Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) Q1 2023 Earnings Conference Call May 9, 2023 1:00 PM ET

Company Participants

Ali Serdar Yağcı - Investor Relations & Corporate Finance Director

Murat Erkan - Chief Executive Officer

Kamil Kalyon - Acting Chief Financial Officer

Conference Call Participants

Kennedy-Good Jonathan - JPMorgan

Mandaci Ece - Unlu Securities

Demirtas Cermal - Ata Invest

Operator

Ladies and gentlemen, thank you for standing by. I am Gaily your Chorus Call operator. Welcome and thank you for joining the Turkcell's conference call and live webcast to present and discuss the Turkcell First Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode and the conference is being recorded. There will be a presentation, followed by a question-and-answer session. [Operator Instructions]

At this time, I would like to turn the conference over to Mr. Ali Serdar Yağcı, Investor Relations and Corporate Finance Director. Mr. Yağcı you may now proceed.

Ali Serdar Yağcı

Thank you Gaily. Hello everyone. Welcome to Turkcell's first quarter 2023 results call. Today our CEO, Mr. Murat Erkan; and Acting CFO, Mr. Kamil Kalyon will be delivering a brief presentation on operational and financial results. And afterwards we will be doing Q&A.

Before we start, I would like to kindly remind you to read our safe harbor statement, which is placed at the end of the presentation.

Now I'm handing over to Mr. Erkan.

Murat Erkan

Thank you, Ali Yağcı. Good morning and good afternoon everyone. Thank you for joining us. We have been healing the warmth of the recent earthquake, which happened to be one of the worst disaster of our history. We have taken certain actions to make sure people do seamlessly communicate in the region.

Turkcell also remains committed to support the local community through projects that aim to increase employment and we will also make our digital channel available for local producers and suppliers.

Moving onto Q1 highlights. Our revenue growth continued to accelerate from 37% of Q1 2023 and reached to a remarkable 61.5%. Thanks to the expanding subscriber base and increasing ARPU despite the negative impact of the earthquake during the half of the quarters. Excluding the earthquake impact, the growth would have been around 65%.

The strategic focus area mainly digital business services and technical segments also supported top line growth with a strong performance. We are happy to see our mobile ARPU growth, which achieved 68%, exceeding the headline inflation as we reap the benefits of sequential price increase we began at the end of 2021.