Türk Telekomünikasyon (TTKOM) Q1 2024 earnings summary

Executive summary

• Revenue reached TL 28.0 billion in Q1 2024, up 6% year-over-year, driven by mobile and fixed internet growth.

• Adjusted EBITDA rose 23% to TL 10.3 billion, with margin expanding by 510 basis points to 36.6%.

• Net income was TL 1.04 billion, down 16% year-over-year, impacted by higher tax and FX losses.

• Subscriber base totaled 52.8 million, with fixed broadband net additions offsetting mobile and fixed voice losses.

• Free cash flow improved to TL 1.9 billion from negative TL 3.6 billion a year ago.

Financial highlights

• Excluding IFRIC 12, revenue growth was 9% year-over-year.

• Fixed broadband revenue rose 7% year-over-year, with 2.5% subscriber and 5–7% ARPU growth.

• Mobile revenue increased 20–21% year-over-year, with 2.6% subscriber and 15.7–16% ARPU growth.

• CapEx spending was TL 4.6 billion, down 22% year-over-year; CapEx/sales ratio at 16.2%.

• Operating profit turned positive at TL 1.1 billion from a loss in Q1'23.

Outlook and guidance

• Management remains confident in full-year guidance, expecting continued ARPU growth and improved cash flow.

• Anticipates sector-wide retail price adjustments following a 70% wholesale price hike effective July.

• Expects fixed internet ARPU to benefit from upcoming price changes, with customer absorption improving by summer.

• Insurance income from earthquake claims will positively impact EBITDA and cash flow in upcoming quarters.

• Focus on sustainable finance and green investments, with external validation of the framework.