“STRONG START TO 2024; GUIDANCE
UPGRADED”
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) (BIST:TCELL):
- Please note that all financial data is consolidated and
comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company”,
or “Turkcell”) and its subsidiaries and associates (together
referred to as the “Group”), unless otherwise stated.
- We have four reporting segments:
- "Turkcell Türkiye" which comprises our telecom, digital
services and digital business services related businesses in
Türkiye (as used in our previous releases in periods prior to Q115,
this term covered only the mobile businesses). All non-financial
data presented in this press release is unconsolidated and
comprises Turkcell Türkiye only figures, unless otherwise stated.
The terms "we", "us", and "our" in this press release refer only to
Turkcell Türkiye, except in discussions of financial data, where
such terms refer to the Group, and except where context otherwise
requires.
- “Turkcell International” which comprises all of our telecom and
digital services-related businesses outside of Türkiye (BeST and
KKTCELL).
- As of December 31, 2023, our Lifecell, UkrTower, and Global LLC
operations in Ukraine have been classified as a disposal group held
for sale and as a discontinued operation.
- “Techfin” which comprises all of our financial services
businesses.
- “Other” which mainly comprises our non-group call center and
energy businesses, retail channel operations, smart devices
management and consumer electronics sales through digital channels
and intersegment eliminations.
- Discontinued operations in Ukraine include Lifecell LLC, LLC
Global Bilgi, and LLC Ukrtower.
- This press release provides a year-on-year comparison of our
key indicators and figures in parentheses following the operational
and financial results for March 31, 2024 refer to the same item as
at and for the three months ended March 31, 2023. For further
details, please refer to our consolidated financial statements and
notes as at and for March 31, 2024, which can be accessed via our
website in the investor relations section
(www.turkcell.com.tr).
- Selected financial information presented in this press release
for the first quarter of 2023, and 2024 is based on IFRS figures in
TRY terms unless otherwise stated.
- In the tables used in this press release totals may not foot
due to rounding differences. The same applies to the calculations
in the text.
- Year-on-year percentage comparisons appearing in this press
release reflect mathematical calculation.
NOTICE
This press release contains the Company’s financial information
for the period ended March 31, 2024 prepared in accordance with
International Financial Reporting Standards (“IFRS”) as issued by
the International Accounting Standards Board (“IASB”). This press
release contains the Company’s financial information prepared in
accordance with International Accounting Standard 29, Financial
Reporting in Hyperinflationary Economies (“IAS29"). Therefore, the
financial statement information included in this press release for
the periods presented is expressed in terms of purchasing power of
the Turkish Lira as of March 31, 2024. The Company restated all
non-monetary items in order to reflect the impact of the inflation
restatement reporting in terms of the measuring unit current as of
March 31, 2024. Comparative financial information has also been
restated using the general price index of the current period. This
release includes forward-looking statements within the meaning of
Section 27A of the U.S. Securities Act of 1933, Section 21E of the
U.S. Securities Exchange Act of 1934 and the Safe Harbor provisions
of the U.S. Private Securities Litigation Reform Act of 1995. This
includes, in particular, and without limitation, our targets for
revenue growth, EBITDA margin and operational capex over sales
ratio for the full year 2024. In establishing such guidance and
outlooks, the Company has used a certain number of assumptions
regarding factors beyond its control in particular in relation to
macro-economic indicators such as expected inflation levels, that
may not be realized or achieved. More generally, all statements
other than statements of historical facts included in this press
release, including, without limitation, certain statements
regarding our operations, financial position and business strategy
may constitute forward-looking statements. Forward-looking
statements generally can be identified by the use of
forward-looking terminology such as, among others, "will,"
"expect," "intend," "estimate," "believe," "continue" and
“guidance.”
Forward-looking statements are not guarantees of future
performance and involve certain risks and uncertainties that are
difficult to predict. In addition, certain forward-looking
statements are based upon assumptions as to future events that may
not prove to be accurate. Many factors could cause actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements that
may be expressed or implied by forward-looking statements. Should
one or more of these risks or uncertainties materialize, or
underlying assumptions prove incorrect, actual results may vary
materially from those described herein as anticipated, believed,
estimated, expected, intended, planned or projected.
These forward-looking statements are based upon a number of
assumptions and other important factors that could cause our actual
results, performance or achievements to differ materially from our
future results, performance or achievements expressed or implied by
such forward-looking statements. All subsequent written and oral
forward-looking statements attributable to us are expressly
qualified in their entirety by reference to these cautionary
statements. For a discussion of certain factors that may affect the
outcome of such forward looking statements, see our Annual Report
on Form 20-F for 2023 filed with the U.S. Securities and Exchange
Commission, and in particular the risk factor section therein.
These forward-looking statements should not be relied upon as
representing the Company’s views as of any date subsequent to the
date of this press release. All forward-looking statements in this
press release are based on information currently available to the
Company and we undertake no duty to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
The Company makes no representation as to the accuracy or
completeness of the information contained in this press release,
which remains subject to verification, completion and change. No
responsibility or liability is or will be accepted by the Company
or any of its subsidiaries, board members, officers, employees or
agents as to or in relation to the accuracy or completeness of the
information contained in this press release or any other written or
oral information made available to any interested party or its
advisers.
FINANCIAL HIGHLIGHTS
TRY million
Q123
Q124
y/y%
Revenue
27,569
30,822
11.8%
EBITDA1
10,354
12,754
23.2%
EBITDA Margin (%)
37.6%
41.4%
3.8pp
EBIT2
2,533
3,522
39.0%
EBIT Margin (%)
9.2%
11.4%
2.2pp
Net Income / (Loss)
(269)
2,635
n.m
FIRST QUARTER HIGHLIGHTS
- Financial performance accelerated on solid results:
- Group revenues up 11.8% year-on-year supported mainly by strong
ARPU growth and the larger postpaid subscriber base of Turkcell
Türkiye as well as the contribution of the techfin business, and
digital services & solutions
- EBITDA up 23.2%, leading to an EBITDA margin of 41.4%; EBIT up
39.0%, resulting in an EBIT margin of 11.4%
- Net income was TRY2.6 billion
- Net leverage3 level at 0.6x; net long FX position of US$158
million
- Solid operational momentum:
- Turkcell Türkiye subscriber base4 up by 333 thousand net
additions
- 472 thousand mobile postpaid net additions
- 50 thousand fixed subscriber net additions; 48 thousand fiber
net additions
- 44 thousand new fiber homepasses
- Mobile ARPU5 growth of 17.1%; residential fiber ARPU growth of
13.7%
- We have upgraded our revenue growth guidance6 for 2024.
