4.	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 Dagitim Hizmetleri A.S. (“Turkcell Satis”), group call center operations of Global Bilgi Pazarlama Danisma 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”), LLC lifecell (“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”), Lifecell Digital Limited and Fintur. 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 call center operations of Turkcell Global Bilgi, Turkcell Finansman, Turkcell Enerji Cozumleri ve Elektrik Satıs Ticaret A.S (“Turkcell Enerji”) and Paycell LLC (“Paycell”).

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
	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	)


	Turkcell Turkey						Turkcell International						All other segments						Intersegment Eliminations						Consolidated
	2016			2015			2016			2015			2016			2015			2016			2015			2016			2015
Total segment revenue		12,787,592			11,480,890			874,692			856,147			661,923			458,563			(38,646	)		(26,185	)		14,285,561			12,769,415
Inter-segment revenue		(19,680	)		(14,608	)		(18,964	)		(11,731	)		(2	)		154			38,646			26,185			—			—
Revenues from external customers		12,767,912			11,466,282			855,728			844,416			661,921			458,717			—			—			14,285,561			12,769,415
Adjusted EBITDA		4,160,861			3,759,590			235,348			245,959			222,849			134,484			451			511			4,619,509			4,140,544
Bad debt expense		(195,472	)		(187,963	)		(5,956	)		(8,292	)		(9,956	)		(333	)		—			—			(211,384	)		(196,588	)


	2017			2016			2015

Profit for the period		2,037,759			1,543,803			1,903,551

Add(Subtract):

Profit/(loss) from discontinued operations		—			42,164			(367,336	)

Profit from continuing operations		2,037,759			1,585,967			1,536,215
Income tax expense		571,758			423,160			667,112
Finance income		(1,090,449	)		(1,064,794	)		(756,039	)
Finance costs		1,413,315			1,237,593			799,514
Other income		(74,438	)		(78,569	)		(44,454	)
Other expenses		773,329			312,801			270,446
Depreciation and amortization		2,596,980			2,203,351			1,667,750

Consolidated adjusted EBITDA		6,228,254			4,619,509			4,140,544

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.


	2017		2016		2015
Revenues
Turkey		16,431,863		13,321,503		11,779,345
Ukraine		664,643		573,951		571,630
Belarus		209,884		149,005		141,219
Azerbaijan		174,021		108,329		145,654
Turkish Republic of Northern Cyprus		148,637		129,785		125,668
Germany		3,016		2,988		5,899

		17,632,064		14,285,561		12,769,415


Non-current assets	31 December 2017		31 December 2016
Turkey		18,098,228		16,548,162
Ukraine		1,408,783		1,211,789
Turkish Republic of Northern Cyprus		141,802		117,243
Belarus		138,371		291,498
Azerbaijan		13,663		13,563
Unallocated non-current assets		112,516		67,057

		19,913,363		18,249,312