7,387,594 ) (2,489,470 ) (4,286,623 ) (4,579,244 ) (8,761,099 ) 15,504,080 (16,898,117 ) (5,868,078 ) (1,028,404 ) (2,698,637 ) (3,779,212 ) (3,523,786 ) * Advances received, license fee accruals, taxes and withholding taxes payable are excluded from trade and other payables. |
Summary of Group's Exposure to Foreign Exchange Risk Based Notional Amounts | The Group’s exposure to foreign exchange risk at the end of the reporting period, based on notional amounts, was as follows: 31 December 2018 USD EUR RMB Foreign currency denominated assets Other non-current 222 11 — Financial asset at fair value through other comprehensive income — 7,043 — Due from related parties-current 1,965 223 — Trade receivables and contract assets 15,786 52,140 — Other current assets 70,710 18,977 — Cash and cash equivalents 786,322 384,800 — 875,005 463,194 — Foreign currency denominated liabilities Loans and borrowings-non (481,438 ) (748,142 ) (224,519 ) Debt securities issued-non- (921,102 ) — — Lease obligations-non-current (4,719 ) (24,068 ) — Other non-current (68,107 ) — — Loans and borrowings-current (390,876 ) (523,595 ) (29,244 ) Debt securities issued-current (55,074 ) — — Rent lease obligations-current (2,951 ) (8,223 ) — Trade and other payables-current (233,805 ) (32,946 ) (70,553 ) Due to related parties (686 ) (52 ) — (2,158,758 ) (1,337,026 ) (324,316 ) Exposure related to derivative instruments Participating cross currency swap and FX swap contracts 1,082,036 811,167 202,600 Net exposure (201,717 ) (62,665 ) (121,716 ) 31 December 2017 USD EUR Foreign currency denominated assets Other non-current 72 2,681 Due from related parties-current 571 407 Trade receivables and accrued income 18,890 57,283 Other current assets 43,039 35,049 Cash and cash equivalents 688,717 237,697 751,289 333,117 Foreign currency denominated liabilities Loans and borrowings-non (557,180 ) (960,629 ) Debt securities issued-non- (469,387 ) — Other non-current (85,816 ) — Loans and borrowings-current (206,535 ) (285,827 ) Debt securities issued-current (27,848 ) — Trade and other payables-current (328,323 ) (29,442 ) Due to related parties (1,172 ) (394 ) (1,676,261 ) (1,276,292 ) Exposure related to derivative instruments Participating cross currency swap and FX swap contracts 937,011 748,650 Currency forward contracts 50,000 — Net exposure 62,039 (194,525 ) |
Summary of Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurement of Contingent Consideration | 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 Unobservable Inputs 31 December 31 December Relationship of unobservable inputs to fair Contingent consideration 358,304 323,691 Risk-adjusted discount rate 9,5% 4,8% A change in the discount rate by 100 bps would increase/decrease FV by TL (13,582) and TL 14,250 respectively, Expected settlement date first quarter of 2023 first quarter of 2021 If expected settlement date changes by 1 year FV would increase/decrease by TL (31,047) and TL 33,896 respectively, |
Interest rate risk [member] | |
Statement [LineItems] | |
Summary of Variable Interest-Bearing Financial Instruments | As at 31 December 2018 and 2017 the interest rate profile of the Group’s variable rate interest-bearing financial instruments was: 31 December 2018 31 December 2017 Effective Carrying Effective Carrying Interest interest Note Rate Amount rate Amount Variable rate instruments 28 USD floating rate loans 4.3 % (4,589,157 ) 3.2 % (2,880,615 ) EUR floating rate loans 2.1 % (6,975,890 ) 2.1 % (5,511,579 ) |
Sensitivity analysis [member] | |
Statement [LineItems] | |
Summary of Exchange Rates | 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. Sensitivity analysis 31 December 2018 Profit/(Loss) Equity Appreciation of Depreciation of Appreciation of Depreciation of 1- (106,121 ) 106,121 — — 2- — — (9,596 ) 9,596 3- (106,121 ) 106,121 (9,596 ) 9,596 4- (37,775 ) 37,775 — — 5- — — (23,613 ) 23,613 6- (37,775 ) 37,775 (23,613 ) 23,613 7- (9,275 ) 9,275 — — 8- — — 364 (364 ) 9- (9,275 ) 9,275 364 (364 ) Total (3+6+9) (153,171 ) 153,171 (32,845 ) 32,845 Sensitivity analysis 31 December 2017 Profit/(Loss) Equity Appreciation of Depreciation of Appreciation of Depreciation of 1- 23,400 (23,400 ) — — 2- — — — — 3- 23,400 (23,400 ) — — 4- (87,838 ) 87,838 — — 5- — — — — 6- (87,838 ) 87,838 — — 7- — — — — 8- — — — — 9- — — — — Total (3+6+9) (64,438 ) 64,438 — — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Lawsuits Disputes | Subject 31 December 2018 31 December 2017 31 December 2018 31 December 2017 Disputes related with ICTA 13,367 13,367 — — |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Total Compensation Provided to Key Management Personnel | 31 December 31 December 31 December Short-term benefits (*) 92,341 74,696 50,001 Termination benefits 121 604 10,064 Long-term benefits 755 548 479 93,217 75,848 60,544 (*) Includes share-based payment, |
Schedule of Short Term Due from Related Parties | The following balances are outstanding at the end of the reporting period in relation to transactions with related parties: Due from related parties 31 December 31 December Vimpelcom OJSC (“Vimpelcom”) 9,138 — Telia Sonera International Carrier AB (“Telia”) 1,741 1,256 Kyivstar GSM JSC (“Kyivstar”) 210 1,061 GSM Kazakhstan Ltd (“Kazakcell”) 2 830 Azercell Telekom MMC (“Azercell”) — 364 Other 2,442 1,788 13,533 5,299 |
Schedule of Short Term Due to Related Parties | Due from Kazakcell, mainly resulted from software services and telecommunications services. Due to related parties 31 December 31 December Turkcell Vakfı 39,544 — Kyivstar GSM JSC (“Kyivstar”) 3,591 2,346 Wind Telecomunicazioni S,P,A, 886 1,738 Teliasonera International Carrier Switzerland Ag 523 — Vimpelcom (Bvı) Ltd, 3 1,552 Geocell LLC (“Geocell”) 2 447 Other 782 897 45,331 6,980 |
Schedule of Transactions with Related Parties | The following transactions occurred with related parties: Revenue from related parties 2018 2017 2016 Sales to Kyivstar Telecommunications services 52,946 30,875 30,964 Sales to Telia Telecommunications services 7,941 10,020 15,761 Sales to Vimpelcom Telecommunications services 5,418 7,230 20,775 Sales to Azercell(****) Telecommunication services 256 1,583 2,585 Sales to Krea (*) Call center services, fixed line services, rent and interest charges — — 3,422 Sales to Millenicom (**) Telecommunication services — — 997 Sales to other related parties 7,920 11,324 14,922 74,481 61,032 89,426 Related party expenses 2018 2017 2016 Charges from Kyivstar Telecommunications services 77,174 49,178 47,595 Charges from Turkcell Vakfı Donation 44,247 — — Charges from Telia Telecommunications services 6,047 3,120 2,499 Charges from Wind Telecomunicazioni Telecommunications services 4,812 — — Charges from Vimpelcom Telecommunications services 2,751 10,853 2,721 Charges from Azercell (****) Telecommunications services 79 734 1,361 Charges from Hobim (***) Invoicing and archiving services — 16,993 31,832 Charges from Krea Digital television broadcasting services — — 5,975 Charges from other related parties 9,799 17,001 11,659 144,909 97,879 103,642 (*) 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, |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments accounted for using equity method [abstract] | |
Schedule of Subsidiaries, Associates and Joint Venture | 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: Effective Ownership Interest Subsidiaries Name Country of Business 31 December 31 December Kibris Telekom Turkish Republic of Northern Cyprus Telecommunications 100 100 Turkcell Global Bilgi Turkey Customer relations and human resources management 100 100 Turktell Turkey Information technology, value added GSM services and entertainment investments 100 100 Turkcell Superonline Turkey Telecommunications, television services and content services 100 100 Turkcell Satis Turkey Sales, delivery and digital sales services 100 100 Eastasia Netherlands Telecommunications investments 100 100 Turkcell Teknoloji Turkey Research and development 100 100 Global Tower Turkey Telecommunications infrastructure business 100 100 Rehberlik Turkey Directory Assistance 100 100 Financell( 5 Netherlands Financing business — 100 Lifecell Ventures Netherlands Telecommunications investments 100 100 Beltel Turkey Telecommunications investments 100 100 Turkcell Gayrimenkul Turkey Property investments 100 100 Global LLC Ukraine Customer relations management 100 100 UkrTower Ukraine Telecommunications infrastructure business 100 100 Turkcell Europe Germany Telecommunications 100 100 Turkcell Odeme Turkey Payment services and e-money 100 100 lifecell Ukraine Telecommunications 100 100 Turkcell Finansman Turkey Consumer financing services 100 100 Beltower Republic of Belarus Telecommunications Infrastructure business 100 100 Turkcell Enerji Turkey Electricity energy trade and wholesale and retail electricity sales 100 100 Paycell Ukraine Consumer financing services 100 100 Lifecell Digital Turkish Republic of Telecommunications 100 100 TÖFAŞ ( 1 Turkey Interest free consumer financing services 100 — Turkcell Sigorta( 3 Turkey Insurance agency activities 100 — Belarusian Telecom Republic of Belarus Telecommunications 80 80 Lifetech Republic of Belarus Information technology, programming and technical support 80 80 Inteltek Turkey Information and Entertainment Services 55 55 Azerinteltek ( 6 Azerbaijan Information and Entertainment Services — 28 Effective Ownership Interest Associates Name Country of Incorporation Business 31 December 31 December Fintur Netherlands Telecommunications investments 41 41 Türkiye’nin Otomobili ( 2 Turkey Electric passenger car development, production and trading activities 19 — Effective Ownership Interest Joint Venture Name Country of Business 31 December 31 December Sofra ( 4 Turkey Meal coupons and cards 33 — (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. (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 (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. |
Schedule of Non-Wholly Owned Subsidiaries That Have Material Non-Controlling Interests | Details of non-wholly non-controlling Name of subsidiary Place of Proportion of ownership non-controlling Profit/(loss) allocated to non-controlling Accumulated non- 31 31 31 31 31 31 Inteltek Turkey 45,00 % 45,00 % 105,112 35,924 131,506 46,072 Individually immaterial subsidiaries with non –controlling interest 51,158 22,706 304 9,855 156,270 58,630 131,810 55,927 |
Schedule of Financial Information of Subsidiaries | Summarized financial information in respect of Inteltek is set out below. The summarized financial information below represents amounts before intragroup eliminations. Inteltek 31 December 31 December Current assets 403,427 223,119 Non-current 9,043 9,290 Current liabilities 115,080 125,286 Non-current 5,154 4,742 Equity attributable to owners 292,236 102,381 2018 2017 Revenue 208,239 184,025 (Expenses) / Income (net) (93,133 ) (104,194 ) Gain on Sale of Investments 118,476 — Profit for the year 233,582 79,831 Other comprehensive income/(loss) for the year 179 172 Dividend paid to non-controlling 31,283 (46,582 ) Net cash inflow from operating activities 31,380 73,575 Net cash inflow from investing activities 158,946 19,930 Net cash outflow from financing activities (69,518 ) (75,113 ) Effects of foreign exchange rate fluctuations on cash and cash equivalents 56,949 8,574 Net cash inflow 177,757 26,966 |
Cash flow information (Tables)
Cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Reconciliation of Net Cash Flow to Movement in Net Debt | Net debt reconciliation: Debt securities Loans Financial Total Balance at 1 January 2017 1,922,656 7,810,392 48,114 9,781,162 Cash inflows 209,808 24,030,222 72,421 24,312,451 Cash outflows (503,391 ) (22,768,911 ) (1,068 ) (23,273,370 ) Other non-cash 246,448 1,466,205 3,253 1,715,906 Balance at 31 December 2017 1,875,521 10,537,908 122,720 12,536,149 Cash and cash equivalents 4,712,333 Net debt (7,823,816 ) Debt securities Loans Total Balance at 1 January 2018 1,875,521 10,537,908 122,720 12,536,149 Increase in rent lease obligations (IFRS 16) — — 1,036,380 1,036,380 Cash inflows 2,188,313 43,728,604 — 45,916,917 Cash outflows (432,140 ) (44,339,377 ) (1,180,831 ) (45,952,348 ) Other non-cash 1,578,868 3,603,892 1,435,687 6,618,447 Balance at 31 December 2018 5,210,562 13,531,027 1,413,956 20,155,545 Cash and cash equivalents 7,419,239 Net debt (12,736,306 ) |
Reporting Entity - Additional I
Reporting Entity - Additional Information (Detail) - 12 months ended Dec. 31, 2018 € in Thousands, $ in Thousands | USD ($) | EUR (€) |
Turkcell holding A.S. [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
Ownership interest by parent | 51.00% | 51.00% |
Turkish treasury [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
Payment through treasury shares, percentage of gross revenue | 15.00% | 15.00% |
Percentage of treasury shares transferred as treasury shares | 90.00% | 90.00% |
Turkish ministry [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
Percentage of treasury shares transferred as universal service fund | 10.00% | 10.00% |
4.5G license tender [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
License contract period | 13 years | 13 years |
Value added tax percentage | 18.00% | 18.00% |
Tender price (excludes VAT of 18%) | € 1,623,460 | |
2G license [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
License contract period | 25 years | 25 years |
License fee | $ | $ 500,000 | |
Payment through treasury shares, percentage of gross revenue | 15.00% | 15.00% |
3G license [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
License fee | € 358,000 | |
ICTA expenses [member] | Turkish treasury [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
Payment through treasury shares, percentage of net revenue | 0.35% | 0.35% |
Frequency fees [member] | Turkish treasury [member] | ||
Disclosure of Description Of Reporting Entity [line items] | ||
Payment through treasury shares, percentage of net revenue | 5.00% | 5.00% |
Basis of Preparation and Summ_4
Basis of Preparation and Summary of Significant Accounting Policies - Additional Information (Detail) - TRY (₺) | 12 Months Ended | ||||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 20, 2018 | Feb. 16, 2018 | Jan. 01, 2018 | Aug. 22, 2017 | Apr. 14, 2017 | |
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Depreciation method property plant and equipment | Decrease in inflation rate in subsequent years led the three-year cumulative rate as of the end of 2014 to decrease to 65%. | ||||||||
Three-year cumulative inflation rate | 65.00% | ||||||||
Salary calculation period | 30 days | ||||||||
Employee payments | ₺ 2,069,142,000 | ₺ 1,787,116,000 | ₺ 1,490,961,000 | ||||||
Discount rate used for calculating employee termination benefit | 4.41% | 3.33% | |||||||
Percentage of revenues comprised | 7.25% | ||||||||
Turkcell Finansman A.S. [member] | |||||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Financial loan sold | ₺ 56,716,000 | ₺ 90,272,000 | ₺ 89,607,000 | ₺ 87,589,000 | |||||
Inteltek Internet Teknoloji Yatirim Ve Danismanlik A.S [member] | |||||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Percentage of net earnings to gross earning | 1.40% | ||||||||
Azerinteltek [member] | |||||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Revenue commission percentage | 15.00% | ||||||||
Maritime Affairs and Communications [member] | |||||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Revenue from operations | ₺ 376,765,000 | ₺ 257,866,000 | |||||||
Right of use assets [member] | |||||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Prepaid lease expenses accounted for under prepaid expenses before the application of IFRS 16 | ₺ 542,179,000 | ||||||||
Bottom of range [member] | |||||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Percentage of voting rights in associates | 20.00% | ||||||||
Employee payments | ₺ 5,434,000 | 4,732,000 | |||||||
Top of range [member] | |||||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Percentage of voting rights in associates | 50.00% | ||||||||
Crimea [member] | |||||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Impairment Loss | ₺ 19,897,000 | ||||||||
Donetsk and Luhansk [member] | |||||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Impairment Loss | ₺ 0 | ₺ 10,872,000 | |||||||
Belarusian Telecom [member] | Special GSM and UMTS services licenses [member] | |||||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Service licenses acquired, life | 10 years | ||||||||
Additional contractual life of service license | 10 years | ||||||||
Receivables from financial services [member] | |||||||||
Disclosure of basis of preparation and summary of significant accounting policies [line items] | |||||||||
Increase in provision for receivables from financial services recognized under retained earnings | ₺ (52,951,000) |
Basis of Preparation and Summ_5
Basis of Preparation and Summary of Significant Accounting Policies - Disclosure of Estimated Useful Lives for the Current and Comparative (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Bottom of range [member] | Building [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 21 years |
Bottom of range [member] | Mobile network infrastructure [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 4 years |
Bottom of range [member] | Fixed network infrastructure [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 3 years |
Bottom of range [member] | Call center equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 4 years |
Bottom of range [member] | Equipment, fixtures and fittings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 2 years |
Bottom of range [member] | Motor vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 4 years |
Bottom of range [member] | Central betting terminals [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 5 years |
Bottom of range [member] | Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 3 years |
Top of range [member] | Building [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 25 years |
Top of range [member] | Mobile network infrastructure [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 20 years |
Top of range [member] | Fixed network infrastructure [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 25 years |
Top of range [member] | Call center equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 8 years |
Top of range [member] | Equipment, fixtures and fittings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 10 years |
Top of range [member] | Motor vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 6 years |
Top of range [member] | Central betting terminals [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 10 years |
Top of range [member] | Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful livesUseful lives of property, plant and equipment | 5 years |
Significant Accounting Policies
Significant Accounting Policies - Disclosure of Estimated Useful Lives for Intangible Asset (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Indefeasible right of use [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 15 years |
Bottom of range [member] | Transmission line software [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 5 years |
Bottom of range [member] | Central betting system operating right [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 7 years |
Bottom of range [member] | Customer base [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 2 years |
Bottom of range [member] | Brand name [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 9 years |
Bottom of range [member] | Telecommunication licenses [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 3 years |
Bottom of range [member] | Computer software [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 3 years |
Top of range [member] | Transmission line software [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 10 years |
Top of range [member] | Central betting system operating right [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 10 years |
Top of range [member] | Customer base [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 15 years |
Top of range [member] | Brand name [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 10 years |
Top of range [member] | Telecommunication licenses [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 25 years |
Top of range [member] | Computer software [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives intangible assets | 8 years |
Significant Accounting Polici_2
Significant Accounting Policies - Disclosure of Estimated Useful Lives for Investment Properties (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Bottom of range [member] | |
Disclosure of detailed information about investment property [line items] | |
Estimated useful lives, Investment Property | 25 years |
Top of range [member] | |
Disclosure of detailed information about investment property [line items] | |
Estimated useful lives, Investment Property | 45 years |
Basis of Preparation and Summ_6
Basis of Preparation and Summary of Significant Accounting Policies - Summary of Impacts of Adoption of IFRS 9, IFRS 15 and IFRS 16 on Consolidated Financial Statements (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Property, plant and equipment | ₺ 11,116,316 | ₺ 9,665,408 | ₺ 8,195,705 | |
Right-of-use assets | 1,649,602 | |||
Intangible assets | 10,050,172 | 8,340,410 | 8,235,989 | |
Investment properties | 15,425 | 980 | ||
Trade receivables | 115,001 | |||
Contract assets | 3,513 | |||
Receivables from financial services | 884,686 | 1,297,597 | ||
Deferred tax assets | 152,732 | 96,060 | ||
Investments in equity accounted investees | 19,413 | |||
Other non-current assets | 421,306 | 356,620 | ||
Total non-current assets | 24,428,166 | 19,913,363 | ||
Inventories | 180,434 | 104,102 | ||
Trade receivables | 2,505,990 | 2,848,572 | ||
Due from related parties | 13,533 | 5,299 | ||
Receivables from financial services | 3,286,243 | 2,950,523 | ||
Derivative financial instruments | 1,356,062 | 981,396 | ||
Held to maturity investments | 11,338 | |||
Financial asset at fair value through profit or loss | 9,409 | |||
Financial asset at fair value through other comprehensive income | 42,454 | |||
Contract assets | 711,928 | |||
Cash and cash equivalents | 7,419,239 | 4,712,333 | 6,052,352 | ₺ 2,918,796 |
Other current assets | 1,091,512 | 1,160,605 | ||
Subtotal | 16,616,804 | 12,774,168 | ||
Assets classified as held for sale | 1,720,305 | 1,294,938 | ||
Total current assets | 18,337,109 | 14,069,106 | ||
Total assets | 42,765,275 | 33,982,469 | ||
Equity | ||||
Share capital | 2,200,000 | 2,200,000 | ||
Share premium | 269 | 269 | ||
Treasury shares (-) | (141,534) | (56,313) | ||
Additional paid in capital | 35,026 | 35,026 | ||
Reserves | 2,503,537 | 1,542,679 | ||
Remeasurements of employee termination benefit | (34,871) | (44,776) | ||
Retained earnings | 11,359,317 | 11,312,276 | ||
Total equity attributable to equity holders of Turkcell Iletisim Hizmetleri AS ("the Company") | 15,921,744 | 14,989,161 | ||
Non-controllinginterests | 131,810 | 55,927 | ||
Total equity | 16,053,554 | 15,045,088 | ₺ 16,068,397 | ₺ 14,418,902 |
Liabilities | ||||
Borrowings | 13,119,636 | 8,257,995 | ||
Employee benefit obligations | 224,747 | 197,666 | ||
Provisions | 268,722 | 197,418 | ||
Deferred tax liabilities | 862,360 | 651,122 | ||
Contract liabilities | 131,598 | |||
Other non-current liabilities | 364,610 | 409,337 | ||
Total non-current liabilities | 14,971,673 | 9,713,538 | ||
Borrowings | 7,035,909 | 4,278,154 | ||
Current tax liabilities | 133,597 | 103,105 | ||
Trade and other payables | 3,788,174 | 3,696,466 | ||
Due to related parties | 45,331 | 6,980 | ||
Contract liabilities | 255,756 | |||
Deferred revenue | 8,948 | 193,831 | ||
Provisions | 307,068 | 835,199 | ||
Derivative financial instruments | 165,265 | 110,108 | ||
Total current liabilities | 11,740,048 | 9,223,843 | ||
Total liabilities | 26,711,721 | 18,937,381 | ||
Total equity and liabilities | 42,765,275 | ₺ 33,982,469 | ||
Effect Of Change Due to IFRS 9 [member] | ||||
Assets | ||||
Trade receivables | (608) | |||
Other non-current assets | (228) | |||
Total non-current assets | (836) | |||
Trade receivables | 49,567 | |||
Due from related parties | 67 | |||
Receivables from financial services | (40,463) | |||
Held to maturity investments | (51,863) | |||
Financial asset at fair value through profit or loss | 9,409 | |||
Financial asset at fair value through other comprehensive income | 42,454 | |||
