Turkcell(TKC)2024-11-07 23:32Financial Data and Key Metrics Changes - The company's top line increased by 7%, reaching TRY 40.2 billion, driven by strong ARPU growth and solid subscriber additions [5][21] - EBITDA rose by 10% to TRY 17.8 billion, resulting in a robust EBITDA margin of 44.2% [5][22] - Net income reported was TRY 14.3 billion, which includes TRY 3 billion profit from operations and proceeds from the sale of Ukraine assets [5][21] Business Line Data and Key Metrics Changes - Mobile segment faced aggressive pricing, leading to a 25% price adjustment in July, resulting in 515,000 new postpaid subscribers added in Q3 [6][7] - The prepaid customer base declined by 266,000 due to alternative data solutions impacting tourist demand [8] - Fixed broadband market saw 47,000 net additions in fiber subscribers, with residential fiber ARPU growing by 15% year-on-year [9][10] Market Data and Key Metrics Changes - The mobile number portability (MNP) activity increased by 47% quarter-over-quarter due to competitive campaigns [6] - The share of high-speed packages (100 megabits and above) in the residential fiber portfolio increased by 10 percentage points year-on-year [11] Company Strategy and Development Direction - The company is focused on digital services and solutions, with standalone paid users reaching five million and revenue from these services growing by 4% year-on-year [12][13] - Techfin segment revenues grew by 20%, driven by increased commissions and transaction volumes [15][17] - The company aims to cover 65% of its total electricity consumption from its own green energy production by 2026 [32] Management Comments on Operating Environment and Future Outlook - Management acknowledged the hyperinflationary environment and indicated that price adjustments have been made to adapt to market conditions [57] - The company expects real revenue growth in 2025, focusing on R&D and maintaining a strong postpaid and fiber customer base [48][49] Other Important Information - Following the divestment of Ukraine assets, the company's cash position increased to TRY 82 billion, with a net debt position of TRY 9 billion [25] - The company plans to issue a new Eurobond up to TRY 1 billion, with a portion expected to be sustainable [25][37] Q&A Session Summary Question: Details on divestment proceeds and 2025 CapEx outlook - Management stated that the final sales value from the Ukraine asset sale will be determined based on closing adjustments and may lead to significant investments [29][30] Question: Timing and structure of potential bond issuance - The company plans to issue around TRY 1 billion in Eurobonds, likely split between conventional and sustainable bonds, expected in Q1 2025 [36][37] Question: Growth prospects for data centers and cloud services - Management emphasized the increasing demand for data centers and cloud services, with plans for significant organic growth in capacity [41][59] Question: Impact of US elections on global strategy - Management indicated that they are monitoring the situation but do not foresee immediate impacts on their business [44] Question: Future M&A strategy - Currently, the company does not have any M&A plans but remains open to opportunities that could enhance growth [62]