Quarterly Report • Nov 6, 2024
Quarterly Report
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November 6, 2024
Türk Telekom Group announces its third quarter 2024 financial and operational results. Consolidated revenues increased by 15.9% YoY to TL 40.4 billion in Q3'24 and 8.7% to TL 109.2 billion in 9M'24. Ex-IFRIC 12 revenue growth was 15.8% in Q3'24 and 10.6% in 9M'24. EBITDA grew 30.8% in Q3'24 to TL 16.5 billion with 40.8% margin moving the 9M'24 EBITDA to TL 42.5 billion, up 25.4% YoY with 38.9% margin. Net income was TL 1.1 billion in Q3'24 and TL 3.9 billion in 9M'24. Net Debt/EBITDA1 multiple inched down to 0.96x as of 9M'24.
Türk Telekom CEO Ümit Önal said: "Although standing broadly in line with our expectations, third quarter performance is thrilling with outstanding KPIs across the board. Revenue growth has picked-up as we have foreseen adding further momentum to EBITDA and cash flow generation. Fixed internet has delivered its awaited acceleration with a 21.2% surge in ARPU YoY while mobile maintained its ongoing strength. All our business lines except for the fixed voice segment posted real revenue growth in Q3, thanks to our strategies, devised to overcome macroeconomic and other challenges, paying-off in time and a reasonably fulfilling high season. As such we slash the low end of our EBITDA margin guidance, now expecting to deliver 38% for the FY'24. As we fast approach year-end, we prepare ourselves for the next year which we believe will be an equally, if not a more exciting year than 2024 for Türk Telekom. Unabated, our focus will be on further strengthening our position in the markets we operate, augmenting our engagement with customers and preserving a vigorous financial performance."
Consolidated revenues rose to TL 40.4 billion from TL 34.8 billion a year ago with an accelerated 15.9% increase. Fixed internet this time came to the fore in growth as mobile remained a very strong contributor. Excluding the IFRIC 12 accounting impact, Q3'24 revenue was TL 37.9 billion, up 15.8% YoY including 22.9% increase in fixed broadband, 19% in mobile, 14.9% in TV, 9.3% in international and 3.7% in corporate data, and 6.4% contraction in fixed voice. The gap between consolidated and operational (ex-IFRIC 12) revenue growth disappeared in Q3 with a normalised trend in IFRIC 12 revenues.
Fixed internet and mobile together made 74.5% of operating revenue. The two lines of business made significant contribution to growth with TL 4.8 billion higher revenues in total YoY. Corporate data continued its advance QoQ and expectedly moved to positive territory in YoY comparison with 3.7% increase thanks to repricing of long-term contracts in certain product groups and some one-time project revenues. International revenue was another line of business that shifted to positive growth YoY with 9.3% increase.
Revenue acceleration was largely a result of impressive ARPU performances across the board. The 22.9% annual increase in fixed internet revenue was driven by respective 1.4% growth in
1Net debt includes MTM from FX to TRY Currency Swaps and FV of Currency Protected Time Deposits. Net Debt/EBITDA calculation excludes extraordinary items in EBITDA calculation.
average number of subscribers and a 21.2% surge in ARPU. The 19% increase in mobile segment revenue was driven by robust 3.2% growth in average number of subscribers and 17.5% growth in ARPU.
On the opex front, direct costs rose 3.3% YoY with interconnection, and equipment & technology sales costs contracting 11.8% and 7.5% respectively. Commercial costs also declined 6.4% YoY whereas other costs rose 10.2%. Drop in interconnection cost was once again largely driven by the predetermined regulatory cut in MTRs (mobile termination rates) which took effect at the beginning of the year. Annual trend in commercial costs can largely be attributed to prior year's high base but we also observed some minor deceleration QoQ. Finally, rise in other costs YoY was mostly driven by increased personnel and network costs at respective rates of 6.8% and 2.9%. The expected pick-up in these items was a result of electricity tariff hikes and salary adjustments which became effective from July and August respectively. Still, opex to sales ratio dropped to 59.2% compared to 61.2% in Q2'24 and 63.8% in the same period of last year thanks to an improving operational leverage.
