Türk Telekomünikasyon (TTKOM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached TL 40.4 billion, up 16% year-over-year, with nine-month revenue at TL 109.2 billion, up 9% year-over-year.

• EBITDA for Q3 2024 rose 31% to TL 16.5 billion, margin at 40.8%; nine-month EBITDA was TL 42.5 billion, up 25%.

• Net income for Q3 2024 was TL 1.1 billion, with nine-month net profit at TL 3.92 billion, up 602% year-over-year.

• Subscriber base expanded to 53.2 million, with growth in both mobile and fixed broadband segments.

• Management remains focused on dynamic pricing, customer retention, and balancing ARPU with subscriber growth.

Financial highlights

• Consolidated revenues rose 16% year-over-year to TL 40.4 billion in Q3; EBITDA margin up 470 bps to 40.8%.

• Net income for Q3 was TL 1.1 billion; nine-month net profit reached TL 3.92 billion.

• Free cash flow for Q3 was TL 4.8 billion, with nine-month free cash flow at TL 10.5 billion, up 211% year-over-year.

• CAPEX for Q3 was TL 9.7 billion, nine-month total TL 22.8 billion, with CAPEX intensity at 21%.

• Net leverage improved to 0.96x at Q3 2024 from 1.17x at Q4 2023.

Outlook and guidance

• 2024 revenue growth guidance maintained at 11%-13%, with Q4 inflation a key variable.

• EBITDA margin guidance raised to 38%, above the previous range, though Q4 margin is expected to be seasonally lower.

• CAPEX intensity guidance maintained at 27%-28% for the full year.

• 2025 is anticipated to be as strong or stronger, with continued focus on financial performance and sustainability.

• Assumes annual CPI of 42% by year-end 2024.