| 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.