“STRONG PERFORMANCE WITH A DIVERSIFIED
BUSINESS MODEL”
Contents
HIGHLIGHTS QUARTER HIGHLIGHTS, 3 COMMENTS BY CEO, MURAT
ERKAN, 5
FINANCIAL AND OPERATIONAL REVIEW FINANCIAL REVIEW OF
TURKCELL GROUP, 8 OPERATIONAL REVIEW OF TURKCELL TURKEY, 12
TURKCELL INTERNATIONAL lifecell, 14 BeST, 15 Kuzey Kıbrıs
Turkcell, 15
TECHFIN Paycell, 16 Financell, 16
TURKCELL GROUP SUBSCRIBERS, 17
OVERVIEW OF THE MACROECONOMIC ENVIRONMENT, 17
RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS, 18
Appendix A – Tables, 20
- Please note that all financial data is consolidated and
comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company”,
or “Turkcell”) (NYSE:TKC) (BIST:TCELL) and its subsidiaries and
associates (together referred to as the “Group”), unless otherwise
stated.
- We have four reporting segments:
- "Turkcell Turkey" which comprises our telecom, digital services
and digital business services related businesses in Turkey (as used
in our previous releases in periods prior to Q115, this term
covered only the mobile businesses). All non-financial data
presented in this press release is unconsolidated and comprises
Turkcell Turkey only figures, unless otherwise stated. The terms
"we", "us", and "our" in this press release refer only to Turkcell
Turkey, except in discussions of financial data, where such terms
refer to the Group, and except where context otherwise
requires.
- “Turkcell International” which comprises all of our telecom and
digital services related businesses outside of Turkey.
- “Techfin” which comprises all of our financial services
businesses.
- “Other” which mainly comprises our non-group call center and
energy businesses, retail channel operations, smart devices
management and consumer electronics sales through digital channels
and intersegment eliminations.
- In this press release, a year-on-year comparison of our key
indicators is provided and figures in parentheses following the
operational and financial results for December 31, 2021 refer to
the same item as at December 31, 2020. For further details, please
refer to our consolidated financial statements and notes as at and
for December 31, 2021, which can be accessed via our website in the
investor relations section (www.turkcell.com.tr).
- Selected financial information presented in this press release
for the fourth quarter and for the full year of 2020 and 2021 is
based on IFRS figures in TRY terms unless otherwise stated.
- In the tables used in this press release totals may not foot
due to rounding differences. The same applies to the calculations
in the text.
- Year-on-year and quarter-on-quarter percentage comparisons
appearing in this press release reflect mathematical
calculation.
FINANCIAL HIGHLIGHTS
TRY million
Q420
Q421
y/y%
FY20
FY21
y/y%
Revenue
7,872
10,192
29.5%
29,104
35,921
23.4%
EBITDA1
3,243
4,212
29.9%
12,270
15,014
22.4%
EBITDA Margin (%)
41.2%
41.3%
0.1pp
42.2%
41.8%
(0.4pp)
EBIT2
1,608
2,136
32.8%
6,296
7,722
22.7%
EBIT Margin (%)
20.4%
21.0%
0.6pp
21.6%
21.5%
(0.1pp)
Net Income
1,302
1,385
6.3%
4,237
5,031
18.7%
FULL YEAR HIGHLIGHTS
- Robust financial performance:
- Strong operational momentum continued:
- Turkcell Turkey subscriber base up by 2.7 million net
additions; the highest performance since 2007
- 1.7 million mobile postpaid net additions; 0.5 million mobile
prepaid net additions
- 258 thousand fixed subscriber net additions, highest since
2017; 223 thousand fiber net additions
- 653 thousand new fiber homepasses
- Mobile ARPU 5 growth of 13.4%; residential fiber ARPU growth of
10.6%
- 2022 guidance6; revenue growth target of around 30%, EBITDA
target of around TRY19 billion, and operational capex over sales
ratio7 target of between 20% - 21% -
FOURTH QUARTER HIGHLIGHTS
- Strong financial results:
- Group revenues up 29.5% year-on-year on the back of strong
performance of Turkcell Turkey, the robust contribution from
international operations and boost in techfin segment revenues
-
EBITDA up 29.9% year-on-year resulting in an EBITDA margin of
41.3%; EBIT up 32.8% year-on-year leading to an EBIT margin of
21.0%
-
Group net income at TRY1.4 billion, which resulted from
sustained operational performance, disciplined financial risk
management in a volatile currency environment and the positive
impact of deferred tax income relating to the revaluation of
assets
- Robust operational performance maintained:
-
Quarterly mobile postpaid subscriber net additions of 330
thousand; postpaid subscriber share at 66.4% of mobile subscriber
base
-
Quarterly fixed subscriber net additions of 84 thousand;
all-time high quarterly fiber net additions of 74 thousand
-
Year-on-year mobile ARPU5 growth accelerated to 17.8% mainly
driven by upsell to higher tariffs, price adjustments and higher
postpaid share
-
Residential fiber ARPU growth of 12.8% year-on-year mainly on
upsell efforts
-
Average monthly data usage of 4.5G subscribers at 14.7 GB in
Q421; smartphone penetration at 86%
-
Digital channels’ share 8 in sales at 22.1%
(1) EBITDA is a non-GAAP financial measure. See page 18 for the
explanation of how we calculate Adjusted EBITDA and its
reconciliation to net income. (2) EBIT is a non-GAAP financial
measure and is equal to EBITDA minus depreciation and amortization
expenses. (3) Free cash flow calculation includes EBITDA and the
following items as per IFRS cash flow statement; acquisition of
property, plant and equipment, acquisition of intangible assets,
change in operating assets/liabilities, payment of lease
liabilities and income tax paid. (4) We have revised the definition
of our net debt calculation to include "financial assets at fair
value through other comprehensive income” reported under current
and non-current assets, and “financial assets at amortized cost”.
We believe that these assets are highly liquid and can be easily
converted to cash without significant change in value. (5)
Excluding M2M (6) Please note that this paragraph contains forward
looking statements based on our current estimates and expectations
regarding market conditions for each of our different businesses.
No assurance can be given that actual results will be consistent
with such estimates and expectations. For a discussion of factors
that may affect our results, see our Annual Report on Form 20-F for
2020 filed with U.S. Securities and Exchange Commission, and in
particular, the risk factor section therein. (7) Excluding license
fee (8) Share of all sales from digital channels (including voice,
data, services & smart devices) in Turkcell Turkey consumer
sales (excluding fixed business) and equipment related revenues in
other segment. Beginning from this quarter, the data has been
revised to include the revenues from postpaid subscriber
acquisitions, switches, tariff revisions from digital channels.
For further details, please refer to our consolidated financial
statements and notes as at December 31, 2021 via our website in the
investor relations section (www.turkcell.com.tr).
COMMENTS BY CEO, MURAT ERKAN
With an accelerated robust performance, we again exceeded our
guidance
2021 was a year of recovery for the whole world after 2020 when
social and economic challenges arising from the COVID-19 pandemic
prevailed. The first half of the year, overshadowed by variants of
COVID-19 and the measures taken against them continued to impact
social life and business activities. Thanks to widespread
vaccination programs in the second half of the year, rapid
normalization has begun in our country, as in most parts of the
world. Those changes throughout the year have re-shaped our lives
and consumer behavior alike. Meanwhile, two prevailing basic needs,
which do not change but rise in importance, were namely
“communication” and “digitalization”. As Turkcell, we believe that
we are the leading brand that addresses these needs with our
competencies and comprehensive ecosystem realizing a
well-positioned strategy.
Thanks to the robust operational performance in all of our
services that meet changing customer needs, we achieved strong
financial results in 2021 and exceeded our guidance, which we have
upgraded each quarter. Rising 23.4% year-on-year, consolidated
revenues reached TRY35.9 billion and EBITDA1 rose by 22.4% to
TRY15.0 billion. Thanks to our solid balance sheet, prudent risk
management approach and robust performance in all of our
operations, net income reached TRY5.0 billion rising 18.7%
year-on-year. Despite the depreciation of the Turkish lira, we
managed to keep our operational capex2 to sales ratio at 21.2% as
planned.