Accordingly, we now target low-double-digit revenue growth rather
than high single digit growth. We maintain our EBITDA margin target
of around 42%, and operational capex over sales ratio7 guidance at
around 23%
- General Assembly meeting held on May 2nd:
- TRY6.3 billion dividend distribution was approved; the payment
will be made on December 5th
(1) EBITDA is a non-GAAP financial measure. See page 14 for the
explanation of how we calculate Adjusted EBITDA and its
reconciliation to net income. (2) EBIT is a non-GAAP financial
measure and is equal to EBITDA minus depreciation and amortization
expenses. (3) Starting from Q421, we have revised the definition of
our net debt calculation to include "financial assets” reported
under current and non-current assets. Required reserves held in
CBRT balances are also considered in net debt calculation. We
believe that these assets are highly liquid and can be easily
converted to cash without significant change in value. (4)
Including mobile, fixed broadband, IPTV, and wholesale
(MVNO&FVNO) subscribers (5) Excluding M2M (6) The guidance for
the year 2024 includes the effects of implementing inflation
accounting in accordance with IAS 29. Our 2024 guidance has been
established using a certain number of assumptions regarding factors
beyond our control, including in relation to macroeconomic
indicators such as expected inflation levels. In particular, our
2024 guidance is based on an assumed annual inflation rate of 37%,
applied on a monthly basis. Please note that this paragraph
contains forward-looking statements based on our current estimates
and expectations regarding market conditions for each of our
different businesses. No assurance can be given that actual results
will be consistent with such estimates and expectations. For a
discussion of factors that may affect our results, see our Annual
Report on Form 20-F for 2023 filed with the U.S. Securities and
Exchange Commission, and in particular, the risk factor section
therein. (7) Excluding license fee
For further details, please refer to our consolidated financial
statements and notes as at March 31, 2024 via our website in the
Investor Relations section (www.turkcell.com.tr).
COMMENTS BY CEO, ALİ TAHA KOÇ, PhD
We are delighted to celebrate our 30th anniversary as the
pioneer of Türkiye's digital transformation. As Turkcell, we have
introduced numerous innovations in the industry. Today, we are
entering an era wherein we will solidify our leadership of
Türkiye's digital transformation by focusing on our technological
capabilities and bringing global technological advancements to our
country. Moreover, we are proud to enter our 30th year with strong
financial and operational results.
A strong start to 2024
Although the first quarter of 2024 was impacted by economic and
geopolitical uncertainties, it was a period where hopes for
macroeconomic normalization began to increase. Domestically, the
Central Bank of the Republic of Türkiye's controlled interest rate
hikes were monitored amid reaccelerated inflation, while global
attention was on the Fed's cautious approach to interest rate
cuts.
In the first quarter of the year, we achieved strong growth by
enlarging our subscriber base with our value-oriented postpaid and
fiber subscribers, along with the support of our digital services
and techfin business. Our ongoing inflationary pricing policy has
significantly contributed to strengthening our company's financial
performance. Our group revenues increased by 11.8% yearly to TRY
30.8 billion, while EBITDA1 rose by 23.2% to TRY 12.8 billion. The
EBITDA margin reached 41.4%, improving 3.8 percentage points. We
delivered a TRY 2.6 billion net profit for the quarter.
Our operational performance started the year strong, led by the
mobile segment. We gained 229 thousand net mobile subscribers in
the first quarter. While our postpaid subscriber base posted an
increase of net 472 thousand in this quarter, our net addition for
the past twelve months surpassed 1.7 million subscribers. Other
sector players also made the price adjustments we made during this
period. While aggressive offers from competitors were less observed
this quarter, the Mobile Number Portability (MNP) market volume
also contracted compared to the previous quarter. Thanks to the
increasing contribution of sequential price adjustments, the
postpaid subscriber base, which expanded to 72%, and our ability to
upsell our customers, our Mobile ARPU2 rose 17.1%. We continued to
offer innovative and comprehensive tariffs to our customers. In
line with this, we are now offering the “Smart Control Service” for
free, as an example of our strategy based on always being there for
our customers. This service automatically suspends usage when
customers reach their package limits, ensuring no additional
charges on customers bills. Despite price adjustments, thanks to
these initiatives, our mobile subscriber churn rate reached its
lowest level in the past 6 years, at 1.5%.
We maintained our focus on fiber subscribers in the fixed
broadband segment. With demand for high-speed and quality fiber
services remaining strong, we gained a net of 48 thousand fiber
subscribers, pushing our fiber subscriber base beyond 2.3 million.
Our strategy of shifting customers to 12-month contracts
contributed to limiting the delaying effect of inflation on our
growth performance. Thanks to this strategy, the share of 12-month
contracted subscribers in residential fiber base reached 74%. In
this quarter, fiber ARPU rose 13.7% yearly. While our total fixed
subscriber base surpassed 3.1 million, this quarter's fixed
subscriber churn rate reached its lowest level since 2007, at
1.3%.
Digital services continue to drive our financial
performance
The growth of our digital services continues to support our
group revenues. Revenues from the stand-alone paid users of our
digital services grew by 32% to TRY 1.6 billion. The number of
stand-alone paid users3 utilizing our digital services amounted to
5.5 million.
Digital Business Services provide cloud-based software services
enabling automation in business processes, end-to-end
digitalization, data center services, and next-generation
technologies such as the Internet of Things to our corporate
customers. The revenue generated by these services amounted to TRY
2.8 billion this quarter. The revenues from our cloud services,
where we provide value-added services and operate four
next-generation data centers with a total IT capacity of 54 MWs,
recorded growth of 48%, reaching TRY 470 million.
