In This Article:
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Revenue: TRY166 billion for the full year, an 8% year-over-year increase.
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EBITDA: TRY69.8 billion, maintaining a margin just below 42%.
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Net Income: Increased by 30%, exceeding TRY23.5 billion.
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Postpaid Additions: Record-breaking 1.9 million net postpaid additions.
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ARPU Growth: Double-digit growth supported by pricing strategy and postpaid base expansion.
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Data Center Revenue: Increased by 39% due to high demand and strong pricing.
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Paycell Growth: Achieved 33% growth in Q4, with Paylater transaction volumes surging by 87%.
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CapEx Intensity: 22.8% for 2024, with a focus on mobile and fixed infrastructure.
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Net Debt: TRY10 billion, with a net leverage of 0.4x.
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Cash Position: TRY7 billion at the end of 2024.
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Gross Debt: TRY104 billion.
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Fiber Subscriber Additions: 168,000 net additions for the full year.
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Residential Fiber ARPU Growth: 18.8% year-on-year.
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Digital Business Services Revenue: TRY4.4 billion in Q4, with a 19% year-on-year increase in recurring service revenues.
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EBITDA Margin Guidance for 2025: 41% to 42%.
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Top Line Revenue Growth Guidance for 2025: 7% to 9%.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Turkcell Iletisim Hizmetleri AS (IST:TCELL) achieved a 7.8% year-on-year increase in top-line revenue, surpassing their guidance.
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The company maintained a strong EBITDA margin just below 42%, with EBITDA reaching TRY69.8 billion.
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Turkcell added a record-breaking 1.9 million net postpaid customers, marking the highest addition in the past 15 years.
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The company completed the sale of its Ukraine asset, contributing to a 30% increase in net income.
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Turkcell's digital business services generated TRY4.4 billion in revenue, with a 19% year-on-year rise in recurring service revenues.
Negative Points
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The mobile market remained highly competitive, with aggressive pricing dynamics persisting throughout the year.
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Turkcell experienced a 0.9 million quarterly net loss in the prepaid segment due to broader adoption of alternative data solutions and postpaid migrations.
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The churn rate increased to 2.8% due to market aggressiveness and life cycle closures.
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There is uncertainty regarding the 5G tender timeline and potential license fees, which could impact future financial planning.
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Inflationary pressures and rising funding costs have affected EBITDA margins, reducing them by 3.4 percentage points.
Q & A Highlights
Q: What is Turkcell's view on the timeline and potential investment size for the 5G tender? A: Ali Taha Koc, CEO, stated that there is no official timeline for 5G announced by the regulatory body yet, but a tender is expected in 2025 with a live network in 2026. Turkcell is committed to establishing its 5G infrastructure using local technologies and is preparing for the tender. The company is also focusing on fixed wireless access solutions to enhance broadband connectivity where fiber is not available.