ANKARA: Turk Telekom Group revenues increased by 9.9 percent year-on-year to TRY 4.25 billion in Q4 2016, led by growth in broadband and mobile data services. EBITDA improved by a slower 1.3 percent to TRY 1.43 billion after a rise in operating costs, and the EBITDA margin fell to 33.8 percent from 36.6 percent in Q4 2015.
The company posted a net loss of TRY 1.39 billion, compared to net income of TRY 1.04 billion a year ago, due to higher financing costs and forex losses after the TRY depreciation in the wake of the political crisis in Turkey. Depreciation and amortisation also increased after taking on new spectrum. Capex decreased by 16.7 percent year-on-year to TRY 963 million. The number of access lines rose by 1.1 percent sequentially and 1.4 percent year-on-year to 13.1 million. Fixed voice subscribers dropped by 1.6 percent quarter-on-quarter and 6.3 percent year-on-year to 9.6 million. Broadband-only customers grew by 9.2 percent versus Q3 2016 and 32.1 percent year-on-year to 3.4 million, and the total number of broadband subscribers was up by 3.1 percent compared to Q3 2016 and 8.6 percent year-on-year to 8.7 million. Of these, fibre subscribers reached 2.01 million, up 8.9 percent quarter-on-quarter and 37.3 percent more than a year ago.
Fixed voice ARPU was TRY 23.2, down 0.5 percent quarter-on-quarter and 1.1 percent from Q4 2015. Broadband ARPU was TRY 44.7, an increase of 4.9 percent quarter-on-quarter and 7.3 percent year-on-year. The total number of TV subscribers grew 3.4 percent sequentially and 7.1 percent year-on-year to 2 million. Tivibu home subscribers reached 677,000, or 14.8 percent more than in Q3 2016 and 76.2 percent more than in Q4 2015. TV ARPU was TRY 19.2, up 2.9 percent sequentially but down 3.3 percent year-on-year. The total number of mobile subscribers rose 1 percent quarter-on-quarter and 7.5 percent or 1.3 million year-on-year to 18.6 million. Of the total, 9.8 million were postpaid and 8.8 million were prepaid. Postpaid customers rose by 3.3 percent sequentially and 12.4 percent year-on-year, while prepaid customers dropped by 1.4 percent quarter-on-quarter and grew 2.6 percent from the same period last year.
Mobile blended ARPU was TRY 26.1, an improvement of 0.6 percent sequentially and 9.7 percent year-on-year. The year-on-year increase is the highest pace of growth since Q2 2013, driven by a strong focus on “postpaidisation” and rising demand for higher data packages, the company said. Smartphone penetration was higher, at 75 percent compared to 66 percent a year ago. The share of data revenues increased to 39 percent of mobile service revenues, a 7 percent improvement year-on-year. In 2017, Turk Telekom expects revenue (excluding construction revenue adjustment) to grow 8-9 percent, after growth of 10.6 percent last year. EBITDA is forecast to grow to TRY 5.8-6.0 billion from TRY 5.47 billion last year, and capex is estimated at around TRY 3 billion, stable compared to 2016.
