Turkcell (TCELL) Q4 2024 earnings summary

Executive summary

• Achieved TRY 166.7 billion in revenue for 2024, up 7.8% year-over-year, with EBITDA reaching TRY 69.8 billion and margin at 41.9%.

• Net income increased by 30% to TRY 23.5 billion, supported by the sale of Ukraine assets.

• Added 1.9 million net postpaid subscribers, the highest in 15 years, and saw strong ARPU growth.

• Major bond issuances, including $1 billion Eurobond and sustainable bonds, were completed to refinance debt and fund growth.

• Dividend of TRY 7.4 billion was distributed in December 2024.

Financial highlights

• Q4 2024 revenue was TRY 44.9 billion, with full-year revenue at TRY 166.7 billion.

• EBITDA for FY 2024 was TRY 69.8 billion, up 10.2% year-over-year, with margin at 41.9%.

• Net leverage declined to 0.14x, with net debt at TRY 10 billion.

• Cash and cash equivalents stood at TRY 68.9 billion at year-end.

• Gross margin increased to 24.7% from 21.2% year-over-year.

Outlook and guidance

• 2025 revenue growth expected at 7%-9%, with EBITDA margin guidance of 41%-42%.

• Data center and cloud revenue growth guided at 32%-34% for 2025.

• CapEx intensity expected around 24% for 2025, excluding license fees.

• Inflation assumption for 2025 is 31% year-end, 33% average.

• Management expects continued growth in core telecom and techfin segments, focusing on digital transformation.