The following is a summary of the Turkcell Iletisim Hizmetleri A.S. (TKC) Q2 2024 Earnings Call Transcript:
Financial Performance:
Turkcell reported a revenue of TRY35 billion, with an EBITDA of TRY15 billion and a solid EBITDA margin of 42.6%.
Net income was TRY2.9 billion. The company experienced inflationary pressures but demonstrated resilience through diversified business strategies.
ARPU grew by 82% year-on-year, supporting sustained profitability despite macroeconomic challenges affecting equipment revenues and large project declines.
Business Progress:
Turkcell added 346,000 net subscribers focusing on value-generating postpaid and fiber customer segments.
Introduced strategic adjustments in pricing and continued to lead with innovative campaigns to maintain low churn rates and boost mobile ARPU.
Expanded fiber network, adding 42,000 subscribers and increased the residential fiber customer base with contracted customers reaching 78%.
Digital Services and Solutions, and Techfin segments showed growth through strategic pricing and product offerings. Paycell revenues grew by 16% and Financell's revenue rose 34%.
Opportunities:
The company's commercial operations and strategic preparations for 5G rollout present significant growth potential especially with increased demand for high-speed data and advanced mobile services.
Risks:
Regulatory challenges and macroeconomic pressures such as inflation and tightened government budgets affect equipment sales and large-scale projects, impacting revenue growth and operational strategies. The uncertain circumstance surrounding the regulatory permissions for 5G frequencies introduces complexity to future planning.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