Cash and cash equivalents | (2,364) | |||
Other current assets | 87 | |||
Subtotal | 6,894 | |||
Total current assets | 6,894 | |||
Total assets | 6,058 | |||
Equity | ||||
Reserves | (154) | |||
Retained earnings | 4,989 | |||
Total equity attributable to equity holders of Turkcell Iletisim Hizmetleri AS ("the Company") | 4,835 | |||
Total equity | 4,835 | |||
Liabilities | ||||
Deferred tax liabilities | 1,223 | |||
Total non-current liabilities | 1,223 | |||
Total liabilities | 1,223 | |||
Total equity and liabilities | 6,058 | |||
Effect Of Change Due to IFRS 15 [member] | ||||
Assets | ||||
Intangible assets | 1,059,866 | |||
Trade receivables | (3,513) | |||
Contract assets | 3,513 | |||
Other non-current assets | (10,849) | |||
Total non-current assets | 1,049,017 | |||
Trade receivables | (703,742) | |||
Contract assets | 711,928 | |||
Other current assets | (137,997) | |||
Subtotal | (129,811) | |||
Total current assets | (129,811) | |||
Total assets | 919,206 | |||
Equity | ||||
Reserves | 8,958 | |||
Retained earnings | 667,946 | |||
Total equity attributable to equity holders of Turkcell Iletisim Hizmetleri AS ("the Company") | 676,904 | |||
Total equity | 676,904 | |||
Liabilities | ||||
Deferred tax liabilities | 193,854 | |||
Contract liabilities | 131,598 | |||
Other non-current liabilities | (102,887) | |||
Total non-current liabilities | 222,565 | |||
Trade and other payables | 1,786 | |||
Due to related parties | 17,951 | |||
Contract liabilities | 255,756 | |||
Deferred revenue | (255,756) | |||
Total current liabilities | 19,737 | |||
Total liabilities | 242,302 | |||
Total equity and liabilities | 919,206 | |||
Effect Of Change Due to IFRS 16 [member] | ||||
Assets | ||||
Right-of-use assets | 1,649,602 | |||
Deferred tax assets | 14,696 | |||
Other non-current assets | (161,426) | |||
Total non-current assets | 1,502,872 | |||
Trade receivables | 6,926 | |||
Other current assets | (312,872) | |||
Subtotal | (305,946) | |||
Total current assets | (305,946) | |||
Total assets | 1,196,926 | |||
Equity | ||||
Reserves | (740) | |||
Retained earnings | (71,464) | |||
Total equity attributable to equity holders of Turkcell Iletisim Hizmetleri AS ("the Company") | (72,204) | |||
Total equity | (72,204) | |||
Liabilities | ||||
Borrowings | 902,285 | |||
Total non-current liabilities | 902,285 | |||
Borrowings | 366,845 | |||
Total current liabilities | 366,845 | |||
Total liabilities | 1,269,130 | |||
Total equity and liabilities | 1,196,926 | |||
31 December 2018 without Adoptions [member] | ||||
Assets | ||||
Property, plant and equipment | 11,116,316 | |||
Intangible assets | 8,990,306 | |||
Investment properties | 15,425 | |||
Trade receivables | 119,122 | |||
Receivables from financial services | 884,686 | |||
Deferred tax assets | 138,036 | |||
Investments in equity accounted investees | 19,413 | |||
Other non-current assets | 593,809 | |||
Total non-current assets | 21,877,113 | |||
Inventories | 180,434 | |||
Trade receivables | 3,153,239 | |||
Due from related parties | 13,466 | |||
Receivables from financial services | 3,326,706 | |||
Derivative financial instruments | 1,356,062 | |||
Held to maturity investments | 51,863 | |||
Cash and cash equivalents | 7,421,603 | |||
Other current assets | 1,542,294 | |||
Subtotal | 17,045,667 | |||
Assets classified as held for sale | 1,720,305 | |||
Total current assets | 18,765,972 | |||
Total assets | 40,643,085 | |||
Equity | ||||
Share capital | 2,200,000 | |||
Share premium | 269 | |||
Treasury shares (-) | (141,534) | |||
Additional paid in capital | 35,026 | |||
Reserves | 2,495,473 | |||
Remeasurements of employee termination benefit | (34,871) | |||
Retained earnings | 10,757,846 | |||
Total equity attributable to equity holders of Turkcell Iletisim Hizmetleri AS ("the Company") | 15,312,209 | |||
Non-controllinginterests | 131,810 | |||
Total equity | 15,444,019 | |||
Liabilities | ||||
Borrowings | 12,217,351 | |||
Employee benefit obligations | 224,747 | |||
Provisions | 268,722 | |||
Deferred tax liabilities | 667,283 | |||
Other non-current liabilities | 467,497 | |||
Total non-current liabilities | 13,845,600 | |||
Borrowings | 6,669,064 | |||
Current tax liabilities | 133,597 | |||
Trade and other payables | 3,786,388 | |||
Due to related parties | 27,380 | |||
Deferred revenue | 264,704 | |||
Provisions | 307,068 | |||
Derivative financial instruments | 165,265 | |||
Total current liabilities | 11,353,466 | |||
Total liabilities | 25,199,066 | |||
Total equity and liabilities | ₺ 40,643,085 |
Basis of Preparation and Summ_7
Basis of Preparation and Summary of Significant Accounting Policies - Summary of Impacts of Adoption of IFRS 9, IFRS 15 and IFRS 16 on Consolidated Statement of Profit or Loss (Detail) - TRY (₺) ₺ / shares in Units, ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Revenue | ₺ 20,350,557 | ₺ 17,026,401 | ₺ 14,100,863 |
Revenue from financial services | 941,918 | 605,663 | 184,698 |
Total revenue | 21,292,475 | 17,632,064 | 14,285,561 |
Cost of revenue | (13,785,448) | (11,073,465) | (9,166,384) |
Cost of revenue from financial services | (360,545) | (276,709) | (70,223) |
Total cost of revenue | (14,145,993) | (11,350,174) | (9,236,607) |
Gross profit | 6,565,109 | 5,952,936 | 4,934,479 |
Gross profit from financial services | 581,373 | 328,954 | 114,475 |
Total gross profit | 7,146,482 | 6,281,890 | 5,048,954 |
Other income | 241,435 | 74,438 | 78,569 |
Selling and marketing expenses | (1,626,714) | (2,005,420) | (1,910,947) |
Administrative expenses | (673,370) | (645,196) | (721,849) |
Net impairment losses on financial and contract assets | (346,390) | ||
Other expenses | (381,582) | (773,329) | (312,801) |
Operating profit | 4,359,861 | 2,932,383 | 2,181,926 |
Finance income | 1,932,133 | 818,436 | 961,642 |
Finance costs | (3,619,091) | (1,141,302) | (1,134,441) |
Net finance costs | (1,686,958) | (322,866) | (172,799) |
Share of profit of equity accounted investees | (87) | ||
Profit before income tax | 2,672,816 | 2,609,517 | 2,009,127 |
Income tax expense | (495,481) | (571,758) | (423,160) |
Profit for the year | 2,177,335 | 2,037,759 | 1,543,803 |
Profit for the year is attributable to: | |||
Owners of the Company | 2,021,065 | 1,979,129 | 1,492,088 |
Non-controlling interests | 156,270 | 58,630 | 51,715 |
Profit for the year | ₺ 2,177,335 | ₺ 2,037,759 | ₺ 1,543,803 |
Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) | ₺ 0.93 | ₺ 0.90 | ₺ 0.68 |
Effect Of Change Due to IFRS 9 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Selling and marketing expenses | ₺ 141,527 | ||
Administrative expenses | 225,778 | ||
Net impairment losses on financial and contract assets | (346,390) | ||
Operating profit | 20,915 | ||
Finance costs | (14) | ||
Net finance costs | (14) | ||
Profit before income tax | 20,901 | ||
Income tax expense | (4,764) | ||
Profit for the year | 16,137 | ||
Profit for the year is attributable to: | |||
Owners of the Company | 16,137 | ||
Profit for the year | ₺ 16,137 | ||
Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) | ₺ 0.01 | ||
Effect Of Change Due to IFRS 15 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Revenue | ₺ (18,132) | ||
Revenue from financial services | 308 | ||
Total revenue | (17,824) | ||
Cost of revenue | (329,447) | ||
Total cost of revenue | (329,447) | ||
Gross profit | (347,579) | ||
Gross profit from financial services | 308 | ||
Total gross profit | (347,271) | ||
Selling and marketing expenses | 523,210 | ||
Operating profit | 175,939 | ||
Profit before income tax | 175,939 | ||
Income tax expense | (38,015) | ||
Profit for the year | 137,924 | ||
Profit for the year is attributable to: | |||
Owners of the Company | 137,924 | ||
Profit for the year | ₺ 137,924 | ||
Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) | ₺ 0.06 | ||
Effect Of Change Due to IFRS 16 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Cost of revenue | ₺ 51,098 | ||
Total cost of revenue | 51,098 | ||
Gross profit | 51,098 | ||
Total gross profit | 51,098 | ||
Other income | 35,012 | ||
Selling and marketing expenses | 51,208 | ||
Administrative expenses | 50,724 | ||
Other expenses | (44,431) | ||
Operating profit | 143,611 | ||
Finance income | 892 | ||
Finance costs | (230,663) | ||
Net finance costs | (229,771) | ||
Profit before income tax | (86,160) | ||
Income tax expense | 14,696 | ||
Profit for the year | (71,464) | ||
Profit for the year is attributable to: | |||
Owners of the Company | (71,464) | ||
Profit for the year | ₺ (71,464) | ||
Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) | ₺ (0.03) | ||
31 December 2018 without Adoptions [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Revenue | ₺ 20,368,689 | ||
Revenue from financial services | 941,610 | ||
Total revenue | 21,310,299 | ||
Cost of revenue | (13,507,099) | ||
Cost of revenue from financial services | (360,545) | ||
Total cost of revenue | (13,867,644) | ||
Gross profit | 6,861,590 | ||
Gross profit from financial services | 581,065 | ||
Total gross profit | 7,442,655 | ||
Other income | 206,423 | ||
Selling and marketing expenses | (2,342,659) | ||
Administrative expenses | (949,872) | ||
Other expenses | (337,151) | ||
Operating profit | 4,019,396 | ||
Finance income | 1,931,241 | ||
Finance costs | (3,388,414) | ||
Net finance costs | (1,457,173) | ||
Share of profit of equity accounted investees | (87) | ||
Profit before income tax | 2,562,136 | ||
Income tax expense | (467,398) | ||
Profit for the year | 2,094,738 | ||
Profit for the year is attributable to: | |||
Owners of the Company | 1,938,468 | ||
Non-controlling interests | 156,270 | ||
Profit for the year | ₺ 2,094,738 | ||
Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) | ₺ 0.89 |
Basis of Preparation and Summ_8
Basis of Preparation and Summary of Significant Accounting Policies - Summary of Impact on Retained Earnings (Detail) ₺ in Thousands | Jan. 01, 2018TRY (₺) |
Disclosure of Impact of adoption to IFRS 9 on retained earnings [line items] | |
Retained earnings 1 January 2018 - (including IFRS 9 effects-excluding IFRS 15 effects) | ₺ 11,312,276 |
Increase (decrease) due to application of IFRS 9 [member] | |
Disclosure of Impact of adoption to IFRS 9 on retained earnings [line items] | |
Retained earnings 1 January 2018 - (including IFRS 9 effects-excluding IFRS 15 effects) | 11,312,276 |
Increase in provision for receivables from financial services | (52,951) |
Decrease in provision for other financial assets | 38,384 |
Deferred tax effect | 3,419 |
Total impact of adoption in accordance with IFRS 9 | (11,148) |
Opening retained earnings 1 January 2018 - (including IFRS 9 and IFRS 15 effects) | ₺ 11,301,128 |
Basis of Preparation and Summ_9
Basis of Preparation and Summary of Significant Accounting Policies - Summary of Reclassification of Financial Instruments on the Date of Initial Application (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about financial instruments [line items] | |||||
Derivatives | ₺ 165,265 | ₺ 110,108 | |||
Trade receivables | 115,001 | 155,634 | |||
Receivables from financial services | 884,686 | 1,297,597 | |||
Held to maturity investments | 654 | ||||
Trade receivables | 2,505,990 | 2,848,572 | |||
Due from related parties | 13,533 | 5,299 | |||
Receivables from financial services | 3,286,243 | 2,950,523 | |||
Cash and cash equivalents | 7,419,239 | 4,712,333 | ₺ 6,052,352 | ₺ 2,918,796 | |
Held to maturity investments | 11,338 | ||||
Derivatives | ₺ 1,356,062 | ₺ 981,396 | |||
Application of IFRS9 [member] | Financial assets at amortised cost [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Trade receivables | ₺ 154,392 | ||||
Receivables from financial services | 1,297,597 | ||||
Held to maturity investments | 654 | ||||
Trade receivables | 2,888,862 | ||||
Due from related parties | 5,522 | ||||
Receivables from financial services | 2,897,572 | ||||
Cash and cash equivalents | 4,711,452 | ||||
Held to maturity investments | 11,332 | ||||
Application of IFRS9 [member] | Financial assets at fair value through profit or loss, category [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivatives | 981,396 | ||||
Application of IFRS9 [member] | Financial liabilities at fair value through profit or loss [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivatives | 110,108 | ||||
Increase (decrease) due to application of IFRS 9 [member] | Financial assets at amortised cost [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Trade receivables | (1,242) | ||||
Trade receivables | 40,290 | ||||
Due from related parties | 223 | ||||
Receivables from financial services | (52,951) | ||||
Cash and cash equivalents | (881) | ||||
Held to maturity investments | (6) | ||||
IAS 39 [member] | Financial assets at amortised cost [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Trade receivables | 155,634 | ||||
Receivables from financial services | 1,297,597 | ||||
Trade receivables | 2,848,572 | ||||
Due from related parties | 5,299 | ||||
Receivables from financial services | 2,950,523 | ||||
Cash and cash equivalents | 4,712,333 | ||||
IAS 39 [member] | Financial assets at fair value through profit or loss, category [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivatives | 981,396 | ||||
IAS 39 [member] | Held to maturity investments [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Held to maturity investments | 654 | ||||
Held to maturity investments | 11,338 | ||||
IAS 39 [member] | Financial liabilities at fair value through profit or loss [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivatives | ₺ 110,108 |
Basis of Preparation and Sum_10
Basis of Preparation and Summary of Significant Accounting Policies - Summary of Reconciliation of Impairment Provision for Financial Services Receivables (Detail) - TRY (₺) ₺ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Increase (decrease) due to application of IFRS 9 [member] | ||||
Disclosure of provision for impairment of receivables [Line items] | ||||
Amounts restated through opening retained earnings | ₺ (52,951) | |||
Receivables from financial services [member] | ||||
Disclosure of provision for impairment of receivables [Line items] | ||||
Amounts restated through opening retained earnings | (52,951) | |||
At 1 January 2018 | ₺ 200,273 | ₺ 72,992 | ₺ 10,170 | |
Receivables from financial services [member] | In accordance with IAS 39 [member] | ||||
Disclosure of provision for impairment of receivables [Line items] | ||||
At 1 January 2018 | 72,992 | |||
Current year provision at profit or loss statement | 202,998 | |||
Receivables from financial services [member] | Increase (decrease) due to application of IFRS 9 [member] | ||||
Disclosure of provision for impairment of receivables [Line items] | ||||
Amounts restated through opening retained earnings | 52,951 | |||
At 1 January 2018 | 125,943 | |||
Current year provision at profit or loss statement | ₺ 190,509 |
Basis of Preparation and Sum_11
Basis of Preparation and Summary of Significant Accounting Policies - Summary of Reconciliation of Impairment Provision for Other Financial Assets (Detail) ₺ in Thousands | Jan. 01, 2018TRY (₺) |
Increase (decrease) due to application of IFRS 9 [member] | |
Disclosure of provision for impairment of other financial assets [Line items] | |
Amounts restated through opening retained earnings | ₺ (52,951) |
Other financial assets one [member] | |
Disclosure of provision for impairment of other financial assets [Line items] | |
Amounts restated through opening retained earnings | (38,384) |
Other financial assets one [member] | In accordance with IAS 39 [member] | |
Disclosure of provision for impairment of other financial assets [Line items] | |
At 1 January 2018 | 705,440 |
Current year provision at profit or loss statement | 427,211 |
Other financial assets one [member] | Increase (decrease) due to application of IFRS 9 [member] | |
Disclosure of provision for impairment of other financial assets [Line items] | |
At 1 January 2018 | 667,056 |
Current year provision at profit or loss statement | ₺ 418,799 |
Basis of Preparation and Sum_12
Basis of Preparation and Summary of Significant Accounting Policies - Summary of Impact of Adoption of IFRS 15 Revenue From Contract With Customers and IFRS 9 Financial Instruments (Detail) ₺ in Thousands | Jan. 01, 2018TRY (₺) |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Retained earnings 1 January 2018 - (including IFRS 9 effects-excluding IFRS 15 effects) | ₺ 11,312,276 |
Increase (decrease) due to application of IFRS 9 [member] | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Opening retained earnings 1 January 2018 - (including IFRS 9 and IFRS 15 effects) | 11,301,128 |
Retained earnings 1 January 2018 - (including IFRS 9 effects-excluding IFRS 15 effects) | 11,312,276 |
Deferred tax effect | (3,419) |
Adjustment to retained earnings from adoption of IFRS 15 | (11,148) |
Increase (decrease) due to application of IFRS 15 [member] | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Recognition of asset for subscriber acquisition cost | 830,011 |
Decrease in current assets and non-current assets | (132,920) |
Deferred tax effect | (144,632) |
Other | (22,437) |
Adjustment to retained earnings from adoption of IFRS 15 | 530,022 |
Adoption of IFRS 9 And 15 [member] | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Opening retained earnings 1 January 2018 - (including IFRS 9 and IFRS 15 effects) | ₺ 11,831,150 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | ||
Guarantees outstanding | ₺ 4,988,580 | ₺ 3,720,954 |
Deposits at call | ₺ 587,007 | ₺ 603,553 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Segments | |
Disclosure of operating segments [abstract] | |
Number of reportable segments | 2 |
Segment Information - Reconcili
Segment Information - Reconciliation of Adjusted EBITDA to Consolidated Profit Before Income Tax and Profit (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | |||
Total revenue | ₺ 21,292,475 | ₺ 17,632,064 | ₺ 14,285,561 |
Adjusted EBITDA | 8,787,982 | 6,228,254 | 4,619,509 |
Bad debt expense | (346,390) | (36,278) | (211,384) |
Profit for the year | 2,177,335 | 2,037,759 | 1,543,803 |
Profit/(loss) from discontinued operations | 42,164 | ||
Profit from continuing operations | 2,177,335 | 2,037,759 | 1,585,967 |
Income tax expense | 495,481 | 571,758 | 423,160 |
Finance income | (1,932,133) | (818,436) | (961,642) |
Finance costs | 3,619,091 | 1,141,302 | 1,134,441 |
Other income | (241,435) | (74,438) | (78,569) |
Other expenses | 381,582 | 773,329 | 312,801 |
Depreciation and amortization | 4,287,974 | 2,596,980 | 2,203,351 |
Share of loss of equity accounted investees | 87 | ||
Consolidated adjusted EBITDA | 8,787,982 | 6,228,254 | 4,619,509 |
Turkcell Turkey segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 18,223,433 | 15,418,446 | 12,767,912 |
Turkcell International segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 1,387,323 | 1,026,181 | 855,728 |
All other segments [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 1,681,719 | 1,187,437 | 661,921 |
Segment revenue [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 21,292,475 | 17,632,064 | 14,285,561 |
Operating segments [member] | Turkcell Turkey segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 18,265,777 | ||
Adjusted EBITDA | 7,534,291 | 5,593,837 | 4,160,861 |
Bad debt expense | (248,171) | 49,468 | (195,472) |
Consolidated adjusted EBITDA | 7,534,291 | 5,593,837 | 4,160,861 |
Operating segments [member] | Turkcell International segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 1,456,980 | ||
Adjusted EBITDA | 612,697 | 263,962 | 235,348 |
Bad debt expense | (4,088) | (6,070) | (5,956) |
Consolidated adjusted EBITDA | 612,697 | 263,962 | 235,348 |
Operating segments [member] | All other segments [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 1,933,831 | ||
Adjusted EBITDA | 665,470 | 374,314 | 222,849 |
Bad debt expense | (94,131) | (79,676) | (9,956) |
Consolidated adjusted EBITDA | 665,470 | 374,314 | 222,849 |
Operating segments [member] | Segment revenue [member] | Turkcell Turkey segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 18,265,777 | 15,450,136 | 12,787,592 |
Operating segments [member] | Segment revenue [member] | Turkcell International segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 1,456,980 | 1,067,078 | 874,692 |
Operating segments [member] | Segment revenue [member] | All other segments [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | 1,933,831 | 1,187,454 | 661,923 |
Operating segments [member] | Inter-segment revenue [member] | Turkcell Turkey segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | (42,344) | (31,690) | (19,680) |
Operating segments [member] | Inter-segment revenue [member] | Turkcell International segment [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | (69,657) | (40,897) | (18,964) |
Operating segments [member] | Inter-segment revenue [member] | All other segments [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | (252,112) | (17) | (2) |
Intersegment eliminations [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | (364,113) | ||
Adjusted EBITDA | (24,476) | (3,859) | 451 |
Consolidated adjusted EBITDA | (24,476) | (3,859) | 451 |
Intersegment eliminations [member] | Segment revenue [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | (364,113) | (72,604) | (38,646) |
Intersegment eliminations [member] | Inter-segment revenue [member] | |||
Disclosure of operating segments [line items] | |||
Total revenue | ₺ 364,113 | ₺ 72,604 | ₺ 38,646 |
Segment Information - Summary o
Segment Information - Summary of Geographical Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of geographical areas [line items] | |||
Total revenue | ₺ 21,292,475 | ₺ 17,632,064 | ₺ 14,285,561 |
Non-current assets | 24,428,166 | 19,913,363 | |
Turkey [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 19,636,682 | 16,431,863 | 13,321,503 |
Non-current assets | 21,037,351 | 18,098,228 | |
Ukraine [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 923,181 | 664,643 | 573,951 |
Non-current assets | 2,751,277 | 1,408,783 | |
Belarus [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 293,181 | 209,884 | 149,005 |
Non-current assets | 293,622 | 141,802 | |
Azerbaijan [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 268,471 | 174,021 | 108,329 |
Non-current assets | 13,663 | ||
Turkish Republic of Northern Cyprus [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 169,014 | 148,637 | 129,785 |
Non-current assets | 177,380 | 138,371 | |
Germany [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 1,580 | 3,016 | ₺ 2,988 |
Non-current assets | 168,536 | ₺ 112,516 | |
Netherlands [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue | ₺ 366 |
Revenue - Summary of Revenue (D
Revenue - Summary of Revenue (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of revenue [line items] | |||
Telecommunication Services | ₺ 17,977,697 | ₺ 15,115,816 | ₺ 12,883,974 |
Equipment revenues | 1,438,845 | 1,159,500 | 624,352 |
Revenue from financial services | 941,918 | 605,663 | 184,698 |
Call center revenues | 203,172 | 232,679 | 198,564 |
Commission fees on betting business | 200,315 | 181,886 | 176,167 |
Revenue from betting business | 268,470 | 174,021 | 108,329 |
Other | 262,058 | 162,499 | 109,477 |
Total revenue | 21,292,475 | 17,632,064 | 14,285,561 |
Operating segments [member] | Turkcell Turkey segment [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 16,752,587 | 14,236,174 | 12,126,395 |
Equipment revenues | 1,337,495 | 1,089,699 | 579,820 |
Other | 175,695 | 124,263 | 81,377 |
Total revenue | 18,265,777 | 15,450,136 | 12,787,592 |
Operating segments [member] | Turkcell International segment [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 1,281,595 | 952,246 | 796,225 |
Equipment revenues | 101,350 | 69,801 | 44,532 |
Call center revenues | 9,763 | 7,706 | 7,084 |
Other | 64,272 | 37,325 | 26,851 |
Total revenue | 1,456,980 | 1,067,078 | 874,692 |
Operating segments [member] | All other segments [member] | |||
Disclosure of revenue [line items] | |||
Revenue from financial services | 941,918 | 605,663 | 184,698 |
Call center revenues | 211,195 | 224,973 | 191,480 |
Commission fees on betting business | 200,315 | 181,886 | 176,167 |
Revenue from betting business | 268,470 | 174,021 | 108,329 |
Other | 311,933 | 911 | 1,249 |
Total revenue | 1,933,831 | 1,187,454 | 661,923 |
Intersegment eliminations [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 56,485 | 72,604 | 38,646 |
Call center revenues | 17,786 | ||
Other | 289,842 | ||