As a result, consolidated EBITDA surged 30.8% annually to TL 16.5 billion from TL 12.6 billion in Q3'23 with EBITDA margin expanding by 470 bps YoY to 40.8%. Excluding the IFRIC 12 accounting impact, EBITDA margin was 42.7%. Operating profit was TL 5.6 billion in Q3'24 comparing significantly higher to TL 0.7 billion in Q3'23.
TL 6.3 billion of net financial expense grew 28.8% YoY in Q3 due to 28% higher FX rates on average compared to a year ago and much higher interest rates driven by a major shift in monetary policy. That said, financial expense line has been pretty stable over quarters since the beginning of the year with even some 4.2% decline QoQ.
According to the sensitivity of the P&L statement to exchange rate movements, a 10% depreciation of TL would have negative TL 0.6 billion impact on Q3'24 PBT assuming all else constant. Similarly, a 10% appreciation of TL would have positive TL 0.9 billion impact. Net Debt/EBITDA has inched down to 0.96x from 1.08x a quarter ago and 1.17x as of the end of 2023.
Finally, we recorded TL 2.2 billion of tax expense moving the quarterly effective tax rate from 18.4% in Q2'24 to 65.7%. The increase, which has no major implications for this year's cash flow, was largely driven by the indexation of last year's tax assets to Q3'24 as per the inflation accounting principles and the wider gap between PPI and CPI in Q3. Net profit was TL 1.1 bn for the period, as a result.
Capex spending expectedly accelerated in Q3 reaching TL 9.7 billion with respective increases of 26% QoQ and 15.2% YoY.
Unlevered free cash flow2 was TL 4.8 billion compared to TL 3.5 billion in Q2'24 and TL 2.9 billion in Q3'23 underlining an improving trend both QoQ and YoY.
Net debt3 decreased to TL 52.9 billion as of Q3'24 compared to TL 57.2 billion as of Q3'23. Excluding the IFRS 16 impact, net debt was TL 48.8 billion. As of Q3'24, FX based financial debt (excluding the IFRS 16 impact) increased QoQ to USD 1.7 billion equivalent (Q2'24: USD 1.6 billion; Q3'23: USD 1.8 billion). The share of TL financing was 14% as of Q3'24.
Our short FX position4 was USD 8 million by the end of Q3'24. Excluding the ineffective portion of the hedge portfolio, namely the PCCS contracts, foreign currency exposure was USD 191 million short FX position.
| Q3'24 | Q3'23 | YoY | |
|---|---|---|---|
| TL | Change | ||
| Fixed Voice | 68.1 | 64.6 | 5.4% |
| Fixed Broadband | 262.0 | 216.2 | 21.2% |
| Home TV | 74.7 | 66.0 | 13.2% |
| Mobile | 196.8 | 167.6 | 17.5% |
| Postpaid | 213.1 | 176.5 | 20.7% |
| Prepaid | 134.6 | 133.2 | 1.1% |
| Q3'24 | Q3'23 | YoY | |
|---|---|---|---|
| TL mn | Change | ||
| Revenue | 40,353 | 34,828 | 15.9% |
| Revenue (Exc IFRIC 12) | 37,896 | 32,721 | 15.8% |
| EBITDA | 16,469 | 12,592 | 30.8% |
| Margin | 40.8% | 36.2% | |
| Depreciation & Amortisation | (10,820) | (11,911) | (9.2)% |
| Operating Profit | 5,649 | 681 | 729.7% |
| Margin | 14.0% | 2.0% | |
| Financial Income/(Expense) | (6,261) | (4,862) | 28.8% |
| Monetary Gain/(Loss) | 3,946 | 13,534 | (70.8)% |
| Profit Before Tax | 3,334 | 9,353 | (64.4)% |
| Tax Income/(Expense) | (2,189) | (6,311) | (65.3)% |
| Net Income | 1,145 | 3,042 | (62.4)% |
| Capex Intensity | 24.1% | 24.3% |
2Unlevered free cash flow defined as net cash provided by operating and investing activities from operations.
3Net debt includes MTM from FX to TRY Currency Swaps and FV of Currency Protected Time Deposits.
4Net FX position is calculated as FX based financial debt (including FX based lease obligations) plus FX based net trade payables less FX financial debt hedging less FX net trade payables hedging less currency protected time deposits less net investment hedging less FX based cash and cash equivalents.
