Citing inflation and other macroeconomic and societal pressure, Türk Telekom Group reported a balanced financial performance in the second quarter, with consolidated revenues increasing by 31.2% YoY to TL 10.7 billion. EBITDA rose to TL 4.4 billion with an EBITDA margin of 41.0%. Net income of TL 1.4 billion grew by 9.4% YoY. Net Debt/EBITDA increased to 1.54x from the previous quarter as the upward trend in FX rates continued.
Türk Telekom CEO Ümit Önal said: “Q2’22 has clearly demonstrated a fresh set of adversities. Inflation has proven to be an even bigger problem to tackle with for individuals, corporates, governments and central banks alike across the globe. Consumers were highly challenged by the pricing environment in general which has dictated more scrutiny on typical baskets. In this backdrop, we implemented our plans to weather the storm with highest focus on mitigating risks while generating healthy growth on a sustainable basis. Managing our subscriber base was an uneasy task but our steadfast priority for quality services, customer experience and value maximisation has lent great support to our satisfying operational and financial performance. The second half of 2022 will continue to be tough, we think. Therefore, we maintain caution and keep ourselves fit to remain resilient and financially sound.”
2nd Quarter 2022 Operational Highlights
- Total number of Türk Telekom subscribers remained flat at 52.2 mn with 53K net subscriber additions in Q2’22. The increase in fixed broadband and mobile bases was largely offset by the decline in fixed voice. Net subscriber additions were 1.5 mn during the last twelve months.
- Fixed broadband subscribers inched up to 14.6 mn with slower quarterly net additions of 87K amid normalisation and price revisions. Broadband ARPU growth of 19.1% YoY was visibly higher compared to both Q1’22 and Q2’21 levels.
- Fibre subscribers reached 10.7 mn with 387K quarterly net additions. The number of FTTC subscribers reached 7.6 mn, while the number of FTTH/B subscribers increased to 3.1 mn. The share of fibre subscribers in our fixed broadband base increased to 73.5% from 58.5% a year ago.
- Fibre cable network length increased to 381K km as of Q2’22 from 372K km as of Q1’22 and 345K km as of Q2’21. Fibre network covers 30.8 mn households as of Q2’22 compared to 30.6 mn as of Q1’22, reflecting the continued focus on fibre rollouts. FTTC homepass made it to 21.4 mn while FTTH/B homepass increased to 9.4 mn.
- Mobile subscriber portfolio reached 24.6 mn with 246K of net additions during the quarter.
- Postpaid segment grew by 338K while prepaid contracted by 92K.
- Share of LTE subscribers3 in mobile subscriber base increased to 69% in Q2’22 from 62% in Q2’21. Average monthly data usage per LTE user increased by 20.6% to 11.5GB in Q2’22 from 9.5GB in Q2’21.
- Number of fixed voice subscribers declined by 264K during the quarter in line with the strategy focusing on naked-DSL sales in new acquisitions, rather than WLR. Including nDSL, the number of total fixed access lines increased to 17.1 mn.
- In Q2’22, the number of TV Home subscribers remained flat QoQ at 1.5 mn.