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 Dijital Is Servisleri Hizmetleri A.S. (“Turkcell Satis”), group call center operations of Global Bilgi Pazarlama Danismanlık 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”), Lifecell LLC (“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”) and Lifecell Digital Limited (“Lificell Digital”). 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 A.Ş. (“ Turkcell Finansman”), Turkcell Özel Finansman A.Ş. (“TÖFAŞ”), Turkcell Enerji Cozumleri ve Elektrik Satıs Ticaret A.S (“Turkcell Enerji”) Paycell LLC (“Paycell”), Turkcell Sigorta Aracılık Hizmetleri A.Ş (“Turkcell Sigorta”), Türkiye’nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. (“Türkiye’nin Otomobili”) and Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş. (“Sofra”).

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
	2018			2017			2018			2017			2018			2017			2018			2017			2018			2017
Total segment revenue		18,265,777			15,450,136			1,456,980			1,067,078			1,933,831			1,187,454			(364,113	)		(72,604	)		21,292,475			17,632,064
Inter-segment revenue		(42,344	)		(31,690	)		(69,657	)		(40,897	)		(252,112	)		(17	)		364,113			72,604			—			—
Revenues from external customers		18,223,433			15,418,446			1,387,323			1,026,181			1,681,719			1,187,437			—			—			21,292,475			17,632,064
Adjusted EBITDA		7,534,291			5,593,837			612,697			263,962			665,470			374,314			(24,476	)		(3,859	)		8,787,982			6,228,254
Bad debt expense		(248,171	)		49,468			(4,088	)		(6,070	)		(94,131	)		(79,676	)		—			—			(346,390	)		(36,278	)

	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	)


	2018			2017			2016
Profit for the period		2,177,335			2,037,759			1,543,803
Add(Less):
Profit/(loss) from discontinued operations		—			—			42,164
Profit from continuing operations		2,177,335			2,037,759			1,585,967
Income tax expense		495,481			571,758			423,160
Finance income		(1,932,133	)		(818,436	)		(961,642	)
Finance costs		3,619,091			1,141,302			1,134,441
Other income		(241,435	)		(74,438	)		(78,569	)
Other expenses		381,582			773,329			312,801
Depreciation and amortization		4,287,974			2,596,980			2,203,351
Share of loss of equity accounted investees		87			—			—

Consolidated adjusted EBITDA		8,787,982			6,228,254			4,619,509

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.


	2018		2017		2016
Revenues
Turkey		19,636,682		16,431,863		13,321,503
Ukraine		923,181		664,643		573,951
Belarus		293,181		209,884		149,005
Azerbaijan		268,471		174,021		108,329
Turkish Republic of Northern Cyprus		169,014		148,637		129,785
Germany		1,580		3,016		2,988
Netherlands		366		—		—

		21,292,475		17,632,064		14,285,561


	31 December 2018		31 December 2017
Non-current assets
Turkey		21,037,351		18,098,228
Ukraine		2,751,277		1,408,783
Belarus		293,622		141,802
Turkish Republic of Northern Cyprus		177,380		138,371
Azerbaijan		—		13,663
Unallocated non-current assets		168,536		112,516

		24,428,166		19,913,363