Avea posts TL 4.3 billion in losses in 5 years

Turkish GSM operator Avea accumulated a staggering TL 4.29 billion in losses over the course of the last five years, a recent report released by the state telecommunications watchdog has revealed.
A subsidiary of the partly state-owned Turk Telekom, Avea posted TL 784 million in losses at the end of 2014, and its losses for the period between 2010 and 2014 amounted to TL 4.29 billion.
The Information Technologies and Communications Authority (BTK) last week published a sectoral report for the first quarter of this year which disclosed the financial records of telecommunications operators as well as recent changes in their market share.
The leading operator, Turkcell, earned TL 2.3 billion in profits in 2014, and another operator, Vodafone, made TL 53 million. Turk Telekom, which has both fixed line and mobile services in its operations, posted a TL 2.4 billion profit in the same period.
Turk Telekom topped the list of most profitable telecommunications firms for the five-year period with TL 12.1 billion and was followed by Turkcell, which earned TL 11.5 billion. While Vodafone lost TL 933 billion in the same period, Avea posted a TL 4.29 billion loss, pulling the overall profit of the Turkish telecommunications industry down TL 18 billion.
The report also said that Vodafone made TL 368 million in investments in the first quarter of 2015, while Turkcell invested TL 221 million and Avea TL 158 million.
h2Turkcell loses subscribers, market shareh2
Based on sales income, Turkcelland’s market share dropped by 3.2 points year-on-year in the first quarter, to 44.3 percent. Vodafone boosted its share by 1.3 points, up to 35.2 percent, and Avea increased its share by 1.8 points, reaching 21.5 percent.
In the first three months of this year, 3.27 million people changed their operators, 4.4 percent higher than the corresponding number a year ago. While Turkcell lost 275,000 of its subscribers, Vodafone enrolled 91,000 new subscribers and Avea had 184,000 in the first quarter.
Turkcell lost 1.55 million clients during 2014. Currently, 47.6 percent of all subscribers use Turkcell, 29.3 percent use Vodafone and the remaining 23.1 percent use Avea. As of May there were 72 million mobile operator users in Turkey.
In January, Sandureyya Ciliv, who was appointed Turkcell CEO on Jan. 9, 2007, resigned from his post on the heels of a number of government appointments made to the Turkcell board amid a dispute between the operatorand’s major shareholders.
There has been speculation that President Recep Tayyip Erdogan sought to force the appointment of a figure loyal to him as Turkcell CEO. Earlier last year, the Financial Times wrote that and”the Turkish state has already established a measure of de facto control over Turkcell.and”
Avea also came to the public agenda recently for a biased stance toward journalists. At an event organized in support of visually disabled people in April, a reporter from the Cihan news agency, which has become a target of the government over its critical coverage, was not permitted to enter because the countryand’s first lady, Emine Erdogan, was in attendance. Dozens of Avea subscribers moved to other operators in protest of the prejudiced treatment of the journalist.

SOURCE: Today’s Zaman