Consolidated revenues increased to TL 109.2 billion from TL 100.4 billion a year ago with 8.7% growth. Excluding the IFRIC 12 accounting impact, 9M'24 revenue was TL 104.2 billion, up 10.6% YoY including increases of 13.1% in fixed broadband, 19.9% in mobile and 6.1% in TV vs contractions of 13% in fixed voice, 6.9% in international and 3.6% in corporate data. IFRIC 12 revenue was down 18.9% YoY in the nine-month period due to slow progress in the first half.
An accelerated operational revenue formation over the course of Q3 which pushed the 9M'24 growth figure to 10.6% brought us closer to our maintained FY guidance of 11-13%. We remain confident that we will achieve our guidance but Q4 inflation will be one of the important factors determining where in the guidance range we will close the year.
Fixed internet and mobile together made 74.1% of operating revenue. The two lines of business made significant contribution to growth with TL 11.2 billion higher revenues in total YoY.
On the cost front, opex to sales ratio dropped to 61.1% compared to 66.2% in the same period of last year, paving the way for a 520 bps improvement in EBITDA margin YoY to 38.9%. 9M'24 EBITDA expanded by 25.4% YoY to TL 42.5 billion. Excluding the IFRIC 12 accounting impact, EBITDA margin was 40.2%.
EBITDA margin nicely exceeded the high end of our earlier target of 36-38%. Filled with more confidence from Q3 performance, we now set our EBITDA margin expectation for the FY at 38%, slashing the low end of the range. Fourth quarters' tendency to deliver a lower margin compared to other quarters of the year due to low seasonality in some of our businesses as well as some one-off revenue and opex items materialising in the final months of the year explain the rationale for a lower target compared to 38.9% that we have achieved in the ninemonth period.
Operating profit was TL 9.7 billion in 9M'24 recovering significantly from TL 1.8 billion operating loss in 9M'23.
Net financial expense increased moderately by 6.7% to TL 19.5 billion thanks to the maintained calm in financial markets and successful management of financial risks in this environment.
Net profit for the period came in at TL 3.9 billion after recording TL 5 billion of tax expense. This has paved the way to 55.9% effective tax rate for the period. The deviation from the ordinary corporate tax rate was largely driven by the indexation of last year's tax assets to Q3'24 as per the inflation accounting principles and the gap between PPI and CPI.
Capex reached TL 22.8 billion with accelerated spending in the third quarter carrying the capex intensity ratio to 20.9% for the period. We maintain our FY guidance for 27-28% capex intensity.
Unlevered free cash flow was TL 10.5 billion compared to TL 3.4 billion in 9M'23, once again underlining the strong operational performance. Also, earthquake and macro volatility had put some pressure on last year's performance.
| 9M'24 | 9M'23 | YoY | |
|---|---|---|---|
| TL mn | Change | ||
| Revenue | 109,226 | 100,446 | 8.7% |
| Revenue (Exc IFRIC 12) | 104,172 | 94,217 | 10.6% |
| EBITDA | 42,510 | 33,901 | 25.4% |
| Margin | 38.9% | 33.8% | |
| Depreciation & Amortisation | (32,762) | (35,714) | (8.3)% |
| Operating Profit | 9,748 | (1,813) | n.m. |
| Margin | 8.9% | (1.8)% | |
| Financial Income/(Expense) | (19,468) | (18,243) | 6.7% |
| Monetary Gain/(Loss) | 18,611 | 26,053 | (28.6)% |
| Profit Before Tax | 8,890 | 5,998 | 48.2% |
| Tax Income/(Expense) | (4,969) | (5,439) | (8.6)% |
| Net Income | 3,921 | 559 | 602.0% |
| Capex Intensity | 20.9% | 22.4% |
| 9M'24 | FY'24 | FY'24 | |
|---|---|---|---|
| Previous Guidance | Revised Guidance | ||
| Revenue (Ex-IFRIC 12) | 10.6% | 11-13% | 11-13% |
| EBITDA margin | 38.9% | 36-38% | 38% |
| Capex Intensity | 20.9% | 27-28% | 27-28% |
We closed Q3'24 with 53.2 million subscribersin total, 568K higher from the prior quarter-end. Excluding the 233K loss in the fixed voice segment, total net additions surged to 800K with a broad acceleration across the board in the high season, yet a particularly stunning performance in the mobile segment.
