PDF (3,0MB) - Türk Telekom Investor Relations

Operational HighlightsTürk Telekom Operational Developments 2008 2009 2010 2011 2012 ChangeTotal Access Lines* (million) 17.5 16.6 16.0 15.2 14.3 (6.2%)PSTN ARPU (TL) 24.4 22.3 21.7 22.1 22.4 1.5%PSTN MoU (minutes) 129.7 114,5 114.6 107.3 103.4 (3.6%)By launching in 2012 Mini, Midi and Maxi Advantage packages, which provide discounts and free call minutes in alldirections to its individual subscribers, the percentage of Türk Telekom’s subscribers who benefit from minute-basedretail package offers, reached 55% by the end of 2012. Also in 2012, the Company provided free home insurance to allof its individual subscribers in cooperation with Allianz, and the Company’s discount campaigns offered throughbrandcooperation in different fields continued. By the year-end, while the average revenue per user (ARPU) reached TL22.4, the average minutes of use per subscriber (MOU) was realized as 103.4 minutes.Türk Telekom Operational Developments 2008 2009 2010 2011 2012 ChangeFixed Broadband Connection (million) 5.8 6.2 6.6 6.8 7.0 2.9%Fixed Broadband ARPU (TL) 26.7 29.5 32 36.2 36.8 1.7%In 2012, Türk Telekom continued to provide high speed Internet service to its customers with a moderncommunications infrastructure and outstanding service via fiber transformation activities launched in 81 provinces inTurkey. As the leader of fiber network in Turkey with 168,000 km of fiber, Türk Telekom provided fiber infrastructureto more than 1.9 million households accessed by FTTH/FTTB (fiber-to-the-home/building), in addition to more than 4million households accessed by FTTC (fiber-to-the-cabinet). The Company’s number of fiber subscribers has reached to220,000 and the number of total broadband connections was realized as 7 million by the end of 2012. In tandem withincreasing data usage and higher speed demands in the market, the Company’s percentage of unlimited subscribersincreased to 70% of all subscribers in 2012 while average monthly data usage per person was 29 GB in December. Therate of DSL users at 8Mbps and over was realized as 90% of all subscribers. The Company’s annual broadband ARPUvalue in 2012 was recorded as TL 36.8 with the support of sales promotion campaigns in higher packages, value-addedservices such as music, games and TV, and inflation-based price arrangements.Türk Telekom Group’s retail Internet service provider, TTNET, maintained its leading position in the market in 2012thanks to its innovative campaigns and products. With 81.34% market share in Q4 2012, TTNET’s prominent activitiesin 2012 were Common Quota campaign, combining fixed-line Internet and mobile Internet subscriber quotas, and IPTVservices provided under the Tivibu brand.Türk Telekom Operational Developments 2008 2009 2010 2011 2012 ChangeMobile Total Subscribers (million) 12.2 11.8 11.6 12.8 13.5 5.7%Mobil Total Prepaid Line Subscribers (million) 8.1 7.6 7 7.2 7.5 4.2%Mobil Total Postpaid Line Subscribers (million) 4.1 4.3 4.7 5.6 6.0 7.1%Mobile ARPU-Mixed (TL) 15,7 16.7 18.6 20.4 21.6 5.8%Mobile MoU(minutes) 172.9 242.5 262.6 305.1 341.5 11.9%Number of Base Stations 10.203 13.625 16.040 21.523 24.106- Population Coverage (%) 2G 95.2 96.5 96.7 97.6 97.9- Population Coverage (%) 3G 63 78.9 79.4Türk Telekom Group’s mobile operator, Avea, reached 13.5 million subscribers in 2012 with 730,000 new subscribers.While maintaining its position as the most preferred GSM operator in Turkey in 2012 with 550,000 subscribers, theCompany increased its market share of number of subscribers to 20%. Postpaid subscribers represent 44% of theCompany’s subscribers. The Company reached the highest ARPU value within the sector in 2012 by increasing itsaverage revenue per user (ARPU) by 9.5%. Offering its customers the highest number of calling minutes with anaverage monthly MoU of 346 minutes, Avea maintained its leading position in this field in 2012.Avea displayed a successful performance in 2012 with a 13% revenue increase and 28% EBITDA growth. Displaying astrong performance both in voice and data segments, the Company’s revenue reached a record high of TL 3.5 billionwhile mobile data revenue increased by 79%, the highest growth rate in the market. In 2012, investment of over TL750 million was made in mobile network and channels for supporting the quality and productivity while the number ofbase stations exceeded 24,000 by the end of the year.The youngest operator in Turkey, Avea continued its innovative offers in 2012. Enabling its customers to create theirown call, SMS, data and device packages based on their needs with unique SEÇ (“CHOOSE”) offers, the Company madesignificant contributions to group synergy by drawing attention to the market with its Cepte Bayram (“Mobile Feast”)tariffs specially designed for PSTN subscribers. Avea released its first smartphone, Avea in Touch, with the Avea brandin 2012, has and it also maintained its leading position in this field with a 24% smart phone penetration rate.The rising star of Turkey’s mobile market, Avea was elected to the board of directors of GSMA, the association of theworld’s leading GSM operators, in 2012.Financial RatiosMain Financial Ratios 2008 2009 2010 2011 2012Return on Equity (%) 31 34 40 36 41Return on Assets (%) 13 13 16 13 15Total Debt/Equity Ratio (%) 148 147 145 180 167Net Financial Debt/EBITDA (%) 55 74 62 86 100Financial Debt/Equity (%) 68 73 68 93 94Financial Debt/Total Debt (%) 46 50 47 51 56Financial Debt/Total Assets (%) 27 30 28 33 37Total Debt/Total Assets (%) 60 60 59 64 66Having increased due to the depreciation of the Turkish Lira against the US Dollar and the Euro in the previous year,Türk Telekom’s financial expenses decreased in 2012. While this situation made a positive impact on Türk Telekom’snet profit, it also increased the profitability ratios. Even the increasing capital expenditures caused an increase in theindebtedness rate; the Company was much more successful in 2012 for converting short-term debts into to long-termdebts when compared to 2011. The indebtedness rate is still below the sector average.Capital ExpenditureCapital Expenditure (TL million) 2008 2009 2010 2011 2012 ChangeTotal Capital Expenditure 1.756 2.482 1.733 2.277 2.435 7%Capital Expenditure (Excl. 3G License Fee) 1.756 2.032 1.733 2.277 2.435 7%Türk Telekom improved the quality and productivity of its mobile network and channels while accelerating the fibertransformation in its infrastructure with investment in 2012 of TL 2.4 billion.18TÜRK TELEKOM ANNUAL REPORT 2012