37.

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 2017 and 2016.

The Group provide additional benefits to key management personnel and contribution to retirement plans based on a pre-determined ratio of compensation.


	31 December 2017		31 December 2016		31 December 2015
Short-term benefits (*)		74,696		50,001		52,767
Termination benefits		604		10,064		13,454
Long-term benefits		548		479		655

		75,848		60,544		66,876

(*)

Includes share-based payment.

The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:


	31 December 2017		31 December 2016
Due from related parties
Telia Sonera International Carrier AB (“Telia”)		1,256		607
Kyivstar GSM JSC (“Kyivstar”)		1,061		75
GSM Kazakhstan Ltd (“Kazakcell”)		830		937
Azercell Telekom MMC (“Azercell”)		364		446
MegaFon OJSC (“Megafon”)		281		1,387
Hobim Bilgi Islem Hizmetleri AS (“Hobim”) (*)		—		1,223
Vimpelcom OJSC (“Vimpelcom”)		—		586
Other		1,507		600

		5,299		5,861

(*)

Hobim is not a related party effective from 20 June 2017.

Due from related parties is shown net of allowance for doubtful receivables amounting to TL 227 at 31 December 2017 (31 December 2016: TL 231).

Due from Megafon, Telia, Vimpelcom, Azercell, Millenicom and Kyivstar resulted from telecommunications services.

Due from Kazakcell, mainly resulted from software services and telecommunications services


	31 December 2017		31 December 2016
Due to related parties
Kyivstar GSM JSC (“Kyivstar”)		2,346		2,382
Wind Telecomunicazioni S.P.A.		1,738		—
Vimpelcom (Bvı) Ltd.		1,552		100
Geocell LLC (“Geocell”)		447		445
Megafon		17		892
Hobim (*)		—		6,260
Other		880		1,122

		6,980		11,201

(*)

Hobim is not a related party effective from 20 June 2017.

Due to Kyivstar, Megafon, 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 33.

The following transactions occurred with related parties:


	2017		2016		2015
Revenue from related parties
Sales to Kyivstar
Telecommunications services		30,875		30,964		41,728
Sales to Telia
Telecommunications services		10,020		15,761		16,955
Sales to Vimpelcom
Telecommunications services		7,230		20,775		20,489
Sales to Megafon
Telecommunication services		6,362		11,773		14,958
Sales to Azercell
Telecommunication services		1,583		2,585		4,183
Sales to Krea (*)
Call center services, fixed line services, rent and interest charges		—		3,422		4,831
Sales to Millenicom (**)
Telecommunication services		—		997		8,861
Sales to KVK Teknoloji (***)
Simcard SIM card and prepaid card sales		—		—		217,080
Sales to other related parties		4,962		3,149		6,049

		61,032		89,426		335,134

Transactions with related parties


	2017		2016		2015
Related party expenses
Charges from Kyivstar
Telecommunications services		49,178		47,595		49,608
Charges from Hobim (****)
Invoicing and archiving services		16,993		31,832		29,570
Charges from Vimpelcom
Telecommunications services		10,853		2,721		4,348
Charges from Megafon
Telecommunications services		5,169		3,162		4,342
Charges from Telia
Telecommunications services		3,120		2,499		3,409
Charges from Azercell
Telecommunications services		734		1,361		28
Charges from Krea
Digital television broadcasting services		—		5,975		15,826
Charges from KVK Teknoloji
Dealer activation fees and others		—		—		76,743
Charges from other related parties		11,832		8,497		15,151

		97,879		103,642		199,025

(*)

Transactions with Krea include transactions until 26 August 2016.

(**)

Transactions with Millenicom include transactions until 21 January 2016.

(***)

KVK Teknoloji is not a related party effective from 6 July 2015. Transactions with KVK Teknoloji include transactions until that date.

(****) Transactions with Hobim include transactions until 20 June 2017.

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 Megafon:

Megafon, a subsidiary of Sonera, 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 digital television service company under the Digiturk brand name.

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 KVK Teknoloji:

KVK Teknoloji shares held by Cukurova Group were acquired by MV Holding on 6 July 2015. The Company has a distributorship agreement with KVK Teknoloji.