Record net additions of the past 14 years
The consumer habits that changed during the pandemic period have
strengthened in 2021. The first half of the year that saw pandemic
restrictions, including a 3-week full lockdown, increased remote
education and working practices, which highlighted the need for
high speed and capacity in fixed broadband services. In the second
half of the year, increased mobility and tourist activity,
especially over the summer months, boosted the demand for our
mobile services. The smart investments we made in our network by
thinking ahead of our peers over many years have enabled us to
continue delivering the fastest high-quality communication
services. As part of our customer-focused approach, we have taken
actions at the right time by analyzing customer behavior using AI,
that has allowed us to manage churn at a reasonable level. Changing
consumer habits have revealed the need for higher capacity and
greater internet speed, which in turn have enabled us to upsell to
higher tariffs. Thanks to these factors, we recorded 2.7 million
yearly net additions, marking a record high of the past 14 years.
We recorded 1.7 million postpaid and 503 thousand prepaid
subscribers, making for a net of 2.2 million mobile subscribers.
The share of our postpaid subscribers in the total mobile base rose
to 66.4%. Accelerating towards the end of the year, mobile blended
ARPU (excluding M2M) increased 17.8% in the fourth quarter and
13.4% in 2021 overall mainly on upsell to higher packages, an
expanding postpaid subscriber base and rising data and digital
services usage.
Fiber penetration in Turkey lags that of the OECD countries and
fixed broadband services provided by outdated technology solutions
of low capacity and speed fail to meet user needs. This also
interrupts the development of new generation communication
technologies that will pave the way for the future of Turkey.
Keeping this in mind, at the end of 2020 we announced our aim of
increasing our national fiber roll out. Exceeding our target, we
have reached 653 new homes with our fiber infrastructure, adding 5
cities to our service area in 2021. Accordingly, the fiber
subscriber base expanded by 223 thousand net additions to 1.9
million in total. We have added a net 258 thousand fixed broadband
subscribers, reaching 2.7 million. We also delivered a robust
performance in IPTV services, which plays a significant role in
keeping the fiber churn rate low. Our IPTV subscriber base reached
1.1 million with a net 211 thousand additions. The residential
fiber ARPU rose 10.6% and 12.8% year-on-year in 2021 and Q421,
respectively.
The mobility restrictions of 2021 once again underlined the
significance of our digital channels, where a customer can top-up,
purchase additional packages, subscribe to a digital service, or
even purchase electronic devices from a wide product range. The
digital channel’s share3 in sales reached 22% at the year-end.
We continue to create value for our customers and meet their
needs with our strategic focus areas
The users of our digital services, which add value to our
customers’ lives with a wide product portfolio, continue to
increase day by day. The total downloads of BiP, Turkey’s
communication platform, exceeded 90 million in 2021. 3-month active
users of BiP are 2.5 times that of the previous year, at 26
million. Having rapidly increased its worldwide recognition, BiP
has continued to attract attention, especially in densely populated
countries such as Indonesia, Bangladesh, India, Pakistan and
Malaysia. As of the year end, one in four active BiP users were
from abroad. Considering our customers' needs, we've continued to
add new features to BiP throughout the year to improve the user
experience. We aim to make BiP a widely used global application
with international operator cooperation that we plan to realize in
the upcoming periods.
TV+ has been the only TV service provider to have continued to
grow its market share steadily each quarter since 2017. With its
rich content, TV+'s IPTV customer base increased by 24% to 1.1
million, while OTT TV users exceeded 800 thousand users, rising 40%
year-on-year. Meanwhile, by surpassing its 1 million milestone in
June, our cloud storage service lifebox’s paid users rose 45% to
1.3 million. Aiming to reach more users in 2021, we offer BiP Meet,
lifebox business and YaaniMail to our corporate customers in the
B2B business model. All in all, the stand-alone revenues of our
digital services increased by 31% to TRY1.7 billion in 2021.
Offering tailored services to meet the needs of the enterprises,
Turkcell Digital Business Services, has contributed to the digital
transformation of its customers with new generation technologies
such as data center, cloud, cyber security, systems integration,
managed services, artificial intelligence, IoT, big data and
business applications, in addition to traditional fixed broadband
services. With its various business partners and strong
infrastructure, we have achieved leadership in the IT service
market two years ahead of schedule. In this period, we signed over
2,700 projects with a total contract value of TRY1.7 billion. The
total revenues of Digital Business Services rose 29% to TRY2.3
billion. We have a contract value (backlog) from system integration
projects of TRY1.4 billion to be realized beyond 2022.
Our techfin business grew by 27% with the contribution of
Financell and Paycell. Financell, providing financial solutions not
only for consumers but also for the technological needs of
corporates, has increased its revenues by 32% in the fourth quarter
of 2021, as its loan portfolio reached TRY2.1 billion. Turkey’s
leading payment platform Paycell, continued to stand by our
customers in a period of rapid change in payment habits. Reaching
6.6 million users with an annual increase of 41%, Paycell's
transaction volume across all services rose 49% to TRY14 billion.
Pay Later, is the main revenue generator of Paycell with a 72%
share, has reached 4.1 million active users, rising 81%, while its
transaction volume almost doubled on a year-on-year basis. At the
same time, the transaction volume over Paycell card has increased
to sixfold of last year. Paycell Android POS, offering a cost
advantage by eliminating the need for corporates to make several
agreements with banks, reached 6 thousand devices and thereby we
had exceeded 17 thousand merchants at the end of the year. Thanks
to the strong performance in all verticals, Paycell has managed to
increase its revenues by 64% in 2021. This year we have also
initiated a partial stake sale in Paycell. We aim to work with a
strategic partner who will contribute to the growth of Paycell in
existing and new markets with its know-how in techfin, and help us
elevate Paycell to the next level.
We are taking bold steps towards our sustainability
goals
As Turkcell, we are developing our technology for a better world
with our human-oriented and environmentally friendly business
approach. Considering the importance of digitalization that enables
us to reduce carbon emissions and use energy efficiently, we offer
digital services that contribute to the environment. An important
sustainability initiative of 2021 was the acquisition of the İzmir
Karadağ Wind Power Plant. By acquiring this plant, which has the
capacity to meet the electricity needs of 2,500 base stations with
its 18 MW installed capacity, we took an important step towards
becoming a company not only generating 100% renewable energy but
also aiming to produce renewable energy. Indeed, we once again
underlined our commitment to become carbon neutral by 2050. By
turning the competition element of the “Women Developers of the
Future” project into a “Climathon,” we supported the equal presence
of women in technology and nurtured ideas that seek solutions to
climate change through technology. With our “Recycle into
Education” project, we have ensured the efficient use of resources
by recycling electronic waste. Our steady performance within the
framework of these initiatives has also increased our access to
sustainable financing sources. Thanks to the agreement we signed
with BNP Paribas in December, we increased the amount of the
sustainability linked loan we received in 2019 to EUR70 million,
extending its term to 5 years.
As Turkcell, we attach great importance to making our technology
accessible and thereby ensuring the equal participation of everyone
in daily life. We strive for the equal participation of all
segments of society through technology with our digital inclusivity
projects such as Whiz Kids, Digital Spring, and No Barriers. By
signing the GSMA’s Principles for Driving the Digital Inclusion of
Persons with Disabilities, we have become the first company in
Turkey, and among the first eight in the world.
With a focus on being a good corporate citizen, we announced the
Principles of Sustainable Governance in June, a guide to the way we
undertake social and environmental work in all business processes.
Our company, which has been listed on Borsa İstanbul and the NYSE
since 2000, adopted the corporate governance regulations applicable
to it according to the legislation of both countries within the
framework of best practices. We are among the companies with the
strongest corporate governance structure in Turkey. The fact that
the Board of Directors evaluates its own performance on an annual
basis in line with specified criteria has begun to be discussed
this year in terms of improving corporate governance in our
Company.
We are extending the accelerated momentum of our financial
performance to 2022
2022 bears many social and economic uncertainties. Although
COVID-19 variants seem to have been brought under control with
widespread vaccination programs, they remain on our watch-list.
Increasing raw material and labor costs, the energy and chip
crisis, disruptions in the supply chain, and inflation, which has
become a global threat, make it difficult for us to clearly see the
path ahead. Therefore, we are required to stress that we may update
our financial and operational targets throughout the year in light
of prevailing macroeconomic fluctuations. At this stage, we target4
revenue growth of around 30% and EBITDA of around TRY19 billion for
2022. For this year, in which we aim to add a million subscribers,
we forecast an operational capex over revenues ratio2 in the range
of 20% - 21%.