Our Techfin segment, with the contributions of our subsidiaries
Financell4 and Paycell, significantly contributed to the group's
growth in the first quarter. Financell, with 1.1 million active
customers, reached a loan portfolio of TRY 6.1 billion, and with
rising interest rates, its revenues rose 53.5% yearly. On the other
hand, Paycell's revenues, which offer fast and secure payment
solutions, increased by 33.2% year-on-year, while its users5
reached 7.8 million.
We pioneer innovation, social responsibility, and
sustainability
By carrying the 'Turkcell and Technology' focus to the
international domain, we participated in the 'Sustainable Digital
Transformation' panel at the GSMA Mobile World Congress in
Barcelona. As Turkcell, we emphasized that we make our operations
sustainable and develop products, services, and project solutions
that add value to the economy. Moreover, by opening Call Center and
Training Center in Hatay, where Hatay is the most affected city by
the February 2023 earthquake, we strengthened our commitment to
social responsibility while providing new job opportunities for the
region's youth, creating long-term support with sustainable
impact.
As Türkiye's leading technology integrator, we hold data,
energy, artificial intelligence, and cybersecurity in sharp relief.
In a digital world, we consider data generated by people and
objects the most valuable raw material. In this context, as
Türkiye's largest data center operator, I emphasize our company's
superior position in the industry.
Our Board of Directors TRY 6.3 billion dividend proposal was
approved at the Annual General Assembly meeting of May 2, 2024. We
will continue to work with dedication to sustain our successful
financial and operational results while maintaining our robust
balance sheet.
We revise our guidance upwards
Considering our first quarter performance, we revise our
guidance6 upwards. We expect low-double-digit growth of Group
revenues in real terms in 2024. We maintain our EBITDA margin
expectation of approximately 42% and our operational capex to sales
ratio7 target of around 23%.
As we celebrate our company's 30th anniversary with joy and
pride, we confidently advance towards making Turkcell the leader of
Türkiye's Digital Century. We will continue to leverage the
opportunities provided by technology to build on our sustainable
successes and add value to our country.
(1) EBITDA is a non-GAAP financial measure. See page 16 for the
explanation of how we calculate Adjusted EBITDA and its
reconciliation to net income (2) Excluding M2M (3) Including IPTV,
OTT TV, fizy, lifebox and GAME+ (4) Following the change in
organizational structure, the revenues of Turkcell Sigorta Aracılık
Hizmetleri A.Ş. (Insurance Agency), which was previously managed
under Financell, have are now classified as "Other" in the Techfin
segment as of the first quarter of 2023. (5) 3-month active user
(6) The guidance for the year 2024 includes the effects of
implementing inflation accounting in accordance with IAS 29. Our
2024 guidance has been established using a certain number of
assumptions regarding factors beyond our control, including in
relation to macroeconomic indicators such as expected inflation
levels. In particular, our 2024 guidance is based on an assumed
annual inflation rate of 37%, applied on a monthly basis. Please
note that this paragraph contains forward-looking statements based
on our current estimates and expectations regarding market
conditions for each of our different businesses. No assurance can
be given that actual results will be consistent with such estimates
and expectations. For a discussion of factors that may affect our
results, see our Annual Report on Form 20-F for 2023 filed with the
U.S. Securities and Exchange Commission, and in particular, the
risk factor section therein. (7) Excluding license fee
FINANCIAL AND OPERATIONAL REVIEW
Financial Review of Turkcell Group
Profit & Loss Statement (million
TRY)
Q123
Q124
y/y%
Revenue
27,569.1
30,822.3
11.8%
Cost of revenue1
(14,487.4)
(14,948.1)
3.2%
Cost of revenue1/Revenue
(52.5%)
(48.5%)
4.0pp
Gross Margin1
47.5%
51.5%
4.0pp
Administrative expenses
(916.1)
(1,161.1)
26.7%
Administrative expenses/Revenue
(3.3%)
(3.8%)
(0.5pp)
Selling and marketing expenses
(1,450.5)
(1,757.9)
21.2%
Selling and marketing
expenses/Revenue
(5.3%)
(5.7%)
(0.4pp)
Net impairment losses on financial and
contract assets
(361.2)
(200.9)
(44.4%)
EBITDA2
10,353.9
12,754.3
23.2%
EBITDA Margin
37.6%
41.4%
3.8pp
Depreciation and amortization
(7,820.4)
(9,231.9)
18.0%
EBIT3
2,533.5
3,522.4
39.0%
EBIT Margin
9.2%
11.4%
2.2pp
Net finance income / (costs)
(872.0)
160.8
n.m
Finance income
1,456.2
5,477.3
276.1%
Finance costs
(1,885.5)
(7,964.1)
322.4%
Monetary gain / (loss)
(442.8)
2,647.6
n.m
Other income / (expenses)
(232.8)
(218.4)
(6.2%)
Non-controlling interests
0.3
5.4
n.m
Share of profit of equity accounted
investees
94.0
(55.9)
(159.5%)
Income tax expense
(2,319.1)
(1,320.4)
(43.1%)
Profit /(loss) from discontinued
operations
526.8
540.6
2.6%
Net Income
(269.4)
2,634.6
n.m
(1) Excluding depreciation and amortization expenses. (2) EBITDA
is a non-GAAP financial measure. See page 14 for the explanation of
how we calculate Adjusted EBITDA and its reconciliation to net
income. (3) EBIT is a non-GAAP financial measure and is equal to
EBITDA minus depreciation and amortization expenses.
Revenue of the Group grew by 11.8% year-on-year in Q124.
This resulted mainly from expanding postpaid subscribers of
Turkcell Türkiye and price adjustments. Additionally, our digital
services & solutions, and techfin business made contributions
to overall revenue growth.
Turkcell Türkiye revenues, comprising 86% of Group revenues,
grew 13.1% to TRY26,516 million (TRY23,455 million).
