Ladies and gentlemen, thank you for standing by. I am Gaily your Chorus Call operator. Welcome and thank you for joining the Turkcell's conference call and live webcast to present and discuss the Turkcell First Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode and the conference is being recorded. There will be a presentation, followed by a question-and-answer session. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Ali Serdar Yağcı, Investor Relations and Corporate Finance Director. Mr. Yağcı you may now proceed. Ali Serdar Yağcı: Thank you Gaily. Hello everyone. Welcome to Turkcell's first quarter 2023 results call. Today our CEO, Mr. Murat Erkan; and Acting CFO, Mr. Kamil Kalyon will be delivering a brief presentation on operational and financial results. And afterwards we will be doing Q&A. Before we start, I would like to kindly remind you to read our safe harbor statement, which is placed at the end of the presentation. Now I'm handing over to Mr. Erkan.

Thank you, Ali Yağcı. Good morning and good afternoon everyone. Thank you for joining us. We have been healing the warmth of the recent earthquake, which happened to be one of the worst disaster of our history. We have taken certain actions to make sure people do seamlessly communicate in the region. Turkcell also remains committed to support the local community through projects that aim to increase employment and we will also make our digital channel available for local producers and suppliers. Moving onto Q1 highlights. Our revenue growth continued to accelerate from 37% of Q1 2023 and reached to a remarkable 61.5%. Thanks to the expanding subscriber base and increasing ARPU despite the negative impact of the earthquake during the half of the quarters. Excluding the earthquake impact, the growth would have been around 65%. The strategic focus area mainly digital business services and technical segments also supported top line growth with a strong performance. We are happy to see our mobile ARPU growth, which achieved 68%, exceeding the headline inflation as we reap the benefits of sequential price increase we began at the end of 2021. On the profitability side, our EBITDA reached TRY6.8 billion with a 57% increase. And despite the ongoing inflationary pressure, we achieved a margin of just over 39%, in line with our expectation, which accounts for the impact of the disaster on our OpEx. Excluding the earthquake impact, the margin would have been 41%. Last but not least, we recorded a solid net profit of TRY2.8 million mainly on the back of the strong operational performance as well as lower FX losses. Next slide. Let's take a closer look at our mobile operational performance. As a part of our strategy we have been focused on attracting premium subscriber, which led to a net…

Thank you, Murat. Now let's take a closer look into the financials. Group revenues grew by 62% year-on-year corresponding to an incremental rise of TRY 6.6 billion. This quarter was another period where we saw the results of our dedicated price adjustments resulting in robust ARPU growth. Turkcell rose 70% in this quarter. Thanks to an expanding subscriber base and an ARPU growth that exceeds inflation. Our digital business services was another revenue driver with its settling performance. The revenue contribution of International segment was limited to TRY 442 million in this quarter, reflecting the easing inflation in our international markets, as well as the slowdown in currency depreciation. Segment added TRY 253 million to the top line on the back of Paycell tripling transactional volume and finance sales, higher loan portfolio and average interest rates. Improvement of the other segment's contribution on a yearly basis is mainly thanks to a rise in sales from digital channels and higher equipment revenues. Next slide please. Now some highlights on EBITDA development. Strong revenue growth has been the key driver of the 57% rise in EBITDA. In this quarter, EBITDA margin contracted by 1.1% year-on-year, declining the interconnection expenses as a percentage of revenues partially compensated the rise in personnel expenses. Please recall that, we had made a secondary rise to wait in July last year on top of the January rise, following the minimum page increase. Energy expenses had a limited impact on the EBITDA margin, as last year's energy price hikes were exceptionally high. Last, I would like to mention about Turkcell International profitability. In this quarter, EBITDA margin of the segment improved by 3.8% year-on-year. Likewise improving margin performance in Ukraine was joined by Best in Belarus. Thanks to the recently announced MTR change in favor of us. Next…

Ladies and gentlemen, we will begin the question-and-answer session. [Operator Instructions] The first question is from the line of Kennedy-Good Jonathan with JPMorgan. Please go ahead.