We are planning to share our strategy and 3-year targets with
you at the Turkcell Investor & Analyst Day, which we will hold
in Istanbul on April 12.
In short, we have left a challenging year behind us where, as a
society, we have again seen clearly that communication and
digitalization are unwavering, but transforming needs. I would like
to extend my thanks to all our employees for their dedicated
efforts that cement our achievements, despite the weather and
burden of the pandemic. Additionally, I thank our management team
for making our success permanent, and our Board of Directors for
their confidence and support. I also express my gratitude towards
our customers and business partners who honor us with their
trust.
(1) EBITDA is a non-GAAP financial measure. See page 18 for the
explanation of how we calculate Adjusted EBITDA and its
reconciliation to net income. (2) Excluding license fee (3) Share
of all sales from digital channels (including voice, data, services
& smart devices) in Turkcell Turkey consumer sales (excluding
fixed business) and equipment related revenues in other segment.
Beginning from this quarter, the data has been revised to include
the revenues from postpaid subscriber acquisitions, switches,
tariff revisions from digital channels. (4) Please note that this
paragraph contains forward looking statements based on our current
estimates and expectations regarding market conditions for each of
our different businesses. No assurance can be given that actual
results will be consistent with such estimates and expectations.
For a discussion of factors that may affect our results, see our
Annual Report on Form 20-F for 2020 filed with U.S. Securities and
Exchange Commission, and in particular, the risk factor section
therein.
FINANCIAL AND OPERATIONAL REVIEW
Financial Review of Turkcell Group
Profit & Loss Statement (million
TRY)
Quarter
Year
Q420
Q421
y/y%
FY20
FY21
y/y%
Revenue
7,872.2
10,191.5
29.5%
29,103.7
35,920.5
23.4%
Cost of revenue1
(3,938.1)
(5,019.9)
27.5%
(14,361.3)
(17,938.1)
24.9%
Cost of revenue1/Revenue
(50.0%)
(49.3%)
0.7pp
(49.3%)
(49.9%)
(0.6pp)
Gross Margin1
50.0%
50.7%
0.7pp
50.7%
50.1%
(0.6pp)
Administrative expenses
(210.7)
(276.8)
31.4%
(749.6)
(919.0)
22.6%
Administrative expenses/Revenue
(2.7%)
(2.7%)
-
(2.6%)
(2.6%)
-
Selling and marketing expenses
(400.8)
(576.6)
43.9%
(1,373.0)
(1,778.5)
29.5%
Selling and marketing
expenses/Revenue
(5.1%)
(5.7%)
(0.6pp)
(4.7%)
(5.0%)
(0.3pp)
Net impairment losses on financial and
contract assets
(79.5)
(106.7)
34.2%
(349.6)
(271.2)
(22.4%)
EBITDA2
3,243.0
4,211.6
29.9%
12,270.3
15,013.8
22.4%
EBITDA Margin
41.2%
41.3%
0.1pp
42.2%
41.8%
(0.4pp)
Depreciation and amortization
(1,634.6)
(2,075.5)
27.0%
(5,974.8)
(7,291.9)
22.0%
EBIT3
1,608.4
2,136.1
32.8%
6,295.5
7,721.9
22.7%
EBIT Margin
20.4%
21.0%
0.6pp
21.6%
21.5%
(0.1pp)
Net finance income / (costs)
(381.8)
(1,769.5)
363.5%
(1,131.7)
(2,900.9)
156.3%
Finance income
(316.0)
2,643.6
n.m
2,119.5
3,592.0
69.5%
Finance costs
(65.8)
(4,413.0)
n.m
(3,251.2)
(6,492.9)
99.7%
Other income / (expense)
(366.9)
(45.2)
(87.7%)
(523.3)
(370.0)
(29.3%)
Non-controlling interests
-
(0.1)
n.a
(2.5)
(0.2)
(92.0%)
Share of profit of equity accounted
investees
(5.2)
63.6
n.m
(13.8)
90.1
n.m
Income tax expense
447.6
999.7
123.3%
(387.2)
490.2
n.m
Net Income
1,302.0
1,384.6
6.3%
4,237.1
5,031.1
18.7%
(1) Excluding depreciation and amortization expenses. (2) EBITDA
is a non-GAAP financial measure. See page 18 for the explanation of
how we calculate Adjusted EBITDA and its reconciliation to net
income. (3) EBIT is a non-GAAP financial measure and is equal to
EBITDA minus depreciation and amortization expenses.
Revenue of the Group grew by 29.5% year-on-year in Q421.
This was driven mainly by the robust performance of Turkcell Turkey
supported by improved ARPU performance with the impact of price
adjustments to reflect inflationary impacts and upsell efforts, and
a larger subscriber base. The strong topline performance of
Turkcell International as well as the solid momentum in techfin
revenues also contributed to Group revenue growth.
Turkcell Turkey revenues, comprising 75% of Group revenues, rose
26.9% year-on-year in Q421 to TRY7,689 million (TRY6,059
million).
- Consumer segment revenues grew 21.2%
year-on-year on the back of price adjustments to reflect
inflationary impacts, upsell efforts and growing subscriber base. -
Corporate segment revenues rose 27.5% year-on-year driven mainly by
the robust performance of digital business services, which grew
52.4% with increased number of projects leading to all time high
quarterly contract value. - Standalone digital services revenues
registered as part of the consumer and corporate businesses grew
32.4% year-on-year as the number of standalone paid users increased
35% year-on-year to 4 million. - Wholesale revenues rose 89.3%
year-on-year to TRY687 million (TRY363 million), mainly on the
traffic increase and data capacity upgrades of customers, as well
as the positive impact of currency movements.
Turkcell International revenues, comprising 13% of Group
revenues, rose 72.1% year-on-year to TRY1,286 million (TRY747
million). lifecell was the main driver of this robust performance
with strong subscriber and ARPU growth. Turkcell International
revenues were also positively impacted by currency movements.
Techfin segment revenues, comprising 3% of Group revenues, rose
46.4% to TRY330 million (TRY225 million). This was driven by a
74.9% rise in Paycell revenues and 31.6% growth in those of the
Finance company. Please refer to the Techfin section for
details.
Other subsidiaries' revenues, at 9% of Group revenues, including
mainly non-group call center and energy business revenues, and
consumer electronics sales revenues, increased 5.4% to TRY886
million (TRY841 million).
For the full year, Turkcell Group revenues rose 23.4%.
Turkcell Turkey revenues grew 19.3% to TRY27,224 million
(TRY22,823 million).
- Consumer business rose 16.8% mainly driven by strong
subscriber net additions both in mobile and fixed segments, price
adjustments and upsell efforts. - Corporate revenues rose 21.1%
mainly supported by digital business services revenue growth of
28.9%. - Standalone digital services revenues from consumer and
corporate segments grew 31.0% mainly driven by larger standalone
paid user base. - Wholesale revenues grew 47.2% to TRY1,903 million
(TRY1,293 million).
Turkcell International revenues rose 47.5% to TRY3,750 million
(TRY2,542 million).
Techfin segment revenues rose 27.3% to TRY1,076 million (TRY845
million).
Other subsidiaries’ revenues were at TRY3,871 million (TRY2,893
million) indicating to a 33.8% growth.
Cost of revenue (excluding depreciation and amortization)
decreased to 49.3% (50.0%) as a percentage of revenues in Q421.
This was driven mainly by the decline in cost of goods sold (1.1pp)
and other cost items (0.2pp), despite the increase in radio
expenses (0.6pp) as a percentage of revenues.
For the full year, cost of revenue (excluding depreciation and
amortization) rose to 49.9% (49.3%) as a percentage of revenues.
This was due mainly to the rise in cost of goods sold (0.8pp),
radio expense (0.3 pp) and other cost items (0.5pp), despite the
decline in the treasury share (0.5pp) and interconnection expenses
(0.5pp) as a percentage of revenues.
Administrative Expenses were at 2.7% (2.7%) as a
percentage of revenues in Q421.
For the full year, administrative expenses were at 2.6% (2.6%)
as a percentage of revenues.
Selling and Marketing Expenses increased to 5.7% (5.1%)
as a percentage of revenues in Q421. This was driven mainly by the
rise in marketing expenses (0.7pp) and other cost items (0.2pp),
despite the decline in selling expenses (0.3pp) as a percentage of
revenues.
