Turkcell(US:TKC)2021-05-03 18:11Financial Data and Key Metrics Changes - The company reported a 17.5% top-line growth, generating TRY7.8 billion in consolidated revenue [6] - EBITDA reached TRY3.3 billion, reflecting a 17.7% growth with a 42.2% EBITDA margin [6][36] - Net income was TRY1.1 billion, marking a 26.6% year-on-year growth [6][36] Business Line Data and Key Metrics Changes - Mobile segment saw a net addition of 410,000 postpaid and 190,000 prepaid subscribers, with postpaid customer base reaching 22.4 million [7] - Fixed broadband segment added 50,000 fiber subscribers and 23,000 net additions to fixed-wireless access service Superbox [9] - IPTV customer base grew by 49,000, now serving 61% of residential fiber customers [10] Market Data and Key Metrics Changes - Average mobile data usage increased by 29% year-on-year to 12.6 gigabytes per user [12] - The company’s international revenue, comprising 9% of consolidated revenue, grew by around 27% year-on-year, driven by strong growth in Ukraine [29] Company Strategy and Development Direction - The company focuses on a customer-centric strategy supported by a diversified business model, which has led to solid growth in subscribers [5] - Plans to enhance digital services and expand Techfin business, which includes consumer finance and payment services [38][19] - The company aims to increase fiber home passes by 500,000 annually over the next three years [73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance despite challenges posed by the pandemic [6] - The company anticipates double-digit ARPU growth in upcoming quarters, with expectations of inflation declining towards the end of the year [61] - Management highlighted the importance of digitalization for Turkey's sustainable economic growth and ongoing preparations for 5G [65] Other Important Information - The company has committed to using energy exclusively from renewable sources by 2030 [31] - A dividend of TRY2.6 billion was approved during the Annual General Assembly [34] - The company is exploring asset monetization opportunities, particularly for Superonline, which is seen as a strong candidate for an IPO [90][92] Q&A Session Summary Question: Prospects regarding revenue growth in the consumer segment - Management aims to improve ARPU growth to double-digit levels and expects inflation to decline towards the end of the year [61][62] Question: Breakdown of digital service revenues - The largest share of digital service revenue comes from the TV business, followed by music, Lifebox, and BiP [63] Question: 5G tender comments - No official roadmap for 5G has been announced yet, but preparations have been ongoing for several years [64] Question: Key NPS drivers - The company focuses on a segmented customer-centric strategy, investment in network quality, and a wide distribution network [71] Question: Fiber rollout plans - The company plans to continue adding 500,000 home passes annually for the next three years, driven by demand [73] Question: Opportunities to monetize BiP - The company is exploring various monetization strategies for BiP, including integration with Paycell and potential partnerships with international operators [75] Question: Postpaid ARPU growth and pricing strategy - The like-for-like postpaid ARPU growth was 8.4% in Q1, impacted by roaming revenue loss and the transition of prepaid customers to lower-priced postpaid packages [84] Question: FX impact on CapEx - The company is well-prepared for FX risks and has hedged its positions, with investments made earlier to manage FX situations [88] Question: Asset monetization developments - The company is in the exploratory phase regarding potential IPOs, particularly for Superonline, depending on market conditions [92]