TKC - Earnings call transcript Q3 2020 | Turkcell Iletisim Hizmetleri A.S.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen thank you for standing by. I am Yortha, your Chorus Call operator. Welcome and thank you for joining the Turkcell's Conference Call to present and discuss the Third Quarter 2020 Financial Results. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Korhan Bilek, Treasury and Capital Markets Director. Mr. Please now may proceed. you Bilek,

Korhan Bilek

Mr. you, everyone. quarter Murat to CFO, third Hello results Thank Erkan; call. our Mr. Welcome XXXX CEO, Today's Turkcell's our Yortha. speakers Yilmaz. Osman and are

question. a brief afterwards, taking We will presentation have we'll and be your

start, kindly you Before the I to our for like this of page presentation would safe review to we remind last harbor statement.

to Mr. Erkan. over hand I Now,

Murat Erkan

to Korhan. Turkcell's and everyone. third XXXX afternoon good Thank Good Welcome you, call. quarter results evening,

to disaster into extend and have and go results, and to the recovery and maximum those ones would capacity. like in best our speedy injured. support by condolences and we who my Before at lost the data in I to last Turkcell, by in network Greece, loved those their a operates search week's voice wish efforts plans earthquake Izmit the in making did the to At sure region our to rescue free we extended

beat strong Now, it's our that performance. a We quarter our had expectations.

business economy While strategic such quarter. which our in growth EBITDA permanent, double-digit of fixed our and their in the side. become XX% Track re-opening the postpaid. got were solid driven in the We over focus of the XXX,XXX strong by top-line ARPU We areas. COVID our XX% recorded growth The by digital XXX,XXX period closed channels the mobility. robust remained with on in at addition, Meanwhile, on our trend XX% the grew share customer third all Hence, registered gradually net mobile sales pandemic, digitalization a circumstances the of base as, customers performance. XX% have of helped margin. regained the at we our has to the used side,

solid we continue TRYX continued free to quarter, billion flow generated Overall, enhanced and ones. marking launch during a and performance. the We cash services existing products new

remained Our leverage at ratio X.X times.

slide. Moving to next

this the basis, under strong revenue sale realized, year-on-year On Previous quarters that headwind. XX%. As we pressure. our a decline possible, was performance was roaming not a despite remained around international growth

state Given user as trend of We as to revenue in has pandemic similar continued the the we quarter the shift observed convenience. fourth e-commerce in by a enjoy pandemic, Turkey, a well. expect accelerated roaming current in the

such, online as trend. us motivating further displayed digital Furthermore, channels As our our solutions. strong through Paycell remains services, enhance transaction have well for TV through and as digital demand platform, promising services particularly our to

Moving to next slide.

financial an XX% performance. Now top-line, our a with of We TRYX.X some increase further details billion on recorded year-on-year.

resilient a performance flexible The first business and XX%. our model. with was reached nine-month Such possible growth

a Our TRYX.X a EBITDA on reached billion XX.X% margin. XX.X% increase, with

highest the generated strong the a The was solid revenue third is operational have XX% saving higher quarter yearly at is marking organically. to growth. seasonally triggered cost This profitability. by Net pandemic Moreover, billion a income period. TRYX.X we contributed quarterly

We which are expectation. with our pleased exceeded performance, our

Next slide.

Let's take a look at our operational performance.

at and customer during XX,XXX tariff subscriber fiber quarter. meet higher and basis. new data subscriber offers gained with with of our XXX,XXX fiber reached services services this, by Further, the expanded mobile plans, net quarter. focus tariffs the grew growth With addition XX% to Our digital this designed expectation. at has total was the XX,XXX a total In some postpaid segment, IPTV postpaid we fixed net XX%. The new was churn the Residential ARPU was business, to year-on-year rose continued. mobile our as X.X% We and on choice. demand X% on around be that the believe rate TRYXX rate last average churn a monthly Blended ARPU same result level We our month healthy subscription in a registered usage, shift base rising increase. growth the continued base XXX,XXX. share subscriber on mobile market. this a data mobile by for This In of broadband level in a business, to to year.

slide. Next

wireless of the Superbox, highlight rising fiber our speed some With demand performance for Fintur, Superbox addressed its pioneer the on home fixed product. access is a internet. have in we Now product market.

