Turkcell Updates Its 2024 Revenue Targets
Turkcell (TCELL) has revised its revenue growth target for 2024 to approximately 7%. CEO Dr. Ali Taha Koç stated that as the company celebrates its 30th anniversary, it aims to continuously create value for its stakeholders with its strong foundations and innovative vision. The profit from the sale of assets in Ukraine positively affected the third-quarter financials.
Renewable energy investments and ARPU success Turkcell has made significant strides in renewable energy investments, completing the first phase of its solar energy investments, which have a capacity of 54 MW. During this period, it strengthened its presence in the energy sector by commissioning a 6.4 MW installed capacity.
The company evaluated its ARPU performance in Turkey by expanding its postpaid subscriber base, increasing group revenues by 6.9% to 40.2 billion TL in the third quarter of 2024. Despite salary hikes, the EBITDA margin reached 44.2%, and net profit amounted to a total of 14.3 billion TL, aided by the asset sale in Ukraine.
Growth in postpaid subscribers and mobile transition strategies Continuing to expand its postpaid subscriber base, Turkcell attracted 515,000 new postpaid subscribers in the third quarter, achieving a yearly postpaid subscriber rate of 74%. In this highly competitive environment, the mobile subscriber churn rate was recorded at 2.2%.
The company enhanced subscriber acquisition with innovations like the "30th Year 1000 Mbps Speed Campaign" in fixed internet services. The fiber subscriber base increased by a net 47,000, surpassing 2.4 million, while the yearly individual fiber ARPU grew by 15.1%.
Techfin initiatives contribute to financial growth Turkcell's techfin focus, through the Financell and Paycell brands, significantly contributes to financial growth. In the third quarter, Paycell revenues increased by 19.6% to 970 million TL. Financell achieved 1.1 billion TL in revenue, reflecting a growth of 38.1% year-on-year.
Strong performance continued in technological financial services, including POS solutions and the mobile payment service "Pay Later." Although there was a 14% decline in the number of unique paid users of digital services, the company's market share growth strategies appear positive.
Data centers and digital business services The Digital Business Services portfolio recorded a 43% growth in the third quarter with four new-generation data centers and cloud services, reaching a revenue of 639 million TL with an active capacity of 33 MW. Turkcell continues to aim for increased capacity in its data centers, planning to maintain its strategic priorities in this area in the coming years.
With revised targets for 2024, the company aims for a 7% revenue growth, a 42% EBITDA margin, and a 23% ratio of operational investment expenditures by the end of the year.