Turkcell Iletisim Hizmetleri A.s. · BIST:TCELL
Turkcell Iletisim Hizmetleri A.s — Turkcell — Q1 2016 Earnings Presentation
23 slides from Turkcell Iletisim Hizmetleri A.s's earnings presentation, Apr 28, 2016
Slide 1: Turkcell First Quarter of 2016
Turkcell | First Quarter of 2016 TURKCELL FIRST QUARTER OF 2016 April 28, 2016 1
Slide 2: Notice
Turkcell | First Quarter of 2016 NOTICE This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially due to factors discussed in t
Slide 3: Business Overview
Turkcell | First Quarter of 2016 BUSINESS OVERVIEW Kaan Terzioğlu Turkcell CEO 3
Slide 4: Financial Highlights
Turkcell | First Quarter of 2016 Financial Highlights Group CONSOLIDATED Growth TRY MILLION1 Q1 2015 Q1 2016 YoY % Revenue 2,978 3,225 8.3% EBITDA 927 1,002 8.1% EBITDA Margin 31.1% 31.1% - Net Income-Proforma2 473 544 15.1% Net Income-IFRS 141 563 298.8% Record first quarter revenue & EBITDA 1 TRY
Slide 5: Financial Highlights and Guidance
Turkcell | First Quarter of 2016 Financial Highlights TRY MILLION1 TURKCELL GROUP GUIDANCE TURKEY Q116 YoY Q116 YoY Turkey 8-10% REVENUE 2,928 10.0% 3,225 8.3% Group 8-10% EBITDA 916 10.6% 1,002 8.1% 31%-33% Margin EBITDA MARGIN 31.3% 0.2pp 31.1% - NET INCOME-PROFORMA2 538 11.4% 544 15.1% - OPERATIO
Slide 6: Turkey: Double Digit Growth Continued
Turkcell | First Quarter of 2016 Turkcell Turkey: Double Digit Growth Continued Turkcell Turkey (TRY Million) Consumer 31.3% 31.1% 31.3% 80% 10.0% YoY 2,928 2,662 Corporate 2,442 10.0% 18% 8.7% YoY YoY Wholesale 765 828 916 10.6% 3% 13.9% YoY YoY Q114 Q115 Q116 % in Turkcell Q116 Revenue Turkey Grow
Slide 7: Turkey: Strong Data & Services Growth
Turkcell | First Quarter of 2016 Turkcell Turkey: Strong Data & Services Growth Revenue Breakdown Data & Services Revenues YoY As of Q116 TRY Million 1,229 31.1% 1,117 1,147 Consumer & Corporate 997 226 57.2% 937 177 179 159 240 28.4% Data & Services 42% 31.1% 144 213 228 187 200 Voice 48% 4.1% SMS
Slide 8: Continued Focus on Value
Turkcell | First Quarter of 2016 Continued Focus on Value Mobile (million) Fixed (thousand) TV (thousand) Smartphone (million) 34.3 33.3 1,582 55% 45% 50% 1,272 42% 268 16.6 15.5 16.7 935 13.2 776 99 Q115 Q116 Q115 Q116 Q115 Q116 Q115 Q116 Total Postpaid Total Fiber IPTV Number Penetration Postpaid
Slide 9: Increasing Multi-play
Turkcell | First Quarter of 2016 Increasing Multi-play Mobile Fiber Residential Subscriber Breakdown* Subscriber Breakdown** 47% 29% Single Play Single Play Double Play Double Play 30% 36% Triple Play Multi-play with TV 17% 42% ARPU (TRY) Q116 YoY Growth ARPU (TRY) Q116 YoY Growth Mobile Blended 24.
Slide 10: First Real Converged Offers
Turkcell | First Quarter of 2016 First Real Converged Offers 5GB 5GB 5GB ∞ 5GB 1GB Single Invoice One and only in Turkey 15 GB Mobile internet Integrated Call Center 10 Single call center & My Account app GB 6 GB 4 GB Uninterrupted Connection 4.5GB mobile internet until XDSL 1000 MIN 500 MIN install
Slide 11: Continued Focus on Strategic Services
Turkcell | First Quarter of 2016 Continued Focus on Strategic Services "All-Access" "All-Access" "All-Access" "All-Access" "All-Access" in Q2 INSTANT MESSAGING MUSIC PERSONAL CLOUD SPORTS TURKCELL TV+ 7.5M download 5.7M download 2.6M download 2.1M download ~700K subscribers As of April As of April A
Slide 12: New Era Starts with 4.5G
Turkcell | First Quarter of 2016 New Era Starts with 4.5G Highest Capacity & Speed Best Experience • Largest frequency • Rich product & service portfolio 42% • 375 Mbps speed at launch • Highest data packages (up to 50GB) smartphones are • >70% population coverage • «10 principles» for customer 4.5G
Slide 13: International: Returned to Growth & Profitability
Turkcell | First Quarter of 2016 Turkcell International: Returned to Growth & Profitability UKRAINE Turkcell International (TRY Million) Q115 Q215 Q315 Q415 Q116 6.9% 31.4% 65% in UAH Revenue 193 205 235 224 197 EBITDA Margin 27.5% 27.2% 29.6% 30.2% 27.2% BELARUS 109 2.1% Net Income 4 58 11 30.7% 1.
