Q1 2025 Turkcell Iletisim Hizmetleri AS Earnings Call Transcript
Key Points
- Turkcell Iletisim Hizmetleri AS (IST:TCELL) achieved a 12.7% year-on-year growth in top-line revenue, reaching TRY48 billion.
- The company reported an EBITDA of TRY21 billion, marking a 19% increase year-on-year, with a robust margin of 43.7%, the highest first-quarter margin in the last decade.
- Turkcell gained 153,000 postpaid and 30,000 fiber customers in the first quarter, demonstrating the success of its value-focused strategy.
- The Techfin segment revenues surged by 31%, and data center and cloud revenues grew by 48%, reflecting strong momentum in strategic areas.
- Turkcell's cash position increased to TRY108 billion, supporting debt service for the upcoming three-year period, and the company maintained a low leverage ratio of 0.2 times.
- The company faced increased competition in the mobile market, which intensified starting in May 2024 and continued into 2025, impacting subscriber growth.
- Turkcell experienced a net loss in prepaid subscribers due to reduced usage from tourists and competitive postpaid offers.
- The fixed broadband segment saw a slight rise in churn due to the transition to 12-month contracts and price adjustments.
- Despite strong financial performance, the company is cautious about revising its guidance due to significant macroeconomic conditions and uncertainties.
- Turkcell's deferred tax expense increased due to differences in inflationary accounting principles, impacting the income statement.
Ladies and gentlemen, thank you for standing by. I'm Vassilios, your chorus call operator. Welcome, and thank you for joining the Turkcell's conference call and live webcast to present and discuss the Turkcell's first quarter 2025 financial results. (Operator Instructions)
At this time, I would like to turn the conference over to Mrs. Ozlem Yardim, Investor Relations and Corporate Finance Director. Ms. Yardim, you may now proceed.
Thank you, Vassilios. Hello, everyone. Welcome to Turkcell's 2025 first quarter earnings call. Today, our CEO, Ali Taha Koc; and CFO, Kamil Kalyon, will be delivering a brief presentation covering operational and financial results which will be followed by a Q&A session. Before we begin, I would like to kindly remind you to review our safe harbor statements available at the end of our presentation.
Now I'm handing the meeting over to Mr. Ali Taha.
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