Türk Telekom maintains balance amidst inflation and other pressures

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.

https://www.turktelekom.com.tr/en/pages/default.aspx

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Türkiye Wealth Fund acquires 55% stake in Türk Telekom

Türk Telekom announced the sale of the 55% stake owned by LYY Telekomünikasyon to Türkiye Wealth Fund (TVF), was signed between the parties (TVF and LYY). The deal was valued at US$1.65 billion.

In a statement on the subject, Arda Ermut, CEO and Member of the Board of Directors of TWF stated: “As TWF we focus on creating value in line with our mission as an asset-based development fund. Our primary goals include maximizing the value of our assets and supporting the emergence of regional and global leading companies from Türkiye. Türk Telekom is such a company that aligns with our strategies and objectives with its potential and brand value. In this regard, we have signed a SPA to acquire 55% of the total capital of Türk Telekom, a brand not only renowned in Türkiye but also globally.”

March 2022 presentation:

http://www.ttyatirimciiliskileri.com.tr/RaporlarEN/2021/Investor%20Presentation%20Q4'21.pdf

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Nokia tops 4.5 Gbps in 5G mmWave testing with Nokia

Turk Telekom achieved a top downlink speed in excess of 4.5 Gbps in field testing of Nokia’s AirScale 5G RAN solution on 26 GHz mmWave spectrum, 800 MHz bandwidth and a single user device.

The testing, which occurred in Ankara, connected Nokia’s AirScale Base Station with a mobile device across Turk Telekom’s 26Ghz mmWave spectrum at a peak speed of 4.5 Gbps. Nokia was selected by Turk Telekom to deliver the ultra-low latency, connectivity and capacity required to test the full range of 5G connectivity in the scope of this trial.

Yusuf Kıraç, Chief Technology Officer at Turk Telekom, said: “During the trial, we solely used mmWave spectrum over the 5G test network which reached record speeds above 4.5 Gbps. Thanks to this technology, which provides numerous benefits for users and operators, we achieved the high speeds and large capacity targets promised by 5G. These technologies also act as a bridge to develop and pave the way for "Terahertz" systems that provide ultra-high-speed and capacity, which are planned to be used in 6G.”

Tommi Uitto, President of Mobile Networks at Nokia, said: “Despite the launch of commercial 5G networks in many countries, 5G trials still play an important role in the development of faster and better networks. This record speed achieved together with our long-term partner, shows that we are constantly refining and improving how we build and manage 5G networks, and this is in no small part thanks to the nearly 200 5G trials, live operator networks and private wireless deployments we have delivered globally.”

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Türk Telekom deploys ADVA's Oscilloquartz network timing

Türk Telekom has deployed ADVA's Oscilloquartz network timing technology, bringing accurate, robust frequency synchronization to its national transport network.

The compact and flexible OSA 3230B Series cesium clocks enable high levels of frequency stability across Türk Telekom’s timing and sync network and their extended holdover performance protects against GNSS outages. The solution was implemented by ADVA and Türk Telekom’s partner Netaş, which will also provide continuous maintenance and support.

“The ADVA OSA 3230B Series maximizes the synchronization performance and continuity of our transmission network. It empowers us to optimize availability and deliver even more value to our customers,” said Yusuf Kıraç, CTO, Türk Telekom. “Accurate frequency and stable timing have become essential. Our residential and mobile customers will be demanding more access to streaming and gaming applications and enterprises across Turkey and will be looking to leverage long-distance collaborative tools. That will require precise and stable frequency and timing information at all times. With the OSA 3230B Series delivering vital immunity against loss of satellite signal, we can meet strict accuracy and stability needs.”

“With intentional GNSS impairments such as spoofing and jamming on the increase, as well as the threat of unintentional disturbances, it’s vital for decision-makers of mission-critical infrastructure to mitigate against GNSS vulnerabilities. Our OSA 3230B Series provides Türk Telekom with a primary reference clock that enables it to operate a highly accurate and stable time and frequency sync network resistant to GNSS outages,” commented Jörg Urban, senior director, business development, Oscilloquartz, ADVA. “Together with our business partner Netaş, we’ve worked closely to achieve true synergy with Türk Telekom. Our teams share a drive to continuously meet and exceed customer expectations. With the support of our engineers and our comprehensive technology portfolio, we’ll be able to meet their frequency and timing requirements for many years to come.”

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