Turkcell (TCELL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached 40.2 Bn TL, up 6.9% year-over-year, driven by ARPU growth, subscriber additions, and strong contributions from Turkcell Türkiye and Techfin segments.

• EBITDA rose 10.4% to 17.8 Bn TL, with margin improving by 1.4pp to 44.2%.

• Net income reached 14.3 Bn TL, a significant turnaround from a net loss in Q3 2023, including proceeds from Ukraine asset sale.

• Subscriber base growth continued, with 515K postpaid net adds and 47K fiber net adds in the quarter; postpaid share rose to 74%.

• Completed divestment of Ukraine assets and launched first solar energy field.

Financial highlights

• Consolidated revenues exceeded 40 Bn TL in Q3 2024 (+6.9% YoY); 9M 2024: 114.6 Bn TL (+5.8% YoY).

• EBITDA: 17.8 Bn TL (+10.4% YoY); margin at 44.2% (+1.4pp YoY).

• EBIT: 6.6 Bn TL (+13.1% YoY); margin at 16.3% (+0.9pp YoY).

• Techfin segment revenue up 30.9% YoY, with Financell up 38.1% and Paycell up 19.6%.

• CapEx-to-sales ratio at 18.1% for Q3.

Outlook and guidance

• 2024 revenue growth guidance revised to ~7% due to higher CPI/inflation outlook.

• EBITDA margin guidance maintained at ~42%.

• Operational capex/sales guidance at ~23%.

• 2025 expected to be CapEx-intensive, focusing on 5G, data centers, and renewable energy.

• Guidance based on assumed annual inflation rate of 43%.