year invested its demand on Superbox Superbox our ability adjustment minimum XXX,XXX without quarter. LTE of to shelf add proven a interruption. well Strong plan ago. X.X has is in provide TRYXX Our service year was times XX,XXX network subscriber increase Superbox with a TRYXXX reached gradually Superbox that ARPU from this flow. this reflect should Today, to has a the this, price With ago. targets. This up net subscriber of its base triggered

slide. Next

on serve better create of are the how focused ever improve lives their mindset needs. leads This innovative offers. and to We to our customers us

we quarter of new they through can up with are a quota. tariff five year. value large this share Under to team mega can customers plans, proposition. flexibility a consume to with whom that Under two launched buy and plan such, As customer the offered plan they their data our form France data plan, our can Canada

have Additionally, Shake&Win to our loyalty. we platform. far with please strength value and in key digital customer NPS with network Overall, continue connection the by the legendary through quality sector proposition, recorded we our highest brand our our campaign score in

our network model. and Next our our serve operator through part Digital play our channels an We slide. in integral digital application. customers website distribution

towards registered we on we quarter, so, customer diverting how in By particularly continue, demand saving platforms. doing sales focused remained these During to the expenses.

these COVID of XX% Accordingly, lifted our digital in on doubled plan tripled to Even purchases sales and were these registered channels over the limitation on sales become XX month, mobility basis. in third visitors TR additional data conversion have trend and consumer The was digitalization digital driven period behavior quarter, ratio platform by top-up volume a the As have has to reached an basis. though channels. annual Turkcell over annual transaction an these million permanent. of Turkey

Next slide.

our look areas. focus strategic take our performance a Let's in at

which and growth. reached revenue to million First, the our in year-on-year located well key Paid revenue with services. platform data XX% securely seamless Turkey. quarter. to by is secure peers. equipped marking BiP this source the digital TRYX.X increased its center Meet, XX% stored is services generated Standalone data compete Meet Moreover, our video introduced a digital year-on-year user, BiP We conference global at

introduced converting It capable in Android alternative also application so, doing customer over the X,XXX access We those sold wish not television by who videos TV and solution their at launched live Turkey. can this new music a XXX of TV+ is Transfer an an alternative dongle. TV service market. operator in that channels, Last Turkey first a By in our Ready service, secure but we in and data sharing. products. a is archive have addition the for is with Smart least, TV+ on data game With demand, to and an Android fast, for suggest easy our Lifebox to over

Next slide.

As strategic solution. business focus, second namely to our digital

strategy Our ahead. digital for a solution We promising pursue point. is customer service the registered providing business single an yearly project integration revenue XX% period a procurements integrated backlog our TRYXXX growth. million of system from

Multicloud As offer we procurement, service consultancy launched such, class and services. peer-to-peer which global Turkcell management service,

these have integrated solution new in built global All ultimate period, vendor to the Digital Secure and of pursue enable efficiency. Turkcell operational will our XX. becoming reducing paper Our a to that partnership, market. total also encouraged the of in and usage. services the by Signature These generating Digital sustainable process we goal targets Also our contribute efforts Solution the signature increasing require Archive to the have digitalization leader

Next slide.

words revenue XX% services. by payment non-group Now the for on driven a Accordingly, revenue Paycell pandemic by growth continued Paycell few Techfin contactless year-on-year. our sustained in demand environment. its grew

Paycell. necessary scheme. a have device platform. quarter, tracking line It member have e-invoice pilot secure Android This Paycell introduced a POS the process merchant, offers POS in first enabling a the for become single has we POS This new for system, and Paycell operating Android cost a approvals advantage will in Android the collection, over especially market to business SME. of inventory is and smart to

all bank used In addition QR this portfolio The of with inclusion can device. new with code to will be expand cost. the cost payment,

on XX.X-gigabyte content data mainly mobile in rose Next X.XG rise still XX.X share X.XG customers XX user consumption of due the smartphones, seasonality, for consumption growth. X.XG Average million higher indicating data boosted and user. growing room year trends. The in for data have subscription services, up an X.XG update subscribers. And of Out to slide. and was per million to usage compatible usage XX% Superbox the now by signed

with This XX% quarter, reached X.X on There additional X.XG XX% our compatible. yearly X.XG net smartphone on smartphones basis. a network million were penetration compatible

Next slide.

