Turkcell(TKC)2024-03-20 20:14Financial Data and Key Metrics Changes - Group revenues increased by 76% in historical figures, while under inflationary accounting, the rise was 15% [12] - EBITDA surged by 83% on historical figures, with a 20% growth according to inflationary accounting [12] - Net income grew by 65% in historical figures and 82% in inflation-adjusted terms, driven by strong EBITDA performance [12] Business Line Data and Key Metrics Changes - Mobile segment saw a 3-point increase in post-paid share, exceeding 71%, with blended mobile ARPU growing by 85% year-on-year [3] - Fixed broadband segment registered 169,000 net additions for the full year, with ARPU widening by 76% year-on-year [4] - Digital services and solutions revenue grew by 19% year-on-year, with cloud service revenues increasing by 50% [5] Market Data and Key Metrics Changes - Turkcell's international revenues decreased by 1.8% to TRY2.6 billion, while base revenues rose 20% in local currency terms [7] - The Turkish Republic of Northern Cyprus subsidiary's revenues increased by 20% year-on-year, driven by strong real ARPU growth [7] Company Strategy and Development Direction - The company aims to focus on digital services, data centers, and cloud solutions to meet high demand [5][9] - Investments in renewable energy and data center capacity are prioritized to enhance operational efficiency and sustainability [15] - The company plans to maintain its leadership in 5G and beyond technologies [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by inflation and economic pressures but remains committed to digital transformation [41] - For 2024, the company expects high single-digit real revenue growth and an EBITDA margin of around 42% [10][12] - The guidance reflects macroeconomic dynamics, particularly inflation, which is projected at around 37% year-on-year [10][44] Other Important Information - The company has classified its Ukrainian subsidiaries as discontinued operations due to an ongoing sales process [7] - A significant rise in interest rates impacted Financell's margins, despite revenue growth [6] Q&A Session Summary Question: What is the bottom line net income number for full year 2023, including Ukraine? - The net income from discontinued operations is TRY1.9 billion [43] Question: Why is there a slowdown in revenue growth guidance for 2024? - The guidance reflects expected impacts of inflationary accounting and operational expectations, aiming for high single-digit growth [29] Question: Update on Ukraine operations and sale process? - A transfer agreement for Ukrainian subsidiaries was signed, but completion depends on certain conditions and legal proceedings [31] Question: What is the reason for the expected EBITDA growth in 2024? - The company anticipates strong real top line growth supported by sequential price adjustments, despite inflationary pressures [38] Question: Will there be a second increase in minimum wage affecting expenses? - Current assumptions do not include a second minimum wage increase, but the situation will be monitored post-elections [38]