So if you didn’t hedge, what would be the result, I would like to understand the effect of all those hedges on your bottom line? So how does it save you — and how did it save you? If you didn’t hedge, what would happen in second quarter? If you have any just color on that.
Kamil Kalyon : Thank you very much, Cemal, for the question. As you know, following the sharp currency movement in the fourth quarter of 2021, strike levels was some of the call options that we hope — we had sold as part of our participation in currency swaps well exceeded. Consequently, in order to maintain the particulars of our hedging portfolio, we opted for short-term derivative instruments as the current market conditions have not been idle for the long term. We have a net long FX position in the amount of US$84 million at the end of the second quarter, as you say, which is in line with our neutral position definition. The hedging costs of short-term instruments have normalized after the elections but we saw an increase in the FX rates, unfortunately.
According to the majority of our FX gain, has arisen from the increase in the FX rate, which offset the loss arising from the valuation of our short-term derivative contracts due to the normalization of the TL interest rate curve. Despite this negative impact from the interest rate curve, our derivative portfolio printed a positive M2M valuation which helped us to keep our FX loss limited. Going forward, the movement of swap curve will also have an impact on FX gain and loss. However, we aim to stick around our FX-neutral definition as we declared previously, plus or minus US$200 million. I should also note that we continue to evaluate market conditions. If we can find favorable conditions, we might consider restructuring our portfolio.
Cemal Demirtas : So in the third quarter, you’re going to use the similar instruments. And if you assume that the currency will be more stable, should we also assume your EBITDA will remain high and your financial expense will go down, is it the model we can take?
Kamil Kalyon : Yes, might be, but it depends on the economy management interest policy. If the interest is — especially currently, the interest rates for Turkish lira loans are very high, as you know. It might go — it might be going higher in the next term. If the interest expenses increase like this way, maybe we can weigh kind of extra additional financial — finance interest expenses.
Cemal Demirtas : Okay. And as a follow-up question, rather on to the operation side. We see the prices are increased again. When we look at competitors, they are also — they are increasing the prices to just match the increase in costs. How do you see the third quarter outlook? You revised your guidance, but how do you see from your side about the pricing, and at least also the additions, subscriber additions. What could be the trends for the third quarter, question? And one other question about the strategic perspective, both Türk Telekom and Turkcell are like controlled by the Wealth Fund. And at some point, there is 5G issue, there’s a licensing of Türk Telekom. These are all on the — possibly on the agenda. And as far as we know, in the past, before finding a solution to 5G issues or others, licensing of Türk Telekom would be also linked to that about the full regulatory system.
At least from Turkcell perspective, what should we expect in the regulatory environment for the next one year? Could we expect — and already the elections are completed. So what should be the issues going forward for telecom sector, also for your side?