Total revenue | ₺ 364,113 | ₺ 72,604 | ₺ 38,646 |
Revenue - Summary of Revenue by
Revenue - Summary of Revenue by Recognition (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of revenue [line items] | |||
Telecommunication Services | ₺ 17,977,697 | ₺ 15,115,816 | ₺ 12,883,974 |
Equipment Related | 1,438,845 | 1,159,500 | 624,352 |
Call Center | 203,172 | 232,679 | 198,564 |
Commision fees on betting business | 200,315 | 181,886 | 176,167 |
Revenue from betting business | 268,470 | 174,021 | 108,329 |
Revenue from financial operations | 941,918 | 605,663 | 184,698 |
All other segments | 262,058 | 162,499 | 109,477 |
Total | 21,292,475 | 17,632,064 | 14,285,561 |
Turkcell Turkey segment [member] | |||
Disclosure of revenue [line items] | |||
Total | 18,223,433 | 15,418,446 | 12,767,912 |
Turkcell International segment [member] | |||
Disclosure of revenue [line items] | |||
Total | 1,387,323 | 1,026,181 | 855,728 |
All other segments [member] | |||
Disclosure of revenue [line items] | |||
Total | 1,681,719 | 1,187,437 | 661,921 |
Goods or services transferred at point in time [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 259,836 | ||
Equipment Related | 1,432,158 | ||
Revenue from financial operations | 38,955 | ||
All other segments | 28,343 | ||
Total | 1,759,292 | ||
Goods or services transferred over time [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 17,717,861 | ||
Equipment Related | 6,687 | ||
Call Center | 203,172 | ||
Commision fees on betting business | 200,315 | ||
Revenue from betting business | 268,470 | ||
Revenue from financial operations | 902,963 | ||
All other segments | 233,715 | ||
Total | 19,533,183 | ||
Operating segments [member] | Turkcell Turkey segment [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 16,752,587 | 14,236,174 | 12,126,395 |
Equipment Related | 1,337,495 | 1,089,699 | 579,820 |
All other segments | 175,695 | 124,263 | 81,377 |
Total | 18,265,777 | ||
Operating segments [member] | Turkcell International segment [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 1,281,595 | 952,246 | 796,225 |
Equipment Related | 101,350 | 69,801 | 44,532 |
Call Center | 9,763 | 7,706 | 7,084 |
All other segments | 64,272 | 37,325 | 26,851 |
Total | 1,456,980 | ||
Operating segments [member] | All other segments [member] | |||
Disclosure of revenue [line items] | |||
Call Center | 211,195 | 224,973 | 191,480 |
Commision fees on betting business | 200,315 | 181,886 | 176,167 |
Revenue from betting business | 268,470 | 174,021 | 108,329 |
Revenue from financial operations | 941,918 | 605,663 | 184,698 |
All other segments | 311,933 | 911 | 1,249 |
Total | 1,933,831 | ||
Operating segments [member] | Goods or services transferred at point in time [member] | Turkcell Turkey segment [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 267,329 | ||
Equipment Related | 1,330,808 | ||
All other segments | 12,211 | ||
Total | 1,610,348 | ||
Operating segments [member] | Goods or services transferred at point in time [member] | Turkcell International segment [member] | |||
Disclosure of revenue [line items] | |||
Equipment Related | 101,350 | ||
All other segments | 8,556 | ||
Total | 109,906 | ||
Operating segments [member] | Goods or services transferred at point in time [member] | All other segments [member] | |||
Disclosure of revenue [line items] | |||
Revenue from financial operations | 38,955 | ||
All other segments | 7,576 | ||
Total | 46,531 | ||
Operating segments [member] | Goods or services transferred over time [member] | Turkcell Turkey segment [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 16,485,258 | ||
Equipment Related | 6,687 | ||
All other segments | 163,484 | ||
Total | 16,655,429 | ||
Operating segments [member] | Goods or services transferred over time [member] | Turkcell International segment [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 1,281,595 | ||
Call Center | 9,763 | ||
All other segments | 55,716 | ||
Total | 1,347,074 | ||
Operating segments [member] | Goods or services transferred over time [member] | All other segments [member] | |||
Disclosure of revenue [line items] | |||
Call Center | 211,195 | ||
Commision fees on betting business | 200,315 | ||
Revenue from betting business | 268,470 | ||
Revenue from financial operations | 902,963 | ||
All other segments | 304,357 | ||
Total | 1,887,300 | ||
Intersegment eliminations [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 56,485 | ₺ 72,604 | ₺ 38,646 |
Call Center | 17,786 | ||
All other segments | 289,842 | ||
Total | (364,113) | ||
Intersegment eliminations [member] | Goods or services transferred at point in time [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 7,493 | ||
Total | 7,493 | ||
Intersegment eliminations [member] | Goods or services transferred over time [member] | |||
Disclosure of revenue [line items] | |||
Telecommunication Services | 48,992 | ||
Call Center | 17,786 | ||
All other segments | 289,842 | ||
Total | ₺ 356,620 |
Other Income and Expense - Addi
Other Income and Expense - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of other income (expense) [abstract] | |||
Other income | ₺ 241,435 | ₺ 74,438 | ₺ 78,569 |
Other expenses | ₺ 381,582 | ₺ 773,329 | ₺ 312,801 |
Employee Benefit Expenses - Sum
Employee Benefit Expenses - Summary OF Employee Benefit Expenses (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Employee Benefit Expenses [abstract] | |||
Wages and salaries | ₺ 2,030,641 | ₺ 1,746,147 | ₺ 1,450,262 |
Employee termination benefits | 29,140 | 32,862 | 32,977 |
Defined contribution plans | 9,361 | 8,107 | 7,722 |
Employee benefit expenses | ₺ 2,069,142 | ₺ 1,787,116 | ₺ 1,490,961 |
Employee Benefit Expenses - S_2
Employee Benefit Expenses - Summary OF Employee Benefit Expenses (Parenthetical) (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Employee Benefit Expenses [abstract] | |||
Remeasurements of employee termination benefit gains/losses | ₺ (12,699) | ₺ 3,738 | ₺ 34,532 |
Finance Income and Costs - Summ
Finance Income and Costs - Summary of Finance Income and Costs (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Finance Income And Costs [abstract] | |||
Fair value gains on derivative financial instruments and interest | ₺ 654,933 | ₺ 317,542 | ₺ 282,408 |
Cash flow hedges - reclassified to profit or loss | 568,370 | ||
Interest income on bank deposits | 395,045 | 278,599 | 158,206 |
Interest income on financial assets measured at amortized cost | 204,191 | 185,004 | 445,943 |
Credit finance income | 50,828 | 36,186 | 74,522 |
Other | 58,766 | 1,105 | 563 |
Finance income | 1,932,133 | 818,436 | 961,642 |
Net foreign exchange losses | (2,695,045) | (718,501) | (782,463) |
Interest expenses for financial liabilities measured at amortized cost | (807,120) | (385,386) | (343,290) |
Late payment interest expense | (29,115) | ||
Other | (116,926) | (8,300) | (8,688) |
Finance costs | (3,619,091) | (1,141,302) | (1,134,441) |
Net finance costs | ₺ (1,686,958) | ₺ (322,866) | ₺ (172,799) |
Finance Income and Costs - Addi
Finance Income and Costs - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of finance income and costs [line items] | |||
Net foreign exchange loss | ₺ 2,695,045 | ₺ 718,501 | ₺ 782,463 |
Borrowings [member] | |||
Disclosure of finance income and costs [line items] | |||
Net foreign exchange loss | 2,378,910 | ||
Bonds [member] | |||
Disclosure of finance income and costs [line items] | |||
Net foreign exchange loss | ₺ 1,335,308 |
Income Tax Expense - Summary of
Income Tax Expense - Summary of Income Tax Expense (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Major components of tax expense (income) [abstract] | |||
Current income tax expense | ₺ (654,953) | ₺ (437,967) | ₺ (200,663) |
Deferred income tax (expense)/credit | 159,472 | (133,791) | (222,497) |
Total income tax expense | ₺ (495,481) | ₺ (571,758) | ₺ (423,160) |
Income Tax Expense - Summary _2
Income Tax Expense - Summary of Income Tax Relating to Each Component of Other Comprehensive Income (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Major components of tax expense (income) [abstract] | |||
Foreign currency translation differences | ₺ 850,188 | ₺ 100,149 | ₺ 218,472 |
Change in cash flow hedge reserve | 19,156 | ||
Change in cost of hedging reserve | (347,602) | ||
Remeasurements of employee termination benefits | 12,699 | (3,738) | (34,532) |
Total, Before tax | 534,441 | 96,411 | 183,940 |
Foreign currency translation differences | (226,667) | (107,299) | (87,381) |
Change in cash flow hedge reserve | (4,214) | ||
Change in cost of hedging reserve | 76,472 | ||
Remeasurements of employee termination benefits | (2,794) | 748 | 7,066 |
Total, Tax (expense)/benefit | (157,203) | (106,551) | (80,315) |
Foreign currency translation differences | 623,521 | (7,150) | 131,091 |
Change in cash flow hedge reserve | 14,942 | ||
Change in cost of hedging reserve | (271,130) | ||
Remeasurements of employee termination benefits | 9,905 | (2,990) | (27,466) |
Other comprehensive income (loss) for the year, net of income tax | ₺ 377,238 | ₺ (10,140) | ₺ 103,625 |
Income Tax Expense - Summary _3
Income Tax Expense - Summary of Reconciliation of Effective Income Tax Expense (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Profit from continuing operations before income tax expense | ₺ 2,672,816 | ₺ 2,609,517 | ₺ 2,009,127 |
(Loss) from discontinued operations before income tax expense | (42,164) | ||
Profit before income tax expense | 2,672,816 | 2,609,517 | 1,966,963 |
Tax at the Turkey's tax rate | (588,020) | (521,903) | (393,393) |
Difference in overseas tax rates | 7,617 | 4,133 | (15,935) |
Effect of exemptions | 198,160 | 73,916 | 104,244 |
Effect of amounts which are not deductible | (91,778) | (102,102) | (78,571) |
Tax exemption from subsidiary sale | 24,268 | ||
Utilization of previously unrecognized tax losses | 1,253 | ||
Change in unrecognized deferred tax assets | (50,551) | (41,340) | (30,616) |
Adjustments for current tax of prior years | 2,510 | 11,280 | (8,176) |
Tax effect of investment in associate | 0 | 0 | 0 |
Other | 2,313 | 4,258 | (1,966) |
Total income tax expense | ₺ (495,481) | ₺ (571,758) | ₺ (423,160) |
Income Tax Expense - Summary _4
Income Tax Expense - Summary of Reconciliation of Effective Income Tax Expense (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018TRY (₺) | |
Summary of Reconciliation of Effective Income Tax Expense [Line Items] | |
Exemption effect of disposal | ₺ (24,268,000) |
Fintur [member] | |
Summary of Reconciliation of Effective Income Tax Expense [Line Items] | |
Exemption effect of disposal | ₺ 76,164 |
Income Tax Expense - Additional
Income Tax Expense - Additional information (Detail) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Income Tax Expense [Line Items] | ||||
Corporate tax rate | 20.00% | |||
Allowed Percentage deduction of research and development expenses | 100.00% | |||
Dividend payments, withholding tax | 15.00% | |||
Percentage of the profits arising from sale of affiliate shares, founders' shares, redeemed shares and preemptive rights held by entities for corporate tax exception | 75.00% | |||
Tax exception minimum withhold period from sale of affiliate shares, founders' shares, redeemed shares and preemptive rights | 2 years | |||
Percentage of profits arising from sale of immovable properties included in assets entities for corporate tax exception | 50.00% | |||
Tax exception minimum withhold period from sale of immovable properties | 2 years | |||
Percentage of income tax exemption | 75.00% | |||
Minimum term for profits recorded under passive fund account without withdrawal for tax exception | 5 years | |||
Changes in tax rates or tax laws enacted or announced [member] | ||||
Disclosure of Income Tax Expense [Line Items] | ||||
Corporate tax rate | 22.00% | 22.00% | 22.00% |
Expenses by Nature - Summary of
Expenses by Nature - Summary of Expenses by Cost of Sales (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | ₺ (14,145,993) | ₺ (11,350,174) | ₺ (9,236,607) |
Cost of sales net | (14,145,993) | (11,350,174) | (9,236,607) |
Treasury shares [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (1,884,556) | (1,669,807) | (1,491,503) |
Accumulated amortization [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (4,287,974) | (2,596,980) | (2,203,351) |
Interconnection and termination cost [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (1,763,414) | (1,607,079) | (1,420,233) |
Employee benefit expense [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (1,202,485) | (1,046,544) | (859,143) |
Cost of goods sold [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (1,108,734) | (870,226) | (551,656) |
Radio cost [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (508,884) | (844,941) | (828,222) |
Direct cost of revenue from financial services [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (348,492) | (270,366) | (68,546) |
Transmission costs [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (326,080) | (218,221) | (139,185) |
Universal service fund [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (256,454) | (221,431) | (192,045) |
Roaming expenses [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (226,806) | (177,258) | (128,429) |
Billing and archiving cost [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (50,929) | (55,185) | (61,647) |
Frequency Cost [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | (622,390) | (278,727) | (229,396) |
Other [member] | |||
Summary of expenses by nature cost of sales [line items] | |||
Cost of sales net | ₺ (1,558,795) | ₺ (1,493,409) | ₺ (1,063,251) |
Expenses by Nature - Summary _2
Expenses by Nature - Summary of Expenses by Cost of Sales (Parenthetical) (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of expenses by nature cost of sales [abstract] | |||
Depreciation and amortization expenses related to financial services | ₺ 12,053 | ₺ 6,343 | ₺ 1,677 |
Expenses by Nature - Summary _3
Expenses by Nature - Summary of Expenses by Nature Selling and Marketing Expenses (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of expenses by nature selling and marketing expenses [line items] | |||
Selling and marketing expenses | ₺ (1,626,714) | ₺ (2,005,420) | ₺ (1,910,947) |
Selling expenses [member] | |||
Summary of expenses by nature selling and marketing expenses [line items] | |||
Selling and marketing expenses | (555,158) | (898,936) | (757,869) |
Marketing expenses [member] | |||
Summary of expenses by nature selling and marketing expenses [line items] | |||
Selling and marketing expenses | (551,127) | (532,989) | (518,382) |
Employee benefit expense [member] | |||
Summary of expenses by nature selling and marketing expenses [line items] | |||
Selling and marketing expenses | (440,976) | (394,421) | (354,380) |
Frequency usage fees related to prepaid subscribers [member] | |||
Summary of expenses by nature selling and marketing expenses [line items] | |||
Selling and marketing expenses | (82,994) | (186,530) | |
Other [member] | |||
Summary of expenses by nature selling and marketing expenses [line items] | |||
Selling and marketing expenses | ₺ (79,453) | ₺ (96,080) | ₺ (93,786) |
Expenses by Nature - Summary _4
Expenses by Nature - Summary of Expenses by Nature Administrative Expenses (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of expenses by nature administrative expenses [line items] | |||
Administrative expenses | ₺ (673,370) | ₺ (645,196) | ₺ (721,849) |
Employee benefit expenses [member] | |||
Summary of expenses by nature administrative expenses [line items] | |||
Administrative expenses | (425,681) | (346,151) | (277,438) |
Travel and entertainment expenses [member] | |||
Summary of expenses by nature administrative expenses [line items] | |||
Administrative expenses | (38,406) | (30,957) | (18,913) |
Consultancy expenses [member] | |||
Summary of expenses by nature administrative expenses [line items] | |||
Administrative expenses | (38,252) | (50,247) | (54,315) |
Collection expenses [member] | |||
Summary of expenses by nature administrative expenses [line items] | |||
Administrative expenses | (37,525) | (20,415) | (20,827) |
Maintenance and repair expenses [member] | |||
Summary of expenses by nature administrative expenses [line items] | |||
Administrative expenses | (26,867) | (24,342) | (20,315) |
Rent expenses [member] | |||
Summary of expenses by nature administrative expenses [line items] | |||
Administrative expenses | (36,280) | (30,314) | |
Impairment expense recognized on receivables [member] | |||
Summary of expenses by nature administrative expenses [line items] | |||
Administrative expenses | (36,278) | (211,384) | |
Other [member] | |||
Summary of expenses by nature administrative expenses [line items] | |||
Administrative expenses | ₺ (106,639) | ₺ (100,526) | ₺ (88,343) |
Expenses by Nature - Summary _5
Expenses by Nature - Summary of Net Impairment Losses on Financial and Contract Assets (Detail) ₺ in Thousands | 12 Months Ended |
Dec. 31, 2018TRY (₺) | |
Disclosure of impairment loss and reversal of impairment loss [line items] | |
Net impairment losses on financial and contract assets | ₺ (346,390) |
Financial and contract assets [member] | |
Disclosure of impairment loss and reversal of impairment loss [line items] | |
Net impairment losses on financial and contract assets | ₺ (346,390) |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | ₺ 9,665,408 | ₺ 8,195,705 | |
Additions | 1,153,776 | 1,469,217 | |
Disposals | (21,976) | (23,675) | |
Transfers | (7,811) | (153) | |
Impairment expenses/(reversals) | (34,382) | (39,721) | ₺ (43,198) |
Disposal of subsidiary | (10,023) | ||
Effects of movements in exchange rates | 391,380 | 21,807 | |
Transfer from (to) investment property | (20,056) | 42,228 | |
Balance at end of year | 11,116,316 | 9,665,408 | 8,195,705 |
Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 18,018,765 | 15,947,162 | |
Additions | 3,008,228 | 2,928,738 | |
Disposals | (253,242) | (1,028,876) | |
Transfers | (7,811) | (153) | |
Impairment expenses/(reversals) | (10,744) | (14,535) | |
Disposal of subsidiary | (22,161) | ||
Effects of movements in exchange rates | 1,058,150 | 121,835 | |
Transfer from (to) investment property | (45,821) | 64,594 | |
Balance at end of year | 21,745,364 | 18,018,765 | 15,947,162 |
Cost [member] | Network infrastructure [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 15,480,128 | 13,897,308 | |
Additions | 650,610 | 574,301 | |
Disposals | (232,888) | (1,009,922) | |
Transfers | 2,270,262 | 1,907,022 | |
Disposal of subsidiary | (15,081) | ||
Effects of movements in exchange rates | 979,247 | 111,419 | |
Balance at end of year | 19,132,278 | 15,480,128 | 13,897,308 |
Cost [member] | Land and buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 786,058 | 519,702 | |
Additions | 28,828 | 162,206 | |
Disposals | (2,535) | (1,340) | |
Transfers | 156,540 | 39,130 | |
Effects of movements in exchange rates | 6,831 | 1,766 | |
Transfer from (to) investment property | (45,821) | 64,594 | |
Balance at end of year | 929,901 | 786,058 | 519,702 |
Cost [member] | Equipment, fixtures and fittings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 728,202 | 617,732 | |
Additions | 59,311 | 117,087 | |
Disposals | (15,827) | (10,854) | |
Transfers | 10,712 | 2,209 | |
Disposal of subsidiary | (4,041) | ||
Effects of movements in exchange rates | 25,143 | 2,028 | |
Balance at end of year | 803,500 | 728,202 | 617,732 |
Cost [member] | Motor vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 37,216 | 34,136 | |
Additions | 3,121 | 4,415 | |
Disposals | (775) | (1,719) | |
Disposal of subsidiary | (1,400) | ||
Effects of movements in exchange rates | 1,944 | 384 | |
Balance at end of year | 40,106 | 37,216 | 34,136 |
Cost [member] | Leasehold improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 314,867 | 311,761 | |
Additions | 5,998 | 7,400 | |
Disposals | (547) | (5,041) | |
Transfers | 3,123 | 486 | |
Disposal of subsidiary | (1,639) | ||
Effects of movements in exchange rates | 5,690 | 261 | |
Balance at end of year | 327,492 | 314,867 | 311,761 |
Cost [member] | Construction in progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 672,294 | 566,523 | |
Additions | 2,260,360 | 2,063,329 | |
Disposals | (670) | ||
Transfers | (2,448,448) | (1,949,000) | |
Impairment expenses/(reversals) | (10,744) | (14,535) | |
Effects of movements in exchange rates | 39,295 | 5,977 | |
Balance at end of year | 512,087 | 672,294 | 566,523 |
Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 8,353,357 | 7,751,457 | |
Additions | 1,854,452 | 1,459,521 | |
Disposals | (231,266) | (1,005,201) | |
Impairment expenses/(reversals) | 23,638 | 25,186 | |
Disposal of subsidiary | (12,138) | ||
Effects of movements in exchange rates | 666,770 | 100,028 | |
Transfer from (to) investment property | (25,765) | 22,366 | |
Balance at end of year | 10,629,048 | 8,353,357 | 7,751,457 |
Accumulated depreciation [member] | Network infrastructure [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 7,326,559 | 6,843,580 | |
Additions | 1,693,374 | 1,353,419 | |
Disposals | (218,894) | (990,719) | |
Impairment expenses/(reversals) | 23,568 | 23,589 | |
Disposal of subsidiary | (6,887) | ||
Effects of movements in exchange rates | 628,497 | 96,690 | |
Balance at end of year | 9,446,217 | 7,326,559 | 6,843,580 |
Accumulated depreciation [member] | Land and buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 209,918 | 159,351 | |
Additions | 50,514 | 26,295 | |
Disposals | (274) | (221) | |
Impairment expenses/(reversals) | 9 | 1,482 | |
Effects of movements in exchange rates | 4,686 | 645 | |
Transfer from (to) investment property | (25,765) | 22,366 | |
Balance at end of year | 239,088 | 209,918 | 159,351 |
Accumulated depreciation [member] | Equipment, fixtures and fittings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 539,827 | 497,606 | |
Additions | 77,694 | 48,393 | |
Disposals | (10,839) | (8,202) | |
Impairment expenses/(reversals) | 49 | 115 | |
Disposal of subsidiary | (2,694) | ||
Effects of movements in exchange rates | 29,470 | 1,915 | |
Balance at end of year | 633,507 | 539,827 | 497,606 |
Accumulated depreciation [member] | Motor vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 31,306 | 30,252 | |
Additions | 2,637 | 2,276 | |
Disposals | (712) | (1,642) | |
Disposal of subsidiary | (918) | ||
Effects of movements in exchange rates | 1,917 | 420 | |
Balance at end of year | 34,230 | 31,306 | 30,252 |
Accumulated depreciation [member] | Leasehold improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 245,747 | 220,668 | |
Additions | 30,233 | 29,138 | |
Disposals | (547) | (4,417) | |
Impairment expenses/(reversals) | 12 | ||
Disposal of subsidiary | (1,639) | ||
Effects of movements in exchange rates | 2,200 | 358 | |
Balance at end of year | ₺ 276,006 | ₺ 245,747 | ₺ 220,668 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |||
Depreciation expenses | ₺ 1,888,834 | ₺ 1,499,242 | ₺ 1,278,009 |
Impairment losses on property, plant and equipment | ₺ (34,382) | ₺ (39,721) | ₺ (43,198) |
Capitalization rate for acquisition of qualifying asset | 6.80% | 10.00% | 9.90% |
Borrowing costs capitalized | ₺ 75,054 | ₺ 66,513 | ₺ 76,899 |
Intangible Assets - Turkcell 2G
Intangible Assets - Turkcell 2G License - Additional Information (Detail) ₺ in Thousands, $ in Thousands | Apr. 27, 1998USD ($) | Dec. 31, 2018TRY (₺) | Dec. 31, 2017TRY (₺) | Dec. 31, 2016TRY (₺) |
Disclosure of detailed information about intangible assets [line items] | ||||
Carrying amount of intangible asset | ₺ 10,050,172 | ₺ 8,340,410 | ₺ 8,235,989 | |
Turkcell 2G license [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Amortization period of intangible asset | 25-year | |||
Carrying amount of intangible asset | ₺ 195,425 | ₺ 241,407 | ||
Consideration paid for acquiring license | $ | $ 500,000 |
Intangible Assets - Turkcell 3G
Intangible Assets - Turkcell 3G License - Additional Information (Detail) ₺ in Thousands, € in Thousands | Apr. 30, 2009EUR (€) | Dec. 31, 2018TRY (₺) | Dec. 31, 2017TRY (₺) | Dec. 31, 2016TRY (₺) |
Disclosure of detailed information about intangible assets [line items] | ||||
Carrying amount of intangible asset | ₺ 10,050,172 | ₺ 8,340,410 | ₺ 8,235,989 | |
Turkcell 3G license [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Consideration paid for acquiring license | € | € 358,000 | |||
Carrying amount of intangible asset | ₺ 397,543 | ₺ 436,014 | ||
Amortization period of intangible asset | 25 years |
Intangible Assets - Turkcell 4.