Fixed broadband base inched up to 15.3 million with 59K net additions in Q3'24. Although we have seen some pick-up in new acquisitions over the back-to-school season, the impact compared limited to previous years as new demand remained softer in general.
Fibre base expanded to 13.4 million subscribers with 219K net additions in Q3'24. The number of FTTC subscribers was 8.5 million, while the number of FTTH/B subscribers increased to 4.9 million. The share of fibre subscribers in our total fixed broadband base increased to 87.9% from 83.3% a year ago.
Fibre cable network length increased to 459K km as of Q3'24 from 449K km as of Q2'24 and
427K km as of Q3'23. Fibre network covered 32.7 million households by the end of Q3'24 compared to 32.4 million as of Q2'24 and 31.9 million as of Q3'23. FTTC homepass was 19.9 million, while FTTH/B homepass increased to 12.8 million.
Mobile segment added 651K subscribers on net basis expanding its reach to 27 million customers in total. Postpaid segment attained 568K net additions, beating prior two quarters' strong performances. Refreshing its historic high, postpaid net adds in the LTM exceeded 2 million in total for the first time. Prepaid segment has also contributed to overall performance reversing its declining trend from 313K net loss in Q2 to 83K net additions. In the aftermath of these dynamics, the ratio of postpaid subscribers in total portfolio further rose to 74% from 73.6% in Q2'24 and 68.6% in Q3'23, reaching its highest level.
TV Home recorded 20K net additions and maintained its subscriber base around 1.5 million.
| Q3'24 | Q3'23 | YoY | |
|---|---|---|---|
| End of period, Mn | Change | ||
| Fixed Voice | 7.7 | 8.7 | (11.2)% |
| Fixed Broadband | 15.3 | 15.1 | 1.1% |
| Retail | 10.9 | 11.0 | (0.5)% |
| Wholesale | 4.4 | 4.1 | 5.5% |
| TV | 3.2 | 2.9 | 8.1% |
| Mobile | 27.0 | 26.1 | 3.2% |
| Postpaid | 20.0 | 17.9 | 11.2% |
| Prepaid | 7.0 | 8.2 | (14.3)% |
| Total | 53.2 | 52.9 | 0.5% |
Whilst inflation outlook and interest rate decisions varied in different parts of the world, continued news flow on geopolitical tensions in the Middle East led significant volatility in oil prices. US elections and geopolitical developments as well as their implications on global growth remained on top of the watchlists across the board. At home, the CBRT kept its policy rate at 50% in its October meeting after the September annual inflation data, which although maintaining a downward trend, surprised to the upside at 49.4%. Recently, October inflation followed a similar path to 48.6%, this time slightly above expected 48.3%. Once again, the pace of decline in annual inflation over the next couple of months will be critical in shaping the 2025 inflation expectations and budgeting processes.
Third quarter performance confirmed our earlier expectation of significant improvements in many fronts. Operating revenue growth caught up with our guidance range of 11-13%. Furthermore, a stronger than expected trend in EBITDA margin despite the salary adjustment enacted in August lent us the required confidence to slash the low end of our earlier guidance range of 36-38% and set the FY EBITDA margin target at 38%.
Overall, there was no major change in nature of competition either in the mobile or fixed internet markets but it further stiffened in the former. Subscriber acquisition remained in centre focus for mobile operators in high season as expected. Following June/July price adjustments, August in particular was heavily loaded with a rich variety of racing promotional activities. Driven by rigid competition, we have seen the MNP market recording its highest volume since Q1'20 in sizeable growth both annually and quarterly. In fixed internet, although several ISPs took pricing actions following our adjustment in wholesale prices in early July, these actions hardly led to a meaningful rebalancing of price parities that span over a wide range in the retail market where we had also revised our tariffs in mid-June. Despite bringing some vigour to the market, the back to school season was far from a breakthrough for new acquisitions.
Mobile once again delivered beautifully with robust subscriber and ARPU dynamics in continuation of solid trends in the postpaid segment, which were further supported by a better-than expected recovery in the prepaid segment. We have recorded our historic high monthly net add performance in July driving our leadership in the MNP market in Q3.
Fixed broadband geared up performance as June/July price adjustments and continued recontracting of the subscriber base paved the way for a superb come back with an elevated 21.2% ARPU growth that we expect to extend into the final quarter of the year and beyond.