- Consumer business rose4 by 19.5%, driven mainly by strong
postpaid subscriber net additions, rising fiber subscriber base,
price adjustments, and upsell efforts.
- Corporate revenues4 decreased by 1.4% mainly due to fewer
large-budget projects as compared to the prior period.
- Standalone digital services revenues from consumer and
corporate segments grew 32.3% driven mainly by an expanding
standalone paid user base compared with the first quarter of 2023,
and price adjustments.
- Wholesale revenues decreased 6.1% to TRY1,450 million
(TRY1,544 million).
(4) Following the change in the organizational structure, the
revenues from sole proprietorship subscribers that we define as
Merchant, which were previously managed under the Corporate
segment, are being reported under the Consumer segment as of and
from the third quarter of 2023. Within this scope, past data has
been revised for comparative purposes.
Turkcell International revenues1, comprising 3% of Group
revenues, increased 2.3% to TRY815 million (TRY797 million).
Techfin segment revenues, comprising 5% of Group revenues,
increased 43.7% to TRY1,513 million (TRY1,053 million). This was
driven by 53.5% growth in Financell revenues and 33.2% rise in
Paycell revenues. Please refer to the Techfin section for
details.
Other subsidiaries’ revenues, at 6% of Group revenues, including
mainly consumer electronics sales revenues, and non-group energy
business revenues, decreased 12.6% to TRY1,979 million (TRY2,263
million).
Cost of revenue (excluding depreciation and amortization)
decreased to 48.5% (52.5%) as a percentage of revenues at the end
of the first quarter. This was driven mainly by the decline in the
cost of goods sold (2.9pp), energy cost (1.8pp), and
interconnection cost (1.2pp) despite the increase in funding cost
(1.3pp) and personnel expenses (0.6pp) as a percentage of
revenues.
Administrative expenses increased to 3.8% (3.3%) as a
percentage of revenues in Q124. This was led by higher personnel
expenses.
Selling and marketing expenses increased to 5.7% (5.3%)
as a percentage of revenues in Q124. This was driven by the
increase in marketing expenses (0.3pp), and personnel expenses
(0.2pp) despite the decline in selling expenses (0.1pp) as a
percentage of revenues.
Net impairment losses on financial and contract assets
was at 0.7% (1.3%) as a percentage of revenues in Q124.
EBITDA2 rose by 23.2% year-on-year in Q124 leading to an
EBITDA margin of 41.4% with a 3.8pp improvement (37.6%).
- Turkcell Türkiye’s EBITDA rose 24.4% to TRY12,027 million
(TRY9,671 million) leading to an EBITDA margin of 45.4%
(41.2%).
- Turkcell International (excl. Ukraine operations) EBITDA
increased 16.2% to TRY297 million (TRY256 million) driving an
EBITDA margin of 36.5% (32.1%).
- Techfin segment EBITDA declined 17.0% to TRY345 million
(TRY416 million) with an EBITDA margin of 22.8% (39.5%). The key
factor behind the year-on-year decline in EBITDA margin was the
rise in funding cost for Financell compared with the first quarter
of 2023.
- The EBITDA of other subsidiaries was TRY84 million (TRY11
million) in Q124.
Depreciation and amortization expenses increased 18.0%
year-on-year in Q124.
Net finance income of TRY160.8 million (negative TRY872
million) was recorded for Q124, including TRY2.6 billion monetary
gain and net FX losses of TRY2.3 billion.
See Appendix A for details of net foreign exchange gain and
loss.
Other expenses decreased to TRY218 million (TRY232
million) in Q124.
Income tax expense increased to TRY1,320 million
(TRY2,319 million) due mainly to a lower corporate and deferred tax
expense compared to the previous year.
Profit /(loss) from discontinued operations of TRY541
million (TRY527 million) was recorded in Q124.
Net income of the Group was TRY2.6 billion (negative
TRY269 million) in Q124. This result was mainly due to significant
contributions from monetary gains and strong performance at the
EBITDA level.
Total cash & debt: Consolidated cash as of March 31,
2024, decreased to TRY48,779 million compared to TRY57,507 million
as of December 31, 2023. Please recall that the second installment
of the earthquake donation, eurobond purchasing, personnel bonus
payment, and wireless fee tax were paid in this quarter. Excluding
FX swap transactions, 49% of our cash is in US$, 24% in EUR, 1%
BYN, and 25% in TRY.
(1) As of December 31, 2023, our Lifecell, UkrTower, and Global
LLC operations in Ukraine have been classified as a disposal group
held for sale and as a discontinued operation. Therefore, this
segment does not include revenues from those. (2) EBITDA is a
non-GAAP financial measure. See page 14 for the explanation of how
we calculate adjusted EBITDA and its reconciliation to net
income.
Consolidated debt as of March 31, 2024, increased to TRY98,050
million from TRY96,750 million as of December 31, 2023 due mainly
to the impact of currency movements. Please note that TRY3,197
million of our consolidated debt is comprised of lease obligations.
Please note that 43% of our consolidated debt is in US$, 33% in
EUR, 3% in CNY, and 21% in TRY.
Net debt1 as of March 31, 2024, increased to TRY33,441 million
from TRY27,389 million as of December 31, 2023 with a net debt to
EBITDA ratio of 0.6x times.
Turkcell Group had a long FX position of US$158 million at the
end of the quarter (Please note that this figure takes hedging
portfolio and advance payments into account). The long FX position
of US$158 million is in line with our FX neutral definition, which
is between -US$200 million and +US$200 million.
Capital expenditures: Capital expenditures, including
non-operational items, were at TRY7,508 million in Q124.
Operational capital expenditures (excluding license fees) at the
Group level were at 18.2% of total revenues in Q124.
