TKC - Turkcell Iletisim Hizmetleri A.S. (TKC) Q4 2023 Earnings Call Transcript

2024-03-20 16:14:10 ET

Turkcell Iletisim Hizmetleri A.S. (TKC)

Q4 2023 Earnings Call Transcript

March 20, 2024, 01:00 PM ET

Company Participants

Ozlem Yardim - IR and Corporate Finance Director

Ali Taha Koc - CEO

Kamil Kalyon - CFO

Conference Call Participants

Cesar Tiron - Bank of America Merrill Lynch

Ece Mandaci - UNLU

Cemal Demirtas - Ata Invest

Gustavo Campos - Jefferies

Nora Nagy - Erste Group Bank AG

Presentation

Operator

Ladies and gentlemen, thank you for standing by. I'm Konstantinos, your chorus call operator. Welcome and thank you for joining the Turkcell’s conference call and live webcast to present and discuss the Turkcell’s full year 2023 financial results. All participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by question-and-answer session. [Operator Instructions] At this time, I would like to turn the conference over to Ms. Ozlem Yardim, Investor Relations and Corporate Finance Director. Ms. Yardim, you may now proceed.

Ozlem Yardim

Thank you, Konstantinos. Hello, everyone. Welcome to Turkcell's 2023 full year earnings call. Today, our CEO, Ali Taha Koc and CFO, Kamil Kalyon will be delivering a brief presentation covering operational and financial results of 2023, which will be followed by a Q&A session. Before we begin, I would like to kindly remind you to review our safe harbor statements available at the end of our presentation. Now I'm handing the meeting over to Mr. Ali Taha.

Ali Taha Koc

Thank you, Ozlem. Good afternoon, everybody, and thank you for joining us today. Despite the challenges of 2023, including various uncertainties and economic pressures, we remain committed to our goal of pioneering the digital transformation of Turkiye and generating value. By leveraging our technological capabilities and leading the telecommunication market, we achieved solid results across all fronts. According to the IAS29 applications, we delivered double-digit real revenue growth of 15% driven by dedicated price adjustments over the past two years, which has supported our pool expansion as well. We also prioritized value-generating postpaid and fiber customers, expanding our subscriber base by 799,000 net additions. This top line growth led to significant operational leverage, evidenced by a remarkable 20% increase in EBITDA. Our margin expanded by 1.8 percentage points to 41%, driven by reduced energy prices and lower interconnection expenses. Ultimately, our strong operational performance resulted in a remarkable net profit of TRY12.6 billion, marking an impressive 83% year-on-year rise....

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