X% look Let's the in revenues. at markets. our group We international performance generate of

recovery generated Lifecell mobile data ARPU was turned on income countries. for grew subsidy in digital mainly year-on-year. X.X%, and of voice quarter. with impact positive demand X.X% whole and customers. Belarus revenue time rising for in in elements. in has consumption of higher at for services, and and improved partial voice Our the Lifecell's local the these June these data currency international currency tariffs and top-line data Year launch the first in XX.X% for currency usage grew terms. The best by movement Lifecell positive This performance local demand upon growth QX, Ukraine the by a bottom-line postpaid terms. was With in in operation XX.X% grew net

recorded Turkish Northern pressure handset in and Our of data revenue. on revenue despite Cyprus in back revenue XX.X% of Republic roaming growth continued subsidiary the

on shareholders and era XXnd to for began transactions The slide. Moving our our were among completed A and new that day. Wealth major company Fund the Turkey October. next of increased shared

As Turkey the shareholder Wealth a with result, Fund XX.X% largest its become stake.

have LetterOne three-party our this no are now longer structure. Long-standing XX.X%. simplified has shareholder created by controlling over. the company raised a a Turkcell change, stake in uncertainties dispute its structure. With to We ownership

with Turkcell and - already will this for to value trust consider I subject Looking will its Turkey era that history it company our new support our result to and and our rules at remains this change register foresees Fund Wealth other for in has I remain that great and XX-year milestone. we that Fund. as SOX CMB, add SEC at country wins of Turkcell, must I Wealth regulation. strategy declared this also Turkey Turkcell. Turkcell great

to three in-class ensuring independent members Board We position. have will governance best continue corporate

to our presentation to year sharing slide. I XX%. upwards. the XXXX. revenue to nine-months our of growth margin end Next and margin by to performance XX% year, remainder raise expectation guidance EBIT healthy revise our into and XX% the we XX%, like for Taking would XX%, full consideration to our guidance to for new to XX% of the Accordingly, we our my EBITDA the

over around With this expect we world, the have to to back pandemic an ratio CapEx operational announced register sales glad are the level come the target We bringing XX%. to hit or we of to before floor our owe excellent immersed the team service CFO, offering right leave network. foreseeing best in-class and this the performance We with the well Osman. uncertainties. now a will strategy an I

Osman Yilmaz

Thank Murat. you,

a into look financial let's Now closer take performance. the

Group continued quarter. revenues in performance, portfolio International negative million TRYXXX due Turkcell Turkey, last to rose third subscriber with movements. Our digital the finance consumers of contributing and this facilitating company's billion. interest million channels device to lower and Of from from XX.X% compared derived year-on-year as TRYX.X contribution rose Ukraine revenues increase contributed data higher Turkcell this well corresponding loan as demand by the in momentum on postpaid business strong XX.X%, portfolio remains base currency sales. rise mainly to the our the quarter, solid TRYXXX and to year. Lifecell, lower to corporates, increase, size, in digital displayed a contribution solutions. in business The of performance in incremental both Turkcell use thanks

billion to XX.X%. with Next slide. a margin by EBITDA TRYX.X of rose year-on-year XX.X%

percentage X.X due yearly plus improvement This marked revenues S&M to was margin EBITDA on G&A expenses. Our rise mainly and in lower solid point basis. a

had environment. this and pandemic period the the quarter been case, was the increased Third during a with typically season usage summer high despite

expenses, cost under Moreover, a contribution lower to limited selling expansion. decline had EBITDA this side, doubtful practice receivable supported trade costs have remote margin very continued travel quarter. the our On all lower in overhead the in provision working positive expenses,

million. XX% point collection Our EBITDA negative rise to expectations sales stronger percentage cautious year-on-year strong environment. level. improved to equipment profitability Turkey's was The increase growth in Meanwhile, to corresponding to - to to a X impact TRYXXX margin performance had with incremental margin was Turkcell despite an XX.X%. XX.X% on in COVID profitability the year-on-year

slide. Next

company's Now, strengthening free TRYX more the of this flow, by flow. want detail nearly emphasize you that cash On we generation on finance billion Turkcell's back over can strong have cash of clearly I In slide, flow QX, our to positive expanded second versus years. trend million cash mainly generation. see of registered TRYXXX on EBITDA free quarter. our the portfolio

cash of of Turkcell. So With TRYXXX items TRYXXX the of lease free tax intangible billion. flow not assets and billion, generation acquisition billion, our nine-months billion, amounted is of The change TRYX.X of of flow million, company liabilities the related paid liabilities this billion this, cash in in first performance to with free major assets performance the TRYX portfolio, income and operational EBITDA finance operating of of change TRYX.X cash but TRYX.X includes flow payment of million. TRYX.X negative

to the in is continue aim upcoming free Our flow period. trend cash generation

Next slide.