Data consumption moved with routine seasonality and stayed generally elevated across the board confirming relatively inelastic demand to our products. Usage per LTE subscriber grew
at a healthy 10% rate YoY in mobile5 albeit slower compared to prior quarters. Fixed internet data6 usage on the other hand contracted 6% YoY from last year's high base.
Our operational and financial performance have been on an improving trend every quarter but Q3 results are particularly satisfying with an orchestrated solid contribution from all lines of businesses. We have been diligently working on micro strategies in all our businesses to raise our resilience and further our growth, which together enable us better leverage our sizeable investments. 10.6% real growth in operational revenue, 520 bps improvement in EBITDA margin, 25.4% real growth in EBITDA to TL 42.5 billion and TL 10.5 billion cash flow within the past nine-month period altogether is an obvious manifestation of our efforts turning into real value.
Competitive environment remained largely unchanged in the fixed internet market over the third quarter. We have taken several actions lately, both in contracting structures and pricing. Starting in mid-June we updated our new acquisition prices in retail segment, followed by the adjustments in wholesale prices in early July and retail prices for existing subscribers in early August. Although competition followed suit, the widely distorted retail price parities hardly moved away from the levels they have settled on since H2'23. On the contracting side, we have moved to a simplified 15-month flat fee structure both in re-contracting and new acquisitions in August/September, replacing the earlier 3+12 structure introduced in mid-June.
Under the above dynamics we have carefully balanced pricing, acquisitions & churn, and ARPU growth preserving our somewhat greater focus on the ARPU side. As such, the subscriber activity remained subdued over the third quarter driven both by our strategy and the prevailing soft demand overall. Although somewhat accretive to new activations, the back-to-school season shied away from being the catalyst it had been on net additions in prior years. Activations remained short of our expectation in the retail segment but surpassed our target in the wholesale segment. Churn rate picked-up QoQ, but remained nearly unchanged in annual comparison with number of churning customers surpassing our forecast on the wholesale side but staying in tune on the retail side.
Re-contracting and upsell performances remained strong and within our targets, once again re-contracting performing higher both YoY and QoQ thanks to a powerful churn management. We added 59K subscribers on net basis with similar contributions from the wholesale and retail segments.
50 Mbps+ packages made 67%7 of new sales and 35Mbps+ packages made 66% of recontracting in the third quarter, both confirming a very strong trend in demand for high speed
5Average monthly data usage per LTE user
6Average monthly data consumption per user
7 For retail segment
packages and no signs of softening among the existing subscriber base. Average package speed of our subscriber base8 increased by 45% YoY to 61 Mbps as of Q3'24. 63% of our subscribers9 are now on 35 Mbps+ packages compared to 59% a quarter ago and 48% a year ago. On a similar comparison, 44% of our subscribers now use 50 Mbps+ packages compared to 31% a year ago.
We have successfully managed market dynamics thanks to our solid positioning in the fixed internet domain, proven track record as the best-in-class internet service provider and advanced capabilities in customer retention in a highly competitive environment. In-line with our budget, our strategy produced a staggering 21.2% ARPU growth in Q3 moving up from 5.7% a quarter ago. We expect this remarkable performance to prevail in the final quarter of the year and beyond.
While operators' focus on subscriber acquisition has been increasing in mobile market over the past one-year period, this inclination became even more evident in the third quarter. The MNP market hasswollen to its largest size seen since Q1'20. Our strategy focusing on balanced ARPU and subscriber growth remained intact in the third quarter. The competition, driven largely by promotional activity peaked especially in August pushing our churn rate higher both YoY and QoQ. Still, net subscriber addition was significantly above our target thanks to better than expected activation performance both in the postpaid and prepaid segments.
Although all operators revised their mobile tariff prices around end-June/early-July, sizeably discounted promotional offerings overtook most of the quarter. We secured our best ever net add performance in July followed by an impulsively elevated competition in August. At last, September was the month when the breathless racing has toned down a bit with focus shifted towards regional campaigns. Although the picture has varied across months, once again we topped the MNP market as the most preferred operator overall in the quarter.
Postpaid tariffs continued their popularity among customers and operators but we have also observed a better than expected recovery in the prepaid segment. It is yet to be seen if the pick-up in new sales will turn into a lasting trend given the volatile performance in the prepaid market in general over the past few quarters.