Capital expenditures (million
TRY)
Q1232
Q1243
Operational Capex
6,000.0
5,596.7
License and Related Costs
-
-
Non-operational Capex (Including IFRS15
& IFRS16)
2,360.0
1,911.3
Total Capex
8,360.0
7,508.0
(1) Starting from Q421, we have revised the definition of our
net debt calculation to include "financial assets” reported under
current and non-current assets. Required reserves held in CBRT
balances are also considered in net debt calculation. We believe
that these assets are highly liquid and can be easily converted to
cash without significant change in value. (2) Including Ukraine
operations (3) Excluding Ukraine operations
Operational Review of Turkcell Türkiye
Summary of Operational Data
Q123
Q423
Q124
y/y %
q/q%
Number of subscribers1
(million)
41.7
42.5
42.8
2.6%
0.7%
Mobile Postpaid (million)
25.9
27.2
27.6
6.6%
1.5%
Mobile M2M (million)
4.1
4.5
4.6
12.2%
2.2%
Mobile Prepaid (million)
11.6
10.8
10.6
(8.6%)
(1.9%)
Fiber (thousand)
2,159.7
2,291.0
2,338.6
8.3%
2.1%
ADSL (thousand)
759.0
760.7
762.3
0.4%
0.2%
Superbox (thousand)2
676.5
719.9
737.6
9.0%
2.5%
Cable (thousand)
42.4
38.5
39.2
(7.5%)
1.8%
IPTV (thousand)
1,309.3
1,409.2
1,450.1
10.8%
2.9%
Churn (%)3
Mobile Churn (%)
1.7%
2.4%
1.5%
(0.2pp)
(0.9pp)
Fixed Churn (%)
1.5%
1.6%
1.3%
(0.2pp)
(0.3pp)
Average mobile data usage per user
(GB/user)
16.2
17.4
17.8
9.9%
2.3%
(1) Including mobile, fixed broadband, IPTV, and wholesale
(MVNO&FVNO) subscribers (2) Superbox subscribers are included
in mobile subscribers. (3) Churn figures represent average monthly
churn figures for the respective years.
ARPU (Average Monthly Revenue per User)
(TRY)
Q123
Q124
y/y %
Mobile ARPU, blended
156.0
180.2
15.5%
Mobile ARPU, blended (excluding M2M)
173.4
203.1
17.1%
Postpaid
185.5
208.0
12.1%
Postpaid (excluding M2M)
218.0
247.0
13.3%
Prepaid
91.6
109.3
19.3%
Fixed Residential ARPU, blended
202.3
228.9
13.1%
Residential Fiber ARPU
203.9
231.9
13.7%
Turkcell Türkiye's customer base continued to expand, reaching
42.8 million with a net quarterly addition of 333 thousand, driven
by strong postpaid subscriber net addition performance in the first
quarter of the year. This strong performance led us to achieve a
total of 1.7 million postpaid net additions in the last 12
months.
On the mobile front, our subscriber base expanded to 38.2
million on 229 thousand net additions in Q124. This was driven by
472 thousand net additions from the postpaid subscriber base, which
reached 72.3% (69.1%) of total mobile subscribers. We experienced a
net decline of 243 thousand in our prepaid subscriber base
quarter-on-quarter, due mainly to the disconnection of 319 thousand
prepaid customers in Q124 in accordance with the ICTA regulation.
The market was not overly aggressive compared to previous quarters,
but there have been aggressive campaigns by competitors during some
periods of the first quarter. Accordingly, our mobile ARPU
(excluding M2M) rose by 17.1% year-on-year thanks to price
adjustments, a larger postpaid subscriber base, and upsell
performance in Q124. The average monthly mobile churn rate
decreased to 1.5% in Q124, the lowest level since 2018.
On the fixed front, our subscriber base reached 3.1 million on
50 thousand quarterly net additions. Our fiber subscriber base
expanded by 48 thousand quarterly and 179 thousand annual net
additions. Meanwhile, IPTV customers reached to 1.5 million on 41
thousand quarterly and 141 thousand annual net additions. The
average monthly fixed churn rate at 1.3% in Q124 which is the
lowest level since 2007. Our residential fiber ARPU growth was
13.7% year-on-year, mainly on the back of 12-month commitment
structure, price adjustments, and efforts to higher tariffs, as
well as higher IPTV pricing.
Average monthly mobile data usage per user rose 9.9%
year-on-year to 17.8 GB, with the increasing number and data
consumption of 4.5G users in Q124. Accordingly, the average mobile
data usage of 4.5G users reached 18.8 GB in Q124. Total smartphone
penetration on our network was at 90% at the end of the quarter.
95% of those smartphones were 4.5G compatible.
TURKCELL INTERNATIONAL
BeST1
Q123
Q124
y/y%
Number of subscribers (million)
1.5
1.5
-
Active (3 months)
1.1
1.2
9.1%
Revenue (million BYN)
39.3
48.8
24.2%
EBITDA (million BYN)
18.2
24.2
33.0%
EBITDA margin (%)
46.3%
49.5%
3.2pp
Net loss (million BYN)
(9.2)
(5.0)
(45.7%)
Capex (million BYN)
18.8
25.4
35.1%
Revenue (million TRY)
453.9
467.6
3.0%
EBITDA (million TRY)
210.0
231.7
10.3%
EBITDA margin (%)
46.3%
49.5%
3.2pp
Net loss (million TRY)
(105.8)
(47.1)
(55.5%)
(1) BeST, in which we hold a 100% stake, has operated in Belarus
since July 2008.
BeST revenues increased 24.2% year-on-year in local
currency terms mainly due to the data and outgoing voice revenues
in Q124. BeST registered an EBITDA of BYN24.2 million in the first
quarter, which led to an EBITDA margin increased to 49.5%. BeST’s
revenues in TRY terms increased 3.0% year-on-year in Q124.
BeST continued to offer LTE services to all six regions,
encompassing 4.3 thousand sites in Q124. Enhanced LTE coverage has
enabled BeST to expand its 4G subscriber base. Accordingly, 4G
users reached 83% of the 3-month active subscriber base, which
continued to support mobile data consumption and digital services
usage. Additionally, the average monthly data usage among 4G
subscribers increased 11% year-on-year, reaching 20.4 GB in
Q124.