specifically, TRYXX.X funding year. lower rate of Now finance million cost by a our company. lower year-on-year and XX.X the revenues million. quarter. look last company's shrinking XX.X% EBITDA to on Turkcell let's TL a on risk, take with closer to finance Techfin start lower and portfolio declined EBITDA margin first up portfolio let's back percentage this by at interest was of TRYXXX versus point of In on QX, declined loan XX.X% cost average the and performance

quarters, for stabilize We tablets. earlier increase we start QX grow to million in created seasonality, gradually then education saw and in TRYXXX mid-XXXX with continuance remote to and our expecting pent-up in portfolio were of sales finance an demand in in has particularly by QX. company demand led Coupled afterwards. to QX, communicated to nearly As stronger

portfolio in-class telco that and smartphone going demand currency Successful to the of the mechanism to X.X% widest XX% assessment Turkey. created by decline. with the we given percentage forward improving of the cost Meanwhile, risk on expectation to XX% also X improvements reach observed and collection the were annum financial the drivers with per condition, we Under depreciation. pulled decreased quarterly best increases price on calling by of normal grow We risk forward. point this basis. was data, in performance Integrating main infrastructure expect continued

Next slide.

limit noting monetizing in through three million revenues habits strong rose reaching transaction is doubled, Overall, transactions We in TRYXX company, Paycell we with share Direct by service, volume business last fewer respectively. It the can billing spend card limit cashless Non-group demand million, in times this the for XX% July TRYXX services to XX%, XX% customers margin QX, EBITDA payment card growth June in payment in e-commerce their volume Our mobility rose prolonged - non-group transfer shift is accepted. increased two-thirds revenues limitations were is in Paycell, with of volume in of that, of in consumer to saw Quarterly a and payment their rates order KPIs. with by of transaction nearly also by total. well XX%. ready-to-use favor trans strong that track in launched - cards is TRYXX carrier on to mobile this worth as year. and million Paycell methods. this XX% Paycell Paycell of quarter. line With of with see our credit we revenues to any despite merchant while

As pilot beyond. create launched service this discussed, a and becoming also we widespread Android will in POS, quarter. This have Paycell more in to Paycell with scheme value XXXX in

slide. Next

our balance and from highlights sheet some Now leverage.

the Currency from XX%. led QX, As debt around increased TRYX.X in movements gross billion. position XX% by debt. billion total the at appreciated billion euro TRYXX.X our In the quarter, to end dollar increase TRYXX.X to and by of

As indicated, from we reported not so our net do net appreciates. debt, in derivative FX TRY receivable currency off rise debt as our

As TRYX.X was a net QX, X.X billion time ratio. debt leverage of with

Within the in TRYX.X this TRYX.X billion was debt [TRYX.XX] business, we Techfin the QX, while as net currency in effect was cash billion operations. same quarter. level time from with at generated previous X.X our Excluding rise billion

foreign I currency presentation Next discussing will end management by of my slide. our risk.

as as the to in billion equivalent be X% declined the had of as deem place, practice in debt USDX.X this important With of at in hedging hedging of hand natural as a We with soon tool. from FX XX% share to XX% We cash currency. have QX. hard end

debt. our Our We covering these has hedge FX XXXX into cash maturity contracts, and full XXXX. mainly contracts, flow entered in of related

we strike see good have the to thanks levels So in and exchange if rates to we renegotiate able are timing, we any market. potential favorable

of in This is keep As periods. our USDXX will the position concludes continue the neutral we million our to FX net coming presentation. and position QX,

questions. ready very you to your Thank are take much. Now we

Operator

The Instructions] Please ahead. comes [Operator Cabejsek line question with the Ondrej of go from first UBS.