We managed to sizeably expand our subscriber base without diluting our ARPU growth during the quarter. Well above our target, we gained 651K net subscribers in Q3'24 marking the highest performance since Q3'22. Driven by a solid acquisition performance, the postpaid base recorded 568K net additions, ahead of the previous quarter's 438K. Accordingly, in excess of 2 million, the LTM postpaid net add count reached its all-time high. Surprising us positively both in activations and churn relative to our quarterly targets, the prepaid base secured 83K net
8 Total retail base including DSL and fibre subscribers
9 Total retail base including DSL and fibre subscribers
additions comparing much favourably to last quarter's 313K net loss. As a result, the ratio of postpaid subscribers in total portfolio reached 74% compared to 73.6% in Q2'24 and 68.6% in Q3'23.
Accelerating from last quarter's 14.8%, annual growth in mobile blended ARPU surged to 17.5% with respective 1.1% and 20.7% increases in the prepaid and postpaid segments. Pace of annual growth in average number of subscribers has also picked-up to 3.2% from 2.4% a quarter ago paving the way for 19% annual growth in mobile revenue.
At Türk Telekom, we are working to improve our financial performance, integrate our sustainability efforts into our company strategies and grow our environmental and social contributions. This year, we embarked on a new journey and presented our first Integrated Annual Report by adopting an integrated reporting model. We have prepared our report in accordance with the 2021 GRI (Global Reporting Initiative) Universal Standards for the January 1st - December 31st, 2023, financial reporting period.
Our Integrated Annual Report differs from our previous Annual and Sustainability Reports in three important aspects. Firstly, we deep dive into explaining Türk Telekom Group's approach to creating value and driving sustainable growth. Secondly, in the "Environmental Investments and Contribution" section we share comprehensive data/information with our stakeholders in a more holistic and transparent way, we believe. We focus on our environmental contribution through energy and emissions management, responsible use and management of natural resources, circular economy and waste management as well as our concrete plans for the future. Further, we elaborate on our social contribution through our leadership in digitalisation and digital inclusion fuelled by our unabated investments both in fibre and mobile technologies across Türkiye. And finally, we present our full carbon inventory, including Scope 1, Scope 2 and Scope 3 (all categories) at Türk Telekom Group level.
One of the most critical steps towards a broader emission management was to calculate each of the Scope 1, 2, and 3 categories of our carbon inventory in compliance with the GHG protocol at Group level in 2023. This calculation, for the first time encompassed all companies within Türk Telekom Group and was comprehensive in all respects. In this way, we aim to develop carbon reduction strategies at the scale of Türk Telekom Group. All emission calculations have been verified by an independent 3rd party.
Last but not the least, we have submitted our 2023 report to the Carbon Disclosure Platform (CDP). We have expanded our reporting coverage both horizontally and vertically, we think. CDP report should always be considered complementary to our Integrated Report in order to build a more complete understanding around our climate-related initiatives.
Our 2023 Integrated Report and CDP Questionnaire can be accessed on our website at Türk Telekom Investor Relations.
We extend our gratitude to all our stakeholders who are pivotal to our success and look forward to achieving greater milestones together in the coming years.
