Turkish Airlines announced TRY265mn in net profits in its 4Q12 financials, which is higher than the TRY 222mn market consensus and our TRY 161mn estimate. Despite the positive deviation at the bottom-line, which is mainly owing to one-off other income (i.e. reversal of provisions), we are disappointed with the company's quarterly operational performance. Management proposed a total gross cash dividend payment of TRY 180mn to the General Assembly. The proposed dividend payment (i.e. TRY 0.1444/share) corresponds to a dividend yield of 2.0% per share, based on the current share price of TRY 7.36.

We refrain from arriving at broad conclusions before making a detailed analysis of yield performance and cost developments. That said,our first perception is not positive and we expect the results to have a negative impact on share performance.

Source: bne