Cabejsek Ondrej

I questions couple had of a actually.

your call is My first the coming say you just of at and if But were that obviously growth, of was the I - it if thinking, service better growth, revenue if revenues growth at outperformed from I I revenue that and outperformance wholesale on question. So you exactly EBITDA. look I a your other. both was could much wondering look clarify I where so from? bit would

whether your - a I some competition, clarify competitors if And now just Second seems investments of acquisitions is just picking your on coming to there not moving you that through? competition could question because or lastly, you're market, on the new function but in FX your guidance that the please, in is be comment, or was to your saying CapEx, mobile. yesterday wanted XX%. one whether of whether on in to to specifically up

if could COVID. that you. could is say up your clearly, have were again before view So that they acquisition Thank even impacts and on seen before to that in third on have comment - compared subscriber you what going cost you we forward, what quarter on your the would what because

Murat Erkan

very thank or the you question questions. much Ondrej, for

driven Let revenue top-line consumption impact the drop of data backed and in positive revenue. we Turkcell on result and rose performance. Ukrainian impact revenue Turkey's me start declining of particularly business Turkcell channels rates. revenue, as the currency Turkcell growth mainly Equipment and declining finance strong Turkey's subsidiary contribution movements, with This positive mainly revenue sales a contracting projects which was other digital the ARPU due and of by XX% by our with part. XX% to a upsell corporate higher also share larger Meanwhile, postpaid on back This top-line loan portfolio and performance group strong supported well. interest was the efforts. growth had operation International saw of the

We other XXXX, subsidiaries negative revenue also the August stopped sport a as in which our betting had end of the Turkey by impact on well. operation

the our been revenue have sport XX% Excluding and consolidated in growth revenue, finance business QX. betting operation would

question For having without and prioritizing we implement metrics new locations compromising and regarding subscriber revenue coverage CapEx, capacity. selective, generation By on of disciplined quality mean making based terms we management a the investments high in second while selective potentials.

on However, we our as volatility guidance is revised now investment, of around the lira, in which continued higher the of are our end the and face Turkish well our as recent we initial targeting XX%. guidance,

Regarding actually experience focus richer strategy product our on and offering creating initiative competition. competitive environment, to compromise by higher and than different customer our value our We differentiated services.

price, competing offered on customers. value our As focused additional rather than on all we to be

us performance has score to ARPU an registered strategy double implement by price. of nearest also customer the our and strong that value Our customer NPS and is off. performance, addition we inflationary growth inflation competition. X above the quarter, point third enable percentage In paying confirms proposition, Appreciation our our which

we effects the pace well. currency level. be our to effect. ask inflation side, expect the Going the - - some local forward I Actually as for yes, exchange wholesale in side, wholesale a ARPU reasonable Yes, couple we as you on points guess for But have around a also of we have foreign levels. FX far growth the or be inflation, to percentage depending as on of would range minus plus

corporate digital equipment, On equipment the as well. I explain and other sales side, already I believe the

Cabejsek Ondrej

thank If on follow-up I revenues. the you. may one enterprise Yes, short

in it cost to of seem usually well sort low those very big you've by those pretty with So, upfront done strong, margins. But are also of, seems on their the projects nature, margin. sort larger come meaning very usually, but be

example, helpful? nature they, bit about you. nature So any the these? that by Are can Thank a just be talk high of a clouds you or comments on margin better for would

Murat Erkan

the are IoT mean that are already focusing areas, cloud corporate I - security, type said for higher going and actually we which business, we initially, that business. we to profitable of market

solution and a project So all cloud sites for are after, them well. of into data, hospital has part But the as yes, we of healthcare are instance, business. entering we other and going

focusing profitable as the I well. of much we on So segment then very and think are enterprise segment side enterprise

Cabejsek Ondrej

the again I the for the coming you clarify please apologize, quarter. third everyone cost terms of jumped quite asked to acquisition period? I on subscriber the outlook in that those up have the seem earlier, just What they in in a line. bit Can is

Murat Erkan

acquisition honest, with quarter, subscriber acquisition, rose XX% driver of customer are These be cost. increased main behind the acquisition increased normalization while third the To previous compared mobile customer and Yes. quarter to our the XX%. fixed

Operator

Please from ahead. comes question Dilya the of next with Ibragimova line go Citi. The

Ibragimova Dilya

had theme couple similar of on a I Ondrej where the questions was.

