TURKCELL ILETISIM HIZMETLERI A.S. - Full Year 2024 Results Summary
Business Context and Reporting Period
This Form 6-K, dated February 28, 2025, reports the full-year 2024 consolidated financial results for Turkcell Iletisim Hizmetleri A.S. (Turkcell), a leading telecommunications and technology company in Türkiye. The financial statements are prepared in accordance with IFRS and restated for hyperinflationary conditions under IAS 29, reflecting the purchasing power of the Turkish Lira as of December 31, 2024. The reporting period covers January 1, 2024, to December 31, 2024.
Key Financial Metrics
| Metric (TRY Million) | FY 2023 | FY 2024 | Change (%) |
|---|---|---|---|
| Revenue | 154,653 | 166,671 | 7.8% |
| EBITDA | 63,349 | 69,802 | 10.2% |
| EBITDA Margin | 41.0% | 41.9% | +0.9 pp |
| EBIT | 18,160 | 22,239 | 22.5% |
| Net Income | 18,125 | 23,523 | 29.8% |
| Free Cash Flow | N/A | 7,300 | N/A |
| Net Debt | 34,367 | 9,975 | (71.0%) |
| Net Leverage (x EBITDA) | 0.54x | 0.14x | N/A |
Material Changes vs. Prior Period
- Revenue Growth: Driven by an 8.3% increase in Turkcell Türkiye revenues, fueled by strong ARPU growth (10.4% mobile, 13.6% fiber) and a record 1.9 million mobile postpaid net additions. The Techfin segment grew 30.9%, offsetting declines in the "Other" segment.
- Profitability: EBITDA margin improved by 0.9 percentage points to 41.9% despite inflationary cost pressures. Net income surged 29.8%, significantly boosted by a TRY 12.4 billion profit from discontinued operations (sale of Ukrainian subsidiaries).
- Discontinued Operations: Turkcell completed the sale of its Ukrainian operations (Lifecell, Global Bilgi, Ukrtower) in September 2024. These assets were classified as held for sale in Q3 2024, resulting in a significant gain on disposal included in FY24 net income.
- Balance Sheet: Net debt decreased significantly to TRY 9.975 billion (from TRY 34.367 billion) due to cash inflows from the Ukrainian asset sale and strong operating cash flow. The company maintains a net short FX position of US$124 million, within its neutral target range.
Guidance, Outlook, and Risks
- 2025 Guidance:
- Revenue growth target: 7% - 9%.
- Data Center and Cloud revenue growth target: 32% - 34%.
- EBITDA margin target: 41% - 42%.
- Operational Capex to Sales ratio: ~24%.
- Management Commentary: CEO Ali Taha Koç highlighted strong performance despite global economic turbulence and high inflation. The company successfully reduced geopolitical risk by exiting Ukraine and strengthened its cash position. Investments in sustainability (solar power) and digital infrastructure (Data Centers) remain priorities.
- Risks and Contingencies:
- Macroeconomic: Guidance is based on an assumed annual inflation rate of 30.5%. Actual results may vary if inflation deviates significantly.
- Regulatory/Legal: Ongoing investigations by the Information Technologies and Communications Authority (ICTA) regarding R&D obligations, refund procedures, and subscription agreements. Provisions of TRY 249.5 million have been recognized for probable outflows.
- Competition: Intense competition in the mobile number portability (MNP) market, though churn remained stable at 2%.
Key Facts for Investor Verification
- IAS 29 Restatement: Verify that all comparative figures have been restated for inflation to reflect the purchasing power of the Turkish Lira as of December 31, 2024.
- Discontinued Operations Impact: Confirm the extent to which the 29.8% net income growth is driven by the one-time gain from the sale of Ukrainian assets versus organic operational performance.
- Dividend Distribution: A gross dividend of TRY 6.3 billion was distributed on December 5, 2024.
- Debt Structure: Note that 43% of consolidated debt is in USD and 32% in EUR, while 51% of cash is held in USD.
- 2025 Inflation Assumption: Review the sensitivity of the 2025 guidance to the assumed 30.5% inflation rate.