For the full year, selling and marketing expenses increased to
5.0% (4.7%) as a percentage of revenues due mainly to the rise in
marketing expenses (0.3pp).
Net impairment losses on financial and contract assets
was at 1.0% (1.0%) as a percentage of revenues in Q421.
For the full year, net impairment losses on financial and
contract assets was at 0.8% (1.2%) as a percentage of revenues.
EBITDA1 rose by 29.9% year-on-year in Q421 leading to an
EBITDA margin of 41.3% (41.2%).
- Turkcell Turkey’s EBITDA rose 23.7% to
TRY3,252 million (TRY2,629 million) leading to an EBITDA margin of
42.3% (43.4%).
(1) EBITDA is a non-GAAP financial measure. See page 18 for the
explanation of how we calculate adjusted EBITDA and its
reconciliation to net income
- Turkcell International EBITDA increased
79.2% to TRY628 million (TRY350 million) driving an EBITDA margin
of 48.8% (46.9%) on 1.9pp improvement. - Techfin segment EBITDA
rose 55.0% to TRY192 million (TRY124 million) with an EBITDA margin
of 58.2% (55.0%), indicating to 3.2pp expansion. - The EBITDA of
other subsidiaries was at TRY140 million (TRY140 million).
For the full year, EBITDA grew by 22.4% resulting in an EBITDA
margin of 41.8% (42.2%).
- Turkcell Turkey’s EBITDA rose 18.3% to
TRY12,168 million (TRY10,283 million) leading to an EBITDA margin
of 44.7% (45.1%). - Turkcell International EBITDA increased 56.3%
to TRY1,828 million (TRY1,169 million) driving an EBITDA margin of
48.8% (46.0%) on 2.8pp improvement. - Techfin segment EBITDA rose
26.0% to TRY639 million (TRY507 million) with an EBITDA margin of
59.4% (60.0%). - The EBITDA of other subsidiaries was at TRY379
million (TRY310 million).
Depreciation and amortization expenses increased 27.0%
year-on-year in Q421. For the full year depreciation and
amortization expenses increased 22.0%.
Net finance expense increased to TRY1,769 million (TRY382
million) in Q421. The higher net finance expense was due mainly to
higher net FX loss after hedging led by quarterly Turkish Lira
depreciation.
For the full year net finance expense increased to TRY2,901
million (TRY1,132 million) for the same reason.
See Appendix A for details of net foreign exchange gain and
loss.
Income tax expense: The current tax expense of TRY107
million was more than offset by TRY1,106 million deferred tax
income in Q421.
For the full year, deferred tax income of TRY1,172 million and
current tax expense of TRY682 million was reported, leading to an
income tax gain of TRY490 million.
Please note that in Q221 and Q421, we made use of the right
introduced by Article 11 of the Law No. 7326, that allows the
revaluation of properties and depreciable economic assets under
certain conditions. As per the law, the respective assets can be
revalued according to PPI until the year-end and a 2% tax is
applied for the revaluation difference. For revalued assets, the
valuation difference can be depreciated and written-off as an
expense. This resulted in a positive impact on the deferred tax
asset reported in the respective quarters. Please refer to our
consolidated financial statements and notes as at December 31, 2021
for details.
Net income of the Group increased by 6.3% to TRY1,385
million (TRY1,302 million) in Q421. Despite higher net FX losses
after hedging in a volatile currency environment, this resulted
mainly from strong operational performance and the positive impact
of deferred tax income relating to the revaluation of assets as
explained above.
For the full year, group net income rose 18.7% to TRY5,031
million (TRY4,237 million) on the back of strong operational
performance and the deferred tax income impact, despite a higher
net finance expense due to FX volatility.
Total cash & debt: Consolidated cash as of December
31, 2021 increased to TRY18,629 million from TRY12,322 million as
of September 30, 2021. This was driven mainly by the positive
impact of currency movements. The third instalment payment of the
dividend distribution was also made during the quarter. Excluding
FX swap transactions, 76% of our cash is in US$, 12% in EUR, and
12% in TRY.
Consolidated debt as of December 31, 2021 increased to TRY36,778
million from TRY24,805 million as of September 30, 2021 due mainly
to the impact of currency movements. Please note that TRY2,906
million of our consolidated debt is comprised of lease
obligations.
Consolidated debt breakdown excluding lease obligations:
- Turkcell Turkey’s debt was at TRY30,609
million, of which TRY18,018 million (US$1,352 million) was
denominated in US$, TRY9,188 million (EUR609 million) in EUR,
TRY930 million (CNY446 million) in CNY, and the remaining TRY2,472
million in TRY. - The finance company had a debt balance of
TRY1,321 million, of which TRY284 million (US$21 million) was
denominated in US$, and TRY362 million (EUR24 million) in EUR with
the remaining TRY675 million in TRY. - The debt balance of lifecell
was TRY1,713 million, fully denominated in UAH. - Under the Other
segment we had a debt balance of TRY229 million (US$17 million),
fully denominated in US$.
TRY1,262 million of lease obligations is denominated in TRY,
TRY81 million (US$6 million) in US$, TRY303 million (EUR20 million)
in EUR, and the remaining balance in other local currencies (Please
note that the figures in parentheses refer to US$ or EUR
equivalents).
Net debt1 as of December 31, 2021 was at TRY16,717 million with
a net debt to EBITDA ratio of 1.1 times. Excluding finance company
consumer loans, our telco only net debt was at TRY14,622 million
with a leverage of 1.0 times.
Turkcell Group had a short FX position of US$191 million as at
the end of the fourth quarter (Please note that this figure takes
advance payments into account). Due to significant currency
depreciation during the quarter, the strike levels of call options
as part of some of participating cross currency swaps were
exceeded. This had a negative impact on our FX position during the
quarter. The short FX position of US$191 million is in line with
our FX neutral definition, which is between -US$200 million and
+US$200 million.
Capital expenditures: Capital expenditures, including
non-operational items, amounted to TRY4,297 million in
Q421. For the full year, capital expenditures including
non-operational items were at TRY11,479 million.
For Q421 and the full year, operational capital expenditures
(excluding license fees) at the Group level were at 26.4% and 21.2%
of total revenues, respectively.
Capital expenditures (million
TRY)
Quarter
Year
Q420
Q421
FY20
FY21
Operational Capex
1,904.2
2,686.3
5,391.6
7,629.8
License and Related Costs
9.3
-
42.8
-
Non-operational Capex (Including IFRS15
& IFRS16)
971.2
1,611.1
3,644.6
3,849.6
Total Capex
2,884.7
4,297.4
9,078.9
11,479.4
(1) We have revised the definition of our net debt calculation
to include "financial assets at fair value through other
comprehensive income” reported under current and non-current
assets, and “financial assets at amortized cost”. We believe that
these assets are highly liquid and can be easily converted to cash
without significant change in value.
Summary of Operational Data
Quarter
Year
Q420
Q421
y/y %
FY20
FY21
y/y %
Number of subscribers (million)
36.7
39.4
7.4%
36.7
39.4
7.4%
Mobile Postpaid (million)
22.0
23.7
7.7%
22.0
23.7
7.7%
Mobile M2M (million)
2.8
3.3
17.9%
2.8
3.3
17.9%
Mobile Prepaid (million)
11.5
12.0
4.3%
11.5
12.0
4.3%
Fiber (thousand)
1,664.3
1,887.8
13.4%
1,664.3
1,887.8
13.4%
ADSL (thousand)
707.6
754.9
6.7%
707.6
754.9
6.7%
Superbox (thousand)1
591.2
603.6
2.1%
591.2
603.6
2.1%
Cable (thousand)
67.7
54.6
(19.4%)
67.7
54.6
(19.4%)
IPTV (thousand)
871.3
1,082.2
24.2%
871.3
1,082.2
24.2%
Churn (%)2
Mobile Churn (%)3
3.0%
2.5%
(0.5pp)
2.3%
2.0%
(0.3pp)
Fixed Churn (%)
1.9%
1.6%
(0.3pp)
1.9%
1.5%
(0.4pp)
ARPU (Average Monthly Revenue per User)
(TRY)4
Mobile ARPU, blended
46.8
54.6
16.7%
44.9
50.5
12.5%
Mobile ARPU, blended (excluding M2M)
50.5
59.5
17.8%
48.4
54.9
13.4%
Postpaid
59.8
68.2
14.0%
58.2
62.8
7.9%
Postpaid (excluding M2M)
67.8
78.3
15.5%
65.9
71.7
8.8%
Prepaid
23.4
28.6
22.2%
21.8
26.9
23.4%
Fixed Residential ARPU, blended
72.6
82.2
13.2%
69.6
77.9
11.9%
Residential Fiber ARPU
73.6
83.0
12.8%
70.9
78.4
10.6%
Average mobile data usage per user
(GB/user)
13.0
13.3
2.3%
11.7
13.3
13.7%
Mobile MoU (Avg. Monthly Minutes of
usage per subs) blended
548.6
548.7
0.0%
518.7
551.2
6.3%
(1) Superbox subscribers are included in mobile subscribers. (2)
Churn figures represent average monthly churn figures for the
respective quarters. (3) In Q117, our churn policy was revised to
extend from 9 months to 12 months (the period at the end of which
we disconnect prepaid subscribers who have not topped up above
TRY10). Additionally, under our revised policy, prepaid customers
who last topped up before March is disconnected at the latest by
year-end. As a regulatory requirement, we started to disconnect
prepaid lines in accordance with the new ICTA regulation, which
requires deactivation of prepaid lines which lack residency
documents by the 6th month of subscription starting from 2019.
