Bringing its consolidated revenue to TL 9.5 billion in the first quarter of 2022, with a year-on-year increase of 24.8%, Türk Telekom maintained its strong financial and operational performance. The EBITDA of Türk Telekom, which made a net profit of 561 million TL in the first 3 months of this year, increased by 8.2% on an annual basis and became 4.1 billion TL.
Türk Telekom announced its financial and operational results for the first quarter of 2022. The company’s consolidated revenue increased by 24.8% year-on-year and reached TL 9.5 billion. Türk Telekom’s EBITDA (Earnings Before Interest, Depreciation and Tax) increased by 8.2% year on year with an EBITDA margin of 43.5% to TL 4.1 billion, and net profit in the first quarter was 561 million TL. In the first quarter of 2022, the total number of subscribers of the company, which invested TL 1.5 billion, reached 52.2 million. Bringing the number of fixed broadband subscribers to 14.5 million, the number of fiber subscribers exceeded 10.3 million. The share of fiber subscribers in the company’s fixed broadband base increased from 53.8% to 71.2% compared to the first quarter of last year. In the first quarter of 2022, the length of the company’s fiber network increased to 372,000 kilometers and its domestic fiber coverage reached 30.6 million.
Türk Telekom CEO Ümit Önal recalled that TVF (Turkey Wealth Fund) is the majority shareholder of the company in the first quarter of the year, and said: “We will carry out work that will support operational and financial performance. of our society in the coming period. By contributing to our sustainable growth by global standards, we will improve our investment profile and continue to focus on opportunities with determination. Our solid base, our ability to adapt nimbly to new conditions and our passion for technological progress; It enables our customers, our society and all our stakeholders to implement our strategies effectively and successfully.
Önal also pointed out that, in line with their commitment to creating value for their shareholders, it was decided at the General Meeting to pay TL 4.95 billion in cash dividends to shareholders starting April 28.
A GOOD START FOR 2022
Noting that the ever-changing digitization, speed and data needs with the pandemic has provided the opportunity to offer the best combination of price and upsell (package upgrade) to its customers, Ümit Önal said: “We have started 2022 well with results that meet our expectations. Both operational performance and net income; Our first quarter exceeded our budget, thanks to our quickly adapted measures and our timely actions regarding the management of revenues, costs and foreign exchange risk. Building on our strengths, our knowledge and our effective human resources, we will continue to focus on the opportunities that arise during crises. We are determined to strengthen our ecosystem in order to lead Turkey’s digitalization, to be a pioneer in 5G technologies and beyond, and to support high value-added initiatives in the field of technology.
Stating that they run the fixed broadband business in a balanced way, Önal said their strong re-engagement performance in the first quarter was a remarkable success, highlighting their significant differences from the competition. Önal said: “Fixed Internet demand has remained stable despite the macroeconomic environment and price revisions. We ended the quarter with 151,000 net subscriber acquisitions, bringing the total number of subscribers to 14.5 million. Packages of 24 Mbps and above accounted for 55.6% of new sales.
Emphasizing that as Turkey’s fiber optic energy hub, they are determined to further expand fiber optic networks covering 81 provinces to provide access to technology for all segments, Önal said, “At the end of the first quarter, we have developed our fiber optic network by 22.3% since the end of 2019. We have increased it to 372,000 kilometres. We have increased the number of households covered from 30.2 million at the end of 2021 to 30.6 million. Our total fiber subscribers reached 10.3 million, with an increase of 17.4 points over the previous year and an increase of 34.2 points since the end of 2019, representing 71.2% of our total subscriber base.
ACCELERATED PERFORMANCE ON MOBILE
Highlighting that in the first quarter of 2022, the prepaid and postpaid segments performed better than expected with a total of 334,000 net subscriber acquisitions, Önal said: “While the increase in the number of subscribers was mainly Due to 300,000 new postpaid subscribers, prepaid subscriber acquisition was 35,000. Our mobile base’s postpaid subscription rate reached its highest level at 65.3%. Our Prime subscriber base reached 5.2 million subscribers with an annual growth of 48.7%. The success of our mobile strategy around the transition to postpaid and premium tariffs has resulted in a balanced growth in the number of subscribers and ARPU (average revenue per subscriber). Driven by our efficient pricing strategy and segment-driven offerings, compounded annual ARPU growth was recorded at 17.5%, up 3.5 percentage points quarter over quarter . Postpaid ARPU increased 14.9% year-over-year, while prepaid ARPU increased 22.3%. As a result, mobile revenues increased by 23.4% for the first quarter, above our expectations.