Intangible Assets - Turkcell 4.5G License - Additional Information (Detail) - Turkcell 4.5G license [member] ₺ in Thousands, € in Thousands | 12 Months Ended | ||
Dec. 31, 2018EUR (€) | Dec. 31, 2018TRY (₺) | Dec. 31, 2017TRY (₺) | |
Disclosure of detailed information about intangible assets [line items] | |||
Amortization period of intangible asset | 13 years | ||
Consideration paid for acquiring license | € | € 1,623,460 | ||
Expiration year of intangible asset | 2029 | ||
Carrying amount of intangible assets | ₺ | ₺ 4,125,743 | ₺ 4,528,254 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets and Goodwill (Detail) (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | ₺ 8,340,410 | ₺ 8,235,989 |
Impact of IFRS 15 adaption | 830,011 | |
Additions | 687,825 | 79,432 |
Disposals | (38,161) | (504) |
Transfers | 7,811 | 153 |
Impairment | (3,232) | (1,986) |
Disposal of subsidiary | (5,592) | |
Effects of movements in exchange rates | 231,100 | 27,326 |
Balance at end of year | 10,050,172 | 8,340,410 |
Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 15,678,873 | 14,482,018 |
Impact of IFRS 15 adaption | 1,431,901 | |
Additions | 2,264,912 | 1,172,847 |
Disposals | (225,845) | (8,624) |
Transfers | 7,811 | 153 |
Disposal of subsidiary | (18,561) | |
Effects of movements in exchange rates | 483,134 | 32,479 |
Balance at end of year | 19,622,225 | 15,678,873 |
Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 7,338,463 | 6,246,029 |
Impact of IFRS 15 adaption | 601,890 | |
Additions | 1,577,087 | 1,093,415 |
Disposals | (187,684) | (8,120) |
Impairment | 3,232 | 1,986 |
Disposal of subsidiary | (12,969) | |
Effects of movements in exchange rates | 252,034 | 5,153 |
Balance at end of year | 9,572,053 | 7,338,463 |
Construction in progress [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 127,637 | 142,875 |
Additions | 485,815 | 620,463 |
Transfers | (618,032) | (638,357) |
Effects of movements in exchange rates | 22,587 | 2,656 |
Balance at end of year | 18,007 | 127,637 |
GSM and other telecommunication operating licenses [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 8,139,628 | 8,039,431 |
Additions | 6,394 | 10,154 |
Disposals | (220,986) | |
Transfers | 466,379 | 69,945 |
Effects of movements in exchange rates | 331,583 | 20,098 |
Balance at end of year | 8,722,998 | 8,139,628 |
GSM and other telecommunication operating licenses [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 2,419,230 | 1,878,895 |
Additions | 533,311 | 537,162 |
Disposals | (184,582) | |
Effects of movements in exchange rates | 180,276 | 3,173 |
Balance at end of year | 2,948,235 | 2,419,230 |
Computer software [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 7,117,116 | 6,076,405 |
Additions | 1,175,040 | 470,457 |
Disposals | (4,822) | (8,624) |
Transfers | 159,453 | 569,153 |
Disposal of subsidiary | (18,370) | |
Effects of movements in exchange rates | 110,621 | 9,725 |
Balance at end of year | 8,539,038 | 7,117,116 |
Computer software [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 4,770,880 | 4,237,996 |
Additions | 663,967 | 537,805 |
Disposals | (3,071) | (8,120) |
Impairment | 3,232 | 1,219 |
Disposal of subsidiary | (12,793) | |
Effects of movements in exchange rates | 59,680 | 1,980 |
Balance at end of year | 5,481,895 | 4,770,880 |
Transmission lines [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 71,820 | 71,602 |
Additions | 1,319 | 218 |
Balance at end of year | 73,139 | 71,820 |
Transmission lines [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 62,468 | 58,203 |
Additions | 4,549 | 3,498 |
Impairment | 767 | |
Balance at end of year | 67,017 | 62,468 |
Central betting system operating right [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 11,981 | 11,981 |
Balance at end of year | 11,981 | 11,981 |
Central betting system operating right [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 11,491 | 10,588 |
Additions | 583 | 903 |
Balance at end of year | 12,074 | 11,491 |
Indefeasible right of usage [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 112,556 | 46,017 |
Additions | 5,062 | 66,539 |
Balance at end of year | 117,618 | 112,556 |
Indefeasible right of usage [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 23,274 | 18,785 |
Additions | 8,581 | 4,489 |
Balance at end of year | 31,855 | 23,274 |
Brand name [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 7,040 | 7,040 |
Balance at end of year | 7,040 | 7,040 |
Brand name [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 6,512 | 5,808 |
Additions | 528 | 704 |
Balance at end of year | 7,040 | 6,512 |
Customer base [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 15,512 | 15,512 |
Balance at end of year | 15,512 | 15,512 |
Customer base [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 11,774 | 11,286 |
Additions | 437 | 488 |
Balance at end of year | 12,211 | 11,774 |
Goodwill [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 32,834 | 32,834 |
Balance at end of year | 32,834 | 32,834 |
Subscriber acquisition costs [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Impact of IFRS 15 adaption | 1,431,901 | |
Additions | 583,809 | |
Effects of movements in exchange rates | 18,343 | |
Balance at end of year | 2,034,053 | |
Subscriber acquisition costs [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Impact of IFRS 15 adaption | 601,890 | |
Additions | 360,232 | |
Effects of movements in exchange rates | 12,078 | |
Balance at end of year | 974,200 | |
Other [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 42,749 | 38,321 |
Additions | 7,473 | 5,016 |
Disposals | (37) | |
Transfers | 11 | (588) |
Disposal of subsidiary | (191) | |
Balance at end of year | 50,005 | 42,749 |
Other [member] | Accumulated amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance at beginning of year | 32,834 | 24,468 |
Additions | 4,899 | 8,366 |
Disposals | (31) | |
Disposal of subsidiary | (176) | |
Balance at end of year | ₺ 37,526 | ₺ 32,834 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about intangible assets [line items] | |||
Amortization expenses on intangible assets other than goodwill | ₺ 1,580,319 | ₺ 1,095,401 | ₺ 921,812 |
Impairment losses on intangible assets | 3,232 | 1,986 | 3,181 |
Internally generated [member] | Computer software [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Capitalized cost | 171,442 | 124,504 | |
Amortization expense | ₺ 40,934 | ₺ 37,532 | ₺ 30,148 |
Impairment of Assets - Lifecell
Impairment of Assets - Lifecell - Additional Information (Detail) - Lifecell [member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Actuarial assumption of weighted average cost of capital [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 0.50% | 0.50% |
Percentage of reasonably possible decrease in actuarial assumption | (0.50%) | (0.50%) |
Individual assets or cash-generating units [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Terminal growth rate | 5.30% | 6.00% |
Description on key assumptions | 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. | 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. |
Individual assets or cash-generating units [member] | 2018 to 2022 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 26.50% | |
Individual assets or cash-generating units [member] | After 2022 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 25.90% | |
Individual assets or cash-generating units [member] | 2019 to 2024 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 27.00% | |
Individual assets or cash-generating units [member] | After 2024 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 26.30% |
Impairment of Assets - Belarusi
Impairment of Assets - Belarusian Telecom - Additional Information (Detail) - Belarusian Telecom [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | ||
Impairment loss recognized | ₺ 228,774 | |
Actuarial assumption of weighted average cost of capital [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 0.50% | 0.50% |
Percentage of reasonably possible decrease in actuarial assumption | (0.50%) | (0.50%) |
Individual assets or cash-generating units [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Terminal growth rate | 5.00% | 8.00% |
Description on key assumptions | 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. | 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. |
Individual assets or cash-generating units [member] | 2018 to 2022 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 25.40% | |
Individual assets or cash-generating units [member] | After 2021 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 24.90% | |
Individual assets or cash-generating units [member] | 2019 to 2024 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 22.80% | |
Individual assets or cash-generating units [member] | After 2024 [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Post-tax WACC rate | 22.40% |
Impairment of Assets - Turkcell
Impairment of Assets - Turkcell Superonline -Additional Information (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Turkcell Superonline [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Aggregate carrying amount of goodwill | ₺ 32,834 | ₺ 32,834 |
Investment Properties - Summary
Investment Properties - Summary of Increase (Decrease) in Fair Value (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about investment property [line items] | ||
Opening balance | ₺ 980 | |
Closing balance | 15,425 | ₺ 980 |
Net book amount | 15,425 | 980 |
Cost [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Opening balance | 99,938 | 165,472 |
Transfer to property, plant and equipment | 45,821 | (64,594) |
Disposal | (940) | |
Closing balance | 145,759 | 99,938 |
Accumulated amortization [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Opening balance | (98,958) | (119,202) |
Transfer to property, plant and equipment | (25,765) | 22,366 |
Depreciation and impairment charges during the year | (5,611) | (2,337) |
Disposal | 215 | |
Other | 0 | 0 |
Closing balance | ₺ (130,334) | ₺ (98,958) |
Investment Properties - Additio
Investment Properties - Additional Information (Detail) - TRY (₺) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about investment property [abstract] | |||
Rental income | ₺ 3,092,000 | ₺ 2,821,000 | ₺ 2,317,000 |
Direct operating expense from investment property | ₺ 0 | ₺ 22,000 | ₺ 22,000 |
Investment Properties - Summa_2
Investment Properties - Summary of Investment Properties and Information About Fair Value Hierarchy (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | ₺ 15,425 | ₺ 980 |
Fair value [member] | Level 3 [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 49,785 | 109,338 |
Fair value [member] | Level 3 [member] | Investment properties in Izmir [member] | Replacement cost approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 52,110 | |
Fair value [member] | Level 3 [member] | Investment properties in Gebze [member] | Income approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 17,960 | 16,690 |
Fair value [member] | Level 3 [member] | Investment properties in Ankara [member] | Market approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 15,915 | 15,160 |
Fair value [member] | Level 3 [member] | Investment properties in Istanbul [member] | Market approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 13,800 | 13,000 |
Fair value [member] | Level 3 [member] | Investment properties in adana [member] | Replacement cost approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 3,150 | |
Fair value [member] | Level 3 [member] | Investment properties in Balikesir [member] | Replacement cost approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 3,112 | |
Fair value [member] | Level 3 [member] | Other investment properties [member] | Replacement cost approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | 3,970 | |
Fair value [member] | Level 3 [member] | Other investment properties [member] | Market approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | ₺ 2,146 | |
Fair value [member] | Level 3 [member] | Investment properties in aydin [member] | Market approach [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Investment properties | ₺ 2,110 |
Right of Use Assets - Summary o
Right of Use Assets - Summary of Closing Balances of Right of Use Assets and Depreciation and Amortization Expenses (Detail) ₺ in Thousands | 12 Months Ended |
Dec. 31, 2018TRY (₺) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Ending balance | ₺ 1,649,602 |
Tangible [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 1,566,238 |
Depreciation and amortization charge for the year | (758,479) |
Ending balance | 1,317,217 |
Tangible [member] | Site rent [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 1,077,517 |
Depreciation and amortization charge for the year | (451,850) |
Ending balance | 1,021,638 |
Tangible [member] | Building [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 146,826 |
Depreciation and amortization charge for the year | (43,563) |
Ending balance | 135,158 |
Tangible [member] | Network infrastructure [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 226,243 |
Depreciation and amortization charge for the year | (181,741) |
Ending balance | 50,538 |
Tangible [member] | Other [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 115,652 |
Depreciation and amortization charge for the year | (81,325) |
Ending balance | 109,883 |
Intangible [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 12,321 |
Depreciation and amortization charge for the year | (54,731) |
Ending balance | 332,385 |
Intangible [member] | Rights of way [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 12,321 |
Depreciation and amortization charge for the year | (6,458) |
Ending balance | 8,643 |
Intangible [member] | License [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciation and amortization charge for the year | (48,273) |
Ending balance | 323,742 |
Right of use assets [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 1,578,559 |
Depreciation and amortization charge for the year | (813,210) |
Ending balance | ₺ 1,649,602 |
Right of Use Assets - Additiona
Right of Use Assets - Additional Information (Detail) ₺ in Thousands | 12 Months Ended |
Dec. 31, 2018TRY (₺) | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Additions to right of use assets | ₺ 1,156,973 |
Interest expense on lease liabilities | ₺ 210,200 |
Asset Held for Sale and Disco_3
Asset Held for Sale and Discontinued Operations - Additional Information (Detail) € in Thousands, $ in Thousands | Dec. 21, 2018USD ($) | Mar. 20, 2018USD ($) | Mar. 05, 2018EUR (€) |
Geocell LLC [member] | |||
Asset held for sale and discontinued operations [line items] | |||
Consideration transferred | $ 153,000 | ||
Kcell JSC [member] | |||
Asset held for sale and discontinued operations [line items] | |||
Consideration transferred | $ 302,571 | ||
Azertel Telekomunikasyon Yatirim Dis Ticaret A.S. [member] | |||
Asset held for sale and discontinued operations [line items] | |||
Consideration transferred | € | € 221,687 |
Asset Held for Sale and Disco_4
Asset Held for Sale and Discontinued Operations - Summary of Reconciliation of Statement of Profit or Loss Statement (Detail) ₺ in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($) | Dec. 31, 2016TRY (₺) | |
Asset held for sale and discontinued operations [line items] | ||
Profit before income tax | ₺ | ₺ (42,164) | |
(Loss)/profit for period | ₺ | (42,164) | |
(Loss)/profit for period | ₺ | ₺ (42,164) | |
Fintur [member] | ||
Asset held for sale and discontinued operations [line items] | ||
Revenue | $ 617,214 | |
Cost of sales | (369,104) | |
Gross profit | 248,110 | |
Selling and marketing expenses | (69,983) | |
General and administrative expenses | (69,818) | |
Other operating (expenses), net | (31,258) | |
Operating profit | 77,051 | |
Finance (expense)/income, net | (61,203) | |
Profit before income tax | 15,848 | |
Total income tax | (30,947) | |
(Loss)/profit for period | (15,099) | |
Attributable to owners of the parent | (28,695) | |
Attributable to non controlling interests | 13,596 | |
(Loss)/profit for period | $ (15,099) |
Other Non-Current Assets - Summ
Other Non-Current Assets - Summary of Other Non-Current Assets (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Non-current assets [abstract] | ||
Advances given for property, plant and equipment | ₺ 216,894 | ₺ 12,078 |
Prepaid expenses | 89,603 | 197,431 |
Receivables from the Public Administration | 72,848 | 72,848 |
Deposits and guarantees given | 27,071 | 23,999 |
VAT receivable | 2,318 | 4,429 |
Others | 12,572 | 45,835 |
Other Non-current assets | ₺ 421,306 | ₺ 356,620 |
Deferred Tax Assets and Liabi_3
Deferred Tax Assets and Liabilities - Summary of Recognized Deferred Tax Assets and Liabilities (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | ₺ 802,550 | ₺ 835,176 |
Offsetting | (649,818) | (739,116) |
Net deferred tax assets/ (liabilities) | 152,732 | 96,060 |
Deferred tax liabilities | (1,512,178) | (1,390,238) |
Offsetting | 649,818 | 739,116 |
Net deferred tax assets/ (liabilities) | (862,360) | (651,122) |
Net deferred tax asset/liabilities | (709,628) | (555,062) |
Offsetting | 0 | 0 |
Net deferred tax assets/(liabilities) | (709,628) | (555,062) |
Property, plant & equipment and intangible assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 106,128 | 41,903 |
Deferred tax liabilities | (936,167) | (680,134) |
Net deferred tax asset/liabilities | (830,039) | (638,231) |
Investment [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 32,926 | 32,926 |
Net deferred tax asset/liabilities | 32,926 | 32,926 |
Derivative instruments [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 15,380 | 1,492 |
Deferred tax liabilities | (429,162) | (182,806) |
Net deferred tax asset/liabilities | (413,782) | (181,314) |
Reserve for employee termination benefits and provisions [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 155,132 | 202,112 |
Deferred tax liabilities | (45,581) | (64) |
Net deferred tax asset/liabilities | 109,551 | 202,048 |
Assets classified as held for sale [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (92,327) | |
Net deferred tax asset/liabilities | (92,327) | |
Tax credit carry forwards (investment tax credit) [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 224,179 | |
Net deferred tax asset/liabilities | 224,179 | |
Tax allowance [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 20,554 | 10,775 |
Net deferred tax asset/liabilities | 20,554 | 10,775 |
Other items [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 248,251 | 545,968 |
Deferred tax liabilities | (101,268) | (434,907) |
Net deferred tax asset/liabilities | ₺ 146,983 | ₺ 111,061 |
Deferred Tax Assets and Liabi_4
Deferred Tax Assets and Liabilities - Summary of Movement in Temporary Differences (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||
Opening balance | ₺ (555,062) | ₺ (406,905) |
IFRS 9 and 15 effects | (141,213) | |
Income statement charge | 159,472 | (133,791) |
Tax charge relating to components of other comprehensive income | (157,203) | (6,449) |
Prior year corporate tax base differences | (8,608) | (2,729) |
Exchange differences | (7,014) | (5,188) |
Closing balance, net | ₺ (709,628) | ₺ (555,062) |
Deferred Tax Assets and Liabi_5
Deferred Tax Assets and Liabilities - Additional Information (Detail) ₺ in Thousands | 12 Months Ended |
Dec. 31, 2018TRY (₺) | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
Unrecognized deferred income tax assets | ₺ 972,730 |
Loss carried forward | ₺ 5,310,000 |
Deferred Tax Assets and Liabi_6
Deferred Tax Assets and Liabilities - Summary of Expiration of Unrecognized Tax Losses (Detail) ₺ in Thousands | Dec. 31, 2018TRY (₺) |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
2019 | ₺ 808 |
2020 | 581 |
2021 | 646 |
2022 | 368,109 |
2023 | 172,264 |
2024 | 303,045 |
2025 | 1,023,650 |
2026 | 47,466 |
2027 | 488,572 |
2028 | 308,541 |
Indefinite | 2,596,318 |
Total | ₺ 5,310,000 |
Trade Receivables and Accrued I
Trade Receivables and Accrued Income - Summary of Trade Receivables and Accrued Income (Detail) - Trade receivables and accrued income [member] - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trade Receivables And Accrued Income [line items] | ||
Receivables from subscribers | ₺ 1,634,427 | ₺ 1,369,948 |
Accounts and notes receivable | 560,665 | 498,397 |
Undue assigned contracted receivables | 271,306 | 347,596 |
Accrued revenue | 632,631 | |
Other | 39,592 | |
Trade receivables and accrued revenue | ₺ 2,505,990 | ₺ 2,848,572 |
Trade Receivables and Accrued_3
Trade Receivables and Accrued Income - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Trade Receivables And Accrued Income [line items] | ||
Letters of guarantee received | ₺ 174,975 | ₺ 339,543 |
Trade receivables [member] | ||
Trade Receivables And Accrued Income [line items] | ||
Allowance for doubtful debts related to outstanding balances | 738,181 | ₺ 705,213 |
Contracted receivables [member] | ||
Trade Receivables And Accrued Income [line items] | ||
Non-current undue assigned contracted receivables | ₺ 115,001 |
Receivables from Financial Se_3
Receivables from Financial Services - Schedule of Receivables from Financial Services (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables from financial services [abstract] | ||
Current receivables from financial services | ₺ 3,286,243 | ₺ 2,950,523 |
Non-current receivables from financial services | 884,686 | 1,297,597 |
Net receivables from financial services | ₺ 4,170,929 | ₺ 4,248,120 |
Contract Assets - Summary of Co
Contract Assets - Summary of Contract Assets (Detail) ₺ in Thousands | Dec. 31, 2018TRY (₺) |
Disclosure of contract assets [line items] | |
Contract assets | ₺ 711,928 |
Non current contract assets | 3,513 |
Contract assets [member] | |
Disclosure of contract assets [line items] | |
Contract assets | 711,928 |
Non current contract assets | ₺ 3,513 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories [abstract] | ||
Inventories | ₺ 180,434 | ₺ 104,102 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Current Assets [line items] | ||
Other current assets | ₺ 1,091,512 | ₺ 1,160,605 |
Receivables from the Ministry of Transport and Infrastructure [member] | Turkey [member] | ||
Other Current Assets [line items] | ||
Other current assets | 415,524 | 143,669 |
Restricted cash [member] | ||
Other Current Assets [line items] | ||
Other current assets | 204,077 | 183,806 |
Advances given to suppliers [member] | ||
Other Current Assets [line items] | ||
Other current assets | 92,715 | 55,754 |
Receivables from tax office [member] | ||
Other Current Assets [line items] | ||
Other current assets | 83,392 | 93,917 |
Prepaid expenses [member] | ||
Other Current Assets [line items] | ||
Other current assets | 79,149 | 322,388 |
VAT receivable [member] | ||
Other Current Assets [line items] | ||
Other current assets | 65,123 | 38,934 |
Subscriber acquisition cost [member] | ||
Other Current Assets [line items] | ||
Other current assets | 138,177 | |
Special communication tax to be collected from subscribers [member] | ||
Other Current Assets [line items] | ||
Other current assets | 38,318 | |
Other assets [member] | ||
Other Current Assets [line items] | ||
Other current assets | ₺ 151,532 | ₺ 145,642 |
Other Current Assets - Addition
Other Current Assets - Additional Information (Detail) ₺ in Thousands | Dec. 31, 2018TRY (₺) |
Time deposits [member] | Turkcell Finansman [member] | |
Other Current Assets [line items] | |
Restricted Cash | ₺ 204,077 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents [abstract] | ||||
Cash in hand | ₺ 144 | ₺ 192 | ||
Banks | 7,413,113 | 4,712,141 | ||
Demand deposits | 587,007 | 603,553 | ||
Time deposits | 6,826,106 | 4,108,588 | ||
Other cash and cash equivalents | 5,982 | |||
Cash and cash equivalents | ₺ 7,419,239 | ₺ 4,712,333 | ₺ 6,052,352 | ₺ 2,918,796 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and cash equivalents1 [line items] | ||
Average maturity of time deposits | 35 days | 32 days |
TL [member] | ||
Cash and cash equivalents1 [line items] | ||
Effective interest rate | 22.50% | 14.30% |
USD [member] | ||
Cash and cash equivalents1 [line items] | ||
Effective interest rate | 5.90% | 5.80% |
EUR [member] | ||
Cash and cash equivalents1 [line items] | ||
Effective interest rate | 3.30% | 2.20% |
Equity - Additional Information
Equity - Additional Information (Detail) ₺ / shares in Units, $ / shares in Units, ₼ in Thousands, $ in Thousands | Mar. 29, 2018TRY (₺)₺ / shares | May 25, 2017TRY (₺)₺ / shares | May 25, 2017TRY (₺)$ / shares | Jan. 31, 2018TRY (₺) | Dec. 31, 2018TRY (₺)InstallmentVote₺ / sharesshares | Dec. 31, 2017TRY (₺)Installmentshares | Dec. 31, 2016TRY (₺) | Dec. 31, 2018AZN (₼)shares | Sep. 30, 2017TRY (₺) | May 25, 2017USD ($) | Mar. 31, 2017TRY (₺) |
Disclosure of classes of share capital [line items] | |||||||||||
Share capital represents | shares | 2,200,000,000 | 2,200,000,000 | 2,200,000,000 | ||||||||
Share capital, issued and fully paid shares | shares | 2,200,000,000 | 2,200,000,000 | 2,200,000,000 | ||||||||
Share capital, par value | ₺ / shares | ₺ 1 | ||||||||||
Number of votes at a meeting in person or by proxy | Vote | 1 | ||||||||||
Number of shares pledged as security | shares | 995,509 | 995,509 | |||||||||
First level legal reserves as percentage of distributable income per statutory accounts each year | 5.00% | ||||||||||
Ceiling on the first legal reserves as percentage of paid-up capital | 20.00% | ||||||||||
Second legal reserves | 10.00% | ||||||||||
Minimum obligatory dividend pay-out as percentage of paid-up capital | 5.00% | ||||||||||
Ceiling on the second legal reserves as percentage of paid-up capital | 50.00% | ||||||||||
Repurchase of treasury shares | shares | 8,434,204 | ||||||||||
Purchase of treasury shares | ₺ 94,620,000 | ₺ 65,607,000 | |||||||||
Dividends paid | 1,949,379,000 | ₺ 3,050,928,000 | ₺ 51,416,000 | ||||||||
Turkcell [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Dividend distribution proposed | ₺ 1,900,000,000 | ₺ 3,000,000,000 | ₺ 3,000,000,000 | $ 841,633 | |||||||
Gross cash dividend proposed | (per share) | ₺ 0.86364 | ₺ 1.3636364 | ₺ 0.3825604 | ||||||||
