Turk Telekom’s net profit in the first 9 months reached ₺4.7 billion

Turk Telekom announced its financial and operational results for the third quarter of 2021. Maintaining its strong performance in 2021, Turk Telekom achieved a revenue of ₺24.4 billion in the first 9 months of the year, its net profit reached ₺4.7 billion and the total number of subscribers reached ₺51.4 million. As a result of this performance, Turk Telekom revised its 2021 forecast upwards for the third time during the year. In this context, it is aimed that the annual increase in operating incomes will reach 18%, EBITDA will reach ₺16.2 billion and investment expenditures will reach ₺8.7 billion.

Turk Telekom Chief Executive Officer (CEO) Umit Onal reported that the net profit of the company, which earned ₺24.4 billion in 9 months of this year, reached ₺4.7 billion and the total number of subscribers reached ₺51.4 million.

Onal, at the press conference held at Turk Telekom Headquarters regarding the Network Management Center, Turk Telekom Cyber Security Center and the financial results for the third quarter of 2021, said that the company grew above expectations in the July-September period and continued its high performance in 2021.

Stating that they are happy to see that the financial and operational results once again underline the strengths, history, experiences, investment decisions, human capital and application competencies, Onal noted that they are determined to complete the digital transformation for the country and to make Turkey a pioneer in its 5G journey.

Onal stated that there is very little time left to close a successful year for Turk Telekom, and that they are preparing to meet the year 2022, and said:

“Fixed broadband continued to drive growth in Q3 with strong revenue growth of 29%. We expected normalized demand after last year’s outstanding features, but net gains have been stronger than our forecast so far this year. The need for new connections in summer places and the back-to-school season also supported new achievements. Although the education starts physically, students still need a home connection for their homework, research and the internet they use in their free time. Hybrid operating models, which are being adopted by more and more companies, also support the continued demand for connectivity. Digitalization fuels the demand for technology and communication services, leading to a permanent transformation in consumer behavior.”

“Our fiber network is a powerful lever for future technologies”

Noting that as of the third quarter of the year, they have a fiber length of 353 thousand kilometers stretching all over Turkey, Onal said, “Our fiber network is a powerful lever for the technologies of the future.” Onal stated that the total number of fiber subscribers, which made up 37% of the subscriber portfolio in 2019, rose to 8.8 million as of the third quarter of this year, exceeding 62% of the subscriber portfolio.

Noting that the fiber household coverage, which was 25 million in the same period of last year, exceeded 28.9 million as of the third quarter, Onal said, “Our developing technology and access will pave the way for an advantageous transition to 5G for Turkey.”

Onal pointed out that the increased mobility with the normalization experienced in the 3rd quarter offers a more dynamic mobile market and made the following assessment:

“Our mobile subscriber base grew above our expectations with net subscriber gains of over 500,000 in Q3 and reached the highest increase since Q1 2019. While the total prime base grew 64% annually in the third quarter, the share of prime subscribers in the total postpaid base exceeded 29%. We are pleased to see once again the positive reflections of our strategies in mobile revenue growth, which has shown an ‘uptrend’ for the last 6 quarters.”

Onal reminded that they recently signed two important collaborations with Juniper Networks, one of the world’s leading technology companies in Silicon Valley, and Plug and Play, one of the largest global enterprise and innovation platforms, “We are not only leading the transition to 5G in Turkey, but also taking our place among the global players that set the standards for new generation technologies in a rapidly transforming world. We offer 5G solutions to the whole world with a total of 56 patents developed in various fields covering 5G, network slicing, fiber optic networks, blockchain, data analysis and radio access network through our R&D company Argela and its innovation arm Netsia in the USA.”

“We revised our 2021 projections upwards for the 3rd time”

Emphasizing that they have outperformed expectations since the beginning of the year, Onal said, “We revised our 2021 forecasts upwards for the third time in the year. Turk Telekom’s net profit reached ₺4.7 billion and the total number of subscribers reached ₺51.4 million, with revenues of ₺24.4 billion in the 9 months of this year. We expect operating income, which we stated as 17% in our previous forecast, to increase by 18% , EBITDA from ₺15.8 billion to ₺16.2 billion, and investment expenditures, which were ₺8.5 billion, to reach ₺8.7 billion.”

Pointing out that Turk Telekom’s net subscriber gain in the last 12 months was 1.9 million, carrying the total number of subscribers to 51.4 million, Onal gave the following information:

“The number of fixed broadband subscribers reached 14.1 million, while the fixed broadband ARPU rose to 15.3% annually. The number of fiber subscribers reached 8.8 million in 9 months, an annual increase of 67%. While the number of mobile subscribers was 23.9 million, the mobile ARPU grew by 13.6% annually.”

“We find our development valuable in our sustainability journey”

Pointing out that as Turk Telekom, the founder and developer of Turkey’s communication infrastructure, they see service to the country as the essential element of their assets, Onal said:

“For us, technology is valuable if it returns to people, society and nature as a benevolence and benefit. Today, we are in a remarkable development process in integrating the universal principles of sustainability into our business model and strategies in line with changing priorities and expectations. In line with Turk Telekom Group’s sustainability goals, we have recently received a Renewable Energy Certificate (REC) from The International REC Standard for our data centers. With this certificate, we have documented that we use green energy in our data centers. In this sense, we are happy to increase the added value we create by making green energy available not only to Turk Telekom but also to our customers using our data center. With the riches offered by the normalized world, we feel stronger and more equipped than ever to continue our sustainable growth and fulfill our fundamental responsibilities towards our stakeholders. We will soon share with you and the public our comprehensive ‘Sustainability Report’, which includes the outputs of all these efforts and our development journey for this cause.”

Source: Sabah / Translated by Irem Yildiz

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