Furthermore, as required by the ICTA, the line of a deceased
customer should either be transferred to a successor/another user
or terminated. Lines, which are not transferred or terminated, are
to be disconnected at the end of seven months. (4) Starting from
Q121, as a consequence of the change in reportable segments,
commission revenues resulting from devices and accessories sales
have been excluded from the mobile ARPU of Turkcell Turkey since
these commissions are now reported under the Other segment.
Turkcell Turkey subscriber base grew by 2.7 million net
additions in FY21 to 39.4 million, thanks to our customer-centric
approach, and retention focus supported by our data analytics
capabilities. Also, we believe that our broad range of offerings
serving the needs of customers through a strong omnichannel
structure, and our superior network quality contributed to our
robust net additions performance in FY21. This net addition
performance was the highest since 2007.
On the mobile front, our subscriber base reached 35.6 million on
2.2 million net additions in FY21. This was mainly driven by 1.7
million net additions to the postpaid subscriber base, which
reached 66.4% (65.7%) of total mobile subscribers. We had 330
thousand quarterly postpaid net additions in Q421. Our prepaid
subscriber base also expanded by 503 thousand net additions in
FY21, which was supported mainly by the robust tourism activity in
Q321 and supported by our retention efforts. In Q421, we had a net
358 thousand decline in our prepaid subscribers, due mainly to the
disconnection of 480 thousand inactive prepaid subscribers during
the quarter in line with our churn policy.
On the fixed front, our fiber subscriber base grew by all-time
high quarterly net additions of 74 thousand supported by our
accelerated fiber infrastructure investments and the continued
demand for high speed household broadband connections. We had 223
thousand net additions to our fiber subscriber base for the full
year. Total fixed subscribers reached 2.7 million on 84 thousand
quarterly and 258 thousand annual net additions. Meanwhile, IPTV
customers reached 1.1 million on 70 thousand quarterly and 211
thousand annual net additions.
The average monthly mobile churn rate was at 2.5% in Q421, and
2.0% in FY21, lowest level for last 4 years. Meanwhile the average
monthly fixed churn rate was at 1.6% in Q421 and 1.5% in FY21. Our
customer-oriented and proactive approach, as well as our analytical
capabilities, which enable us to make the right offer to the right
customer at the right time, led to a better customer retention
performance in both mobile and fixed segments on a year-on-year
basis.
Our mobile ARPU (excluding M2M) rose 17.8% year-on-year in Q421
driven mainly by price adjustments to reflect inflationary impacts
and upsell to higher tariffs, as well as larger postpaid subscriber
base. Mobile ARPU (excluding M2M) grew 13.4% for the full year
mainly on the same drivers.
Our residential fiber ARPU growth was 12.8% year-on-year in
Q421. This was driven by upsell to higher tariffs and increased
IPTV penetration. Fiber residential ARPU increased 10.6% for the
full year.
Average monthly mobile data usage per user rose 13.7% in FY21 to
13.3 GB with the rising number and data consumption of 4.5G users
in FY21. Accordingly, the average mobile data usage of 4.5G users
reached 14.9 GB in FY21.
Total smartphone penetration on our network reached 86% in Q421
on a 5.0pp year-on-year increase. 92% of those smartphones were
4.5G compatible.
TURKCELL INTERNATIONAL
lifecell1 Financial
Data
Quarter
Year
Q420
Q421
y/y%
FY20
FY21
y/y%
Revenue (million UAH)
1,913.8
2,406.4
25.7%
6,835.8
8,482.7
24.1%
EBITDA (million UAH)
1,042.9
1,319.1
26.5%
3,630.9
4,751.2
30.9%
EBITDA margin (%)
54.5%
54.8%
0.3pp
53.1%
56.0%
2.9pp
Net income (million UAH)
2,736.7
237.9
(91.3%)
2,588.7
610.9
(76.4%)
Capex (million UAH)
1,545.7
1,319.3
(14.6%)
3,482.4
3,593.6
3.2%
Revenue (million TRY)
531.4
996.6
87.5%
1,775.6
2,805.7
58.0%
EBITDA (million TRY)
289.6
544.5
88.0%
944.0
1,566.4
65.9%
EBITDA margin (%)
54.5%
54.6%
0.1pp
53.2%
55.8%
2.6pp
Net income (million TRY)
731.9
98.1
(86.6%)
696.1
210.8
(69.7%)
(1) Since July 10, 2015, we hold a 100% stake in lifecell.
lifecell (Ukraine) had another quarter of solid revenue
growth performance. Accordingly, lifecell revenues rose 25.7%
year-on-year in Q421 in local currency terms on the back of
subscriber base expansion, as well as ARPU growth supported by
price adjustments, increased data usage and messaging revenues.
lifecell’s EBITDA grew 26.5% year-on-year leading to an EBITDA
margin of 54.8%. This resulted from strong topline performance and
effective cost management initiatives.
lifecell revenues in TRY terms grew 87.5% year-on-year in Q421
with strong operational performance and the positive impact of
currency movements. lifecell’s EBITDA in TRY terms grew by 88.0%,
leading to an EBITDA margin of 54.6%.
For the full year, lifecell revenues in local currency terms
rose 24.1%, while its EBITDA increased 30.9% resulting in an EBITDA
margin of 56.0%. lifecell also reported positive net income in
2021. In TRY terms, lifecell registered revenue growth of 58.0%
with an EBITDA margin of 55.8%.
lifecell Operational Data
Quarter
Year
Q420
Q421
y/y%
FY20
FY21
y/y%
Number of subscribers
(million)2
9.3
10.1
8.6%
9.3
10.1
8.6%
Active (3 months)3
8.1
9.2
13.6%
8.1
9.2
13.6%
MOU (minutes) (12 months)
185.5
179.0
(3.5%)
176.2
180.9
2.7%
ARPU (Average Monthly Revenue per
User), blended (UAH)
69.6
80.2
15.2%
63.3
73.7
16.4%
Active (3 months) (UAH)
79.9
88.5
10.8%
74.1
83.2
12.3%
(2) We may occasionally offer campaigns and tariff schemes that
have an active subscriber life differing from the one that we
normally use to deactivate subscribers and calculate churn. (3)
Active subscribers are those who in the past three months made a
revenue generating activity.
Three-month active subscriber base of lifecell rose to 9.2
million in Q421 thanks to its innovative and regional offers.
Meanwhile, lifecell’s 3-month active ARPU rose 10.8% year-on-year
on the back of higher data usage and price adjustments. Moreover,
we deem the simplified MNP procedure, which came into effect as of
December 1, 2021, as a positive step towards further strengthening
of a fair competitive environment in the market.
The penetration of 4.5G users in lifecell’s customer base
continued to increase. Accordingly, 3-month active 4.5G users rose
32% year-on-year to 73% of total mobile data users as at year end.
Consequently, average data consumption per user rose by 13% in
Q421, driven mainly by the higher data usage of 4.5G users.
lifecell sustained its leadership of the Ukrainian market in
smartphone penetration, which was at 83% as at the end of Q421.
lifecell continued to expand its digital services users in Q421.