Dividends paid | ₺ 1,900,000 | ₺ 3,000,000,000 | |||||||||
Number of installments of dividend | Installment | 3 | 3 | |||||||||
Inteltek [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Dividends paid | ₺ 28,402,000 | ||||||||||
Dividend payables | ₺ 60,011,000 | ₺ 28,402,000 | ₺ 63,528,000 | ||||||||
Inteltek [member] | Legal reserve [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Dividend payables | ₺ 9,507,000 | 11,585,000 | |||||||||
Inteltek [member] | Interim dividend [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Dividend payables | ₺ 20,455,000 | ||||||||||
Azerinteltek [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Dividend payables | ₺ 56,111,000 | ₼ 34,797 | |||||||||
Bottom of range [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Weighted average share price | 10.01 | ||||||||||
Top of range [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Weighted average share price | ₺ 12.33 |
Equity - Summary of Shareholdin
Equity - Summary of Shareholding Percentage (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of classes of share capital [line items] | ||
Shareholding percentage | 100.00% | 100.00% |
Share capital | ₺ 2,200,000 | ₺ 2,200,000 |
Inflation adjustment to share capital | (52,352) | (52,352) |
Inflation adjusted capital | ₺ 2,147,648 | ₺ 2,147,648 |
Turkcell Holding [member] | ||
Disclosure of classes of share capital [line items] | ||
Shareholding percentage | 51.00% | 51.00% |
Share capital | ₺ 1,122,000 | ₺ 1,122,000 |
Public share [member] | ||
Disclosure of classes of share capital [line items] | ||
Shareholding percentage | 48.95% | 48.95% |
Share capital | ₺ 1,077,004 | ₺ 1,077,004 |
Other [member] | ||
Disclosure of classes of share capital [line items] | ||
Shareholding percentage | 0.05% | 0.05% |
Share capital | ₺ 996 | ₺ 996 |
Earnings Per Share - Disclosure
Earnings Per Share - Disclosure of Calculations of Basic Earnings Per Share (Detail) - TRY (₺) ₺ / shares in Units, ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [abstract] | |||
Profit attributable to owners of the Company | ₺ 2,021,065 | ₺ 1,979,129 | ₺ 1,492,088 |
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 attributable to owners of the Company (in full TL) | ₺ 0.93 | ₺ 0.90 | ₺ 0.68 |
Profit from continuing operations attributable to owners of the Company | ₺ 2,021,065 | ₺ 1,979,129 | ₺ 1,534,252 |
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 | ₺ 0.93 | ₺ 0.90 | ₺ 0.70 |
Other Non-Current Liabilities -
Other Non-Current Liabilities - Disclosure of Other Non-Current Liabilities (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Provisions and other non-current liabilities [line items] | ||
Other non-current liabilities | ₺ 364,610 | ₺ 409,337 |
Non-current liabilities [member] | ||
Provisions and other non-current liabilities [line items] | ||
Consideration payable in relation to the acquisition of Belarusian Telecom | 358,304 | 323,691 |
Deferred revenue | 2,497 | 85,646 |
Deposits and guarantees received from dealers | 3,809 | |
Other non-current liabilities | ₺ 364,610 | ₺ 409,337 |
Other Non-Current Liabilities_2
Other Non-Current Liabilities - Additional Information (Detail) - Belarusian Telecom [member] ₺ in Thousands, $ in Thousands | Dec. 31, 2018TRY (₺) | Dec. 31, 2018USD ($) | Dec. 31, 2017 |
Provisions and other non-current liabilities [line items] | |||
Contingent payment | ₺ 526,090 | $ 100,000 | |
Discount rate | 9.50% | 9.50% | 4.80% |
Loans and Borrowings - Summary
Loans and Borrowings - Summary of Borrowings (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Non-current liabilities | ||
Unsecured bank loans | ₺ 7,244,992 | ₺ 6,376,981 |
Secured bank loans | 1,862 | 2,368 |
Finance lease liabilities | 108,164 | |
Lease liabilities | 1,026,955 | |
Debt securities issued | 4,845,827 | 1,770,482 |
Total non-current liabilities | 13,119,636 | 8,257,995 |
Current liabilities | ||
Unsecured bank loans | 3,737,393 | 2,643,112 |
Current portion of unsecured bank loans | 2,544,462 | 1,513,425 |
Current portion of secured bank loans | 2,318 | 2,022 |
Current portion of finance lease liabilities | 14,556 | |
Current portion of lease liabilities | 20,156 | |
Current portion of long-term debt securities issued | 289,738 | 105,039 |
Debt securities issued | 74,997 | |
Lease liabilities | 366,845 | |
Total current liabilities | ₺ 7,035,909 | ₺ 4,278,154 |
Loans and Borrowings - Addition
Loans and Borrowings - Additional Information (Detail) ₺ in Thousands, € in Thousands, ¥ in Thousands, $ in Thousands | Dec. 31, 2018TRY (₺) | Dec. 31, 2018TRY (₺) | Dec. 31, 2019TRY (₺) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018CNY (¥) | Apr. 11, 2018USD ($) | Mar. 31, 2018TRY (₺) | Dec. 31, 2017EUR (€) |
Disclosure Of Loans And Borrowings [line items] | |||||||||
Bond issuance, principal amount | $ | $ 500,000 | ||||||||
Bond issuance, maturity period | 10 years | ||||||||
Bond issuance, redemption date | Apr. 11, 2028 | ||||||||
Bond issuance, re-offer price | 97.80% | ||||||||
Bonds purchased, nominal value | $ | $ 15,500 | ||||||||
Issuance of lease certificate | ₺ 75,000 | ₺ 75,000 | ₺ 125,000 | ||||||
Top of range [member] | Private placement or institutional investors [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Issuance of lease certificate | ₺ 300,000 | 300,000 | |||||||
Top of range [member] | Private placement or institutional investors [member] | Lease certificate issuance [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Issuance of lease certificate | ₺ 500,000 | ||||||||
China Development Bank [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Borrowings, unutilized portion | € | € 690,000 | ||||||||
Borrowings, committed line | € | € 750,000 | ||||||||
Borrowings, utilized portion | $ 140,000 | € 100,000 | ¥ 251,089 | ||||||
China Development Bank [member] | Other foreign currency (RMB) [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Borrowings, interest rate description | 5.5 | ||||||||
China Development Bank [member] | USD [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Borrowings, interest rate description | LIBOR + 2.2 | ||||||||
China Development Bank [member] | RMB equivalent to TL [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Borrowings, utilized portion | ₺ 191,337 | 191,337 | |||||||
China Development Bank [member] | USD equivalent to TL [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Borrowings, utilized portion | 736,526 | 736,526 | |||||||
China Development Bank [member] | EUR equivalent to TL [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Borrowings, utilized portion | ₺ 602,800 | ₺ 602,800 | |||||||
LIBOR [member] | China Development Bank [member] | USD [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Borrowings, variable interest rate | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% | ||||
EURIBOR [member] | China Development Bank [member] | Other foreign currency (RMB) [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Borrowings, fixed interest rate | 5.50% | ||||||||
EURIBOR [member] | China Development Bank [member] | EUR [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Borrowings, variable interest rate | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% | ||||
Fixed rate instruments [member] | |||||||||
Disclosure Of Loans And Borrowings [line items] | |||||||||
Bond issuance, fixed coupon rate | 5.80% |
Loans and Borrowings - Summar_2
Loans and Borrowings - Summary of Terms and Conditions of Outstanding Loans (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | ₺ 20,155,545 | ₺ 12,536,149 | ₺ 9,781,162 |
Unsecured bank loans [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | USD | ||
Interest rate type | Floating | ||
Nominal interest rate basis | Libor+2.0%-Libor+4.1% | Libor+2,0%-Libor+3,3% | |
Carrying amount | ₺ 4,589,157 | ₺ 2,880,615 | |
Unsecured bank loans [member] | EUR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | EUR | ||
Interest rate type | Floating | ||
Nominal interest rate basis | Euribor+1.2%-Euribor+3.4% | Euribor+1.2%-Euribor+2.2% | |
Carrying amount | ₺ 6,975,890 | ₺ 5,511,579 | |
Unsecured bank loans [member] | TL [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | TL | ||
Interest rate type | Fixed | ||
Payment period | 2019 | ||
Carrying amount | ₺ 873,914 | ₺ 1,620,391 | |
Unsecured bank loans [member] | UAH [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | UAH | ||
Interest rate type | Fixed | ||
Payment period | 2019 | 2018 | |
Carrying amount | ₺ 894,511 | ₺ 520,933 | |
Unsecured bank loans [member] | Other foreign currency (RMB) [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | RMB | ||
Interest rate type | Fixed | ||
Nominal interest rate | 5.50% | ||
Carrying amount | ₺ 193,375 | ||
Unsecured bank loans [member] | Bottom of range [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Payment period | 2019 | 2018 | |
Unsecured bank loans [member] | Bottom of range [member] | EUR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Payment period | 2019 | 2018 | |
Unsecured bank loans [member] | Bottom of range [member] | TL [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 12.60% | 11.10% | |
Payment period | 2018 | ||
Unsecured bank loans [member] | Bottom of range [member] | UAH [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 21.50% | 11.00% | |
Unsecured bank loans [member] | Bottom of range [member] | Other foreign currency (RMB) [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Payment period | 2019 | ||
Unsecured bank loans [member] | Bottom of range [member] | LIBOR [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Variable interest rate | 2.00% | 2.00% | |
Unsecured bank loans [member] | Bottom of range [member] | EURIBOR [member] | EUR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Variable interest rate | 1.20% | 1.20% | |
Unsecured bank loans [member] | Top of range [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Payment period | 2026 | 2020 | |
Unsecured bank loans [member] | Top of range [member] | EUR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Payment period | 2026 | 2026 | |
Unsecured bank loans [member] | Top of range [member] | TL [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 25.00% | 15.50% | |
Payment period | 2019 | ||
Unsecured bank loans [member] | Top of range [member] | UAH [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 22.50% | 14.50% | |
Unsecured bank loans [member] | Top of range [member] | Other foreign currency (RMB) [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Payment period | 2026 | ||
Unsecured bank loans [member] | Top of range [member] | LIBOR [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Variable interest rate | 4.10% | 3.30% | |
Unsecured bank loans [member] | Top of range [member] | EURIBOR [member] | EUR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Variable interest rate | 3.40% | 2.20% | |
Secured bank loans [member] | New Belarusian Ruble | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | BYN | ||
Interest rate type | Fixed | ||
Carrying amount | ₺ 4,180 | ₺ 4,390 | |
Secured bank loans [member] | Bottom of range [member] | New Belarusian Ruble | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 12.00% | 12.00% | |
Payment period | 2019 | 2018 | |
Secured bank loans [member] | Top of range [member] | New Belarusian Ruble | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 16.00% | 16.00% | |
Payment period | 2020 | 2020 | |
Debt securities issued [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | ₺ 5,210,562 | ₺ 1,875,521 | 1,922,656 |
Debt securities issued [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | USD | ||
Interest rate type | Fixed | ||
Nominal interest rate | 5.80% | 5.80% | |
Carrying amount | ₺ 5,135,565 | ₺ 1,875,521 | |
Debt securities issued [member] | TL [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | TL | ||
Interest rate type | Fixed | ||
Nominal interest rate | 24.50% | ||
Payment period | 2019 | ||
Carrying amount | ₺ 74,997 | ||
Debt securities issued [member] | Bottom of range [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Payment period | 2019 | 2018 | |
Debt securities issued [member] | Top of range [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Payment period | 2028 | 2025 | |
Finance lease liabilities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | ₺ 122,720 | ₺ 48,114 | |
Finance lease liabilities [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | USD | ||
Interest rate type | Fixed | ||
Nominal interest rate | 22.50% | ||
Payment period | 2018 | ||
Carrying amount | ₺ 41 | ||
Finance lease liabilities [member] | EUR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | EUR | ||
Interest rate type | Fixed | ||
Nominal interest rate | 3.40% | ||
Carrying amount | ₺ 116,797 | ||
Finance lease liabilities [member] | TL [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | TL | ||
Interest rate type | Fixed | ||
Carrying amount | ₺ 5,882 | ||
Finance lease liabilities [member] | Bottom of range [member] | EUR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Payment period | 2018 | ||
Finance lease liabilities [member] | Bottom of range [member] | TL [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 27.50% | ||
Payment period | 2018 | ||
Finance lease liabilities [member] | Top of range [member] | EUR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Payment period | 2024 | ||
Finance lease liabilities [member] | Top of range [member] | TL [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 27.70% | ||
Payment period | 2020 | ||
Lease liabilities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | ₺ 1,413,956 | ||
Lease liabilities [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | USD | ||
Interest rate type | Fixed | ||
Carrying amount | ₺ 40,351 | ||
Lease liabilities [member] | EUR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | EUR | ||
Interest rate type | Fixed | ||
Carrying amount | ₺ 194,645 | ||
Lease liabilities [member] | TL [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | TL | ||
Interest rate type | Fixed | ||
Carrying amount | ₺ 719,718 | ||
Lease liabilities [member] | UAH [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | UAH | ||
Interest rate type | Fixed | ||
Carrying amount | ₺ 418,390 | ||
Lease liabilities [member] | New Belarusian Ruble | |||
Disclosure of detailed information about borrowings [line items] | |||
Currency | BYN | ||
Interest rate type | Fixed | ||
Carrying amount | ₺ 40,852 | ||
Lease liabilities [member] | Bottom of range [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 3.90% | ||
Payment period | 2019 | ||
Lease liabilities [member] | Bottom of range [member] | EUR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 1.00% | ||
Payment period | 2019 | ||
Lease liabilities [member] | Bottom of range [member] | TL [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 16.10% | ||
Payment period | 2019 | ||
Lease liabilities [member] | Bottom of range [member] | UAH [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 16.60% | ||
Payment period | 2019 | ||
Lease liabilities [member] | Bottom of range [member] | New Belarusian Ruble | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 12.00% | ||
Payment period | 2019 | ||
Lease liabilities [member] | Top of range [member] | USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 10.80% | ||
Payment period | 2027 | ||
Lease liabilities [member] | Top of range [member] | EUR [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 7.90% | ||
Payment period | 2031 | ||
Lease liabilities [member] | Top of range [member] | TL [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 45.00% | ||
Payment period | 2048 | ||
Lease liabilities [member] | Top of range [member] | UAH [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 24.00% | ||
Payment period | 2067 | ||
Lease liabilities [member] | Top of range [member] | New Belarusian Ruble | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal interest rate | 15.00% | ||
Payment period | 2028 |
Loans and Borrowings - Summar_3
Loans and Borrowings - Summary of Terms and Conditions of Outstanding Loans (Parenthetical) (Detail) ₺ in Thousands | Dec. 31, 2018TRY (₺) |
Foreign currency loans [member] | Other current assets [member] | Turkcell Finansman [member] | |
Disclosure of detailed information about borrowings [line items] | |
Deposit amount | ₺ 204,077 |
Employee Benefits - Summary of
Employee Benefits - Summary of Employee Benefits Provisions (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classes of employee benefits expense [abstract] | |||
Retirement pay liability provision | ₺ 160,613 | ₺ 149,449 | ₺ 120,755 |
Unused vacation provision | 64,134 | 48,217 | |
Total | ₺ 224,747 | ₺ 197,666 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classes of employee benefits expense [abstract] | |||
Provision for annual leave | ₺ 64,134 | ₺ 48,217 | |
Defined contribution retirement plan | 9,361 | 8,107 | ₺ 7,722 |
Expense from share-based payments | ₺ 26,224 | ₺ 29,413 |
Employee Benefits - Summary o_2
Employee Benefits - Summary of Movement in Reserve for Employee Termination Benefits (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [abstract] | ||
Employee termination benefits,beginning balance | ₺ 149,449 | ₺ 120,755 |
Service cost | 26,971 | 32,696 |
Remeasurements | (12,699) | 3,738 |
Interest expense | 16,957 | 13,877 |
Benefit payments | (20,065) | (21,617) |
Employee termination benefits,ending balance | ₺ 160,613 | ₺ 149,449 |
Employee Benefits - Summary o_3
Employee Benefits - Summary of Sensitivity of Provision for Employee Termination Benefits to Changes in the Significant Actuarial Assumptions (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Discount rate [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
1% increase | (13.00%) | (14.60%) |
1% decrease | 15.70% | 18.10% |
1% increase | ₺ (20,880) | ₺ (21,820) |
1% decrease | ₺ 25,216 | ₺ 27,050 |
Inflation rate [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
1% increase | 16.50% | 18.30% |
1% decrease | (13.70%) | (14.30%) |
1% increase | ₺ 26,501 | ₺ 27,349 |
1% decrease | ₺ (22,004) | ₺ (21,371) |
Deferred Revenue - Additional I
Deferred Revenue - Additional Information (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accruals and deferred income [abstract] | ||
Deferred revenue | ₺ 8,948 | ₺ 193,831 |
Contract Liabilities - Summary
Contract Liabilities - Summary of Current and Non-current Contract Liabilities (Detail) ₺ in Thousands | Dec. 31, 2018TRY (₺) |
Disclosure of contract liabilities [line items] | |
Contract liabilities | ₺ 255,756 |
Contract liabilities | 131,598 |
Contract liabilities [member] | |
Disclosure of contract liabilities [line items] | |
Contract liabilities | 255,756 |
Contract liabilities | ₺ 131,598 |
Contract Liabilities - Summar_2
Contract Liabilities - Summary of Unrealized Performance Obligation of Contract Liabilities (Detail) ₺ in Thousands | Dec. 31, 2018TRY (₺) |
Disclosure of performance obligations [line items] | |
Unrealized performance obligation on contract liabilities | ₺ 530,895 |
Mobile telecommunications service [member] | |
Disclosure of performance obligations [line items] | |
Unrealized performance obligation on contract liabilities | 101,006 |
Other [member] | |
Disclosure of performance obligations [line items] | |
Unrealized performance obligation on contract liabilities | ₺ 429,889 |
Contract Liabilities - Addition
Contract Liabilities - Additional Information (Detail) ₺ in Thousands | 12 Months Ended |
Dec. 31, 2018TRY (₺) | |
Contract liabilities [abstract] | |
Transaction price allocated to unsatisfied contracts | 75.00% |
Transaction price allocated to revenue in next fiscal year | 25.00% |
Revenue recognized | ₺ 181,710 |
Provisions - Summary of Non-Cur
Provisions - Summary of Non-Current Provisions (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [line items] | ||
Beginning balance for the period | ₺ 197,418 | |
Ending balance for the period | 268,722 | ₺ 197,418 |
Non-current provision [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 197,418 | 187,541 |
Provisions recognized/(reversed) | 53,439 | (4,205) |
Unwinding of discount | 9,760 | 15,328 |
Transfer to current provisions | (5,382) | (2,258) |
Effect of changes in exchange rates | 13,487 | 1,012 |
Ending balance for the period | 268,722 | 197,418 |
Non-current provision [member] | Legal [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 8,887 | 6,889 |
Provisions recognized/(reversed) | 5,859 | 4,256 |
Transfer to current provisions | (5,382) | (2,258) |
Ending balance for the period | 9,364 | 8,887 |
Non-current provision [member] | Obligations for dismantling,removing and site restoration [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 188,531 | 180,652 |
Provisions recognized/(reversed) | 47,580 | (8,461) |
Unwinding of discount | 9,760 | 15,328 |
Effect of changes in exchange rates | 13,487 | 1,012 |
Ending balance for the period | ₺ 259,358 | ₺ 188,531 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Provisions [abstract] | ||
Rate used for provision | 5.10% | 5.60% |
Provisions - Summary of Current
Provisions - Summary of Current Provisions (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [line items] | ||
Beginning balance for the period | ₺ 835,199 | |
Ending balance for the period | 307,068 | ₺ 835,199 |
Current provision [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 835,199 | 192,442 |
Provisions recognized/(reversed) | 405,220 | 901,606 |
Payments | (964,864) | (264,268) |
Transfer from non-currentprovisions | 5,381 | 2,258 |
Unwinding of discount | 26,185 | 2,531 |
Disposal of subsidiaries | (2,070) | |
Effect of changes in exchange rates | 2,017 | 630 |
Ending balance for the period | 307,068 | 835,199 |
Current provision [member] | Legal [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 605,679 | 18,266 |
Provisions recognized/(reversed) | (3,520) | 583,788 |
Payments | (626,214) | (1,188) |
Transfer from non-currentprovisions | 5,381 | 2,258 |
Unwinding of discount | 26,185 | 2,531 |
Effect of changes in exchange rates | 1,082 | 24 |
Ending balance for the period | 8,593 | 605,679 |
Current provision [member] | Bonus [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 229,520 | 173,391 |
Provisions recognized/(reversed) | 408,740 | 318,603 |
Payments | (338,650) | (263,080) |
Disposal of subsidiaries | (2,070) | |
Effect of changes in exchange rates | 935 | 606 |
Ending balance for the period | ₺ 298,475 | 229,520 |
Current provision [member] | Other [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance for the period | 785 | |
Provisions recognized/(reversed) | ₺ (785) |
Trade and Other Payables - Summ
Trade and Other Payables - Summary of Trade and Other Payables (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other payables [abstract] | ||
Payable to suppliers | ₺ 2,372,512 | ₺ 2,527,152 |
Taxes payable | 465,966 | 415,650 |
Accrued treasury share, universal service fund contribution and contributions to the ICTA's expenses | 455,496 | 305,208 |
Accrued selling and marketing expenses | 91,747 | 79,011 |
Other | 402,453 | 369,445 |
Trade and other payables | ₺ 3,788,174 | ₺ 3,696,466 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Fair Value of Derivative Financial Instruments (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative financial instruments [abstract] | ||
Derivative financial assets, Held for trading | ₺ 709,617 | ₺ 961,665 |
Derivative financial assets, Derivatives used for hedging | 730,924 | 0 |
Derivative financial assets | 1,440,541 | 961,665 |
Derivative financial liabilities, Held for trading | 131,097 | 17,724 |
Derivative financial liabilities, Derivatives used for hedging | 0 | 0 |
Derivative financial liabilities | ₺ 131,097 | ₺ 17,724 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Detail) ₺ in Thousands | 12 Months Ended | |||
Dec. 31, 2018TRY (₺) | Dec. 31, 2018EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017TRY (₺) | |
Disclosure of detailed information about financial instruments [line items] | ||||
Interest expense accrual included in current derivative financial instruments assets | ₺ 84,479 | |||
Derivative financial assets | 1,356,062 | ₺ 981,396 | ||
Interest expense accrual included in current derivative financial instruments liabilities | 34,168 | 92,384 | ||
Derivative financial liabilities | 165,265 | 110,108 | ||
Interest income included in current derivative financial instruments assets | 19,731 | |||
Maximum exposure to credit risk | ₺ 16,635,383 | ₺ 13,279,196 | ||
Change in interest rates | 1.00% | 1.00% | ||
Change in percentage foreign exchange currency rate | 10.00% | 10.00% | ||
Participating cross currency swap contracts [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Maximum exposure to credit risk | € | € 500,000 | |||
Participating cross currency swap contracts [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative financial assets used for hedging | € | 500,000,000 | |||
Guarantees included in current derivative financial instruments assets used for hedging | ₺ 690,146 | |||
Minimum change in mark-to-market value required for transaction | € | € 10,000,000 | |||
Transfer amount as collateral to the company | 925,539 | 153,540,000 | ||
Threshold amount | € | € 10,000,000 | |||
Transfer amount as collateral to the bank | 235,393 | € 39,050,000 | ||
Collateral amount recognizes under borrowings | 690,146 | |||
Derivative financial instruments assets, without transaction | 2,046,208 | |||
Current borrowings, without transaction | ₺ 7,726,055 | |||
USD [member] | Currency risk [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Hedge Ratio | 1 | 1 | ||
USD [member] | Interest rate risk [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Hedge Ratio | 1 | 1 | ||
Other foreign currency (RMB) [member] | Currency risk [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Hedge Ratio | 1 | 1 | ||
Other foreign currency (RMB) [member] | Interest rate risk [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Hedge Ratio | 1 | 1 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Details of Participating Cross Currency Swap and FX Swap Contracts (Detail) | Dec. 31, 2018TRY (₺) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017TRY (₺) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) |