Slide 14: Financial Overview
Turkcell | First Quarter of 2016 FINANCIAL OVERVIEW Murat D. Erden Turkcell CFO NOTICE: Please note that all financial data are consolidated whereas non-financial data are unconsolidated unless otherwise specified. All non-financial data are unconsolidated, prepared in accordance with IFRS and expre
Slide 15: Group: Revenue & EBITDA Development
Turkcell | First Quarter of 2016 Turkcell Group: Revenue & EBITDA Development REVENUE EBITDA TRY MILLION TRY MILLION 4 (22) 3,225 (129) 265 247 (38) (5) 1,002 927 2,978 8.3% 8.1% Revenue Δ in Turkcell Δ in Turkcell Δ in Other Revenue EBITDA Δ in Δ in Direct Δ in G&A Δ in S&M EBITDA Q115 Turkey Inter
Slide 16: Group: Net Income Development
Turkcell | First Quarter of 2016 Turkcell Group: Net Income Development TRY MILLION ∆ in non-controlling interest (295) ∆ in other inc/exp 43 91 (253) ∆ in EBITDA 75 ∆ in D&A (61) 693 563 14 (43) 141 (80) Q115 Δ in EBIT Δ in Interest Δ in Equity in Δ in FX Δ in Taxation Δ in Other Inc/Exp. Q116 Inc.
Slide 17: Group: Balance Sheet Highlights
Turkcell | First Quarter of 2016 Turkcell Group: Balance Sheet Highlights SUMMARY BALANCE SHEET TRY MILLION Q1 2015 Q4 2015 Q1 2016 Total Cash 8,174 2,919 2,522 Total Assets 23,978 26,207 26,175 Total Debt 4,127 4,214 4,028 Net Debt/(Cash) (4,046) 1,295 1,506 Total Equity 12,927 14,419 14,902 CASH D
Slide 18: Debt Breakdown
Turkcell | First Quarter of 2016 Debt Breakdown NET DEBT/EBITDA Q1 2015 Q1 2016 1,295 1,506 14% 19% 0.4x 0.3x TRY 4,127 TRY 4,028 mn mn (5,334) 86% 81% Foreign Currency Local Currency Foreign Currency Local Currency (1.4x) 2014 2015 Q116 Turkcell Turkey 54% 46% 90% 10% Net Debt (TRY mn) lifecell 94%
Slide 19: Thank You
Turkcell | First Quarter of 2016 THANK YOU For further information please e-mail investor.relations@turkcell.com.tr or call Turkcell Investor Relations at (+90 212 313 1888) Have you updated Turkcell IR app? For Android For iOS 19
Slide 20: Appendix
Turkcell | First Quarter of 2016 APPENDIX 20
Slide 21: Summary Income Statement As Per CMB Financials
Turkcell | First Quarter of 2016 Summary Income Statement As Per CMB1 Financials (TRY MILLION) Summary income statement Q1 2015 Q4 2015 Q1 2016 YoY (%) QoQ (%) Revenue 2,978 3,335 3,225 8% (3%) Direct Cost of Revenues2 1,828 (2,054) (2,018) 10% (2%) S&M (476) (493) (481) 1% (2%) G&A (141) (166) (179
Slide 22: Consolidated Balance Sheet
Turkcell | First Quarter of 2016 Consolidated Balance Sheet (TRY MILLION) Consolidated Balance Sheet 1Q 2015 4Q 2015 1Q 2016 YoY (%) QoQ (%) Cash & Bank 8,174 2,919 2,522 (69%) (14%) CURRENT ASSETS 13,363 8,795 8,645 (35%) (2%) Fixed Assets, Net 8,564 15,104 15,272 78% 1% Other Long Term Assets 2,05
Slide 23: Currency Trends
Turkcell | First Quarter of 2016 Currency Trends Average Period-End USD / TRY EUR / TRY 2.91 2.83 2.82 3.18 3.21 2.13 2.32 2.94 2.92 2.90 3.02 3.22 2.73 2.54 1.91 2.19 2013 2014 2015 1Q16 2013 2014 2015 1Q16 USD / BYR USD / UAH 24.00 26.22 18,569 20,133 15.77 9,510 11,850 25.77 20,552 7.99 21.79 8,8