Thanks to continuous efforts to enrich its customer experience,
lifecell’s digital services 3-month active users grew 33%
year-on-year in Q421.
BeST1
Quarter
Year
Q420
Q421
y/y%
FY20
FY21
y/y%
Number of subscribers (million)
1.4
1.5
7.1%
1.4
1.5
7.1%
Active (3 months)
1.1
1.1
-
1.1
1.1
-
Revenue (million BYN)
37.8
35.6
(5.8%)
138.7
145.7
5.0%
EBITDA (million BYN)
10.3
10.1
(1.9%)
34.5
38.1
10.4%
EBITDA margin (%)
27.4%
28.5%
1.1pp
24.8%
26.1%
1.3pp
Net loss (million BYN)
(7.1)
(7.5)
5.6%
(31.2)
(31.6)
1.3%
Capex (million BYN)
11.0
16.7
51.8%
46.5
63.5
36.6%
Revenue (million TRY)
114.1
157.3
37.9%
395.4
507.8
28.4%
EBITDA (million TRY)
31.1
44.7
43.7%
98.3
133.9
36.2%
EBITDA margin (%)
27.3%
28.4%
1.1pp
24.9%
26.4%
1.5pp
Net loss (million TRY)
(21.7)
(32.9)
51.6%
(88.9)
(109.9)
23.6%
(1) BeST, in which we hold an 80% stake, has operated in Belarus
since July 2008.
BeST revenues decreased by 5.8% year-on-year in local
currency terms. This was due mainly to the contraction in handset
sales despite the continued rise in voice, data and messaging
revenues. Excluding the handset revenues, service revenue growth
was at 15.4%. BeST registered an EBITDA of BYN10.1 million in Q421,
which led to an EBITDA margin of 28.5%. BeST’s revenues in TRY
terms grew by 37.9% year-on-year in Q421 with an EBITDA margin of
28.4%.
For the full year, BeST revenues in local currency terms grew by
5.0% mainly on the back of data revenues. BeST’s EBITDA rose 10.4%,
resulting in a 26.1% EBITDA margin on 1.3pp improvement. In TRY
terms, BeST revenues rose 28.4% with an EBITDA margin of 26.4%.
BeST continued to lead the market in terms of 4G geographical
coverage. At the end of Q421, BeST provides LTE service to
customers in 6 regions through over 3.4 thousand sites, which grew
by over 100 additions during the quarter. The expanding LTE
coverage allows BeST to increase the penetration of its 4G
subscribers. Accordingly, 4G users comprised 71% of the 3-month
active subscriber base as of Q421. Meanwhile, the average monthly
data consumption of subscribers rose 20% year-on-year to 14.7
GB.
BeST sustained its efforts to increase the penetration of its
digital services, which supports ARPU growth and customer
retention. Accordingly, 38% of 3-month active subscribers use at
least one digital service as of Q421. This quarter BeST introduced
cloud gaming and digital book services to its customers. Moreover,
digital subscription solution introduced in Q320 continued to
increase its share in the total subscriptions.
Kuzey Kıbrıs Turkcell2 (million
TRY)
Quarter
Year
Q420
Q421
y/y%
FY20
FY21
y/y%
Number of subscribers (million)
0.5
0.6
20.0%
0.5
0.6
20.0%
Revenue
65.6
90.1
37.3%
239.4
306.6
28.1%
EBITDA
21.8
35.3
61.9%
86.3
121.1
40.3%
EBITDA margin (%)
33.2%
39.2%
6.0pp
36.0%
39.5%
3.5pp
Net income
9.3
25.5
174.2%
34.9
68.3
95.7%
Capex
23.0
26.6
15.7%
68.1
74.2
9.0%
(2) Kuzey Kıbrıs Turkcell, in which we hold a 100% stake, has
operated in Northern Cyprus since 1999
Kuzey Kıbrıs Turkcell revenues increased by 37.3%
year-on-year in Q421 on the back of the rise in mobile data, voice
and handset sales revenues. The EBITDA of Kuzey Kıbrıs Turkcell
rose 61.9% yielding a 39.2% EBITDA margin.
For the full year, Kuzey Kıbrıs Turkcell revenues rose by 28.1%
with the same drivers. The EBITDA grew 40.3% leading to an EBITDA
margin of 39.5%.
TECHFIN
Paycell Financial Data (million
TRY)
Quarter
Year
Q420
Q421
y/y%
FY20
FY21
y/y%
Revenue
79.8
139.6
74.9%
285.0
468.4
64.4%
EBITDA
37.0
64.3
73.8%
147.4
222.4
50.9%
EBITDA Margin (%)
46.4%
46.1%
(0.3pp)
51.7%
47.5%
(4.2pp)
Net Income
26.1
48.7
86.6%
111.7
155.1
38.9%
Paycell saw another quarter of remarkable performance.
Accordingly, its revenues grew 74.9% year-on-year in Q421. The
demand for digital payment services remained solid with changing
consumer behavior. Paycell continued to capture the increased
demand with its diverse product portfolio including mobile payment
services, as well as Paycell card and payment facilitation
solutions. Paycell’s EBITDA rose 73.8% year-on-year leading to an
EBITDA margin of 46.1% in Q421.
The transaction volume of the Pay Later service grew 93%
year-on-year to TRY585 million. This was driven mainly by an 81%
increase in 3-month active users of Pay Later to 4.1 million, as
well as higher merchant penetration supported by the dual growth
strategy of Paycell. Meanwhile, the Paycell Card transaction volume
increased to TRY1.2 billion in Q421. Paycell also started to see a
ramping up of the volume of its payment facilitation business.
Accordingly, the transaction volume over physical and virtual POS
services reached TRY1.1 billion in Q421. Overall, the total
transaction volume reached TRY4.9 billion in Q421 doubling
year-on-year, driven mainly by the rise in 3-month active users to
6.6 million and their increased usage.
For the full year, Paycell registered 64.4% revenue growth and a
total transaction volume of TRY13.7 billion. Meanwhile, Paycell’s
EBITDA grew 50.9% in FY21, indicating a 4.2pp EBITDA margin
contraction. The decline in the EBITDA margin was due mainly to the
increased share of non-group revenues.
Financell Financial Data (million
TRY)
Quarter
Year
Q420
Q421
y/y%
FY20
FY21
y/y%
Revenue
144.7
190.4
31.6%
566.6
614.9
8.5%
EBITDA
96.0
128.9
34.3%
367.0
420.4
14.6%
EBITDA Margin (%)
66.3%
67.7%
1.4pp
64.8%
68.4%
3.6pp
Net Income
61.3
109.5
78.6%
240.7
334.6
39.0%
Financell’s revenues grew by 31.6% year-on-year in Q421. This
strong performance resulted mainly from higher loan portfolio and
average interest rate on the loan portfolio compared to the same
period of the last year and increase in insurance revenues.
Meanwhile, Financell reported EBITDA growth of 34.3% year-on-year,
resulting in an EBITDA margin of 67.7% in Q421. The EBITDA margin
was positively impacted by the sale of doubtful receivables. The
78.6% year-on-year rise in net income was impacted mainly by strong
operational performance and fair valuation of derivative
instruments.
Financell’s revenues rose by 8.5% for the full year and EBITDA
climbed 14.6% yielding an EBITDA margin of 68.4%.
Financell’s loan portfolio increased to TRY2.1 billion in Q421,
from TRY1.9 billion in Q420, driven by higher lending to the
corporate segment and higher mobility. Moreover, due to a strong
collection performance and customer portfolio improvement,
Financell’s cost of risk has remained healthy throughout the year.
Accordingly, average cost of risk declined to 0.4% in Q421 from
2.3% in Q420. Financell’s market share for loans granted in Turkey
under TRY5 thousand was 22%.
Turkcell Group Subscribers
Turkcell Group registered subscribers amounted to approximately
51.6 million as of December 31, 2021. This figure is calculated by
taking the number of subscribers of Turkcell Turkey, and of each of
our subsidiaries. It includes the total number of mobile, fiber,
ADSL, cable and IPTV subscribers of Turkcell Turkey, and the mobile
subscribers of lifecell and BeST, as well as those of Kuzey Kıbrıs
Turkcell.
