2.4 billion TL net profit from Türk Telekom

Türk Telekom announced its financial and operational results for 2019.

Having earned 23.7 billion TL in revenue with a growth of 15.8 percent in 2019, Türk Telekom has achieved the highest income increase since the IPO in 2008. Türk Telekom's interest, depreciation and pre-tax profit (EBITDA) was TL 11.2 billion, an increase of 32.4 percent, the highest annual growth since IPO.

2.4 billion TL net profit from Türk Telekom

The EBITDA margin, which achieved 5.9 points improvement compared to last year with effective cost and expense management, as well as strong income growth, reached 47.2 percent, the highest annual value since the public offering in 2008. As a result of the new subscriber gains, record growth in sales revenues and high increase in EBITDA profitability throughout the year, Türk Telekom reached the highest net profit of the last 7 years with a net profit of 2.4 billion TL in 2019. Türk Telekom's investment expenditures also increased by 20.9 percent in 2019 compared to the previous year to TL 4.9 billion.
Total subscribers approached 48 million
Türk Telekom increased its total subscribers to 47.8 million by gaining 1.8 million net subscribers in 2019. While the total number of fixed broadband internet subscribers was 11.4 million, approximately 90 percent of new broadband subscribers and 60 percent of renewed subscriptions preferred new unlimited internet packages. The number of households reached by Türk Telekom with its fiber network has also increased to 21.9 million in the last year, up by 3.2 million, the highest annual increase ever. Continuing the increasing market share trend in mobile, Türk Telekom's number of mobile subscribers increased by 1.4 million net to 22.9 million, while the share of LTE subscribers, which was 46 percent last year, in total mobile subscribers reached 55 percent in 2019. Mean monthly mobile data usage of LTE users increased by 2.5 GB compared to the previous year and reached 8.6 GB.

Önal: “We recorded the highest revenue and EBITDA increase since public offering”
Turk Telekom CEO Ümit Önal when assessing the financial and operational results in 2019, "Turkey's leading communications and technology company in product successful year with the advantages of our being uniqueness and integrated operators of our diversity, we left behind. As a result of the operational and financial performance we achieved, our consolidated sales revenue increased from 15.8 percent to 23.7 billion TL, the highest annual increase since IPO. The annual growth rate of 18 percent and 20 percent in the mobile and fixed broadband segments, which are the main branches of our operations, was effective in this performance. On the other hand, the EBITDA we recorded was realized as 11.2 billion TL, which is above our forecast that we revised upwards twice during the year to 11 billion TL. ”

“We have significantly reduced our foreign currency risk”

Stating that while strengthening the balance sheet structure of Türk Telekom, they also significantly decreased the sensitivity of the income statement to exchange rate movements, Önal said, “Our Net Debt / EBITDA ratio was at the lowest level in the last 5 years with 1.41x due to our strong margin and our capacity to generate cash flow. Again, our net foreign currency position, which was 2.8 billion dollars in 2017, decreased to 370 million dollars as of the end of 2019. In this way, we made our net financial expenses and net profit more predictable ”.

“We foresee strong growth in 2020”

foreground; Turk Telekom's share in the financial projections for the year 2020, "The success we achieved positive economic indicators for Turkey that we expect to continue in 2020. In 2020, we anticipate that the growth in our sales revenues will be 14 percent annually, our EBITDA figure will be 12.4 billion TL and our investment expenditures will be 5.8 billion TL. In 2020, we will focus on increasing our service quality, improving customer experience and fast return investments as well as increasing capacity in both fixed broadband and mobile segment. At the same time, our investments in our core network will continue in preparation for 5G. 2020 will be a year in which we make each customer feel valuable and work harder to increase customer satisfaction. ”
“Our investments in fiber continue with the understanding of 'not everyone but the center'”

On the behalf of Türk Telekom, interpreting the important developments of 2019, Önal's speech was the following:

• Turkey's founder and developer of digital assets, "not only central to everyone, 'Our service understanding in line with Turkey's most far-flung corners of the living one individual from the crowd to families, to provide the same quality service to all our subscribers to the largest companies, from small businesses we make it our duty. Since the 2005 privatization of Turk Telekom, Turkey's digital assets we have invested 16.6 billion dollars. As a result of these investments, we have taken the fiber to all districts of 81 provinces and have increased our fiber network infrastructure for access purposes in the last 10 years. As of the end of 2019, our fiber infrastructure has reached a fiber network length of 7.5 million kilometers with a total of 304 thousand kilometers of fiber lines.

• While removing the fair usage quota in our unlimited tariffs on fixed broadband, we offered our customers a wide range of offers. In the last five years, we have increased our mobile market share by 5 points to 28 percent and we have come closer to our target to increase our market share profitably over 30 percent. On the other hand, we maintain our pioneering position in the 5G field. We delivered fiber, the building block of 5G, to about half of our LTE base stations. In the speed trial we conducted on the 5G test network in October, we broke the world speed record in 5G by reaching speeds above 2.9 gigabits per second.

We are trying to keep the confidence of Turkey's data

• While continuing to diversify our digital services, we also worked extensively to import data traffic abroad that went abroad through global digital platforms. We have signed contracts with global OTT be brought into Turkey for the purpose of internet content in this context. In addition, in an environment of heightened risks related to cyber security, we offer Turkey's largest and highest viewing area with DDoS protection infrastructure from end to end Cyber ​​Security Center under the umbrella of corporate security services.

• Scope of our day to day growing enterprise products and services, including today all of Turkey's 500 largest companies, corporate companies from affecting the financial development of our country up to the SMEs and public institutions companies are in the position of the main actors of the digital transformation journey.

• In addition to these solutions, our progress in the digital payment industry continues. Our affiliate in the field of digital financial services TT Payment ve Elektronik Para Hizmetleri A.Ş. He received an electronic payment license from BRSA within the year. As part of this operating permit, we aim to strengthen the position of the Payment Services company in the digital payment industry as an “electronic money institution”.

• Close to 180 years of our history as the value of these lands to connect Turkey to the future as we have a big responsibility. With this sense of responsibility and love of service, we will continue to exist in every step of the national technology transformation as the founder and developer of the digital assets of our country. ”