| (TL mn) | 9M'23 | 9M'24 | YoY Change |
Q3'23 | Q3'24 | YoY Change |
|---|---|---|---|---|---|---|
| Revenue | 100,446 | 109,226 | 8.7% | 34,828 | 40,353 | 15.9% |
| Revenue (Exc. IFRIC 12) | 94,217 | 104,172 | 10.6% | 32,721 | 37,896 | 15.8% |
| EBITDA | 33,901 | 42,510 | 25.4% | 12,592 | 16,469 | 30.8% |
| Margin | 33.8% | 38.9% | 36.2% | 40.8% | ||
| Depreciation and Amortisation | (35,714) | (32,762) | (8.3)% | (11,911) | (10,820) | (9.2)% |
| Operating Profit | (1,813) | 9,748 | n.m. | 681 | 5,649 | 729.7% |
| Margin | (1.8)% | 8.9% | 2.0% | 14.0% | ||
| Financial Income / (Expense) | (18,243) | (19,468) | 6.7% | (4,862) | (6,261) | 28.8% |
| FX & Hedging Gain / (Loss) | (11,981) | (12,244) | 2.2% | (2,891) | (3,680) | 27.3% |
| Interest Income / (Expense) | (4,894) | (5,242) | 7.1% | (1,230) | (2,058) | 67.3% |
| Other Financial Income / (Expense) | (1,368) | (1,982) | 44.9% | (741) | (523) | (29.4)% |
| Monetary Gain / (Loss) | 26,053 | 18,611 | (28.6)% | 13,534 | 3,946 | (70.8)% |
| Tax Income / (Expense) | (5,439) | (4,969) | (8.6)% | (6,311) | (2,189) | (65.3)% |
| Net Income | 559 | 3,921 | 602.0% | 3,042 | 1,145 | (62.4)% |
| Margin | 0.6% | 3.6% | 8.7% | 2.8% | ||
| CAPEX | 22,528 | 22,832 | 1.3% | 8,448 | 9,734 | 15.2% |
| (mn, EoP) | Q3'23 | Q3'24 | YoY Change |
|---|---|---|---|
| Total Access Lines 1 0 |
17.4 | 17.4 | (0.1)% |
| Fixed Voice Subscribers | 8.7 | 7.7 | (11.2)% |
| Naked Broadband Subscribers | 8.7 | 9.6 | 11.2% |
| Total Broadband Subscribers | 15.1 | 15.3 | 1.1% |
| Total Fibre Subscribers | 12.6 | 13.4 | 6.6% |
| FTTH/B | 4.1 | 4.9 | 21.4% |
| FTTC | 8.5 | 8.5 | (0.4)% |
| Total TV Subscribers 1 1 |
2.9 | 3.2 | 8.1% |
| Tivibu Home (IPTV + DTH) Subscribers | 1.5 | 1.5 | 2.4% |
| Mobile Total Subscribers | 26.1 | 27.0 | 3.2% |
| Mobile Postpaid Subscribers | 17.9 | 20.0 | 11.2% |
| Mobile Prepaid Subscribers | 8.2 | 7.0 | (14.3)% |
10 PSTN and WLR Subscribers
11 Tivibu Home (IPTV, DTH) and Tivibu GO subscribers
| TL | Q3'23 | Q3'24 | YoY Change |
|---|---|---|---|
| Fixed Voice ARPU | 64.6 | 68.1 | 5.4% |
| Broadband ARPU | 216.2 | 262.0 | 21.2% |
| Home TV ARPU | 66.0 | 74.7 | 13.2% |
| Mobile Blended ARPU | 167.6 | 196.8 | 17.5% |
| Mobile Postpaid ARPU | 176.5 | 213.1 | 20.7% |
| Mobile Prepaid ARPU | 133.2 | 134.6 | 1.1% |
Pursuant to the resolution of the Capital Markets Board ("CMB") dated 28.12.2023 and numbered 81/1820; it has been resolved that the provisions of TAS 29 (Financial Reporting in Hyperinflationary Economies) be implemented starting from the annual financial reports of issuers and capital market institutions that apply Turkish Accounting/Financial Reporting Standards and are subject to financial reporting regulations for the accounting periods starting from 31.12.2023.
Türk Telekomünikasyon A.Ş. (the "Company") has published its financial results in accordance with TAS 29 standards.
The information contained herein has been prepared by Türk Telekomünikasyon A.Ş. in connection with the operations of Türk Telekom Group companies. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. This press release or any information contained herein cannot be used without the written consent of the Company.
This press release is intended to provide information about the Company's operations and financial results and includes certain forward-looking statements, opinions, assumptions and estimated figures. Accordingly, it includes data and estimates for which inflation accounting has not been applied for informational purposes as opposed to data and estimates for which inflation accounting has been applied, and reflects the management's current views and assumptions regarding the Company's future prospects. The information provided by the Company is collected from sources believed to be reliable, but the accuracy and completeness of this information are not guaranteed. Although it is believed that the expectations reflected in these statements are reasonable, realisations may vary depending on the development and realisation of the variables and assumptions that constitute forward-looking expectations and estimated figures.
The Company and its shareholders, board members, directors, employees of Türk Telekomünikasyon A.Ş. or any other person may not be held liable for any damages that may arise from the use of the contents of this press release.
