Türk Telekomünikasyon (TTKOM) Q1 2025 earnings summary

Executive summary

• Consolidated revenues rose 18% YoY to TL 45.6 billion in Q1 2025, with EBITDA up 27% YoY to TL 17.9 billion and net profit at TL 5.1 billion.

• Subscriber base reached 53.6 million, with 447,000 net additions QoQ and 1.6% YoY growth, driven by strong mobile and fixed internet performance.

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

• Net leverage improved to 0.7x, reflecting strong cash generation and lower net debt.

• The Turkish Wealth Fund remains the controlling shareholder, holding 61.68% of shares.

Financial highlights

• Fixed broadband revenues grew 21% YoY, mobile revenues up 24% YoY, and corporate data up 31% YoY.

• EBITDA margin expanded by 260 bps YoY to 39.3%, with OpEx to sales ratio dropping below 61% from 63% YoY.

• CapEx increased 28% YoY to TL 8.0 billion, with CapEx intensity at 17.6%.

• Net financial expense was TL 5.5 billion, down 29% YoY; net monetary gain due to inflation accounting was TL 5.9 billion.

• Operating profit nearly doubled YoY to TL 8.2 billion.

Outlook and guidance

• Full-year revenue growth guidance remains at 8%-9%, with Q1 performance ahead of expectations but no revision planned yet.

• EBITDA margin guidance of 38%-40% reaffirmed, with Q1 at 39.3%.

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

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