Turkcell(TKC)2025-02-27 21:06Financial Data and Key Metrics Changes - For the full year 2024, the company's top line reached TRY 166 billion, reflecting a year-on-year increase of 7.8% [5][30] - EBITDA for 2024 was TRY 70 billion, a 10.2% increase from the previous year, with an EBITDA margin of approximately 42% [5][33] - Net income increased by 30%, exceeding TRY 23.5 billion [7] Business Line Data and Key Metrics Changes - The mobile segment saw a record-breaking 1.9 million net postpaid additions, the highest in 15 years, while the prepaid segment experienced a net loss of 0.9 million subscribers [6][8] - Fixed broadband market maintained rational pricing, with 32,000 net additions in Q4, bringing the total for the year to 168,000 [11] - Digital business services generated TRY 4.4 billion in revenue in Q4, with recurring service revenues rising 19% year-on-year [13] Market Data and Key Metrics Changes - The share of packages of 100 megabits per second and above in the residential fiber portfolio rose by 12 percentage points year-on-year [12] - The churn rate in the mobile segment increased to 2.8%, attributed to aggressive competitor campaigns and the disconnection of inactive subscribers [9][122] Company Strategy and Development Direction - The company is committed to advancing its infrastructure and technology, focusing on 5G and expanding its fiber network [24][28] - Plans to build two new data center modules in 2025, increasing capacity by 8.4 megawatts [16] - The Techfin segment, including Paycell and Financell, is expected to contribute significantly to top-line growth, with Paycell achieving 33% growth in Q4 [18][31] Management's Comments on Operating Environment and Future Outlook - Management expects top-line revenue growth of 7% to 9% for 2025, with a focus on maintaining profitability despite inflationary pressures [29][75] - The company is prepared for potential challenges from increased competition and inflation, emphasizing a diversified revenue model [105][107] - Management highlighted the importance of maintaining a strong cash position and effective balance sheet management [38][97] Other Important Information - The company issued a $1 billion euro bond, with half designated as a sustainable bond, reflecting its commitment to ESG initiatives [20][40] - The cash position at the end of 2024 was TRY 70 billion, with a net debt position of TRY 10 billion [38] Q&A Session Summary Question: What is the timeline for 5G deployment and potential license fees? - Management indicated that there is no official timeline yet, but a tender is expected in 2025, with a live network in 2026 [52][54] Question: What are the growth prospects for the company? - Management expects continued growth, with a focus on mobile and fixed services, and anticipates a similar growth rate in 2025 compared to 2024 [71][75] Question: How will the company manage EBITDA margins amidst inflation? - The company plans to maintain margins through effective cost management and a diversified revenue model [102][105] Question: What is the expected inflation rate for 2025? - The company estimates an average inflation rate of around 33% for 2025 [96][125] Question: What are the plans for dividend distribution? - The company maintains a policy of distributing 50% of net income, with the AGM expected to decide on the exact amount [126] Question: How will the company handle salary hikes in 2025? - Management indicated that salary increases are typically annual, with adjustments made based on inflation and competitive pressures [130][141]