Turk Telekom Group Announces 2013 Second Quarter Financial Results
Turk Telekom’s fiber has boosted - Fiber customer base increased 31% in the second quarter compared to the firstTurk Telekom Group, Turkey’s leading communications and convergence technologies group, announced 2013 second quarter financial and operational results. Group revenues grew 6% compared to the second quarter of last year and reached TL 3.4 billion.Fiber investments made an impact; fiber customer base increased 31% in the second quarter compared to the first quarter.
Turk Telekom’s fiber has boosted - Fiber customer base increased 31% in the second quarter compared to the first
Turk Telekom Group, Turkey’s leading communications and convergence technologies group, announced 2013 second quarter financial and operational results. Group revenues grew 6% compared to the second quarter of last year and reached TL 3.4 billion.
Fiber investments made an impact; fiber customer base increased 31% in the second quarter compared to the first quarter.
Turk Telekom Group CEO Hakam Kanafani’s comments on 2013 second quarter results:
Turk Telekom Group continued its solid operational and financial performance in the second quarter of 2013 reaching TRY 3.4bn revenues and TRY 1.3bn EBITDA. Continued growth in broadband and mobile businesses enabled us to record 6% year over year consolidated revenue growth in the quarter.
Enhancing our relationships with our corporate customers we are providing higher speed with new offers and solutions. Our enhanced cloud services procure efficiency and improve performance of our corporate customers.
In broadband, our revenues grew by 9% year over year. Despite the seasonally challenging second quarter, utilizing our new package offers and device campaigns, we realized 34 thousand net additions in broadband in the second quarter excluding the Lokum phase-out effect.
Fiber fuelled upsell trend continued in this quarter. Our fiber subscriber base increased 31% in the second quarter and reached 361 thousand. Share of unlimited packages in our retail arm, TTNET’s broadband subscribers reached new highs with average monthly data usage of 33 GB, proving the sustained, solid appetite for higher data consumption and more speed in our market.
Our 360 degree vision in broadband entails an offering of comprehensive digital world including IPTV, music, books, applications and cloud computing in addition to best in class internet services. This vision will help us be instrumental in the market’s march toward broadband penetration levels seen in the developed world.
On the mobile front, Avea continued its double digit top line year over year growth with 17%. Mobile subscribers reached 13.9 million with net 161 thousand subscriber gains in the second quarter.
Mobile data continued to be a growth driver for Avea with the positive impact of smartphone penetration which reached 30%. Avea’s smartphone penetration, which is the highest in the market enabled us to capitalize more on the mobile data growth.
Building on the success of our BIMCELL offer, we launched POCELL where we cooperate with successful distribution channel owners and reach micro segments with our quality services. Today in the market Avea has over 20 branded enhanced resellers such as KARTALCELL, Fenercell, GSMobile & TrabzonCell.
Turk Telekom is again ranked as the most valuable brand in Turkey by Brand Finance for the fifth consecutive year in 2013. We thank our shareholders, customers, business partners, and our fantastic employees who all have contributed to this success.
Financial Highlights
Turk Telekom Group | 2012 Q2 | 2013 Q1 | 2013 Q2 | QoQ Change | YoY Change |
TL in Millions | |||||
Revenue | 3,182 | 3,143 | 3,359 | 6.9% | 5.5% |
Net Operating Expenses excluding Depreciation and Amortization | (1,910) | (1,992) | (2,107) | 5.8% | 10.3% |
Operating Profit before Depreciation and Amortization (EBITDA) | 1,273 | 1,151 | 1,252 | 8.7% | (1.6%) |
Depreciation and Amortization | (433) | (440) | (441) | 0.4% | 1.9% |
Operating Profit | 840 | 712 | 811 | 13.9% | (3.4%) |
Net Financial Income/ (Expense) | (21) | (34) | (445) | NM | NM |
Taxes | (199) | (161) | (96) | (40.2%) | (51.7%) |
Net Profit Before Minority Interest | 620 | 517 | 270 | (47.8%) | (56.5%) |
Net Profit After Minority Interest | 630 | 526 | 280 | (46.8%) | (55.5%) |
Capital Expenditure | 656 | 254 | 471 | 85.2% | (28.2%) |
About Turk Telekom Group
Turk Telekom Group, the leading communication and convergence technology group in Turkey, provides integrated telecommunication services from PSTN and GSM to broadband internet. As of June 30, 2013; Turk Telekom Group companies have 13.9 mn Fixed Access Lines, 7.1 mn Broadband Connections and 13.9 mn Mobile Subscribers. Group companies have a modern network infrastructure covering the whole country and offer a wide variety of services to residential and commercial customers all over Turkey. Apart from 90 % shares in Avea, one of the three GSM operators in Turkey, Turk Telekom owns 100% of broadband provider TTNET, convergence technologies company Argela, IT solutions provider Innova, online education company Sebit, call center company AssisTT and wholesale data and capacity service provider company Turk Telekom International AT AG and its subsidiaries. Turk Telekom also has an indirect minority share in Albtelecom, the Albanian incumbent telecom operator. Turk Telekom shares are listed in Istanbul Stock Exchange since May 2008.
DISCLAIMER
This release includes forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, certain statements regarding 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, "may", "will", "expect", "intend", “plan”, "estimate", "anticipate", "believe" or "continue".
Although the Company 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. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Turk Telekom Group Consolidated Financial Statements are available on http://www.ttinvestorrelations.com/financial-operational-information/financial-statements.aspx