Kuzey Kıbrıs Turkcell2 (million
TRY)
Q123
Q124
y/y%
Number of subscribers (million)
0.6
0.6
-
Revenue
281.6
300.6
6.7%
EBITDA
91.7
81.5
(11.1%)
EBITDA margin (%)
32.6%
27.1%
(5.5pp)
Net income
361.5
473.2
30.9%
(2) Kuzey Kıbrıs Turkcell, in which we hold a 100% stake, has
operated in Northern Cyprus since 1999.
Kuzey Kıbrıs Turkcell revenues rose 6.7% year-on-year in
Q124, driven by mobile segment revenues backed by increased ARPU.
In Q124, the EBITDA of Kuzey Kıbrıs Turkcell decreased by 11.1%,
leading to an EBITDA margin of 27.1%. The EBITDA was negatively
affected by personnel expenses.
TECHFIN
Paycell Financial Data (million
TRY)
Q123
Q124
y/y%
Revenue
511.1
681.0
33.2%
EBITDA
215.9
318.2
47.4%
EBITDA Margin (%)
42.2%
46.7%
4.5pp
Net Income / (Loss)
(71.7)
74.0
n.m
Paycell’s revenue rose by 33.2% year-on-year for first quarter
of 2024. POS solutions supported topline growth thanks to increase
in the commission fee per transaction. Accordingly, Paycell’s
EBITDA increased 47.4% year-on-year leading to an EBITDA margin of
46.7% on a 4.5pp improvement in Q124. The primary factor behind the
rise in EBITDA margin was POS expense growth, which lagged behind
the increase in revenue. Additionally, the"Pay Later" mobile
payment service was another key factor of revenue growth for
Paycell.
The Pay Later service transaction volume (non-group) increased
by 57% year-on-year to TRY2.2 billion in Q124. This service was
utilized by 6.0 million active Pay Later users in Q124.
Additionally, Paycell card transaction volume up by 103%
year-on-year to TRY5.8 billion. The overall transaction volume for
POS solutions also rose to TRY7.7 billion, with a yearly increase
of 51%. Meanwhile, the total transaction volume across all services
increased 55% to TRY20.5 billion year-on-year in Q124.
Financell1 Financial Data
(million TRY)
Q123
Q124
y/y%
Revenue
548.4
841.7
53.5%
EBITDA
230.5
93.8
(59.3%)
EBITDA Margin (%)
42.0%
11.1%
(30.9pp)
Net interest margin
3.7%
1.3%
(2.4pp)
Net loss
(140.4)
(94.3)
(32.8%)
(1) Following the change in the organizational structure, the
revenues of Turkcell Sigorta Aracılık Hizmetleri A.Ş. (Insurance
Agency), which was previously managed under the Financell, has been
classified from Financell to "Other" in the Techfin segment as of
the first quarter of 2023.
Financell’s revenues rose by 53.5% in Q124. EBITDA decreased
59.3% yielding an EBITDA margin of 11.1%. The primary reason for
the decline in EBITDA margin compared to the previous year was the
increase in funding costs.
Financell’s loan portfolio was at TRY6.1 billion in the first
quarter of the year. Financell has provided loans to about 30
thousand corporate customers. Financell’s cost of risk was at 1.7%
at the end of the Q1. Financell continued to offer innovative
solutions including green loans for solar projects, car loans, and
shopping loans for both individual and corporate customers.
Turkcell Group Subscribers
Turkcell Group registered subscribers amounted to approximately
56.2 million as of March 31, 2024. This figure is calculated by
taking the number of subscribers of Turkcell Türkiye, and of each
of our subsidiaries. It includes the total number of mobile, fiber,
ADSL, cable and IPTV subscribers of Turkcell Türkiye, and the
mobile subscribers of lifecell*, BeST, and Kuzey Kıbrıs
Turkcell.
Turkcell Group Subscribers
Q123
Q124
y/y%
Turkcell Türkiye subscribers1
(million)
41.7
42.8
2.6%
BeST (Belarus)
1.5
1.5
-
Kuzey Kıbrıs Turkcell
0.6
0.6
-
Discontinued operations – lifecell
(Ukraine)
10.8
11.3
4.6%
Turkcell Group Subscribers
(million)
54.6
56.2
2.9%
(1) Subscribers to more than one service are counted separately
for each service. Including mobile, fixed broadband, IPTV, and
wholesale (MVNO&FVNO) subscribers
*Discontinued operations
DISCONTINUED OPERATIONS – lifecell (Ukraine)
Standalone
lifecell1 Financial
Data
Q123
Q124
y/y%
Revenue (million UAH)
2,687.4
3,120.5
16.1%
EBITDA (million UAH)
1,605.0
1,696.7
5.7%
EBITDA margin (%)
59.7%
54.4%
(5.3pp)
Net income (million UAH)
515.6
582.7
13.0%
Capex (million UAH)
638.0
1,008.2
58.0%
Revenue (million TRY)
2,335.7
2,510.6
7.5%
EBITDA (million TRY)
1,395.0
1,365.1
(2.1%)
EBITDA margin (%)
59.7%
54.4%
(5.3pp)
Net income (million TRY)
448.5
468.8
4.5%
(1) Since July 10, 2015, we hold a 100% stake in lifecell. A
share transfer agreement was signed on December 29, 2023 for the
transfer of all shares, along with all rights and debts of Lifecell
LLC. Discontinued operations in Ukraine include Lifecell LLC, LLC
Global Bilgi, and LLC Ukrtower. The sale of the Ukrainian assets
remains subject to the completion of closing conditions. The table
presents the financial figures of Lifecell LLC only.
lifecell (Ukraine) revenues in local currency terms
increased 16.1%, while its EBITDA rose 5.7% resulting in an EBITDA
margin of 54.4% in Q124.
In TRY terms, lifecell’s revenue increased by 7.5% in the first
quarter of the year. Net income was up 4.5% to TRY469 million in
Q124.
OVERVIEW OF THE MACROECONOMIC ENVIRONMENT
The foreign exchange rates used in our financial reporting,
along with certain macroeconomic indicators, are set out below.