First, sales. maybe device looking the at

but and on revenue. pricing - to liquid just driven - mobile margin driven sales of there coming a So margin bit looks relatively the is has in if if I then like much been to wanted please. prepaid. much service segment, from maybe strong share driven I'm quite there that by that's are just, has how And breakdown Can you through looking have as in - home. revenue home are if positive a attributable just my improving? at that July. service or data the is increase, I'm And that question of growth gross consumer ask the by device by that year-on-year, working June, looking higher whether how - on dilution. is check have from at maybe or is there whether also, of margin is July the And especially at very corporate sales It I second you Thanks. those put of maybe studying equipment consumption of

Murat Erkan

very much, Okay, thank Dilya. you

device sales mainly related we ageism of that First revenues revenues. revenue regarding and our not are adjacent device which we sake increase. the the of - well, just margin, has Every selling are all, gross the sales to device as of doing are profitable impact so customer

But device, in stickiness in - it opportunities the devices increase X% standalone well. look enterprise brings especially and at like next create and to you customer new these to markets higher the revenue If margin, as level. also the it's X% profitable between

ARPU as the and data prepaid quarter churns will offering to we sales growth, the that implement in capabilities. approach the For by analytical price gap and Yes, the postpaid. growth reduce third as prepaid we Moreover, the in a follow price increase the to proactive bundle between price of to well packages beginning hike offers aiming segment prepaid at in equipment prevent using segment be exclusive customized resulted solid This the with you our quarter. triggered possible it in adjustment asked was share, actually third XX%. prepaid ARPU in for

Ibragimova Dilya

So device it's sales XX% or... all of

Osman Yilmaz

revenue. Corporate

Murat Erkan

For the corporate revenue.

Operator

next The Cemal Instructions] ATA the Please Demirtas of [Operator with ahead. line question comes from Invest. go

Demirtas Cemal

is about My expectations? for your prospects about what Could in outlook? change Any XXXX? the give trend you question XXXX. Roughly, are Thank the the any indication significant you. for

Murat Erkan

Cemal, very much. thank you

think to little prospect it the to in now, be environment. might especially bit it - difficult, I from be able COVID is

be the in some revenue roaming roamings come are will the COVID for revenue see even same earlier, on goes there we back because COVID the now, rely the if So instance, the may - revenue higher. on situation rely level,

as on we the So working It guidance working are in are easy not for believe quarter by way, but results. we hard fourth is today, of But prospects. soon me, we prospect on XXXX days. XXXX will with provide job these February the on, heavily

Operator

the Please We follow-up Ibragimova with a have go Citi. Dilya line ahead. question from of

Ibragimova Dilya

to opportunity the for much three if very you ask off to and actually, I follow-up. have pull I may. Thank

cost because and commercial have Do - lower - lower that understand specifically. you is if First marketing. the the of structure been for this I of activity, or margin example, on may cost sales quarter some maybe

rate think quarter? roaming question question if in open Turkish the which XX% third would that was buy rush just tends that is we sales sales to that guidance are it quarter of inflation? roaming. - - there quarter, growth being your equipment have fourth your were - you some been top-line in seems on been do Thanks. outlook, conservative the conservative? - you or Is implies mentioned the where any considering be have is my far. stronger So as moved you which on cautious we your in as EBITDA the it before market revenue seen forward And as Is so are that have you device device people just this second guidance, Is revenue have run in to if And normal, then? being XX%, and

Murat Erkan

much. very you Thank

the this with increased Let It the side. summer me And third the season during pandemic this the is I the environment. historically and telecom Turkey. is like case in margin period due this. to was usage for despite high mean, start quarter market was

side, the margin. lower our the in this provision supported limited cost working continued EBITDA very to have contribution the quarter trade a well. remote On under in practice lower travel all selling doubtful decline costs expenses, overhead expenses, receivable had as positive Moreover,

is believe Our despite to we between environment. We XX%. cautious collection COVID which year, expectation within will range performance was strong in that be our guidance for XX% full the

that focus Turkcell. on well. believe of selling positive believe leads in to can a normalization we the this know, sustain share saving The a side. subscriber period. the acquisition and We digital channel had saving pandemic in on for you increasing The even is permanent trend selling environment digital we area sales impact the as As become channel this and expenses

marketing marketing of back normal, would On back bounce get cancel postpone or the This to expense side, to due we levels will part to I when either say. pandemic. normal things

as XX% year-over-year. roaming quarter, pipeline in the our I Turkey decreased for this revenue indicate guidance, For by that, sorry, revenue the roaming

get it year. So last roam still dramatically part obviously - but decreased versus revenue, roaming some we

XX%. believe we to guidance. year, achievement I hit But this will believe XX% was guidance, top-line to reasonable to the try top-line - can do the fourth I we is pipeline top think the increased because quarter also last higher this. quarter, I For end and quite of strong we

the buy buying also, As I might terminal the the the as you the to changed. equipment the increase we lira, said expect equipment, customer third believe reduce and the in will to price this the increase well. people Turkish, of terminal that - foreign currency, Turkish quarter, this be rush side And in so in terminal was

Ibragimova Dilya

you. Thank

Murat Erkan

is it X% is, Just it's In Turkcell such so one has an more of it regarding revenue, Turkey addition revenue. total, impact. roaming

Ibragimova Dilya

sorry, Turkcell the roaming just Turkey... quarter to of X% confirm, total was revenue I'm this

Murat Erkan

No, no.