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Used for Hedging, Fair Value | ₺ 730,924,000 | ₺ 0 | |||||
Current derivative financial liabilities held for trading, fair value | (131,097,000) | (17,724,000) | |||||
Current Derivative Financial Asset Held for Trading, Fair Value | 709,617,000 | 961,665,000 | |||||
Current Derivative Financial Instruments Liabilities, Fair Value | (131,097,000) | (17,724,000) | |||||
Participating cross currency swap contracts one [member] | 23 October 2025 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Assets Used For Hedging Buy Position Notional Amount | 1,650,000,000 | ||||||
Current Derivative Assets Used For Hedging Sell Position Notional Amount | € | € 500,000,000 | ||||||
Current Derivative Financial Asset Used for Hedging, Fair Value | 208,462,000 | ||||||
Participating cross currency swap contracts one [member] | 16 September 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 193,800,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | € | 30,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (7,148,000) | ||||||
Participating cross currency swap contracts two [member] | 22 April 2026 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Assets Used For Hedging Buy Position Notional Amount | 275,850,000 | ||||||
Current Derivative Assets Used For Hedging Sell Position Notional Amount | € | 60,000,000 | ||||||
Current Derivative Financial Asset Used for Hedging, Fair Value | 64,670,000 | ||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 91,700,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | $ 20,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (17,051,000) | ||||||
Participating cross currency swap contracts three [member] | 16 September 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Assets Used For Hedging Buy Position Notional Amount | 435,000,000 | ||||||
Current Derivative Assets Used For Hedging Sell Position Notional Amount | $ | 150,000,000 | ||||||
Current Derivative Financial Asset Used for Hedging, Fair Value | 167,116,000 | ||||||
Participating cross currency swap contracts four [member] | 16 September 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Assets Used For Hedging Buy Position Notional Amount | 293,500,000 | ||||||
Current Derivative Assets Used For Hedging Sell Position Notional Amount | $ | 100,000,000 | ||||||
Current Derivative Financial Asset Used for Hedging, Fair Value | 108,777,000 | ||||||
Participating cross currency swap contracts five [member] | 16 September 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Assets Used For Hedging Buy Position Notional Amount | 194,000,000 | ||||||
Current Derivative Assets Used For Hedging Sell Position Notional Amount | $ | 50,000,000 | ||||||
Current Derivative Financial Asset Used for Hedging, Fair Value | 39,394,000 | ||||||
Participating cross currency swap contracts six [member] | 16 September 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Assets Used For Hedging Buy Position Notional Amount | 386,500,000 | ||||||
Current Derivative Assets Used For Hedging Sell Position Notional Amount | $ | 100,000,000 | ||||||
Current Derivative Financial Asset Used for Hedging, Fair Value | 79,688,000 | ||||||
Participating cross currency swap contracts seven [member] | 22 April 2026 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Assets Used For Hedging Buy Position Notional Amount | 113,400,000 | ||||||
Current Derivative Assets Used For Hedging Sell Position Notional Amount | $ | 20,000,000 | ||||||
Current Derivative Financial Asset Used for Hedging, Fair Value | 9,234,000 | ||||||
Cross currency swap contracts one [member] | 22 April 2026 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Assets Used For Hedging Buy Position Notional Amount | 123,878,000 | ||||||
Current Derivative Assets Used For Hedging Sell Position Notional Amount | ¥ | ¥ 202,600,000 | ||||||
Current Derivative Financial Asset Used for Hedging, Fair Value | 53,583,000 | ||||||
Cross currency swap contracts one [member] | 28 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 6,159,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 1,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (912,000) | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 67,410,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 18,000,000 | ||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 27,928,000 | ||||||
Currency swap one [member] | 2 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 266,760,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 50,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (3,715,000) | ||||||
Currency swap two [member] | 2 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 266,510,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 50,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (3,465,000) | ||||||
Currency swap three [member] | 2 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 719,996,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 135,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (9,774,000) | ||||||
Currency swap four [member] | 2 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 212,736,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 40,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (2,300,000) | ||||||
Currency swap five [member] | 2 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 265,925,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 50,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (2,880,000) | ||||||
Currency swap six [member] | 19 March 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 1,366,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 253,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (48,000) | ||||||
Currency swap seven [member] | 16 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 4,199,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 680,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (939,000) | ||||||
Currency swap eight [member] | 22 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 5,681,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 920,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (1,277,000) | ||||||
Currency swap nine [member] | 2 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 6,040,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | € | 1,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (41,000) | ||||||
Currency swap ten [member] | 15 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | $ | 68,654,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | € | 60,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (861,000) | ||||||
Currency swap eleven [member] | 8 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | $ | 11,462,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | € | 10,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (4,000) | ||||||
Cross currency swap contracts two [member] | 24 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 6,159,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 1,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (910,000) | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 95,550,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 25,000,000 | ||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 36,751,000 | ||||||
Cross currency swap contracts three [member] | 20 March 2023 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 130,488,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 24,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (9,365,000) | ||||||
Cross currency swap contracts three [member] | 16 July 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 52,164,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 14,620,000 | ||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 27,870,000 | ||||||
Cross currency swap contracts four [member] | 14 June 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 268,200,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 50,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (5,791,000) | ||||||
Cross currency swap contracts four [member] | 22 July 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 69,744,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 19,780,000 | ||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 38,636,000 | ||||||
Cross currency swap contracts five [member] | 16 September 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 242,873,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 70,500,000 | ||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 160,594,000 | ||||||
Cross currency swap contracts five [member] | 19 June 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 128,436,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | $ | 24,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (2,652,000) | ||||||
Cross currency swap contracts six [member] | 8 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 169,368,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | € | 24,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (24,895,000) | ||||||
Cross currency swap contracts six [member] | 22 December 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 269,451,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 70,500,000 | ||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 131,437,000 | ||||||
Cross currency swap contracts seven [member] | 23 September 2021 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 118,800,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | € | 18,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (22,051,000) | ||||||
Cross currency swap contracts seven [member] | 13 February 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 191,300,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | $ 50,000,000 | ||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 74,095,000 | ||||||
Cross currency swap contracts eight [member] | 14 February 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 111,732,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | € | 18,867,000 | ||||||
Current derivative financial liabilities held for trading, fair value | 1,920,000 | ||||||
Cross currency swap contracts eight [member] | 13 June 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 98,625,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 25,000,000 | ||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 57,161,000 | ||||||
Cross currency swap contracts nine [member] | 22 April 2026 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 185,100,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | € | 30,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (8,296,000) | ||||||
Cross currency swap contracts nine [member] | 23 July 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 203,600,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 50,000,000 | ||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 109,610,000 | ||||||
Cross currency swap contracts ten [member] | 22 April 2026 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Liabilities Held For Trading Buy Position Notional Amount | 183,300,000 | ||||||
Current Derivative Liabilities Held For Trading Sell Position Notional Amount | € | 30,000,000 | ||||||
Current derivative financial liabilities held for trading, fair value | (8,642,000) | ||||||
Cross currency swap contracts ten [member] | 19 December 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 97,997,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 21,500,000 | ||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 37,825,000 | ||||||
Cross currency swap contracts eleven [member] | 23 September 2021 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 105,280,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | € 18,800,000 | ||||||
Current Derivative Financial Asset Held for Trading, Fair Value | ₺ 7,710,000 | ||||||
Cross currency swap and fx swap contracts one [member] | 02 January 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 1,005,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | $ | $ 47,304,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | € 39,835,000 | ||||||
Cross currency swap and fx swap contracts two [member] | 02 January 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 470,232,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 122,680,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (2,465,000) | ||||||
Cross currency swap and fx swap contracts two [member] | 27 August 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 6,554,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 69,680,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 20,000,000 | ||||||
Cross currency swap and fx swap contracts three [member] | 02 January 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 180,023,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 47,250,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (545,000) | ||||||
Cross currency swap and fx swap contracts three [member] | 14 December 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 9,965,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 81,480,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 20,000,000 | ||||||
Cross currency swap and fx swap contracts four [member] | 24 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 72,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 95,550,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 25,000,000 | ||||||
Cross currency swap and fx swap contracts four [member] | 03 January 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 141,001,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 36,786,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (726,000) | ||||||
Cross currency swap and fx swap contracts five [member] | 28 January 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 1,498,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 67,410,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 18,000,000 | ||||||
Cross currency swap and fx swap contracts five [member] | 04 January 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 219,162,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 57,245,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (1,043,000) | ||||||
Cross currency swap and fx swap contracts six [member] | 13 June 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 17,354,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 98,625,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 25,000,000 | ||||||
Cross currency swap and fx swap contracts six [member] | 05 January 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 115,022,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 30,150,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (435,000) | ||||||
Cross currency swap and fx swap contracts seven [member] | 16 July 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 4,465,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 52,164,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 14,620,000 | ||||||
Cross currency swap and fx swap contracts seven [member] | 10 January 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 17,204,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | 4,500,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (284,000) | ||||||
Cross currency swap and fx swap contracts eight [member] | 22 July 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 6,996,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 69,744,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 19,780,000 | ||||||
Cross currency swap and fx swap contracts eight [member] | 10 January 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 15,916,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 3,500,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (157,000) | ||||||
Cross currency swap and fx swap contracts nine [member] | 23 July 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 27,198,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 203,600,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 50,000,000 | ||||||
Cross currency swap and fx swap contracts nine [member] | 22 January 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 91,556,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 20,140,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (620,000) | ||||||
Cross currency swap and fx swap contracts ten [member] | 16 September 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 142,085,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 435,000,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 150,000,000 | ||||||
Cross currency swap and fx swap contracts ten [member] | 05 February 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 137,834,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 30,400,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (601,000) | ||||||
Cross currency swap and fx swap contracts eleven [member] | 16 September 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | (4,645,000) | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 386,500,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 100,000,000 | ||||||
Cross currency swap and fx swap contracts eleven [member] | 19 February 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 82,013,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 17,860,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (1,413,000) | ||||||
Cross currency swap and fx swap contracts twelve [member] | 16 September 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 90,071,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 293,500,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 100,000,000 | ||||||
Cross currency swap and fx swap contracts twelve [member] | 05 March 2018 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 1,143,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 250,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (25,000) | ||||||
Cross currency swap and fx swap contracts thirteen [member] | 16 September 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 33,535,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 242,873,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 70,500,000 | ||||||
Cross currency swap and fx swap contracts thirteen [member] | 19 December 2019 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 97,997,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | € | 21,500,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (2,154,000) | ||||||
Cross currency swap and fx swap contracts fourteen [member] | 16 September 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | (2,951,000) | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 194,000,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | $ | 50,000,000 | ||||||
Cross currency swap and fx swap contracts fourteen [member] | 22 December 2020 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | 269,451,000 | ||||||
Current Derivative Financial Instruments Liabilities, Sell - Notional Amount | $ | $ 70,500,000 | ||||||
Current Derivative Financial Instruments Liabilities, Fair Value | (5,010,000) | ||||||
Cross currency swap and fx swap contracts fifteen [member] | 25 October 2025 [Member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 627,385,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 1,650,000,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | 500,000,000 | ||||||
Cross currency swap and fx swap contracts sixteen [member] | 22 April 2026 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Asset Held for Trading, Fair Value | 1,078,000 | ||||||
Current Derivative Financial Instruments Assets, Buy - Notional Amount | 275,850,000 | ||||||
Current Derivative Financial Instruments Assets, Sell - Notional Amount | € | € 60,000,000 | ||||||
Cross currency swap and FX swap contracts [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Current Derivative Financial Instruments Liabilities, Fair Value | ₺ (15,478,000) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Details of Currency Forward Contracts (Detail) - Dec. 31, 2017 - Currency forward contracts [member] ₺ in Thousands | TRY (₺) | USD ($) |
Disclosure of detailed information about financial instruments [line items] | ||
Current Derivative Financial Instruments Liabilities, Fair Value | ₺ (2,246) | |
30 January 2018 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current Derivative Financial Instruments Liabilities, Buy - Notional Amount | $ | $ 50,000,000 | |
Current Derivative Financial Instruments Liabilities, Fair Value | ₺ (2,246) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Summary of Fair Value of Financial Assets and Financial Liabilities (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||
Fair value assets | ₺ 709,617 | ₺ 961,665 |
Fair value liabilities | 131,097 | 17,724 |
Fair value assets | 730,924 | 0 |
Level 2 [member] | Currency swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value assets | ₺ 656,302 | |
Fair value liabilities | (4,675) | |
Valuation Techniques | Present value of the estimated future cash flows based on observable yield curves and end period FX rates | |
Level 2 [member] | Currency swap contracts [member] | Held for trading [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value assets | ₺ 602,719 | |
Fair value liabilities | (4,675) | |
Level 2 [member] | Currency swap contracts [member] | Derivatives assets used for hedging [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value assets | ₺ 53,583 | |
Level 2 [member] | Currency forward contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value liabilities | (2,246) | |
Valuation Techniques | Forward exchange rates at the balance sheet date | |
Level 2 [member] | Currency forward contracts [member] | Held for trading [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value liabilities | (2,246) | |
Level 3 [member] | Participating cross currency swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value assets | ₺ 653,142 | 950,862 |
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 | |
Level 3 [member] | Participating cross currency swap contracts [member] | Held for trading [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value assets | ₺ 950,862 | |
Fair value liabilities | ₺ (24,199) | |
Level 3 [member] | Participating cross currency swap contracts [member] | Derivatives assets used for hedging [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value assets | ₺ 677,341 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Summary of Fair Value of Financial Assets and Financial Liabilities (Parenthetical) (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Accrual of net interest expense | ₺ 118,647 | ₺ 72,653 |
Participating cross currency swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal Value | ₺ 123,995 | ₺ 129,870 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Summary of Financial Assets and Financial Liabilities Measured and Recognised at Fair Value (Detail) - Participating cross currency swap contracts [member] | 12 Months Ended | ||||
Dec. 31, 2018TRY (₺) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017TRY (₺) | |
Level 3 [member] | EUR [member] | 23 October 2025 [member] | |||||
Disclosure of financial assets and liabilities measured at fair value [line items] | |||||
Nominal Value | € | € 500,000 | ||||
Maturity Date | 23 October 2025 | ||||
Fair Value | ₺ 208,462 | ₺ 627,385 | |||
Hedge Ratio | 1 | ||||
Change in intrinsic value of outstanding hedging instruments | ₺ 359,400 | ||||
Change in value of hedging item used to determine hedge effectiveness | ₺ (359,400) | ||||
Level 3 [member] | EUR [member] | 22 April 2026 [member] | |||||
Disclosure of financial assets and liabilities measured at fair value [line items] | |||||
Nominal Value | € | € 60,000 | ||||
Maturity Date | 22 April 2026 | ||||
Fair Value | ₺ 64,670 | 1,078 | |||
Hedge Ratio | 1 | ||||
Change in intrinsic value of outstanding hedging instruments | ₺ 43,128 | ||||
Change in value of hedging item used to determine hedge effectiveness | ₺ (43,128) | ||||
Level 3 [member] | USD [member] | 16 September 2020 [member] | |||||
Disclosure of financial assets and liabilities measured at fair value [line items] | |||||
Nominal Value | $ | $ 400,000 | ||||
Maturity Date | 16 September 2020 | ||||
Fair Value | ₺ 394,975 | ₺ 224,560 | |||
Hedge Ratio | 1 | ||||
Change in intrinsic value of outstanding hedging instruments | ₺ 179,388 | ||||
Change in value of hedging item used to determine hedge effectiveness | ₺ (179,388) | ||||
Level 3 [member] | USD [member] | 10 April 2026 [member] | |||||
Disclosure of financial assets and liabilities measured at fair value [line items] | |||||
Nominal Value | $ | $ 20,000 | ||||
Maturity Date | 10 April 2026 | ||||
Fair Value | ₺ 9,234 | ||||
Hedge Ratio | 1 | ||||
Change in intrinsic value of outstanding hedging instruments | ₺ 13,519 | ||||
Change in value of hedging item used to determine hedge effectiveness | ₺ (13,519) | ||||
Level 2 [member] | Other foreign currency (RMB) [member] | 22 April 2026 [member] | |||||
Disclosure of financial assets and liabilities measured at fair value [line items] | |||||
Nominal Value | ¥ | ¥ 202,600 | ||||
Maturity Date | 22 April 2026 | ||||
Fair Value | ₺ 53,583 | ||||
Hedge Ratio | 1 | ||||
Change in intrinsic value of outstanding hedging instruments | ₺ 15,600 | ||||
Change in value of hedging item used to determine hedge effectiveness | ₺ (15,600) |
Derivative Financial Instrum_10
Derivative Financial Instruments - Summary of Cross Currency Swap Contracts (Detail) - Participating cross currency swap contracts [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||
Opening balance | ₺ 950,862 | ₺ 382,054 |
Cash flow effect | (612,466) | |
Fair value gains recognized in profit or loss | 314,746 | 568,808 |
Closing balance | ₺ 653,142 | ₺ 950,862 |
Derivative financial instrum_11
Derivative financial instruments - Summary of Reconciliation by Risk Category of Components of Equity and Analysis of OCI Items, Net of Tax (Detail) - Interest rate risk and currency risk [member] ₺ in Thousands | 12 Months Ended |
Dec. 31, 2018TRY (₺) | |
Cash flow sensitivity analysis for variable rate instruments [line items] | |
