Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| Thanks to a robust operational performance, EBITDA has contributed TRY7.3 billion to net income |
| Apart from robust top line growth, lower energy prices, favorable interconnection expenses, and a decrease in the cost of goods sold as a percentage of revenues have been instrumental in driving real EBITDA expansion |
| Paycell revenue rose 29% year-on-year, primarily fueled by the success of its direct carrier business Pay Later |
| 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 returned to a real growth, achieving a real growth of around 15% increase in our revenue side |
| 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 |
| Revenues of our Turkish Republic of Northern Cyprus subsidiary increased 20% year-on-year, fueled by strong real ARPU growth |
| This empowers us to advance our core capability in offering best-in-class 4.5G services and further strengthen our position in 5G and future technologies |
| This strong performance also enabled us to exceed our EBITDA expectations |
| Financell’s revenue grew by 28%, thanks to the demand for smart devices and new areas we enter such as shopping loans, car loans, and green loans |
| Our Ukraine operation, classified under discontinued operations due to the ongoing sales process had a positive impact of TRY1.1 billion on net income throughout the year 2023 |
| However, our strong real top line growth support by our sequential price adjustments |
| Our techfin companies continued to deliver a strong performance, contributing to the company's top line growth in 2023 |
| The improvement in EBITDA margin was supported by lower interconnection costs and energy expenses as a percentage of revenue |
| By historical figures, blended mobile ARPU grew by 85% year-on-year, thanks to the rational price adjustments, upsell efforts, and a rising postpaid subscriber share in the portfolio |
| In 2023, EBITDA surged 20% to TRY44 billion thanks to a strong top line performance |
| Additionally, we have integrated AI into our communication channels for an improved customer experience |
| Furthermore, we are pleased to see strong demand for our TV services |
| Lastly, net income growth was 65% on historical figures, whereas by inflation adjusted figures, it rose 82%, thanks to a strong EBITDA performance |
| We achieved a three-point increase in post-paid share in the mobile segment, exceeding 71% this year |
| An expanding subscriber base and robust ARPU growth, as well as digital services, were the main drivers of this growth |
| The active user base of Pay Later reached $6 million, marking 19% annual growth, while its transaction volume surged 80% in the last quarter |
| Our digital business registered solid 23% year-on-year revenue growth |
| Beside the performance in managed services, a 50% increase in cloud service revenues and a remarkable 61% real growth in data center revenues supported the growth |
| Standalone revenue from digital services and solutions grew 19% year-on-year, driven primarily by 25% increase in digital OTT service revenues |
| On the fiber front, we are pleased to have registered a further 43,000 net additions in this quarter and 169,000 for the full year of 2023, owing to an expanded footprint and a seamless, pure fiber experience |
| During 2023, Paycell expanded its product portfolio and strengthened its position within the fintech verticals to better serve customer needs |
| Statement |
|---|
| Consequently, including Ukraine’s financials, we recorded 75% revenue growth, suppressing our guidance |
| However, a significant rise in interest rates in the last quarter leading to higher funding costs had an adverse impact on Financell’s margins |
| Turkcell international revenues, which now accounts for 3% of group revenues, decreased by 1.8% to TRY2.6 billion |
| In addition, the rising cost of new line activations and customers preferring postpaid lines to fix their offerings in an inflationary environment also negatively impacted the prepaid site in 2023 |
| Due to the contracted nature of [indiscernible] business, the inflationary environment initially affected our top line adversely in 2024 -- 2022, but in fiscal year 2023, with the help of sequential price adjustments, we have [indiscernible] quarters |
| If I look at the new accounting standard including inflationary accounting and if I look at your guidance, there's a slowdown from what I think you delivered in 2023, which I think was 14% or 15% percent, and your guidance of high single digit |
| And our EBITDA margin forecast for 2024, as you know, it's a very tough environment in 2024 also for Turkey |
| Given the macroeconomic dynamics, projecting inflation in particular will be a challenging task |
| The balance sheet change due to inflationary adjustments in 2023 had a more adverse effect compared to 2022, with the monetary gain loss item being the most significant pressure point for net income, amounting TRY4 billion |
| It's a very technical issue, especially making an assumption in the inflationary accounting perspective is a little bit high |
| Therefore, it really affected our EBITDA high margin in 2023 |
| Nora Nagy Yeah, but I would assume that that takes time for the output to catch up to inflation, so that the real growth would be negatively impacted if inflation will be higher than you assume? Kamil Kalyon But the momentum -- we have a momentum about this issue, and still we have an inflation problem in Turkey |
| Can you please explain why excluding inflation you think the revenue growth will slow down? That's the first one |
| Your expectation is a little bit correct |
| Due to contracted nature of our business, the lagging impact of our sequential price adjustments became more visible starting from half of 2022 and it continued in 2023 |
| However, this year we expect a flattish margin at around 42% because inflationary cost pressures will continue and the cost of energy prices will be one of the most important factors that will affect our EBITDA margin |
| It's really hard for us |
| And the third question, how do you see the Ukraine operations to act up? You put it in discontinuity, as it was a profitable one, maybe going forward, it will change |
| But I am asking the historical figures, which might be lower than this number, because these numbers are all carried through the year-end |
Please consider a small donation if you think this website provides you with relevant information