Q123
Q423
Q124
y/y%
q/q%
GDP Growth (Türkiye)
4.0%
4.0%
n.a
n.a
n.a
Consumer Price Index
(Türkiye)(yoy)
50.5%
64.8%
68.5%
18.0pp
3.7pp
US$ / TRY rate
Closing Rate
19.1460
29.4382
32.2854
68.6%
9.7%
Average Rate
18.8577
28.4905
30.7624
63.1%
8.0%
EUR / TRY rate
Closing Rate
20.8021
32.5739
34.8023
67.3%
6.8%
Average Rate
20.2424
30.7734
33.3856
64.9%
8.5%
US$ / UAH rate
Closing Rate
36.5686
37.9824
39.2214
7.3%
3.3%
Average Rate
36.5686
36.6722
38.2281
4.5%
4.2%
US$ / BYN rate
Closing Rate
2.8571
3.1775
3.2498
13.7%
2.3%
Average Rate
2.7505
3.1809
3.2100
16.7%
0.9%
RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We
believe Adjusted EBITDA, among other measures, facilitates
performance comparisons from period to period and management
decision making. It also facilitates performance comparisons from
company to company. Adjusted EBITDA as a performance measure
eliminates potential differences caused by variations in capital
structures (affecting interest expense), tax positions (such as the
impact of changes in effective tax rates on periods or companies)
and the age and book depreciation of tangible and intangible assets
(affecting relative depreciation expense and amortization expense).
We also present Adjusted EBITDA because we believe it is frequently
used by securities analysts, investors and other interested parties
in evaluating the performance of other mobile operators in the
telecommunications industry in Europe, many of which present
Adjusted EBITDA when reporting their results.
Our Adjusted EBITDA definition includes Revenue, Cost of Revenue
excluding depreciation and amortization, Selling and Marketing
expenses, Administrative expenses and Net impairment losses on
financial and contract assets, but excludes finance income and
expense, other operating income and expense, investment activity
income and expense, share of profit of equity accounted investees
and minority interest.
Nevertheless, Adjusted EBITDA has limitations as an analytical
tool, and you should not consider it in isolation from, or as a
substitute for analysis of our results of operations, as reported
under IFRS. The following table provides a reconciliation of
Adjusted EBITDA, as calculated using financial data prepared in
accordance with IFRS to net profit, which we believe is the most
directly comparable financial measure calculated and presented in
accordance with IFRS.
Turkcell Group (million TRY)
Q123
Q124
y/y%
Consolidated profit before minority
interest
(269.7)
2,629.1
n.m
Profit /(loss) from discontinued
operations
526.8
540.6
2.6%
Income tax expense
(2,319.1)
(1,320.4)
(43.1%)
Consolidated profit before income tax
& minority interest
1,522.7
3,408.9
123.9%
Share of profit of equity accounted
investees
94.0
(55.9)
(159.5%)
Finance income
1,456.2
5,477.3
276.1%
Finance costs
(1,885.5)
(7,964.1)
322.4%
Monetary gain / (loss)
(442.8)
2,647.6
n.m
Other income / (expenses)
(232.8)
(218.4)
(6.2%)
EBIT
2,533.5
3,522.4
39.0%
Depreciation and amortization
7,820.4
9,231.9
18.0%
Adjusted EBITDA
10,353.9
12,754.3
23.2%
RECONCILIATION OF ARPU: ARPU is an operational
measurement tool and the methodology for calculating performance
measures such as ARPU varies substantially among operators and is
not standardized across the telecommunications industry, and
reported performance measures thus vary from those that may result
from the use of a single methodology. Management believes this
measure is helpful in assessing the development of our services
over time. The following table shows the reconciliation of Turkcell
Türkiye revenues to such revenues included in the ARPU calculations
for Q1 2023 and Q1 2024.
Reconciliation of ARPU
Q123
Q124
Turkcell Türkiye Revenue (million
TRY)
23,455.1
26,515.8
Telecommunication services revenue
21,791.0
25,153.8
Equipment revenue
1,314.5
1,012.6
Other*
349.6
349.4
Revenues which are not attributed to ARPU
calculation1
(3,987.5)
(3,631.4)
Turkcell Türkiye revenues included in
ARPU calculation2
19,118.0
22,535.0
Mobile blended ARPU (TRY)
156.0
180.2
Average number of mobile subscribers
during the year (million)
37.5
38.1
Fixed residential ARPU (TRY)
202.3
228.9
Average number of fixed residential
subscribers during the year (million)
2.6
2.8
(1) Revenue from fixed corporate and wholesale business; digital
business sales; tower business, and other non-subscriber-based
revenues (2) Revenues from Turkcell Türkiye included in ARPU
calculation comprise telecommunication services revenue, equipment
revenue and revenues which are not attributed to ARPU calculation.
*Including call center revenues
ABOUT TURKCELL: Turkcell is a digital operator
headquartered in Türkiye, serving its customers with its unique
portfolio of digital services along with voice, messaging, data,
and IPTV services on its mobile and fixed networks. Turkcell Group
companies operate in 4 countries – Türkiye, Belarus, Northern
Cyprus, and Ukraine (discontinued operations) Turkcell launched LTE
services in its home country on April 1st, 2016, employing
LTE-Advanced and 3 carrier aggregation technologies in 81 cities.
Turkcell offers up to 10 Gbps fiber internet speed with its FTTH
services. Turkcell Group reported TRY30.8 billion in revenue in
Q124 with total assets of TRY282.3 billion as of March 31, 2024. It
has been listed on the NYSE and the BIST since July 2000 and is the
only dual-listed company in Türkiye. Read more at
www.turkcell.com.tr.
