10.

Expenses by nature

Breakdown of expenses by nature for the years ended 31 December 2017, 2016 and 2015 is as follows:

Cost of revenue:


	2017			2016			2015
Depreciation and amortization (*)		(2,596,980	)		(2,203,351	)		(1,667,750	)
Treasury share		(1,669,807	)		(1,491,503	)		(1,418,683	)
Interconnection and termination expenses		(1,607,079	)		(1,420,233	)		(1,326,990	)
Radio expenses		(1,123,668	)		(1,057,618	)		(911,454	)
Employee benefit expenses		(1,046,544	)		(859,143	)		(734,725	)
Cost of goods sold		(870,226	)		(551,656	)		(250,779	)
Cost of revenue from financial services		(270,366	)		(68,546	)		—
Universal service fund		(221,431	)		(192,045	)		(182,508	)
Transmission expenses		(218,221	)		(139,185	)		(113,574	)
Roaming expenses		(177,258	)		(128,429	)		(108,102	)
Billing and archiving expenses		(55,185	)		(61,647	)		(55,056	)
Others		(1,493,409	)		(1,063,251	)		(999,862	)

		(11,350,174	)		(9,236,607	)		(7,769,483	)

(*)

As at 31 December 2017, depreciation and amortization expenses includes depreciation and amortization expenses related to the financial services amounting to TL 6,343 (31 December 2016: 1.677 TL).

Selling and marketing expenses:


	2017			2016			2015
Selling expenses		(898,936	)		(757,869	)		(783,234	)
Marketing expenses		(532,989	)		(518,382	)		(428,596	)
Employee benefit expenses		(394,421	)		(354,380	)		(381,582	)
Frequency usage fees related to prepaid subscribers		(82,994	)		(186,530	)		(191,408	)
Others		(96,080	)		(93,786	)		(117,039	)

		(2,005,420	)		(1,910,947	)		(1,901,859	)

Administrative expenses:


	2017			2016			2015
Employee benefit expenses		(346,151	)		(277,438	)		(240,305	)
Consultancy expenses		(50,247	)		(54,315	)		(43,995	)
Rent expenses		(36,280	)		(30,314	)		(23,924	)
Net impairment expense recognized on receivables		(36,278	)		(211,384	)		(196,588	)
Travel and entertainment expenses		(30,957	)		(18,913	)		(13,484	)
Maintenance and repair expenses		(24,342	)		(20,315	)		(23,424	)
Collection expenses		(20,415	)		(20,827	)		(17,533	)
Other		(100,526	)		(88,343	)		(66,026	)

		(645,196	)		(721,849	)		(625,279	)