Turkcell Iletisim Hizmetleri AS NYSETKC Reports Q2 2024 Financial Results Amidst Inflationary Pressu
Intellectia.AI2024-09-13
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) Reports Q2 2024 Financial Results Amidst Inflationary Pressures
Turkcell Iletisim Hizmetleri A.S. released its financial results for the second quarter ending June 30, 2024. The company's performance showcased resilience amidst challenging economic conditions characterized by high inflation rates.
Key Financial Metrics
| Metric | Q2 2024 | YoY Change |
|---|---|---|
| Revenue (TRY) | 34.9B | -0.3% |
| EBITDA (TRY) | 14.9B | +0.3% |
| Net Income (TRY) | 2.9B | Positive |
The slight decline in revenue by 0.3% year-over-year was primarily due to high baseline effects from the previous year's digital services projects, while the EBITDA showed marginal growth, reflecting efficient cost management and a stable EBITDA margin of 42.6%.
Segment Revenue Performance
| Segment | Q2 2024 Revenue (TRY) | YoY Change | Notable Points |
|---|---|---|---|
| Turkcell Türkiye | 30.4B | +1.5% | Strong consumer segment growth at 8% |
| Turkcell International | 0.89B | +2.7% | Growth in local currency; Turkish Lira impact |
| Techfin | 1.75B | +23.5% | Driven by Financell (+33.9%) and Paycell |
| Other | 1.84B | -33.8% | Weak demand in consumer electronics |
Turkcell Türkiye, which contributes the most significant portion of overall revenues, displayed growth primarily from expanding its subscriber base and upselling strategies. On the contrary, the Techfin segment experienced robust growth driven by Financell and Paycell's successful performance.
Operational Highlights
- Turkcell added 346,000 subscribers in Turkcell Türkiye.
- 5.3% increase in mobile ARPU and 6.6% growth in fixed residential fiber ARPU.
- Achieved the lowest mobile churn rate in six years, at 1.5%.
- Completion of the Ukrainian assets sale initiated in 2023.
CEO Commentary
CEO Ali Taha Koç expressed satisfaction with the company's strategic pivot back to focusing on the Turkish market, following the asset sale in Ukraine. He highlighted ongoing strategies to drive technological capabilities and core services to ensure sustainable growth against macroeconomic headwinds.
Dividends and Share Repurchase
The earnings release did not specify any announcements regarding dividends or share buyback programs for the quarter.
Forward Guidance
Due to economic uncertainties, particularly in inflation trends, Turkcell is currently in the process of reviewing its guidance and anticipates providing updates in the next quarter's release.
Stock Price Reaction
Following the earnings report's release, Turkcell's stock experienced a minor decline of 1.05%.
In conclusion, Turkcell's Q2 2024 results illustrate slight resilience amidst economic challenges, with particular strengths in its Techfin segment and local market operations. However, the company remains cautious in its guidance given volatile economic conditions.
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