Turkcell (TCELL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached TRY 40.2 billion, up 7% year-on-year, driven by ARPU growth, subscriber additions, and strong Techfin segment performance.

• EBITDA rose 10.4% to TRY 17.8 billion, with margin improving by 1.4pp to 44.2%.

• Net income was TRY 14.3 billion, including proceeds from the Ukraine asset sale, marking a turnaround from a net loss in Q3 2023.

• Subscriber base grew with 515,000 postpaid net adds and 47,000 fiber net adds in Q3.

• Completed divestment of Ukraine assets and launched first solar energy field.

Financial highlights

• Consolidated revenues exceeded TRY 40 billion in Q3 and TRY 114.6 billion for the nine months, with Turkcell Türkiye segment up 7% year-on-year.

• Techfin segment revenue up 30.9% YoY, with Financell and Paycell growing 38% and 20%, respectively.

• EBITDA margin expanded by 1.4 percentage points year-on-year to 44.2%.

• CapEx-to-sales ratio at 18.1% for Q3.

• Adjusted EBITDA for the nine months was TRY 49.0 billion.

Outlook and guidance

• Revenue growth guidance for 2024 revised to around 7% due to higher CPI outlook and inflationary pressures.

• EBITDA margin guidance maintained at ~42%; CapEx intensity guidance at ~23%.

• 2025 expected to be CapEx-intensive, focusing on 5G, data centers, and renewable energy.

• Real revenue growth expected in 2025, with more details to be shared at year-end.

• Guidance based on assumed annual inflation rate of 43%.