Turkcell Group Subscribers
Q420
Q321
Q421
y/y%
q/q%
Mobile Postpaid (million)
22.0
23.3
23.7
7.7%
1.7%
Mobile Prepaid (million)
11.5
12.3
12.0
4.3%
(2.4%)
Fiber (thousand)
1,664.3
1,813.6
1,887.8
13.4%
4.1%
ADSL (thousand)
707.6
739.7
754.9
6.7%
2.1%
Superbox (thousand)1
591.2
613.6
603.6
2.1%
(1.6%)
Cable (thousand)
67.7
59.8
54.6
(19.4%)
(8.7%)
IPTV (thousand)
871.3
1,011.9
1,082.2
24.2%
6.9%
Turkcell Turkey subscribers
(million)2
36.7
39.3
39.4
7.4%
0.3%
lifecell (Ukraine)
9.3
9.9
10.1
8.6%
2.0%
BeST (Belarus)
1.4
1.5
1.5
7.1%
-
Kuzey Kıbrıs Turkcell
0.5
0.5
0.6
20.0%
20.0%
Turkcell Group Subscribers
(million)
47.9
51.2
51.6
7.7%
0.8%
(1) Superbox subscribers are included in mobile subscribers. (2)
Subscribers to more than one service are counted separately for
each service.
OVERVIEW OF THE MACROECONOMIC ENVIRONMENT
The foreign exchange rates used in our financial reporting,
along with certain macroeconomic indicators, are set out below.
Quarter
Year
Q420
Q321
Q421
y/y%
q/q%
FY20
FY21
y/y%
GDP Growth (Turkey)
6.2%
7.4%
n.a
n.a
n.a
1.8%
n.a
n.a
Consumer Price Index
(Turkey)(yoy)
14.6%
19.6%
36.1%
21.5pp
16.5pp
14.6%
36.1%
21.5pp
US$ / TRY rate
Closing Rate
7.3405
8.8433
13.3290
81.6%
50.7%
7.3405
13.3290
81.6%
Average Rate
7.8933
8.5212
11.0757
40.3%
30.0%
7.0120
8.8797
26.6%
EUR / TRY rate
Closing Rate
9.0079
10.3135
15.0867
67.5%
46.3%
9.0079
15.0867
67.5%
Average Rate
9.3551
10.0656
12.6591
35.3%
25.8%
8.0255
10.4810
30.6%
US$ / UAH rate
Closing Rate
28.27
26.58
27.28
(3.5%)
2.6%
28.27
27.28
(3.5%)
Average Rate
28.40
26.87
26.81
(5.6%)
(0.2%)
27.04
27.34
1.1%
US$ / BYN rate
Closing Rate
2.5789
2.5083
2.5481
(1.2%)
1.6%
2.5789
2.5481
(1.2%)
Average Rate
2.6088
2.5088
2.5019
(4.1%)
(0.3%)
2.4605
2.5448
3.4%
RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We
believe Adjusted EBITDA, among other measures, facilitates
performance comparisons from period to period and management
decision making. It also facilitates performance comparisons from
company to company. Adjusted EBITDA as a performance measure
eliminates potential differences caused by variations in capital
structures (affecting interest expense), tax positions (such as the
impact of changes in effective tax rates on periods or companies)
and the age and book depreciation of tangible assets (affecting
relative depreciation expense). We also present Adjusted EBITDA
because we believe it is frequently used by securities analysts,
investors and other interested parties in evaluating the
performance of other mobile operators in the telecommunications
industry in Europe, many of which present Adjusted EBITDA when
reporting their results. Our Adjusted EBITDA definition includes
Revenue, Cost of Revenue excluding depreciation and amortization,
Selling and Marketing expenses, Administrative expenses and Net
impairment losses on financial and contract assets, but excludes
translation gain/(loss), finance income, finance expense, share of
profit of equity accounted investees, gain on sale of investments,
minority interest and other income/(expense). Nevertheless,
Adjusted EBITDA has limitations as an analytical tool, and you
should not consider it in isolation from, or as a substitute for
analysis of our results of operations, as reported under IFRS. The
following table provides a reconciliation of Adjusted EBITDA, as
calculated using financial data prepared in accordance with IFRS as
issued by the IASB, to net profit, which we believe is the most
directly comparable financial measure calculated and presented in
accordance with IFRS as issued by the IASB.
Turkcell Group (million TRY)
Quarter
Year
Q420
Q421
y/y%
FY20
FY21
y/y%
Adjusted EBITDA
3,243.0
4,211.6
29.9%
12,270.3
15,013.8
22.4%
Depreciation and amortization
(1,634.6)
(2,075.5)
27.0%
(5,974.8)
(7,291.9)
22.0%
EBIT
1,608.4
2,136.1
32.8%
6,295.5
7,721.9
22.7%
Finance income
(316.0)
2,643.6
n.m
2,119.5
3,592.0
69.5%
Finance costs
(65.8)
(4,413.0)
n.m
(3,251.2)
(6,492.9)
99.7%
Other income / (expense)
(366.9)
(45.2)
(87.7%)
(523.3)
(370.0)
(29.3%)
Share of profit of equity accounted
investees
(5.2)
63.6
n.m.
(13.8)
90.1
n.m.
Consolidated profit before income tax
& minority interest
854.5
385.0
(54.9%)
4,626.8
4,541.1
(1.9%)
Income tax expense
447.6
999.7
123.3%
(387.2)
490.2
n.m.
Consolidated profit before minority
interest
1,302.0
1,384.7
6.4%
4,239.6
5,031.3
18.7%
NOTICE: This release includes forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933,
Section 21E of the Securities Exchange Act of 1934 and the Safe
Harbor provisions of the US Private Securities Litigation Reform
Act of 1995. This includes, in particular, our targets for revenue,
EBITDA and capex for 2022. More generally, all statements other
than statements of historical facts included in this press release,
including, without limitation, certain statements regarding the
launch of new businesses, our operations, financial position and
business strategy may constitute forward-looking statements. In
addition, forward-looking statements generally can be identified by
the use of forward-looking terminology such as, among others,
"will," "expect," "intend," "estimate," "believe", "continue" and
“guidance”.
Although Turkcell believes that the expectations reflected in
such forward-looking statements are reasonable at this time, it can
give no assurance that such expectations will prove to be correct.
All subsequent written and oral forward-looking statements
attributable to us are expressly qualified in their entirety by
reference to these cautionary statements. For a discussion of
certain factors that may affect the outcome of such forward looking
statements, see our Annual Report on Form 20-F for 2020 filed with
the U.S. Securities and Exchange Commission, and in particular the
risk factor section therein. We undertake no duty to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
The Company makes no representation as to the accuracy or
completeness of the information contained in this press release,
which remains subject to verification, completion and change. No
responsibility or liability is or will be accepted by the Company
or any of its subsidiaries, board members, officers, employees or
agents as to or in relation to the accuracy or completeness of the
information contained in this press release or any other written or
oral information made available to any interested party or its
advisers.
ABOUT TURKCELL: Turkcell is a digital operator
headquartered in Turkey, serving its customers with its unique
portfolio of digital services along with voice, messaging, data and
IPTV services on its mobile and fixed networks. Turkcell Group
companies operate in 4 countries – Turkey, Ukraine, Belarus, and
Northern Cyprus. Turkcell launched LTE services in its home country
on April 1st, 2016, employing LTE-Advanced and 3 carrier
aggregation technologies in 81 cities. Turkcell offers up to 10
Gbps fiber internet speed with its FTTH services. Turkcell Group
reported TRY35.9 billion revenue in FY21 with total assets of
TRY70.7 billion as of December 31, 2021. It has been listed on the
NYSE and the BIST since July 2000, and is the only NYSE-listed
company in Turkey. Read more at www.turkcell.com.tr.
Appendix A – Tables
Table: Net foreign exchange gain and loss details
Million TRY
Quarter
Year
Q420
Q421
y/y%
FY20
FY21
y/y%
Net FX loss before hedging
254.7
(4,137.2)
n.m.
