Türk Telekomünikasyon (TTKOM) Q1 2025 earnings summary

Executive summary

• Revenue rose 18.3% YoY to TL 45.6 billion in Q1 2025, driven by strong fixed internet and mobile performance, with total subscribers at 53.6 million, up 1.6% YoY.

• EBITDA increased 27% YoY to TL 17.9 billion, with a margin of 39.3%.

• Net profit reached TL 5.1 billion, up 45% YoY.

• Free cash flow surged 203% YoY to TL 7.8 billion, supported by strong operations and insurance collections.

• Total assets stood at TL 285.4 billion, with equity attributable to shareholders at TL 165.2 billion as of 31 March 2025.

Financial highlights

• Fixed broadband revenues grew 15%-21% YoY; mobile revenues up 21%-24% YoY.

• CapEx increased 28% YoY to TL 8.0 billion; CapEx intensity at 17.6%-18%.

• Operating profit surged 93% YoY to TL 8.2 billion.

• Net leverage improved to 0.7x-0.73x; net debt/EBITDA dropped from 0.8 to 0.73 QoQ.

• Net cash from operating activities was TL 14.0 billion, up from TL 5.9 billion YoY.

Outlook and guidance

• Full-year revenue growth guidance remains at 8%-9%, with Q1 growth outpacing at 17.6%-18%.

• EBITDA margin guidance maintained at 38%-40%; Q1 margin at 39.3%.

• CapEx expected to accelerate in later quarters, targeting 28%-29% intensity for the year.

• Management remains cautious due to macroeconomic uncertainties and inflation outlook.