Türk Telekom Group Consolidated Financial Statements are available on https://www.ttyatirimciiliskileri.com.tr/en-us/financial-operational-information/pages/quarterly-results
EBITDA is a non-GAAP financial measure. The EBITDA definition used in this press release includes revenues, cost of sales, marketing, sales and distribution expenses, general administrative expenses, research and development expenses and other operating income/(expense), and income/(expense) from investing activities, but excludes depreciation, amortisation and impairment expenses, financial income/(expense) presented in other operating income/(expense) (i.e. FX gain/(loss), interest and rediscount income/(expense) on current accounts excluding bank borrowings).
Operating profit includes revenues, cost of sales, depreciation, amortisation and impairment expenses, marketing, sales and distribution expenses, general administrative expenses, research and development expenses, other operating income/(expense), and income/(expense) from investing activities, but excludes financial income/(expense) presented in other operating income/(expense) on CMB financial statements (i.e. FX gain/(loss), interest and rediscount income/(expense) on current accounts excluding bank borrowings).
Net financial income/(expense) includes financial income/(expense) and FX gain/(loss), interest and rediscount income/(expense) on current accounts excluding bank borrowings which are presented in other operating income/(expense) on CMB financial statements.
Net FX Position is calculated by subtracting the sum of i) the hedge transactions, ii) FX-denominated cash and cash equivalents and iii) the net investment hedge from the sum of iv) FX-denominated financial debt (including FX-denominated lease obligations) and v) FX denominated net trade payables. Net investment hedge is the hedge amount against the financial risk of the net investment in the off-shore subsidiaries (Türk Telekom International) as per the Effects of Changes in FX Rate standard (TAS 21) of the Turkish Accounting Principles.
Türk Telekom, with more than 180 years of history, is the first integrated telecommunications operator in Türkiye. In 2015, Türk Telekomünikasyon A.Ş. adopted a "customer-oriented" and integrated structure in order to respond to the rapidly changing communication and technology needs of customers in the most powerful and accurate way, while maintaining the legal entities of TT Mobil İletişim Hizmetleri A.Ş. and TTNET A.Ş. intact and adhering to the rules and regulations to which they are subject. Having a wide service network and product range in the fields of individual and corporate services, Türk Telekom unified its mobile, internet, phone and TV products and services under the single "Türk Telekom" brand as of January 2016.
"Türkiye's Multiplay Provider" Türk Telekom has 17.4 million fixed access lines, 15.3 million fixed broadband, 27 million mobile and 3.2 million TV subscribers as of September 30, 2024. Türk Telekom Group Companies provide services in all 81 cities of Türkiye with 36,323 employees with the vision of introducing new technologies to Türkiye and accelerating Türkiye's transformation into an information society.
Türk Telekomünikasyon A.Ş., providing PSTN and wholesale broadband services, directly owns 100% of mobile operator TT Mobil İletişim Hizmetleri A.Ş., retail internet services, IPTV, satellite TV, Web TV, Mobile TV, Smart TV services provider TTNET A.Ş., convergence technologies company Argela Yazılım ve Bilişim Teknolojileri A.Ş., IT solution provider İnnova Bilişim Çözümleri A.Ş., online education software company SEBİT Eğitim ve Bilgi Teknolojileri A.Ş., call centre company AssisTT Rehberlik ve Müşteri Hizmetleri A.Ş., project development and corporate venture capital company TT Ventures Proje Geliştirme A.Ş, Electric Supply and Sales Company TTES Elektrik Tedarik Satış A.Ş., provider of combined facilities support activities TT Destek Hizmetleri A.Ş. with TT International Holding BV, wholesale data and capacity service provider TT International Telekomünikasyon Sanayi ve Ticaret Ltd.Şti., and financial technology company TTG Finansal Teknolojileri A.Ş. and indirectly owns Consumer Finance Company TT Finansman A.Ş, software programs retail and wholesale company TT Ventures Inc, subsidiaries of TT International Holding BV, TV Broadcasting and VOD services provider Net Ekran Companies, telecommunications devices sales company TT Satış ve Dağıtım Hizmetleri A.Ş. and payment and e-money services company TT Ödeme ve Elektronik Para Hizmetleri A.Ş., and web portal and computer programming company APPYAP Teknoloji ve Bilişim A.Ş.
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