Q2 2024 Turkcell Iletisim Hizmetleri AS Earnings Call Transcript
Key Points
- Turkcell Iletisim Hizmetleri AS (IST:TCELL) achieved a strong top line of TRY35 billion, reflecting a disciplined management approach and diversified business portfolio.
- The company delivered an EBITDA of TRY15 billion with a solid 42.6% EBITDA margin, driven by rational pricing strategies and upsell campaigns.
- Turkcell Iletisim Hizmetleri AS (IST:TCELL) saw a significant increase in postpaid subscribers, with 477,000 net additions in the second quarter and a 1.8 million net addition year-on-year.
- Residential fiber ARPU grew by 84% year-on-year, supported by a record low churn rate of 1.2%, the lowest in 18 years.
- The company maintained a strong cash position of TRY51 billion and a manageable net debt leverage ratio of 0.6 times, with sufficient cash reserves to cover upcoming debt obligations.
- Macroeconomic pressures, including high inflation, negatively impacted equipment revenues for both consumer and corporate segments.
- The company faced aggressive pricing actions from competitors, leading to increased mobile number portability market activity.
- There was a net loss of 232,000 prepaid subscribers due to the widespread use of alternative data providers.
- Revenue growth was suppressed by a decline in large projects, including hardware sales within the digital business services segment.
- Higher funding costs and wage increases put pressure on profitability, despite efforts to mitigate these through strategic financial risk management.
Ladies and gentlemen, thank you for standing by. I am Mina, your Chorus Call operator. Welcome, and thank you for joining the Turkcell conference call and live webcast to present and discuss Turkcell's second-quarter 2024 Financial Results. (Operator Instructions) At this time, I would like to turn the conference over to Ms. Ozlem Yardim, Investor Relations and Corporate Finance Director. Ms. Yardim, you may now proceed.
Second-quarter 2024 earnings calls. 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 Koc.
Thank you, Ozlem. Good afternoon,
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