Turkcell (TCELL) Q2 2024 earnings summary

Executive summary

• Celebrated 30th anniversary with a NYSE closing bell ceremony, highlighting resilience and innovation amid challenging macroeconomic conditions in Türkiye.

• Q2 2024 revenue was TRY 34.9 billion, down 0.3% year-over-year, with EBITDA at TRY 14.9 billion and a 42.6% margin.

• Net income rebounded to TRY 2.9 billion, reversing a loss in Q2 2023, supported by lower FX losses and risk management.

• Subscriber base expanded to 43.2 million, with strong postpaid and fiber additions.

• Techfin segment contributed significantly, with Financell and Paycell showing robust revenue growth.

Financial highlights

• H1 2024 revenue rose 5.3% year-over-year to TRY 68.3 billion; Q2 revenue at TRY 34.9 billion.

• EBITDA grew 0.3% year-over-year to TRY 14.9 billion; margin at 42.6%.

• Net income reached TRY 2.9 billion, a turnaround from a net loss in Q2 2023.

• CapEx to sales ratio increased to 22.5% in Q2; operational capex for 2024 targeted at ~23%.

• Cash position at TRY 50.2 billion, net debt at TRY 32.4 billion, and net leverage at 0.6x.

Outlook and guidance

• 2024 guidance under review due to higher-than-expected inflation; update expected with Q3 results.

• Price adjustments in July (mobile) and August (fixed) expected to support ARPU and revenue in H2 2024.

• CapEx intensity expected to reach 23% for 2024, with focus on tower fiberization and solar capacity expansion.

• Focus remains on value creation in domestic operations post-Ukraine asset sale.

• Guidance based on macroeconomic assumptions, including inflation risks.