Appendix A – Tables
Table: Net foreign exchange gain and loss details
Million TRY
Q123
Q124
y/y%
Net FX loss before hedging
(418.5)
(2,685.1)
541.6%
Swap interest income/(expense)
89.9
184.6
105.3%
Fair value gain on derivative financial
instruments
(203.9)
193.9
n.m
Net FX gain / (loss) after
hedging
(532.5)
(2,306.6)
333.2%
Table: Income tax expense details
Million TRY
Q123
Q124
y/y%
Current tax expense
(510.3)
(44.7)
(91.2%)
Deferred tax income / (expense)
(1,808.8)
(1,275.7)
(29.5%)
Income tax expense
(2,319.1)
(1,320.4)
(43.1%)
TURKCELL ILETISIM HIZMETLERI A.S.IFRS SELECTED FINANCIALS (TRY
Million) Quarter Ended March 31,
2023 Quarter
Ended March 31, 2024 Consolidated Statement of
Operations Data Turkcell Turkey
23,455.1
26,515.8
Turkcell International
797.5
815.0
Fintech
1,053.1
1,512.9
Other
2,263.4
1,978.6
Total revenue
27,569.1
30,822.3
Total cost of revenue
(22,307.9)
(24,180.0)
Total gross profit
5,261.3
6,642.3
Administrative expenses
(916.1)
(1,161.1)
Selling & marketing expenses
(1,450.5)
(1,757.9)
Other Income / (Expense)
(232.8)
(218.4)
Net impairment loses on financial and contract assets
(361.2)
(200.9)
Operating profit
2,300.7
3,304.0
Finance costs
(1,885.5)
(7,964.1)
Finance income
1,456.2
5,477.3
Monetary gain (loss)
(442.8)
2,647.6
Share of profit of an associate and a joint venture
94.0
(55.9)
Profit before income tax from continuing operations
1,522.7
3,408.9
Income tax income/ (expense)
(2,319.1)
(1,320.4)
Profit for the year from continuing operations
(796.5)
2,088.5
Profit /(loss) from discontinued operations
526.8
540.6
Profit for the year
(269.7)
2,629.1
Non-controlling interests
0.3
5.4
Owners of the Company
(269.4)
2,634.6
Basic and diluted earnings per share for profit
attributable to owners of the Company (in full TRY)
(0.1)
1.2
Basic and diluted earnings per share for profit from continuing
operations attributable to owners of the Company (in full TRY)
(0.4)
1.0
Other Financial Data Gross margin
19.1%
21.6%
EBITDA(*)
10,353.9
12,754.3
Total capex
8,360.0
7,508.0
Operational capex
6,000.0
5,596.7
Licence and related costs
-
-
Non-operational capex
2,360.0
1,911.3
Consolidated Balance Sheet Data (at period
end) December 31, 2023 March 31, 2024 Cash and
cash equivalents
57,507.3
48,778.7
Total assets
284,303.0
282,258.6
Long term debt
66,675.5
65,177.1
Total debt
96,750.3
98,049.5
Total liabilities
143,655.2
138,814.2
Total shareholders’ equity / Net Assets
140,647.9
143,444.4
(*) Please refer to the notes on reconciliation of
Non-GAAP Financial measures on page 14For further details, please
refer to our consolidated financial statements and notes as at 31
March 2024 on our website
TURKCELL ILETISIM HIZMETLERI
A.S. TURKISH ACCOUNTING STANDARDS SELECTED FINANCIALS (TRY
Million)
Quarter Ended
March 31, 2023
Quarter Ended
March 31, 2024
Consolidated Statement of Operations
Data Turkcell Turkey
23,455.1
26,515.8
Turkcell International
797.5
815.0
Fintech
1,053.1
1,512.9
Other
2,263.4
1,978.6
Total revenues
27,569.1
30,822.3
Direct cost of revenues
(22,307.9)
(24,180.0)
Gross profit
5,261.3
6,642.3
Administrative expenses
(916.1)
(1,161.1)
Selling & marketing expenses
(1,450.5)
(1,757.9)
Other operating income
2,066.3
3,614.4
Other operating expense
(272.7)
(489.4)
Operating profit
4,688.3
6,848.3
Impairment losses determined in accordance with TFRS 9
(361.2)
(200.9)
Income from investing activities
856.2
1,123.9
Expense from investing activities
(105.8)
(38.0)
Share on profit of investments valued by equity method
94.0
(55.9)
Income before financing costs
5,171.5
7,677.4
Finance income
8.1
567.7
Finance expense
(3,214.1)
(7,483.8)
Monetary gain (loss)
(442.8)
2,647.6
Income from continuing operations before tax and non-controlling
interest
1,522.7
3,408.9
Tax income (expense) from continuing operations
(2,319.1)
(1,320.4)
Profit from continuing operations
(796.5)
2,088.5
Profit /(loss) from discontinued operations
526.8
540.6
Profit for the period
(269.7)
2,629.1
Non-controlling interest
0.3
5.4
Owners of the Parent
(269.4)
2,634.6
Earnings per share
(0.1)
1.2
Earnings per share from discontinued operations
(0.4)
1.0
Earnings per share from continuing operation
0.2
0.2
Other Financial Data Gross margin
19.1%
21.6%
EBITDA(*)
10,353.9
12,754.3
Total capex
8,360.0
7,508.0
Operational capex
6,000.0
5,596.7
Licence and related costs
-
-
Non-operational capex
2,360.0
1,911.3
Consolidated Balance Sheet Data (at period
end) December 31, 2023 March 31, 2024 Cash and
cash equivalents
57,507.3
48,778.7
Total assets
284,303.0
282,258.6
Long term debt
66,675.5
65,177.1
Total debt
96,750.3
98,049.5
Total liabilities
143,655.2
138,814.2
Total shareholders’ equity / Net Assets
140,647.9
143,444.4
(*) Please refer to the notes on reconciliation of Non-GAAP
Financial measures on page 14For further details, please refer to
our consolidated financial statements and notes as at 31 March 2024
on our website
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240527165169/en/
For further information please contact Turkcell Investor
Relations Tel: + 90 212 313 1888
investor.relations@turkcell.com.tr
Corporate Communications: Tel: + 90 212 313 2321
Turkcell-Kurumsal-Iletisim@turkcell.com.tr
Turkcell lletism Hizmetl... (NYSE:TKC)
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Turkcell lletism Hizmetl... (NYSE:TKC)
過去 株価チャート
から 11 2023 まで 11 2024