Effect of hundred basis points increase in profit or loss | ₺ 969,429 |
Effect of hundred basis points decrease in profit or loss | 9,775 |
Effect of hundred basis points increase in equity | (359,144) |
Effect of hundred basis points decrease in equity | (254,301) |
Participating cross currency swap contracts [member] | |
Cash flow sensitivity analysis for variable rate instruments [line items] | |
Effect of hundred basis points increase in profit or loss | 937,845 |
Effect of hundred basis points decrease in profit or loss | 9,455 |
Effect of hundred basis points increase in equity | (360,596) |
Effect of hundred basis points decrease in equity | (259,066) |
Cross currency swap contracts [member] | |
Cash flow sensitivity analysis for variable rate instruments [line items] | |
Effect of hundred basis points increase in profit or loss | 31,584 |
Effect of hundred basis points decrease in profit or loss | 320 |
Effect of hundred basis points increase in equity | 1,452 |
Effect of hundred basis points decrease in equity | ₺ 4,765 |
Derivative financial instrum_12
Derivative financial instruments - Summary of Reconciliation by Risk Category of Components of Equity and Analysis of OCI Items, Net of (Detail) - Cash flow hedges [member] | 12 Months Ended |
Dec. 31, 2018TRY (₺) | |
Cost of hedging reserve [member] | |
Cash flow hedges [line items] | |
Beginning balance | ₺ (271,130) |
Changes in fair value: | (448,833) |
Foreign currency risk | (448,833) |
Amount reclassified into profit or loss: | 101,231 |
Foreign currency risk | 101,231 |
Tax on movements during the year: | 76,472 |
Ending balance | (271,130) |
Hedging reserve [member] | |
Cash flow hedges [line items] | |
Beginning balance | 14,942 |
Changes in fair value: | 683,706 |
Foreign currency risk | 612,733 |
Interest rate risk | 70,973 |
Amount reclassified into profit or loss: | (664,550) |
Foreign currency risk | (611,035) |
Interest rate risk | (53,515) |
Tax on movements during the year: | (4,214) |
Ending balance | ₺ 14,942 |
Financial Instruments - Disclos
Financial Instruments - Disclosure of Credit Risk (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | ₺ 16,635,383 | ₺ 13,279,196 |
Trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 2,620,991 | 3,004,206 |
Contract assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 715,441 | |
Receivables from financial services [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 4,170,929 | 4,248,120 |
Cash and cash equivalents [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 7,419,095 | 4,712,141 |
Participating cross currency swap and FX swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 1,356,062 | 981,396 |
Other current assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 287,469 | 316,042 |
Held to maturity investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 11,992 | |
Financial assets at fair value through profit or loss, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 9,409 | |
Financial assets at fair value through other comprehensive income, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 42,454 | |
Due from related parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | ₺ 13,533 | ₺ 5,299 |
Financial Instruments - Summary
Financial Instruments - Summary of Maximum Exposure to Credit Risk for Trade and Subscriber Receivables, Other Assets and Cash and Cash Equivalent Arising from Sales Transactions Including those Classified as Due from Related Parties (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 |
Contract assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for contract assets | ₺ 715,441 | ₺ 514,223 |
Contract assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for contract assets | 7,370 | 5,128 |
Other assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 10,426,236 | 7,580,657 |
Other assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 730,811 | 661,928 |
Not past due [member] | Contract assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for contract assets | 715,441 | 514,223 |
Not past due [member] | Contract assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for contract assets | 7,370 | 5,128 |
Not past due [member] | Other assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 8,656,954 | 6,021,990 |
Not past due [member] | Other assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 24,864 | 24,936 |
More Than 30 Days Past Due [member] | Other assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 214,351 | 194,517 |
More Than 30 Days Past Due [member] | Other assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 4,567 | 6,136 |
More Than 60 Days Past Due [member] | Other assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 80,762 | 81,804 |
More Than 60 Days Past Due [member] | Other assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 5,238 | 5,662 |
More Than 90 Days Past Due [member] | Other assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 57,761 | 35,799 |
More Than 90 Days Past Due [member] | Other assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 4,900 | 4,279 |
More Than 120 Days Past Due [member] | Other assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 43,038 | 52,851 |
More Than 120 Days Past Due [member] | Other assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 6,368 | 9,766 |
More Than 150 Days Past Due [member] | Other assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 25,543 | 20,493 |
More Than 150 Days Past Due [member] | Other assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 6,028 | 7,076 |
More Than150 Days -3 years Past Due [member] | Other assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 755,982 | 823,359 |
More Than150 Days -3 years Past Due [member] | Other assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 214,893 | 323,124 |
More Than 3 - 4 years Past Due [member] | Other assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 272,547 | 208,127 |
More Than 3 - 4 years Past Due [member] | Other assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 182,431 | 158,198 |
More Than 4 - 5 years Past Dues [member] | Other assets [member] | Cost [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | 319,298 | 141,717 |
More Than 4 - 5 years Past Dues [member] | Other assets [member] | Loss allowance [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Risk for trade and subscriber receivables, other assets and cash and cash equivalent | ₺ 281,522 | ₺ 122,751 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Movements in Provision for Impairment of Receivables from Financial Services, Trade Receivables and Due from Related Parties (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Trade receivables and due from related parties [member] | Contract assets [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
IFRS 9 effect | ₺ 5,128 | |
Provision for impairment recognized during the year | 2,242 | |
Closing balance | 7,370 | |
Trade receivables and due from related parties [member] | Other assets [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Opening balance | 705,440 | ₺ 964,311 |
IFRS 9 effect | (43,512) | |
Provision for impairment recognized during the year | 416,557 | 180,948 |
Amounts collected | (166,641) | (224,460) |
Unused amount reversed | (73,023) | (79,958) |
Receivables written off during the year as uncollectible | (118,553) | (138,529) |
Exchange differences | 10,540 | 3,128 |
Disposal of subsidiaries | 3 | |
Closing balance | 730,811 | 705,440 |
Receivables from financial services [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Opening balance | 72,992 | 10,170 |
IFRS 9 effect | 52,951 | |
Provision for impairment recognized during the year | 190,509 | 117,293 |
Amounts collected | (96,278) | (37,503) |
Unused amount reversed | (19,901) | (16,968) |
Closing balance | ₺ 200,273 | ₺ 72,992 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Analysis of Group's Financial Liabilities into Relevant Maturity Groupings Based on Contractual Maturities (Detail) - Liquidity risk [member] - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
6 months or less [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | ₺ (7,387,594) | ₺ (5,868,078) |
6 months or less [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (1,272) | |
6 months or less [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (4,354,548) | (3,275,230) |
6 months or less [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (18) | |
6 months or less [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (228,838) | (54,221) |
6 months or less [member] | Non-derivative financial liabilities [member] | Lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (372,682) | |
6 months or less [member] | Non-derivative financial liabilities [member] | Trade and other payables [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (2,440,300) | (2,548,365) |
6 months or less [member] | Non-derivative financial liabilities [member] | Due to related parties [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (45,331) | (6,980) |
6 months or less [member] | Participating cross currency swap and FX swap contracts [member] | Currency and interest swap contracts [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 55,377 | 18,982 |
6 months or less [member] | Derivative financial liabilities [member] | Currency and interest swap contracts buy option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 2,519,383 | 1,471,106 |
6 months or less [member] | Derivative financial liabilities [member] | Currency and interest swap contracts sell option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (2,464,006) | (1,452,124) |
6 months or less [member] | Derivative financial liabilities [member] | Currency forward contracts [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (2,246) | |
6 months or less [member] | Derivative financial liabilities [member] | Currency forward contracts buy option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 190,185 | |
6 months or less [member] | Derivative financial liabilities [member] | Currency forward contracts sell option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (192,431) | |
6-12 months [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (2,489,470) | (1,028,404) |
6-12 months [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (1,209) | (1,117) |
6-12 months [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (2,065,424) | (955,637) |
6-12 months [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (17,429) | |
6-12 months [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (149,564) | (54,221) |
6-12 months [member] | Non-derivative financial liabilities [member] | Lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (273,273) | |
1-2 years [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (4,286,623) | (2,698,637) |
1-2 years [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (2,231) | (2,045) |
1-2 years [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (3,587,398) | (2,575,807) |
1-2 years [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (16,789) | |
1-2 years [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (299,128) | (108,442) |
1-2 years [member] | Non-derivative financial liabilities [member] | Lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (410,826) | |
1-2 years [member] | Participating cross currency swap and FX swap contracts [member] | Currency and interest swap contracts [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 12,960 | 4,446 |
1-2 years [member] | Derivative financial liabilities [member] | Currency and interest swap contracts buy option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 193,800 | 367,448 |
1-2 years [member] | Derivative financial liabilities [member] | Currency and interest swap contracts sell option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (180,840) | (363,002) |
2-5 years [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (4,579,244) | (3,779,212) |
2-5 years [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (1,849) | |
2-5 years [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (2,503,531) | (3,035,914) |
2-5 years [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (38,933) | |
2-5 years [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (897,385) | (325,326) |
2-5 years [member] | Non-derivative financial liabilities [member] | Lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (666,760) | |
2-5 years [member] | Non-derivative financial liabilities [member] | Consideration payable in relation to acquisition of Belarusian telecom [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (526,090) | (377,190) |
2-5 years [member] | Participating cross currency swap and FX swap contracts [member] | Currency and interest swap contracts [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 14,522 | |
2-5 years [member] | Derivative financial liabilities [member] | Currency and interest swap contracts buy option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 249,288 | |
2-5 years [member] | Derivative financial liabilities [member] | Currency and interest swap contracts sell option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (234,766) | |
More than 5 years [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (8,761,099) | (3,523,786) |
More than 5 years [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (1,843,088) | (1,252,109) |
More than 5 years [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (60,401) | |
More than 5 years [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (6,159,028) | (2,211,276) |
More than 5 years [member] | Non-derivative financial liabilities [member] | Lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (773,885) | |
More than 5 years [member] | Participating cross currency swap and FX swap contracts [member] | Currency and interest swap contracts [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 14,902 | |
More than 5 years [member] | Derivative financial liabilities [member] | Currency and interest swap contracts buy option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 481,800 | |
More than 5 years [member] | Derivative financial liabilities [member] | Currency and interest swap contracts sell option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (466,898) | |
Cost [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 23,096,957 | 15,504,080 |
Cost [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 4,180 | 4,390 |
Cost [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 13,526,847 | 10,533,518 |
Cost [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 122,720 | |
Cost [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 5,210,562 | 1,875,521 |
Cost [member] | Non-derivative financial liabilities [member] | Lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 1,413,956 | |
Cost [member] | Non-derivative financial liabilities [member] | Trade and other payables [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 2,372,512 | 2,527,152 |
Cost [member] | Non-derivative financial liabilities [member] | Due to related parties [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 45,331 | 6,980 |
Cost [member] | Non-derivative financial liabilities [member] | Consideration payable in relation to acquisition of Belarusian telecom [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 358,304 | 323,691 |
Cost [member] | Participating cross currency swap and FX swap contracts [member] | Currency and interest swap contracts [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 165,265 | 107,862 |
Cost [member] | Derivative financial liabilities [member] | Currency forward contracts [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 2,246 | |
Contractual cash flows [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (27,504,030) | (16,898,117) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Secured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (4,712) | (5,011) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Unsecured bank loans [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (14,353,989) | (11,094,697) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Finance lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (133,570) | |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Debt securities issued [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (7,733,943) | (2,753,486) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Lease liabilities [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (2,497,426) | |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Trade and other payables [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (2,440,300) | (2,548,365) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Due to related parties [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (45,331) | (6,980) |
Contractual cash flows [member] | Non-derivative financial liabilities [member] | Consideration payable in relation to acquisition of Belarusian telecom [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (526,090) | (377,190) |
Contractual cash flows [member] | Participating cross currency swap and FX swap contracts [member] | Currency and interest swap contracts [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 97,761 | 23,428 |
Contractual cash flows [member] | Derivative financial liabilities [member] | Currency and interest swap contracts buy option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 3,444,271 | 1,838,554 |
Contractual cash flows [member] | Derivative financial liabilities [member] | Currency and interest swap contracts sell option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | ₺ (3,346,510) | (1,815,126) |
Contractual cash flows [member] | Derivative financial liabilities [member] | Currency forward contracts [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | (2,246) | |
Contractual cash flows [member] | Derivative financial liabilities [member] | Currency forward contracts buy option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | 190,185 | |
Contractual cash flows [member] | Derivative financial liabilities [member] | Currency forward contracts sell option [member] | ||
Disclosure of Risks [line items] | ||
Financial liabilities | ₺ (192,431) |
Financial Instruments - Summa_4
Financial Instruments - Summary of Group's Exposure to Foreign Currency Risk Based on Notional Amounts (Detail) - Currency risk [member] € in Thousands, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017EUR (€) | |
Disclosure of Risks [line items] | ||||||||
Financial assets | $ 875,005 | $ 751,289 | € 463,194 | € 333,117 | ||||
Financial liabilities | (2,158,758) | (1,676,261) | (1,337,026) | ¥ (324,316) | (1,276,292) | |||
Net exposure | (201,717) | € (62,665) | ¥ (121,716) | 62,039 | € (194,525) | |||
Other noncurrent assets [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial assets | 222 | 72 | 11 | 2,681 | ||||
Financial assets at fair value through other comprehensive income [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial assets | € | 7,043 | |||||||
Due from related parties-short term [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial assets | 1,965 | 571 | 223 | 407 | ||||
Trade receivables and contract assets [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial assets | 15,786 | 52,140 | ||||||
Other current assets [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial assets | 70,710 | 43,039 | 18,977 | 35,049 | ||||
Cash and cash equivalents [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial assets | 786,322 | 688,717 | 384,800 | 237,697 | ||||
Loans and borrowings-long term [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial liabilities | (481,438) | (557,180) | (748,142) | (224,519) | (960,629) | |||
Debt securities issued-non-current [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial liabilities | (921,102) | (469,387) | ||||||
Lease Obligations [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial liabilities | (4,719) | (24,068) | ||||||
Other non current liabilities [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial liabilities | (68,107) | (85,816) | ||||||
Loans and borrowings-short term [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial liabilities | (390,876) | (206,535) | (523,595) | (29,244) | (285,827) | |||
debt securities issued-current [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial liabilities | (55,074) | (27,848) | ||||||
Rent lease obligations current [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial liabilities | (2,951) | (8,223) | ||||||
Trade and other payables-current [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial liabilities | (233,805) | (328,323) | (32,946) | ¥ (70,553) | (29,442) | |||
Due to related parties [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial liabilities | (686) | (1,172) | € (52) | (394) | ||||
Participating cross currency swap and FX swap contracts [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Net exposure | $ 1,082,036 | € 811,167 | ¥ 202,600 | 937,011 | € 748,650 | |||
Trade receivables and accrued income [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Financial assets | 18,890 | € 57,283 | ||||||
Currency forward contracts [member] | ||||||||
Disclosure of Risks [line items] | ||||||||
Net exposure | $ 50,000 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018TRY (₺) | Dec. 31, 2017TRY (₺) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about financial instruments [line items] | |||
Strengthening percentage | 10.00% | 10.00% | |
Change in interest rates | 1.00% | 1.00% | |
Debt securities issued in 2015 [member] | Fair value [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Nominal value of debt securities issued | ₺ 2,380,855 | ₺ 2,063,972 | $ 500,000 |
Debt securities issued in 2018 [member] | Fair value [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Nominal value of debt securities issued | ₺ 2,329,011 | ₺ 0 | $ 500,000 |
Financial Instruments - Summa_5
Financial Instruments - Summary of 10% Strengthening/Weakening of Foreign Exchange Rate (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Profit and Loss [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | ₺ (153,171) | ₺ (64,438) |
Depreciation of foreign currency | 153,171 | 64,438 |
USD [member] | Profit and Loss [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | (106,121) | 23,400 |
Depreciation of foreign currency | 106,121 | (23,400) |
USD [member] | Profit and Loss [member] | Net assets and liability [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | (106,121) | 23,400 |
Depreciation of foreign currency | 106,121 | (23,400) |
EUR [member] | Profit and Loss [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | (37,775) | (87,838) |
Depreciation of foreign currency | 37,775 | 87,838 |
EUR [member] | Profit and Loss [member] | Net assets and liability [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | (37,775) | (87,838) |
Depreciation of foreign currency | 37,775 | ₺ 87,838 |
Other foreign currency (RMB) [member] | Profit and Loss [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | (9,275) | |
Depreciation of foreign currency | 9,275 | |
Other foreign currency (RMB) [member] | Profit and Loss [member] | Net assets and liability [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | (9,275) | |
Depreciation of foreign currency | 9,275 | |
Equity investments [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | (32,845) | |
Depreciation of foreign currency | 32,845 | |
Equity investments [member] | USD [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | (9,596) | |
Depreciation of foreign currency | 9,596 | |
Equity investments [member] | USD [member] | Hedged portion of risk [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | (9,596) | |
Depreciation of foreign currency | 9,596 | |
Equity investments [member] | EUR [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | (23,613) | |
Depreciation of foreign currency | 23,613 | |
Equity investments [member] | EUR [member] | Hedged portion of risk [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | (23,613) | |
Depreciation of foreign currency | 23,613 | |
Equity investments [member] | Other foreign currency (RMB) [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | 364 | |
Depreciation of foreign currency | (364) | |
Equity investments [member] | Other foreign currency (RMB) [member] | Hedged portion of risk [member] | ||
Disclosure Of Effect Of Changes In Foreign Exchange Rates Gain Loss [line items] | ||
Appreciation of foreign currency | 364 | |
Depreciation of foreign currency | ₺ (364) |
Financial Instruments - Summa_6
Financial Instruments - Summary of Interest-Bearing Financial Instruments (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | |||
Carrying Amount | ₺ (20,155,545) | ₺ (12,536,149) | ₺ (9,781,162) |
USD [member] | Floating rate loans [member] | Variable rate instruments [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Effective Interest Rate | 4.30% | 3.20% | |
Carrying Amount | ₺ (4,589,157) | ₺ (2,880,615) | |
EUR [member] | Floating rate loans [member] | Variable rate instruments [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Effective Interest Rate | 2.10% | 2.10% | |
Carrying Amount | ₺ (6,975,890) | ₺ (5,511,579) |
Financial Instruments - Summa_7
Financial Instruments - Summary of Cash Flow Sensitivity Analysis for Variable Rate Instruments (Detail) - Liquidity risk [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||
100 bps increase in Profit or Loss | ₺ (234,196) | ₺ (83,922) |
100 bps decrease in Profit or Loss | 234,196 | 83,922 |
100 bps increase in Equity | 0 | 0 |
100 bps decrease in Equity | 0 | 0 |
Variable rate instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
100 bps increase in Profit or Loss | (234,196) | (83,922) |
100 bps decrease in Profit or Loss | 234,196 | 83,922 |
100 bps increase in Equity | 0 | 0 |
100 bps decrease in Equity | ₺ 0 | ₺ 0 |
Financial Instruments - Summa_8
Financial Instruments - Summary of Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurement of Contingent Consideration (Detail) - Level 3 [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of fair value of contingent consideration [line items] | ||
Increase in fair value of change in discount rate by 100 bps | ₺ (13,582) | |
