Turkcell announces bullish three-year growth targets

ISTANBUL

AA photo

Turkcell is expecting to rapidly increase its market share and grow by up to 14 percent over the next three years thanks to the introduction of 4.5G technology, the cell phone operator’s CEO has said.

“Our target is to become the leader of the telecommunications industry in 2018,” Kaan Terzioğlu told journalists in Istanbul on Nov. 17, noting that the company currently possessed a market share of 36 percent.

Speaking at a press conference, Terzioğlu said Turkcell would grow by 10-14 percent in the next three years while expectations for the EBITDA margin would be around 32-35 percent on average. 

He added that the rate of operational investments to income was expected to be around 16-17 percent by 2018. 

The head of the company said investments in 4.5G would start rapidly and finish in 2016. “The amount of investment in 4.5G will be more than 20 percent of annual income,” Terzioğlu said.

“In terms of growth components, voice use has a 52 percent share, data use is 30 percent, and the rest consists of solutions and other elements,” he told journalists. “In 2018, voice and data use will effectively trade places. The rate of voice use will decrease from 52 to 30 percent while data use will increase from 30 percent to 50. The share of SMS, wholesale, service and solutions will increase from 18 to 20 percent. Our income of 609 million Turkish Liras generated from services and solutions will increase by 30 percent yearly with accelerated growth,” he said.

Commenting on 4.5G technology, Terzioğlu said the rate of devices supporting 4.5G would reach 55 percent by 2018. “For that reason, we expect Turkcell subscribers to consume six times more data. The rate of Turkcell subscribers that own a smartphone will also increase from 49 to 70 percent in 2018,” he said. “The rate of post-paid subscribers will increase from 47 to 60 percent. The sale amount from ‘quad-play’ will also increase from 10 to 30 percent,” he added.

Financial status 

Terzioğlu also praised the company’s financial status, saying three credit rating agencies had given Turkcell an “investable” rating. “We are glad to prove the confidence in both Turkey and Turkcell from international investors [is well-placed],” he said.

“In the upcoming term, as an integrated player, strengthening our position in the Turkish telecommunications market, investing in the future through our extensive network infrastructure and supporting our growth strategy through opportunities in the international area will remain a priority of our company,” he said.

Terzioğlu said Turkcell was interested in acquiring companies operating in North Africa and the Balkans. “We have three criteria for international acquisitions. Cultural and geographical proximity, balanced distribution of mobile and fixed infrastructure and contribution to EBITDA,” he told the audience. 

Turkcell TV+

Terzioğlu said the number of Turkcell TV+ subscribers would increase five times by 2018, rising from 400,000 to 2 million, adding that the company would focus on small screens. “Small screens will be one of the important parts of our game plan. We will switch from big TVs to small screens in our hands after 4.5G,” Terzioğlu said.

The CEO also said Turkcell had been working with Huawei and Ericsson on 5G infrastructure, adding that there was no need for an extra cooperation agreement. “We need regulations that will pave the way for the digitalization era. Turkey’s 2023 goals are in parallel to Turkcell’s,” he said.