TurkiyeBusiness

Türk Telekom’s Strong Operational Performance: A Rapid Start to 2024

According to an announcement by Türk Telekom, the company has revealed its financial and operational results for the first quarter of 2024, showcasing a continued strong growth momentum in its leading business segments. Consolidated revenues increased by 6% year-on-year, reaching 28 billion TL. The company’s EBITDA surged by 23%, hitting 10.3 billion TL, with an EBITDA margin improving by 510 basis points to 36.6%. The net profit for the first quarter was recorded at 1 billion TL.

During the first quarter of 2024, Türk Telekom made investments totaling 4.6 billion TL. The company’s total subscriber base reached 52.8 million, with 26.2 million mobile subscribers and 15.2 million fixed broadband subscribers. Fixed internet and mobile services accounted for 72.6% of the company’s revenue for the quarter, with a combined increase of 2.6 billion TL in these segments contributing significantly to annual growth.

Türk Telekom continued to expand its fiber infrastructure across all 81 provinces of Turkey, increasing its fiber network length to 441,000 kilometers by the end of the first quarter, covering 32.2 million households. The number of fiber subscribers reached 13 million, with 8.6 million FTTC (Fiber to the Curb) subscribers and 4.5 million FTTH/B (Fiber to the Home/Building) subscribers. The proportion of fiber subscribers among the total fixed broadband subscribers rose from 79.8% to 85.7% year-on-year.

CEO’s Remarks

Türk Telekom CEO Ümit Önal highlighted that the company has had a strong start to 2024, in line with their full-year forecasts. “We entered the year with a satisfactory start, driven by the ongoing momentum in our leading business segments. Our revenue growth met expectations, while our EBITDA margin exceeded our forecasts. Despite intense competition in the market, our mobile segment has once again been the main driver of consolidated revenue growth. Meanwhile, fixed broadband has contributed more, supported by accelerating ARPU (Average Revenue Per User) growth,” he said.

Emphasizing Türk Telekom’s pivotal role in Turkey’s digital transformation, Önal added, “We continue to cover every corner of Turkey with fiber networks, with the motto of providing high-speed accessible internet for everyone. By the end of the first quarter, our fiber network covered 441,000 kilometers, reaching 32.2 million households. Our fiber subscriber base reached 13 million, with 8.6 million FTTC subscribers and 4.5 million FTTH/B subscribers. We are leading the vision of making the ‘Century of Turkey’ the ‘Century of Digital,’ reflecting our high-tech knowledge across all areas of life.”

Investments and Innovations

Önal noted that the mobile segment continues to grow, with around 1.7 million net new subscribers added in the past 12 months. “Our mobile segment, especially the postpaid segment, has shown strong performance. About 72.3% of our mobile subscribers are on postpaid plans,” he said.

Türk Telekom has also strengthened its mobile coverage and capacity through investments, tripling its frequency ownership since the 4.5G auction. The company leads in 1800 MHz frequency ownership, crucial for both speed and 5G. “Our superior performance over several quarters, combined with our high-quality infrastructure, encourages us to remain optimistic about the potential of our mobile business. We aim to maintain this upward performance trend throughout the year, focusing on customer experience,” Önal added.

Önal emphasized the company’s commitment to sustainability, integrating these principles into all business processes. “We are proud to have recently completed the issuance of our ‘Sustainable Bond,’ becoming the first non-financial Turkish company to do so, raising $500 million. This sustainable instrument aligns our financing strategy with our sustainability roadmap and goals, supporting our eco-friendly technology investments,” he said.

Türk Telekom continues to play a significant role in constructing the digital future by expanding its fiber network and advancing in mobile and 5G technologies. The company has pioneered various sectors, from healthcare to finance, education to industry, and cultural arts to sports. It is making substantial efforts to fiberize LTE mobile base stations, with 52% already connected to fiber, aligning with future technology requirements.

source: aa.com.tr/ prepared by Melisa Beğiç

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