X% decreased Sorry, just roaming quarter, of me. let around this is it historically revenues to revenue. - But sorry, Turkey

same, Okay, third it's for Turkcell quarter. - the in this the quarter, this X% revenue, Turkey is it revenue, roaming is of the

Operator

UBS. follow-up [Operator you Ondrej ahead. Cabejsek from Instructions] the go We a Mr. can Please us? line with hear of Cabejsek, have question

Cabejsek Ondrej

wanted Oh, - the business. on was apologies, ask question a finance to consumer I I mute. on have

sort to bottomed ago. expecting it So has but book loan it's reach year out, of it about that's were a bottomed of clearly out believe the I of - quite sort you what below

So or is Can again was to for made that happen? for I you Thank relating that the example, please? devices marginality wanted whether or to situation, on focus whether comment natural that profits something that on on ask you. your simply COVID example intentional,

Murat Erkan

Yes.

all, regulation at - the - number of beginning in our the changed the the in year, device is of business. for of installment installment First Turkey, the

So of six it range. than three TRYXXX reduced installment - price for towards the TRYX,XXX installment range and lower

top-line the it this The main of credited impacted due So, to reason intentionally, - customer. business - our to it's is this and number of finance device not regulation.

Cabejsek Ondrej

revenues you in now of sort in this confirm in and you we've despite where book? that, of should annualized the can this like Okay. said, with the come But we today, happening year, so sort growth, line earlier or base loan it's that are the from

Murat Erkan

year, we can portfolio mid see basis. of going we are annual we to and obviously recovering, forward but the growth XX% sit expect that XX% on to the - down now Yes, like

Cabejsek Ondrej

follow-up more one And please.

be would postpaid services said - I market, understood prepaid more be correctly, pricing, making converge prepaid Because on to you are you to if the ARPUs your you sort that strategy is X your logically medium-term that target would expensive. prepaid of the one? that be is also per of year. to going confident On adding one mid million follow - How to market you the

So, not are market share segment? this you losses of scared in

Murat Erkan

customer because To for the us. more is to and so than which close more be like ARPU postpaid rather move that between environment environment postpaid the honest, like and prepaid would we would gap steepness more to sustainable, - to prepaid pricing

the is during case, So think. job intentional we're This I this that actually. year, is the doing,

I to obviously to acquire we we like as see think, million we impact, mobile can environment target. and the - the to come get more This X lines. the foreigner impact to didn't as for but acquisitions COVID As we customer target, much has Turkey side. X million Mainly, would

Cabejsek Ondrej

in if no maybe much. follow-up thank TV, the one one there And please. Okay, else is very on line you

of TV competitor more in is yesterday announced your side Turkcell? content, potential run any the from reaction TV suite business a you at how Your terms or new services of reaction with there

Murat Erkan

strong our Yes, quite side. and on growth the also business TV quite year-over-year positive is so is our

announced OTT the competition Ready, using - the I content broadband For know Actually, the things one bucks. download infrastructure but what announced, in Turkcell richest - which can by new that competition of TV+. is we we attract didn't like means TV+

this side. think, So on achievements is our also, I important of the one

anyway. our the content. but content the side, of in I competition So, don't have TV the we Turkish believe we have for - have believe are probably, doesn't I content rise, richest Obviously, Turkey leak terms we local in

Operator

the time. and there turn at over this management no Thank Ladies I gentlemen, will comments. further any Turkcell for are to closing now you. conference questions

Murat Erkan

our call. to nice you very time for taking call. the Thank weekend. a end of this Have all participate much. in you Thank Okay, is our

Operator

and has disconnect gentlemen, you for and Thank a conference may the concluded, calling pleasant you your have now and evening. Ladies phone.

Turkcell Iletisim Hizmetleri A.S. (TKC) 8 Nov 202020 Q3 Earnings call transcript