Türk Telekomünikasyon (TTKOM) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue rose to TL 33.0 billion, up 4% year-over-year, with EBITDA growing 22% to TL 12.8 billion and margin expanding by 550 bps to 38.8%.

• Net income reached TL 1.4 billion in Q2 2024, reversing a loss in Q2 2023, and H1 2024 net profit was TL 2.55 billion.

• Subscriber base totaled 52.6 million, with record postpaid mobile net adds and fixed broadband base stable at 15.2 million.

• Free cash flow in Q2 2024 was TL 3.2 billion, and H1 2024 free cash flow was TL 5.2 billion.

• Management remains confident in full-year targets, supported by concession renewal progress and sector rationalization.

Financial highlights

• H1 2024 revenue was TL 63.2 billion, up 5% year-over-year; Q2 revenue was TL 33.0 billion, up 4% year-over-year.

• EBITDA for H1 2024 was TL 23.9 billion, up 22% year-over-year, with Q2 margin at 38.8%.

• Net income for Q2 was TL 1.4 billion; H1 net profit reached TL 2.5 billion, reversing a loss last year.

• CapEx for Q2 was TL 7.1 billion, up 7% year-over-year; H1 CapEx was TL 12.0 billion, down 7% year-over-year.

• Net debt to EBITDA improved to 1.08x in Q2 2024.

Outlook and guidance

• Full-year revenue growth guidance of 11%-13% maintained, with H2 expected to deliver double-digit growth.

• EBITDA margin guidance remains at 36%-38%, with performance expected near the high end.

• CapEx intensity guidance unchanged at 27%-28%, with spending to accelerate in H2.

• Dividend payout decisions will be made closer to year-end, considering margin, financial expenses, and investment needs.

• Management expects continued recovery in profitability, supported by cost controls and improved operating leverage.