Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) Q3 2022 Earnings Conference Call November 3, 2022 12:30 PM ET

Company Participants

Ali Serdar Yağcı - Investor Relations & Corporate Finance Director

Murat Erkan - Chief Executive Officer

Osman Yilmaz - Chief Financial Officer

Conference Call Participants

Kennedy-Good Jonathan - JPMorgan

Nagy Nora - Erste Group

Demirak Kayahan - AK Investment

Operator

Ladies and gentlemen, thank you for standing by. I'm Mina, your Chorus Call operator. Welcome and thank you for joining the Turkcell's Conference Call and Live Webcast to present and discuss the Turkcell Third Quarter 2022 Financial Results Conference Call.

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

Ali Serdar Yağcı

Thank you very much, Mina. Hello, everyone. Welcome to Turkcell's third quarter 2022 results call. Today speakers are; our CEO, Mr. Murat Erkan; and our CFO, Mr. Osman Yilmaz. We have a brief presentation and afterwards we will be taking your questions.

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

Now, I hand over to Mr. Erkan.

Murat Erkan

Thank you, Serdar. Good morning and good afternoon, everyone. Welcome to Turkcell's third quarter earnings call and thank you for joining us. We left behind another quarter where macroeconomic challenges continued to weight on the economic activity around the world. While inflation remains to be a major concern, especially in Turkey, domestic demand was still strong as rising prices prop up consumer spending.

We recorded 57% revenue growth in the third quarter, enabled by consecutive price adjustment and upsell performance coupled with a growing subscriber base. Strong rebound in roaming, ongoing momentum in digital business services and techfin, also positive contribution from international operations supported top line growth.

Amidst continuing inflationary pressures on, EBITDA grew by 49% year-on-year implying just short of 41% margin. On the back of growing EBITDA and proactive FX management, we recorded a net income of TRY 2.4 billion, increasing 68% year-on-year.

Higher mobility and strong tourism activity enabled us to accelerate the growth in the subscriber base with one million net additions. In the first nine months, we gained a total of 2.2 million net subscribers, further strengthening our leadership in the market.

Lastly, this quarter with a focused approach, the revenue share of digital channels in the consumer sales achieved 23% and setting a record. In consideration of these results, we further increased our full year guidance, which I will elaborate on my last slide.