Ukraine: Astelit

By the beginning of February 2005, Turkcell's 55% indirect subsidiary Astelit had launched its GSM operations in Ukraine under the "life:)" brand name. Of the company's shares, 45% belong to the System Capital Management Group. Astelit covers 96% of Ukraine's population and 88% of the country's territory.

Summary Data for Astelit	2009	2010	y/y % chg
Number of subscribers (million)
Total	12.2	9.1	(25.4%)
Active (3 months)1	7.8	6.1	(21.8%)
MoU (minutes)	158.7	171.9	8.3%
Average Revenue per User (ARPU) in US$
Total	2.5	2.6	4.0%
Active (3 months)	3.7	3.9	5.4%
Revenue (UAH million)	2,740	2,691	(1.8%)
Revenue (US$ million)	351.1	339.,3	(3.4%)
EBITDA2 (US$ million)	20.2	64.5	219.3%
EBITDA margin	5.7%	19.0%	13.3pp
Net Loss (US$ million)	(111.8)	(101.0)	(9.7%)
Capex (US$ million)	216.0	66.5	(69.2%)
1 Active subscribers are those who in the past three months made a transaction which brought revenue to the Company. 2 EB ITDA is a non-GAAP financial measure. See page 14-15 of 2010 Press Release at http://www.turkcell.com.tr/c/docs/announcements/announcements_2011_0223_Q4_2010_press_ release.pdf for the reconciliation of EB ITDA to net cash from operating activities. Please note, however, that following the publication of the reconciliation in our Q4 2010 results on February 23, 2011, we have made changes to the manner in which we account for the impact of changes in foreign exchange rates in our statement of cash flows for 2010. As a result, we expect to revise our presentation of prior periods, including the Q4 2010 reconciliation.

In 2010, Astelit's EB ITDA tripled compared to 2009 within the context of the turnaround strategy and effective cost control initiatives. Its EB ITDA margin increased to 19.0% in 2010 from 5.7% a year before. The main drivers of this increase were the tariff redesigns resulting in a decrease in interconnection costs, together with cost cutting measures.

In 2010, Astelit's number of registered and three-month active subscribers stood at 9.1 million and 6.1 millon, respectively.

The 3-month active ARPU rose by 5.4% in 2010, mainly due to a decline in the number of active subscribers, along with the change in active subscriber definition. MoU increased by 8.3% in 2010 yearon- year.