TurkcellIletisimHizmetleri A.S. (TKC) stock slightly declined today. The stock was traded in the current market at $3.67; this is an 8.70% decrease from the previously closed value of the last trading session. The stock closed in the last trading session at $4.07.
Financial Highlights of TRC’ 3rd quarter:
- The revenue of the company was reported to be TRY 9,354.2 Million. This is a 22.3% increase from the 3rd quarter of 2020. Last year it was TRY 7,649.5.
- The gross margin of the company is 50.7%. In the same quarter of 2020, it was 51.3%.
- The EBITDA is TRY 4,029.8 million for the 3rd quarter of 2021. In the previous year’s same quarter, the EBITDA was TRY 3,394 million.
- The net income company reported in the third quarter of 2021 is TRY 1,429 million. It is an increase of 18% as compared to the 3rd quarter of 2020 net income of TRY 1,211 million.
TRC Operational highlights:
- The subscriber base increased by 1.2 million.
- The postpaid subscribers increased by 464K.
- 4G data users increased to 84%.
- The sales brought by the Digital channels were 16.5% of the total revenue.
What next?
The above numbers seem good for any telecom company, but there is one thing where the company lacks behind. This is its debt leverage, which is only 0.9x. The average industry number of debt leverage is around 2.5x. This makes it very weird for a telco operator to have such low debt leverage. The reason could be linked to the comparison between its prices in Turkish Lira and USD. The depreciation of the Turkish Lira against the dollar is has increased consistently. The company has kept the prices of subscription services in accordance with the inflation rate.
Conclusion
The TurkcellIletisimHizmetleri A.S. (TKC) stock seems to be a good stock for investors in the long run. The company has although proven itself to be consistent in paying dividends over the last decade. The decline in the shares of the company could not be linked to its performance its numbers look good for telco operators. The general reason could be the dislike of Turkish stocks by the investors as of now. The GDP of Turkey is expected to grow which will definitely have a positive effect on its stock.
