Announcing 2016 financial and operational results, Türk Telekom completed the year with the record high revenue growth and excellent operational performance.
Despite FX losses, which are driven by TL depreciation against USD and EUR in 2016, affecting the bottom line negatively, Türk Telekom completed a quite successful year operationally. In addition to record high revenue and subscriber growth, EBITDA grew increased to TL 5.5 bn, the record high level since IPO. Additionally, Türk Telekom has continued to make investments in 2016 and contributed to Turkey’s digital future by investing TL 3 bn.
Strong operational results from Türk Telekom: Record high subscriber gain
Completing a year with strong operational results, Türk Telekom reached a subscriber base of 38.9 mn in 2016 with 1.5 mn record high net subscriber addition since IPO. Broadband subscriber base increased to 8.7 mn in 2016 with 691K increase in full year – again the highest annual growth since the IPO. Türk Telekom fiber subscribers exceeded 2 mn, with 228 thousand kilometers length and 13.9 million homepasses. Following 932K net additions in 2015, Türk Telekom has once again expanded its mobile subscriber base by 1.3 mn to 18.6 mn in 2016. Smartphone penetration also increased materially to 75% compared to 66% a year ago.
Türk Telekom CEO Dr. Paul (Boulos H.B.) Doany’s comments on 2016 YE results:
We are pleased to announce financial and operational results of 2016, in which we strengthened our leader communication and entertainment technologies company position and recorded very important developments in Türk Telekom history. We started the year by realizing Turkey’s largest brand unification and we became capable of offering mobile, internet, phone, TV and innovative digital services. We successfully harmonized our group capabilities with an effective synergy, which clearly reflected to our results.
Thanks to our unified infrastructure, sales channels and value added services, we delivered excellent operational results. Our subscriber number reached 38.9 with record high subscriber additions of 1.5 mn in 2016. In the same period, we realized 10.9% record revenue growth as well.
2016 was an important milestone for our mobile services, affecting our customers’ lives considerably. We accelerated rollout of 900 MHz band for 3G services with improved indoor coverage and a confident start to LTE services as we acquired the most essential bands for LTE, resulting in improved network quality and enhanced data growth. We eased the way that our customers access information and added speed to their lives. With the increased speeds, data consumption grew considerably.
As of 2016 end, 53% of our smartphone users are on LTE compatible devices, and average monthly mobile data usage of LTE users increased to 3.9 GB. We are pleased to see that the value we offer to our customers has increased.
In the same way, we are proud that our fiber network reached 228 thousand kilometers length and 13.9 million homepasses, covering around 60% of households in Turkey. In addition, we also focus heavily on extending Türk Telekom’s strength in infrastructure to superstructure services. Our first examples are Turkey’s most loved online digital music platform Türk Telekom Müzik, TV platform Tivibu with UEFA content, leader digital gaming platform Playstore, and Turkey’s leading online educational support service Vitamin.
We will continue our focus on upselling, cross-selling, and providing value to our customers via our premier line-up of products. As Türk Telekom, we always work in a people-oriented way. Based on this vision, we focus on offering technological products and services that meet the needs of users living in each corner of Turkey. As the leader integrated operator with a wide range of product and service portfolio, we will work non-stop to create a unique value by closely touching the customer segments that we have not accessed before, through our regional directorates in Turkey’s 81 provinces.
We are also proactively taking bold steps towards placing Turkey among the global technology giants and contributing to the digital convergence of the country. Through our subsidiary Argela, we are leading the development of 5G-enabling technologies in Turkey and making Turkey to take place in the league of mobile technology exporting countries with our 28 patent applications to the US Patent and Trademark Office in this regard. Moreover, we contribute to the digital transformation of health services in Turkey, by taking part in Heath Campuses Project, launched by our Government. Within this project in coordination with our subsidiaries, Innova and Assistt, we will serve in various segments ranging from data center preparation, information management system implementation and integration, and call center services. In the upcoming period, we will strengthen our subsidiaries and make each of them leader in their fields.
In conclusion, towards the end of 2016, we made organizational changes, which enable us to operate under a more streamlined structure with better operational agility. With the new organizational design, we streamlined top-level positions, to be extended to sub-levels further, and our aim is to achieve maximum benefit from the synergies of shared operations and strengthen execution while keeping the previous underlying market segmentation structure, i.e., Consumer and Corporate Customers. I believe the new organization will be extremely effective in preparing the company for the next market development stage.
I would like to thank our employees for all their contributions and efforts in 2016. Looking ahead, we will continue to capitalize on our integrated structure, explore and implement efficiencies to create value for all our stakeholders.
About Türk Telekom Group
Türk Telekom, with 176 years of history, is the first integrated telecommunications operator in Turkey. In 2015, Türk Telekomünikasyon A.Ş. adopted a “customer-oriented” and integrated structure in order to respond to the rapidly changing communication and technology needs of customers in the most powerful and accurate way, while maintaining the legal entities of Avea İletişim Hizmetleri A.Ş. and TTNET A.Ş. intact and adhering to the rules and regulations to which they are subject. Having a wide service network and product range in the fields of individual and corporate services, Türk Telekom unified its mobile, internet, phone and TV products and services under the single “Türk Telekom” brand as of January 2016.
“Turkey’s Multiplay Provider” Türk Telekom has 13.1 million fixed access lines, 8.7 million broadband and 18.6 million mobile subscribers as of December 31, 2016. Türk Telekom Group Companies provide services in all 81 cities of Turkey with 33,224 employees with the vision of introducing new technologies to Turkey and accelerating Turkey’s transformation into an information society.
Türk Telekomünikasyon A.Ş., providing PSTN and wholesale broadband services, owns 100% of mobile operator Avea İletişim Hizmetleri A.Ş., retail internet services, IPTV, satellite TV, Web TV, Mobile TV, Smart TV services provider TTNET A.Ş.,TV Broadcasting and VOD services provider Net Ekran Companies, convergence technologies company Argela Yazılım ve Bilişim Teknolojileri A.Ş., IT solution provider Innova Bilişim Çözümleri A.Ş., online education software company Sebit Eğitim ve Bilgi Teknolojileri A.Ş., call center company AssisTT Rehberlik ve Müşteri Hizmetleri A.Ş., wholesale data and capacity service provider Türk Telekom International and its subsidiaries.