Teb Yatirim - Turkcell Iletisim Hizmetleri A.S. (TCELL) Turkcell (TCELL TI) - 2Q20 results in-line: Maintain Hold

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Teb Yatirim

Akif Dasıran

EUR 10.00 For Business Accounts Only

Turkcell (TCELL TI) - 2Q20 results in-line: Maintain Hold

Turkcell posted TRY852m net income in 2Q20, in-line with our estimate of TRY851m and RT consensus of TRY845m. From top to bottom, there were no surprises in 2Q20 results.

Yet, challenges remain on ARPU growth outlook. We maintain HOLD, due to unattractive valuation.

14/08/2020 9 EN

Underlying

Turkcell Iletisim Hizmetleri A.S.

Turkcell Iletisim Hizmetleri is a provider of mobile services in Turkey. Co. provides mobile voice, internet and other services over its mobile communications network. Subscribers can choose between postpaid and prepaid services. Postpaid subscribers sign a subscription contract, and receive monthly bills for services, while prepaid subscribers must purchase a starter pack which consists of a SIM card and inclusive airtime. GSM offers a range of services that include voice, circuit switched data, packet data and fax, in addition to standard service offerings such as call barring, call forwarding, call waiting and roaming into areas serviced by other GSM carriers.

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TRATCELL91M1 Istanbul Stock Exchange Turkey

Provider

Teb Yatirim

TEB Investment equity research analysts and strategist team consists of 8 analysts with an average finance sector experience of 15 years and special focus on international investors.

With our 6 equity research analysts we cover 93 companies across 21 sectors, reflecting 80% of the total market capitalization of all BIST companies and 86% of the BIST100 companies. Our strategy team provides in depth top-down and bottom-up market views with insight on FX and bond markets by publishing sectoral and strategic reports both in English and Turkish.

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Analysts

Akif Dasıran

Other Reports on these Companies

Ünlü&Co

Turkcell

We favor Turkcell due to its strong revenue growth, primarily driven by price adjustments, mitigated impact of cost pressures and decline in financial leverage. We incorporate IAS29 effect to financials, revise up target price to TL110 per share (previously TL96) and maintain BUY rating. At 2024E EV/EBITDA ratio of 2.8x, Turkcell is trading at a 38% discount to its peers. 4Q23 Review, without the effect of inflationary accounting: Turkcell witnessed an 83% y/y revenue growth, thanks to ARPU growth of 85% in mobile segment and ARPU growth of 76% in fixed segment. Turkcell’s EBITDA margin expan...

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Supply has re-emerged as a key theme to start the year, while sentiment has been mixed amid renewed volatility in core rates. In this environment, we would prefer to be positioned in higher-quality names that have either issued already or shown spread weakness in anticipation of supply.

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TURKEY STEEL - Strong outlook prevails

We believe Turkish blast-furnace steelmakers are poised for stellar earnings growth in 2021, supported by favourable global steel sector outlook. Following the cut in steel production, owing to fall in demand as a result of Covid-19, steel supply is yet catch up with the pick-up in demand. We expect the supply-demand mismatch to continue over the near term, as we expect strong demand post Covid-19. While the current steel prices may be unsustainable with the normalisation in supply, we believe the robust earnings momentum expected in 1H21 provides enough room for further re-rating.

EUR 10.00

January 21, 2021 January 21, 2021 EN

Akif Dasıran

Akif Dasıran

Turkcell (TCELL TI) - Investments on the rise: Maintain Hold

Turkcell’s net income soared by 51% y-y to TRY1.2b, beating both RT consensus of TRY1.04b and our TRY975m estimate. EBITDA grew by 16% y-y to TRY3.4b, in-line with our estimate but better than RT consensus of TRY3.2b. Although the operating performance was in-line with our estimate, lower than expected impairment losses on financial and contract assets (TRY49m in 3Q20 vs our estimate of TRY150m) and lower than expected financial expenses boosted the bottom line. Higher operational capex pushed up net debt and impacted the company’s 2020 guidance. Maintain HOLD on TCELL.

EUR 10.00

November 11, 2020 November 11, 2020 1 EN

Akif Dasıran

Akif Dasıran

Ulker Biskuvi Sanayi (ULKER TI) - Proven resilience: Maintain Buy

Ulker’s net income increased by 27% y-y to TRY323m in 3Q20, beating both our estimate of TRY249m and RT consensus of TRY239m. The operating performance, in terms of EBITDA growth and margin, was slightly better than our estimate while fair value increase of short-term financial assets further boosted the bottom-line beat. Following upbeat 3Q20 results, we maintain BUY on ULKER, on the back of its attractive valuation and resilient operations.

EUR 10.00

November 11, 2020 November 11, 2020 1 EN

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Turkcell (TCELL TI) - 2Q20 results in-line: Maintain Hold

Turkcell

EM Credit Spark/EM credit weekly

EM Credit Spark/Trade ideas update

TURKEY STEEL - Strong outlook prevails

Turkcell (TCELL TI) - Investments on the rise: Maintain Hold

Ulker Biskuvi Sanayi (ULKER TI) - Proven resilience: Maintain Buy

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