Turkcell says Q3 net profit rises 50.5 pct y/y

Turkcell says Q3 net profit rises 50.5 pct y/y

By Thomas Grove

* Profit rises 50.5 pct year-on-year to $603.8 million

* Revenue rises 19.3 pct year-on-year to $2.056 billion

* EBITDA rises 8.6 pct year-on-year to $837.8 million (Adds details from the quarter)

ISTANBUL, Nov 5 (Reuters) - Turkey's leading mobile firm, Turkcell posted a 50.5 percent rise in net profit to $603.8 million in the third quarter as its subscriber base rose, the company said on Wednesday.

Revenue rose 19.3 percent to $2.056 billion, and earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8.6 from the year-earlier third quarter to $837.8 million, the company said.

Turkcell's subscriber base grew by 4.3 percent on an annual basis to 36.3 million by the end of the third quarter.

"In Turkey, we are pleased with the momentum we have gained prior to important milestones in our market ... On the potential macroeconomic volatilities, thanks to our strong cash position and balance sheet we feel we are well prepared to manage such challenges," said Turkcell chief executive Sureyya Ciliv.

Ciliv said previously that the company was holding on to a 10 percent growth target for 2008, despite a global economic crisis.

Turkcell, the biggest operator in European Union candidate Turkey, faces increasing competition from Vodafone Group Plc and Avea, Turkey's third-largest GSM operator.

Competition is expected to increase when number portability is introduced on Nov. 9, which will allow users to take their numbers with them when they switch operators.

The company's churn rate, which measures customers leaving, rose 0.5 percentage points to 6.2 percent in the third quarter.

Average revenue per user (ARPU) increased by 13.1 percent from a year earlier to $17.3.

Turkcell's Ukrainian subsidiary Astelit more than doubled its revenue in the quarter, growing 68.2 percent to $127.8 million.

"On the international front, we are pleased with Astelit's performance in Ukraine .... In Belarus, we have started network roll out and rebranding activities," said Ciliv.

Turkcell this year acquired Belarus' state-owned mobile operator BeST for $500 million to gain entry in the fast growing market.

Turkcell's major shareholders are Nordic telecommunications company TeliaSonera AB, Russian private equity firm Altimo and unlisted Turkish conglomerate Cukurova. (Reporting by Thomas Grove; Editing by Bernard Orr)