Decrease in fair value of change in discount rate by 100 bps | 14,250 | |
Increase in fair value of change in expected settlement date changes by 1 year | (31,047) | |
Decrease in fair value of change in expected settlement date changes by 1 year | 33,896 | |
Contingent consideration | ₺ 358,304 | ₺ 323,691 |
Fair value measurement of contingent consideration percentage | 9.50% | 4.80% |
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, |
Financial Instruments - Summa_9
Financial Instruments - Summary of Consideration Payable in Relation to Acquisition (Detail) - Consideration payable in relation to acquisition of Belarusian telecom [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||
Opening balance | ₺ 323,691 | ₺ 295,062 |
Gains recognized in profit or loss | 34,613 | 28,629 |
Closing balance | ₺ 358,304 | ₺ 323,691 |
Guarantees and Purchase Oblig_2
Guarantees and Purchase Obligations - Additional Information (Detail) ₴ in Thousands | 12 Months Ended | ||
Dec. 31, 2018TRY (₺) | Dec. 31, 2017TRY (₺) | Dec. 31, 2017UAH (₴) | |
Disclosure of guarantees and purchase obligations [line items] | |||
Purchase commitments | ₺ 1,353,789,000 | ₺ 592,956,000 | |
Purchase commitments settlement term | 5 years | ||
Guarantees | ₺ 6,530,374,000 | ₺ 4,926,916,000 | |
Lifecell 3G License [member] | |||
Disclosure of guarantees and purchase obligations [line items] | |||
Purchase commitments | ₺ 0 | ₴ 217,793 |
Commitments and Contingencies -
Commitments and Contingencies - Turkcell - Additional Information (Detail) - Turkcell [member] $ in Thousands | Apr. 27, 1998USD ($) |
Disclosure of commitments and contingencies [line items] | |
License agreement term | 25 years |
License fee | $ 500,000 |
Commitments and Contingencies_2
Commitments and Contingencies - 3G and 4G License - Additional Information (Detail) - EUR (€) € in Thousands | Apr. 01, 2016 | Apr. 30, 2009 |
Turkcell 4.5G license [member] | ||
Disclosure of commitments and contingencies [line items] | ||
License agreement term | 13 years | |
Turkcell 3G license [member] | ||
Disclosure of commitments and contingencies [line items] | ||
License fee | € 358,000 | |
License agreement term | 20 years |
Commitments and Contingencies_3
Commitments and Contingencies - Belarusian Telecom - Additional Information (Detail) - Belarusian Telecom [member] | Aug. 28, 2008Settlements |
Disclosure of commitments and contingencies [line items] | |
License agreement term | 10 years |
Number of uncovered license settlements | 646 |
Number of license settlements | 22,552 |
Commitments and Contingencies_4
Commitments and Contingencies - Lifecell - Additional Information (Detail) - Lifecell [member] | 12 Months Ended |
Dec. 31, 2018License | |
Disclosure of commitments and contingencies [line items] | |
Number of license owned | 11 |
International and Long Distance [member] | |
Disclosure of commitments and contingencies [line items] | |
Number of license issued | 1 |
Ukraine [member] | |
Disclosure of commitments and contingencies [line items] | |
Number of license issued | 8 |
Commitments and Contingencies_5
Commitments and Contingencies - Inteltek - Additional Information (Detail) - Inteltek [member] - TRY (₺) ₺ in Thousands | Mar. 01, 2009 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of commitments and contingencies [line items] | |||
Commission rate | 1.40% | ||
Letter of guarantee provided to Spor Toto | ₺ 159,572 | ₺ 159,752 | |
Percentage Ownership By Affiliates | 55.00% | ||
Targeted pay out percentage | 50.00% | ||
Mobile Agency Agreement [member] | |||
Disclosure of commitments and contingencies [line items] | |||
Letter of guarantee | ₺ 25,000 | ₺ 25,000 |
Commitments and Contingencies_6
Commitments and Contingencies - Kibris Telekom - Additional Information (Detail) - Kibris Telekom [member] - USD ($) $ in Thousands | Mar. 14, 2008 | Apr. 27, 2007 |
Disclosure of commitments and contingencies [line items] | ||
License agreement term granted | 18 years | |
License cost | $ 10,000 |
Commitments and Contingencies_7
Commitments and Contingencies - Dispute to Treasury Share Amounts - Additional Information (Detail) - Dispute On Treasury Share Amount [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of commitments and contingencies [line items] | ||
Litigation principal amount | ₺ 206,365 | |
Litigation interest amount | 209,159 | |
Litigation settlement amount which was paid in 2018 | 436,300 | |
Liabilities related to the dispute on treasury share amount | ₺ 0 | ₺ 417,668 |
Commitments and Contingencies_8
Commitments and Contingencies - Dispute to Special Communication Tax and Value Added Tax - Additional Information (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of commitments and contingencies [line items] | ||
Tax claims from SCT for the years 2015 and 2016 | ₺ 134,537 | |
Tax claims from VAT for the years 2015 and 2016 | 113,367 | |
Legal provision for tax claim for the years 2015 and 2016 | 0 | ₺ 0 |
Dispute on special communication tax and value added tax [member] | ||
Disclosure of commitments and contingencies [line items] | ||
The assessment of the SCT for the year 2011 by offsetting the receivables of the company from public administrations | 80,355 | |
Payment based on disputes on SCT for the years 2013 and 2014 | ₺ 39,362 | ₺ 24,175 |
Commitments and Contingencies_9
Commitments and Contingencies - Tax Base Increase due to Law Serial No. 7143 - Additional Information (Detail) - Tax Base Increase due to Law [member] - TRY (₺) ₺ in Thousands | Oct. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of commitments and contingencies [line items] | |||
Payment based on corporate tax base increase mechanism | ₺ 35,443 | ||
Liabilities related to tax base increase due to law | ₺ 0 | ₺ 0 |
Commitments and Contingencie_10
Commitments and Contingencies - Investigation Initiated by ICTA on Subscription Numbers and Radio Utilization and Usage Fees - Additional Information (Detail) - Investigation initiated by ICTA on subscription numbers and radio utilization and usage fees [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of commitments and contingencies [line items] | ||
Administrative fines on radio utilization | ₺ 11,240 | |
Early payment Discount on Administrative fines | 25.00% | |
Litigation principal and interest amount | ₺ 158,340 | |
Litigation settlement amount which was paid in 2018 | 166,257 | |
Liabilities related to investigation initiated by ICTA on subscription numbers and radio utilization and usage fees | ₺ 0 | ₺ 157,446 |
Commitments and Contingencie_11
Commitments and Contingencies - Disputes Regarding the Law on the Protection of Competition - Additional Information (Detail) - Disputes regarding the law on the protection of competition [member] - TRY (₺) ₺ in Thousands | 1 Months Ended | 12 Months Ended |
Jan. 31, 2019 | Dec. 31, 2018 | |
Disclosure of commitments and contingencies [line items] | ||
Administrative fines on protection of competition | ₺ 91,942 | |
Litigation settlement amount | ₺ 112,084 | |
Announcing or commencing implementation of major restructuring [member] | ||
Disclosure of commitments and contingencies [line items] | ||
Administrative fine | ₺ 91,942 |
Commitments and Contingencie_12
Commitments and Contingencies - Ministry of Trade Administrative - Additional Information (Detail) ₺ in Thousands | 1 Months Ended |
Jan. 31, 2018TRY (₺) | |
Ministry of trade administrative fine [member] | Istanbul [member] | |
Disclosure of commitments and contingencies [line items] | |
Administrative Fine imposed | ₺ 138,173 |
Commitments and Contingencie_13
Commitments and Contingencies - Summary of Lawsuits Disputes (Detail) - Disputes related with ICTA [member] - TRY (₺) ₺ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of commitments and contingencies [line items] | ||
Anticipated Maximum Risk (excluding accrued interest) | ₺ 13,367 | ₺ 13,367 |
Provision for ongoing disputes | ₺ 0 | ₺ 0 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - TRY (₺) | Dec. 31, 2018 | Dec. 31, 2017 |
Related party transactions [abstract] | ||
Key management executive officers personnel loans | ₺ 0 | ₺ 0 |
Related Parties - Summary of To
Related Parties - Summary of Total Compensation Provided to Key Management Personnel (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of key management personnel compensation [abstract] | |||
Short-term benefits | ₺ 92,341 | ₺ 74,696 | ₺ 50,001 |
Termination benefits | 121 | 604 | 10,064 |
Long-term benefits | 755 | 548 | 479 |
Key management personnel compensation | ₺ 93,217 | ₺ 75,848 | ₺ 60,544 |
Related Parties - Schedule of S
Related Parties - Schedule of Short Term Due from Related Parties (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of transactions between related parties [line items] | ||
Due from related parties | ₺ 13,533 | ₺ 5,299 |
Vimpelcom OJSC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 9,138 | |
Telia Sonera International Carrier AB [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 1,741 | 1,256 |
Kyivstar GSM JSC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 210 | 1,061 |
GSM Kazakhstan Ltd [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 2 | 830 |
Azercell Telekom MMC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | 364 | |
Other [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due from related parties | ₺ 2,442 | ₺ 1,788 |
Related Parties - Schedule of_2
Related Parties - Schedule of Short Term Due to Related Parties (Detail) - TRY (₺) ₺ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of transactions between related parties [line items] | ||
Due to related parties | ₺ 45,331 | ₺ 6,980 |
Turkcell Vakfi [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 39,544 | |
Kyivstar GSM JSC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 3,591 | 2,346 |
Wind Telecomunicazioni SPA [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 886 | 1,738 |
Telia Sonera International Carrier A g [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 523 | |
Vimpelcom OJSC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 3 | 1,552 |
Geocell LLC [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | 2 | 447 |
Other [member] | ||
Disclosure of transactions between related parties [line items] | ||
Due to related parties | ₺ 782 | ₺ 897 |
Related Parties - Schedule of T
Related Parties - Schedule of Transactions with Related Parties (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | ₺ 74,481 | ₺ 61,032 | ₺ 89,426 |
Related party expenses | 144,909 | 97,879 | 103,642 |
Kyivstar GSM JSC [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 52,946 | 30,875 | 30,964 |
Related party expenses | 77,174 | 49,178 | 47,595 |
Telia Sonera International Carrier AB [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 7,941 | 10,020 | 15,761 |
Related party expenses | 6,047 | 3,120 | 2,499 |
Vimpelcom OJSC [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 5,418 | 7,230 | 20,775 |
Related party expenses | 2,751 | 10,853 | 2,721 |
Azercell Telekom MMC [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 256 | 1,583 | 2,585 |
Related party expenses | 79 | 734 | 1,361 |
Krea Icerik Hizmetleri ve Produksiyon AS [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 3,422 | ||
Related party expenses | 5,975 | ||
Millenicom Telekomunikasyon AS [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 997 | ||
Turkcell Vakf [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party expenses | 44,247 | ||
Other [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from related parties | 7,920 | 11,324 | 14,922 |
Related party expenses | 9,799 | 17,001 | 11,659 |
Hobim Bilgi Islem Hizmetleri AS [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party expenses | ₺ 16,993 | ₺ 31,832 | |
Wind Telecomunicazioni SPA [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party expenses | ₺ 4,812 |
Subsidiaries - Schedule of Subs
Subsidiaries - Schedule of Subsidiaries, Associates and Joint Venture (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Kibris Telekom [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Kibris Telekom | |
Country of Incorporation | Turkish Republic of Northern Cyprus | |
Business | Telecommunications | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Global Bilgi [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Global Bilgi | |
Country of Incorporation | Turkey | |
Business | Customer relations and human resources management | |
Effective Ownership Interest | 100.00% | 100.00% |
Turktell [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turktell | |
Country of Incorporation | Turkey | |
Business | Information technology, value added GSM services and entertainment investments | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Superonline [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Superonline | |
Country of Incorporation | Turkey | |
Business | Telecommunications, television services and content services | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Satis [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Satis | |
Country of Incorporation | Turkey | |
Business | Sales, delivery and digital sales services | |
Effective Ownership Interest | 100.00% | 100.00% |
Eastasia [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Eastasia | |
Country of Incorporation | Netherlands | |
Business | Telecommunications investments | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Teknoloji [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Teknoloji | |
Country of Incorporation | Turkey | |
Business | Research and development | |
Effective Ownership Interest | 100.00% | 100.00% |
Global Tower [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Global Tower | |
Country of Incorporation | Turkey | |
Business | Telecommunications infrastructure business | |
Effective Ownership Interest | 100.00% | 100.00% |
Rehberlik [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Rehberlik | |
Country of Incorporation | Turkey | |
Business | Directory Assistance | |
Effective Ownership Interest | 100.00% | 100.00% |
Financell [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Financell | |
Country of Incorporation | Netherlands | |
Business | Financing business | |
Effective Ownership Interest | 100.00% | |
Lifecell Ventures [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Lifecell Ventures | |
Country of Incorporation | Netherlands | |
Business | Telecommunications investments | |
Effective Ownership Interest | 100.00% | 100.00% |
Beltel [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Beltel | |
Country of Incorporation | Turkey | |
Business | Telecommunications investments | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Gayrimenkul [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Gayrimenkul | |
Country of Incorporation | Turkey | |
Business | Property investments | |
Effective Ownership Interest | 100.00% | 100.00% |
Global LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Global LLC | |
Country of Incorporation | Ukraine | |
Business | Customer relations management | |
Effective Ownership Interest | 100.00% | 100.00% |
UkrTower [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | UkrTower | |
Country of Incorporation | Ukraine | |
Business | Telecommunications infrastructure business | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Europe [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Europe | |
Country of Incorporation | Germany | |
Business | Telecommunications | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Odeme [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Odeme | |
Country of Incorporation | Turkey | |
Business | Payment services and e-money license | |
Effective Ownership Interest | 100.00% | 100.00% |
Lifecell [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | lifecell | |
Country of Incorporation | Ukraine | |
Business | Telecommunications | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Finansman [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Finansman | |
Country of Incorporation | Turkey | |
Business | Consumer financing services | |
Effective Ownership Interest | 100.00% | 100.00% |
Beltower [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Beltower | |
Country of Incorporation | Republic of Belarus | |
Business | Telecommunications Infrastructure business | |
Effective Ownership Interest | 100.00% | 100.00% |
Turkcell Enerji [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Enerji | |
Country of Incorporation | Turkey | |
Business | Electricity energy trade and wholesale and retail electricity sales | |
Effective Ownership Interest | 100.00% | 100.00% |
Paycell [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Paycell | |
Country of Incorporation | Ukraine | |
Business | Consumer financing services | |
Effective Ownership Interest | 100.00% | 100.00% |
Lifecell Digital [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Lifecell Digital | |
Country of Incorporation | Turkish Republic of Northern Cyprus | |
Business | Telecommunications | |
Effective Ownership Interest | 100.00% | 100.00% |
TOFAS [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | TÖFAŞ | |
Country of Incorporation | Turkey | |
Business | Interest free consumer financing services | |
Effective Ownership Interest | 100.00% | |
Turkcell Sigorta [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Turkcell Sigorta | |
Country of Incorporation | Turkey | |
Business | Insurance agency activities | |
Effective Ownership Interest | 100.00% | |
Belarusian Telecom [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Belarusian Telecom | |
Country of Incorporation | Republic of Belarus | |
Business | Telecommunications | |
Effective Ownership Interest | 80.00% | 80.00% |
Lifetech [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Lifetech | |
Country of Incorporation | Republic of Belarus | |
Business | Information technology, programming and technical support | |
Effective Ownership Interest | 80.00% | 80.00% |
Inteltek [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Inteltek | |
Country of Incorporation | Turkey | |
Business | Information and Entertainment Services | |
Effective Ownership Interest | 55.00% | 55.00% |
Azerinteltek [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Subsidiaries | Azerinteltek | |
Country of Incorporation | Azerbaijan | |
Business | Information and Entertainment Services | |
Effective Ownership Interest | 28.00% | |
Fintur [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Associates | Fintur | |
Country of Incorporation | Netherlands | |
Business | Telecommunications investments | |
Effective Ownership Interest | 41.00% | 41.00% |
Turkiye'nin otomobili [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Associates | Türkiye'nin Otomobili | |
Country of Incorporation | Turkey | |
Business | Electric passenger car development, production and trading activities | |
Effective Ownership Interest | 19.00% | |
Sofra [member] | ||
Disclosure of subsidiaries [line items] | ||
Name of Joint Venture | Sofra | |
Country of Incorporation | Turkey | |
Business | Meal coupons and cards | |
Effective Ownership Interest | 33.00% |
Subsidiaries - Schedule of Su_2
Subsidiaries - Schedule of Subsidiaries, Associates and Joint Venture (Parenthetical) (Detail) - 12 months ended Dec. 31, 2018 - Azerinteltek [member] ₺ in Thousands, € in Thousands | TRY (₺) | EUR (€) |
Disclosure of subsidiaries [line items] | ||
Consideration transferred | € | € 19,530 | |
Recognized gain on sale of subsidiary | ₺ | ₺ 110,308 |
Subsidiaries - Schedule of Non-
Subsidiaries - Schedule of Non-Wholly Owned Subsidiaries That Have Material Non-Controlling Interests (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of subsidiaries [line items] | |||
Profit/(loss) allocated to non-controlling interests | ₺ 156,270 | ₺ 58,630 | ₺ 51,715 |
Accumulated non-controlling interests | ₺ 131,810 | ₺ 55,927 | |
Inteltek [member] | |||
Disclosure of subsidiaries [line items] | |||
Place of incorporation and principal place of business | Turkey | ||
Proportion of ownership interests and voting rights held by non-controlling interest | 45.00% | 45.00% | |
Profit/(loss) allocated to non-controlling interests | ₺ 105,112 | ₺ 35,924 | |
Accumulated non-controlling interests | 131,506 | 46,072 | |
Subsidiaries with immaterial non-controlling interests [member] | |||
Disclosure of subsidiaries [line items] | |||
Profit/(loss) allocated to non-controlling interests | 51,158 | 22,706 | |
Accumulated non-controlling interests | ₺ 304 | ₺ 9,855 |
Subsidiaries - Schedule of Fina
Subsidiaries - Schedule of Financial Information of Subsidiaries (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of subsidiaries [line items] | |||
Current assets | ₺ 18,337,109 | ₺ 14,069,106 | |
Non-current assets | 24,428,166 | 19,913,363 | |
Current liabilities | 11,740,048 | 9,223,843 | |
Non-current liabilities | 14,971,673 | 9,713,538 | |
Equity attributable to owners | 15,921,744 | 14,989,161 | |
Revenue | 21,292,475 | 17,632,064 | ₺ 14,285,561 |
Profit for the year | 2,177,335 | 2,037,759 | 1,543,803 |
Other comprehensive income/(loss) for the year | 377,238 | (10,140) | 103,625 |
Dividend paid to non-controlling interests | 58,778 | 60,222 | 51,416 |
Net cash inflow from operating activities | 5,829,854 | 3,101,266 | 607,137 |
Net cash inflow from investing activities | (4,535,569) | (3,304,648) | (2,976,708) |
Net cash outflow from financing activities | (534,383) | (1,566,743) | 4,839,031 |
Effects of foreign exchange rate fluctuations on cash and cash equivalents | 1,947,004 | 430,106 | ₺ 664,096 |
Inteltek [member] | |||
Disclosure of subsidiaries [line items] | |||
Current assets | 403,427 | 223,119 | |
Non-current assets | 9,043 | 9,290 | |
Current liabilities | 115,080 | 125,286 | |
Non-current liabilities | 5,154 | 4,742 | |
Equity attributable to owners | 292,236 | 102,381 | |
Revenue | 208,239 | 184,025 | |
(Expenses) / Income (net) | (93,133) | (104,194) | |
Gain on Sale of Investments | 118,476 | ||
Profit for the year | 233,582 | 79,831 | |
Other comprehensive income/(loss) for the year | 179 | 172 | |
Dividend paid to non-controlling interests | 31,283 | ||
Dividend received to non-controlling interests | (46,582) | ||
Net cash inflow from operating activities | 31,380 | 73,575 | |
Net cash inflow from investing activities | 158,946 | 19,930 | |
Net cash outflow from financing activities | (69,518) | (75,113) | |
Effects of foreign exchange rate fluctuations on cash and cash equivalents | 56,949 | 8,574 | |
Net cash inflow | ₺ 177,757 | ₺ 26,966 |
Cash Flow Information - Reconci
Cash Flow Information - Reconciliation of Net Cash Flow to Movement in Net Debt (Detail) - TRY (₺) ₺ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | ₺ 12,536,149 | ₺ 9,781,162 | ||
Cash inflows | 45,916,917 | 24,312,451 | ||
Cash outflows | (45,952,348) | (23,273,370) | ||
Other non-cashmovements | 6,618,447 | 1,715,906 | ||
Borrowings, ending balance | 20,155,545 | 12,536,149 | ||
Cash and cash equivalents | 7,419,239 | 4,712,333 | ₺ 6,052,352 | ₺ 2,918,796 |
Net debt | (12,736,306) | (7,823,816) | ||
As previously reported [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | 12,536,149 | |||
Borrowings, ending balance | 12,536,149 | |||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, ending balance | 1,036,380 | |||
Debt securities issued [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | 1,875,521 | 1,922,656 | ||
Cash inflows | 2,188,313 | 209,808 | ||
Cash outflows | (432,140) | (503,391) | ||
Other non-cashmovements | 1,578,868 | 246,448 | ||
Borrowings, ending balance | 5,210,562 | 1,875,521 | ||
Debt securities issued [member] | As previously reported [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | 1,875,521 | |||
Borrowings, ending balance | 1,875,521 | |||
Loans Issued [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | 10,537,908 | 7,810,392 | ||
Cash inflows | 43,728,604 | 24,030,222 | ||
Cash outflows | (44,339,377) | (22,768,911) | ||
Other non-cashmovements | 3,603,892 | 1,466,205 | ||
Borrowings, ending balance | 13,531,027 | 10,537,908 | ||
Loans Issued [member] | As previously reported [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | 10,537,908 | |||
Borrowings, ending balance | 10,537,908 | |||
Finance lease liabilities [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | 122,720 | 48,114 | ||
Cash inflows | 72,421 | |||
Cash outflows | (1,068) | |||
Other non-cashmovements | 3,253 | |||
Borrowings, ending balance | 122,720 | |||
Lease liabilities [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Cash outflows | (1,180,831) | |||
Other non-cashmovements | 1,435,687 | |||
Borrowings, ending balance | 1,413,956 | |||
Lease liabilities [member] | As previously reported [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, beginning balance | 122,720 | |||
Borrowings, ending balance | ₺ 122,720 | |||
Lease liabilities [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Borrowings, ending balance | ₺ 1,036,380 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - TRY (₺) | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2016 |
Disclosure of non-adjusting events after reporting period [line items] | |||
Repurchase of treasury shares | 8,434,204 | ||
Shares repurchased, total cost | ₺ 94,620,000 | ₺ 65,607,000 | |
Percentage of consolidated revenue | 7.25% | ||
Major ordinary share transactions [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Repurchase of treasury shares | 827,750 | ||
Shares repurchased, total cost | ₺ 9,997,000 | ||
Inteltek [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Percentage Ownership By Affiliates | 55.00% | ||
Percentage of consolidated revenue | 1.00% | ||
Bottom of range [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Shares repurchased, price per share | ₺ 10.01 | ||
Bottom of range [member] | Major ordinary share transactions [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Shares repurchased, price per share | 11.89 | ||
Top of range [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Shares repurchased, price per share | ₺ 12.33 | ||
Top of range [member] | Major ordinary share transactions [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Shares repurchased, price per share | ₺ 12.24 |