(2,409.6)
(5,538.5)
129.9%
Swap interest income/(expense)
(97.8)
(89.2)
(8.8%)
(404.6)
(422.4)
4.4%
Fair value gain on derivative financial
instruments
(400.3)
2,613.3
n.m
2,133.4
3,312.8
55.3%
Net FX gain / (loss) after
hedging
(243.4)
(1,613.1)
562.7%
(680.7)
(2,648.1)
289.0%
Table: Income tax expense details
Million TRY
Quarter
Year
Q420
Q421
y/y%
FY20
FY21
y/y%
Current tax expense
(136.2)
(106.6)
(21.7%)
(724.7)
(681.5)
(6.0%)
Deferred tax income / (expense)
583.7
1,106.3
89.5%
337.5
1,171.7
247.2%
Income Tax expense
447.6
999.7
123.3%
(387.2)
490.2
n.m
TURKCELL ILETISIM HIZMETLERI
A.S. IFRS SELECTED FINANCIALS (TRY Million)
Quarter Ended
Year Ended
Quarter Ended
Quarter Ended
Year Ended
Dec 31,
Dec 31,
Sep 30,
Dec 31,
Dec 31,
2020
2020
2021
2021
2021
Consolidated Statement of Operations Data
Turkcell Turkey
6,058.7
22,822.9
7,050.3
7,689.4
27,223.5
Turkcell International
747.3
2,542.4
915.3
1,286.4
3,750.1
Fintech
225.3
845.2
281.5
329.9
1,075.7
Other
840.9
2,893.3
1,107.1
885.9
3,871.2
Total revenues
7,872.2
29,103.7
9,354.2
10,191.5
35,920.5
Direct cost of revenues
(5,572.8)
(20,336.1)
(6,428.7)
(7,095.4)
(25,230.0)
Gross profit
2,299.4
8,767.7
2,925.6
3,096.2
10,690.6
Administrative expenses
(210.7)
(749.6)
(219.3)
(276.8)
(919.0)
Selling & marketing expenses
(400.8)
(1,373.0)
(429.9)
(576.6)
(1,778.5)
Other Operating Income / (Expense)
(366.9)
(523.3)
(20.2)
(45.2)
(370.0)
Net impairment loses on financial and contract assets
(79.5)
(349.6)
(64.1)
(106.7)
(271.2)
Operating profit before financing costs
1,241.5
5,772.3
2,192.1
2,090.9
7,351.9
Finance costs
(65.8)
(3,251.2)
(247.4)
(4,413.0)
(6,492.9)
Finance income
(316.0)
2,119.5
(111.8)
2,643.6
3,592.0
Share of profit of equity accounted investees
(5.2)
(13.8)
(2.1)
63.6
90.1
Income before tax and non-controlling interest
854.5
4,626.8
1,830.7
385.0
4,541.1
Income tax expense
447.6
(387.2)
(401.6)
999.7
490.2
Income from continuing operations before non-controlling interest
1,302.0
4,239.6
1,429.1
1,384.7
5,031.3
Discontinued operations
-
-
-
-
-
Non-controlling interests
-
(2.5)
(0.0)
(0.1)
(0.2)
Net income
1,302.0
4,237.1
1,429.1
1,384.6
5,031.1
Net income per share total
0.60
1.94
0.65
0.63
2.30
Other Financial Data Gross margin
29.2%
30.1%
31.3%
30.4%
29.8%
EBITDA(*)
3,243.0
12,270.3
4,029.8
4,211.6
15,013.8
Total Capex
2,884.7
9,078.9
2,216.6
4,297.4
11,479.4
Operational capex
1,904.2
5,391.6
1,379.2
2,686.3
7,629.8
Licence and related costs
9.3
42.8
-
-
-
Non-operational Capex
971.2
3,644.6
837.4
1,611.1
3,849.6
Consolidated Balance Sheet Data (at period
end) Cash and cash equivalents
11,860.6
11,860.6
12,321.8
18,628.7
18,628.7
Total assets
51,498.4
51,498.4
57,307.2
70,682.6
70,682.6
Long term debt
16,353.7
16,353.7
19,168.1
27,929.7
27,929.7
Total debt
21,586.4
21,586.4
24,804.6
36,778.1
36,778.1
Total liabilities
30,713.5
30,713.5
35,390.3
48,120.4
48,120.4
Total shareholders’ equity / Net Assets
20,784.9
20,784.9
21,917.0
22,562.3
22,562.3
(*) Please refer to the notes on reconciliation of Non-GAAP
Financial measures on page 18For further details, please refer to
our consolidated financial statements and notes as at 31 December
2021 on our website
TURKCELL ILETISIM HIZMETLERI A.S.TURKISH
ACCOUNTING STANDARDS SELECTED FINANCIALS (TRY Million)
Quarter Ended Year Ended Quarter
Ended Quarter Ended Year Ended
Dec 31, Dec 31, Sep 30, Dec 31, Dec
31,
2020
2020
2021
2021
2021
Consolidated Statement of Operations
Data Turkcell Turkey
6,058.7
22,822.9
7,050.3
7,689.4
27,223.5
Turkcell International
747.3
2,542.4
915.3
1,286.4
3,750.1
Fintech
225.3
845.2
281.5
329.9
1,075.7
Other
840.9
2,893.3
1,107.1
885.9
3,871.2
Total revenues
7,872.2
29,103.7
9,354.2
10,191.5
35,920.5
Direct cost of revenues
(5,572.8)
(20,336.1)
(6,428.7)
(7,095.4)
(25,230.0)
Gross profit
2,299.4
8,767.7
2,925.6
3,096.2
10,690.6
Administrative expenses
(210.7)
(749.6)
(219.3)
(276.8)
(919.0)
Selling & marketing expenses
(400.8)
(1,373.0)
(429.9)
(576.6)
(1,778.5)
Other Operating Income / (Expense)
(578.5)
1,543.4
240.1
4,355.8
6,409.6
Operating profit before financing and investing costs
1,109.4
8,188.5
2,516.5
6,598.6
14,402.7
Net impairment loses on financial and contract assets
(79.5)
(349.6)
(64.1)
(106.7)
(271.2)
Income from investing activities
4.5
167.8
23.9
402.6
464.1
Expense from investing activities
(30.2)
(31.5)
(1.9)
72.1
-
Share of profit of equity accounted investees
(5.2)
(13.8)
(2.1)
63.6
90.1
Income before financing costs
999.1
7,961.4
2,472.3
7,030.2
14,685.7
Finance income
(486.5)
1,788.6
(170.3)
2,569.6
3,051.1
Finance expense
341.9
(5,123.2)
(471.3)
(9,214.8)
(13,195.7)
Income from continuing operations before tax and non-controlling
interest
854.5
4,626.8
1,830.7
385.0
4,541.1
Income tax expense from continuing operations
447.6
(387.2)
(401.6)
999.7
490.2
Income from continuing operations before non-controlling interest
1,302.0
4,239.6
1,429.1
1,384.7
5,031.3
Discontinued operations
-
-
-
-
-
Income before non-controlling interest
1,302.0
4,239.6
1,429.1
1,384.7
5,031.3
Non-controlling interest
-
(2.5)
(0.0)
(0.1)
(0.2)
Net income
1,302.0
4,237.1
1,429.1
1,384.6
5,031.1
Net income per share from continuing operations
0.60
1.94
0.65
0.63
2.30
Other Financial Data Gross margin
29.2%
30.1%
31.3%
30.4%
29.8%
EBITDA(*)
3,243.0
12,270.3
4,029.8
4,211.6
15,013.8
Total Capex
2,884.7
9,078.9
2,216.6
4,297.4
11,479.4
Operational capex
1,904.2
5,391.6
1,379.2
2,686.3
7,629.8
Licence and related costs
9.3
42.8
-
-
-
Non-operational Capex
971.2
3,644.6
837.4
1,611.1
3,849.6
Consolidated Balance Sheet Data (at period
end) Cash and cash equivalents
11,860.6
11,860.6
12,321.8
18,628.7
18,628.7
Total assets
51,498.4
51,498.4
57,307.2
70,682.6
70,682.6
Long term debt
16,353.7
16,353.7
19,168.1
27,929.7
27,929.7
Total debt
21,586.4
21,586.4
24,804.6
36,778.1
36,778.1
Total liabilities
30,713.5
30,713.5
35,390.3
48,120.4
48,120.4
Total shareholders’ equity / Net Assets
20,784.9
20,784.9
21,917.0
22,562.3
22,562.3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220217005540/en/
For further information please contact Turkcell
Investor Relations Tel: + 90 212 313 1888
investor.relations@turkcell.com.tr
Corporate Communications: Tel: + 90 212 313 2321
Turkcell-Kurumsal-Iletisim@turkcell.com.tr
Turkcell lletism Hizmetl... (NYSE:TKC)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Turkcell lletism Hizmetl... (NYSE:TKC)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024