Türk Telekom posts strong net profit in 2017 after loss in 2016

Türk Telekom posts strong net profit in 2017 after loss in 2016

ISTANBUL
Türk Telekom posts strong net profit in 2017 after loss in 2016

Türk Telekom has reported a net profit of 1.1 billion Turkish Liras ($299 million) in 2017 after a loss of 724.3 million liras the previous year.

Last year’s revenue rose to 18.1 percent from 16.1 billion liras the previous year, the company said in a statement late on Feb. 8.

Consolidated revenues of the company rose by 12.9 percent on a yearly basis – the highest hike since its stock market launch in 2008 – up from 16.11 billion liras in 2016.

Consolidated EBITDA grew by 18 percent to 6.45 billion liras, which marked the high end of the EBITDA guidance range of 6.3-6.4 billion liras for 2017. This was the highest growth since the company’s initial public offering (IPO).

The EBITDA margin was at 35.6 percent, the company also said.

The company highlighted this significant improvement as a result of a “stronger operating performance and more moderate foreign exchange movements during 2017 compared to 2016.”

The average U.S. dollar/lira exchange rate was 3.65 last year, while one dollar traded for 3.03 liras on average in 2016.

“We left behind a great year when we delivered our revenue and EBITDA guidance at the high end of the range with record breaking results, reflecting strong growth in our broadband and mobile businesses and operating efficiencies under a more streamlined organizational structure,” Türk Telekom CEO Paul Doany said in a statement.

The number of total Türk Telekom subscribers increased to 41.7 million with 1.1 million net additions in the fourth quarter of 2017 – the best subscriber additions in a single quarter since the IPO, according to the statement.

In 2017, net subscriber acquisitions reached 2.8 million – again the best annual net add since IPO, the company said.

Broadband subscribers were also up by 368,000 in the fourth quarter to 9.7 million – the highest quarterly base growth since the IPO, it added. 

Mobile subscribers were up by 423,000 in the fourth quarter and one million in the whole year, lifting the total number of mobile subscribers to 19.6 million, according to the statement.

TürkTelekom, Turk Telekom, revenue, communications