Türk Telekomünikasyon (TTKOM) Q4 2024 earnings summary

Executive summary

• Consolidated revenue reached TL 162 billion for 2024, up 12% year-over-year, with Q4 revenue at TL 46 billion, a 20% annual increase, and total subscribers at 53.2 million.

• EBITDA rose 30% year-over-year to TL 63.1 billion, with margin improving by 560bps to 39.1%.

• Net profit for 2024 was TL 8.5 billion, a sharp decline from TL 23.7 billion in 2023, mainly due to higher financial expenses and inflation accounting.

• Free cash flow increased 75% year-over-year to TL 18 billion, with net leverage improving to 0.8x.

• The company applied inflation accounting (TAS 29) for the first time, restating prior period figures to 2024 purchasing power.

Financial highlights

• Q4 consolidated EBITDA surged 45% year-over-year to TL 18 billion, with a 680bps margin expansion.

• CapEx for 2024 totaled TL 41.5 billion, with accelerated spending in Q4.

• Net leverage improved to 0.8x, down from 1.2x at end-2023.

• Net financial expense dropped 3% year-over-year to TL 25 billion, aided by stable currency and lower interest rates.

• Effective tax rate spiked to 72% in Q4 due to deferred tax adjustments, with limited near-term cash flow impact.

Outlook and guidance

• 2025 revenue growth expected in the 8-9% range, assuming mid to high 20s inflation.

• Like-for-like EBITDA margin guidance for 2025 is 38-40%, up 30-230bps year-over-year.

• CapEx intensity expected to rise to 28-29% in 2025, with FTTH conversions peaking.

• ARPU growth in both fixed and mobile segments expected to remain strong, supported by recent price increases.

• 2025 guidance assumes mid-to-high twenties inflation rate.