Good evening, and thank you for the opportunity to ask questions. Just a quick one on the potential price increases for the rest of the year. When should we expect further price increases on the mobile side? And given now that your mobile ARPU is growing well ahead of inflation how should we expect price increases to evolve. And then secondly, there was a significant cash outflow in terms of working capital, I think driven by an increase in your trade receivable balance, can you give us a sense of what drove that and whether that will reverse in the quarters to come? Thank you.

First of all thank you very much Jonathan. Let me take the first question regarding price increase. As you know we are the leader operator in mobile and our priority in a high inflation environment is to adjust our price in a timely manner. So due to the earthquake in the first quarter, we had temporarily stopped price increase in February and March, but continue with the price adjustment in April. We aim to maintain our price-focused strategy throughout the year. So far, we increased our price almost every quarter and our aim is to keep this behavior. And we have successfully implemented this strategy last two years. And this -- the accelerating ARPU growth and revenue growth clearly showed this attitude. So despite the negative impact of earthquake on ARPU, mobile ARPU increased 68% annually. So we beat the inflation which was 54.3%. So if we get rid of the earthquake impact, the ARPU growth would be around 75%. So the strategy clearly works well. So let me give the word to Kamil regarding the outlook of cash outflow.

Thank you, Murat Erkan. As you know every year we paid the frequency usage in the first quarter and we will collect it from subscribers throughout the year. We paid TRY 1.4 billion for this in Q1 at the end of February. The first reason was this. The second one there were some important factors that adversely affected our cash generation to our working capital. One of these bond teams we made to our employees for the previous years. Expansion of finance sales loan portfolio is the second season. And the third one receivables from our growing EBS business which are relatively longer term is the third reason. And I may add to this due to earthquake, we've stopped collecting some payments from our subscribers for 1.5 months period. Therefore, it also increased our trade receivables for a limited time.

Thank you. That’s very helpful.

The next question is from the line of Mark Cho [ph] with Schroders. Please go ahead.

Hello can you hear me? Either way, okay. Thanks for taking my question. You mentioned the position of your credit lines. Can you remind them where they ended the quarter and where they are right now? And also, can you elaborate a little bit on your newly contracted liquidity?

We have some committed. We have a significant amount of committed lines in AKANE [ph] and CDB side we do not have any problem about the position of our credit lines. Also we are trying to add new credit lines to our portfolio this year around €220 million CDB will end in March 2024. And AKANE credit of lines was around $30 million.

Okay. Great. Thank you.

[Operator Instructions] Our next question is from the line of Mandaci Ece with Unlu Securities. Please go ahead.

Hi. Thank you very much for the presentation. I just wanted to ask about your CapEx over sales guidance. I think you keep it around 22%, but the first Q performance was much lower. Is it due to the currency effects? I think that most of the CapEx was realized as of the first quarter one-off CapEx. So, going forward could there be a possibility of a lower CapEx over sales for 2023? It would be very helpful if you talk more in detail about your prospects there. Thank you.

.:

And Mandaci, you finish with your question?

Yes, thank you.

[Operator Instructions] Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Turkcell management for any closing comments. Thank you. Ali Serdar Yağcı: Okay. Thanks for joining us. But I think we have one more question. Is that right?

Yes sir. The next question is from the line of Demirtas Cermal with Ata Invest. Please go ahead.

Thank you for the presentation and congratulations for a very good result. My question is regarding the donation related to earthquake. You earlier had announced TRY 2.5 billion, how should we elaborate that, when are we going to see the impact on your financials? And the other question is about the dividend side and General Assembly side. Could you give us some indication in those two issues? Thank you.

Thank you, Cermal. First of all regarding donation, our Board of Directors has decided to contribute up to TRY 3.5 billion to relevant earthquake relief organizations. First of all, we need to present the donation decision to our shareholders vote at the Annual General Meetings. Therefore, it will need to be voted by the shareholder first. Once it is approved, at the general assembly, we will determine the timing and payment structure of donation among other mechanics as well. So regarding the AGM and regarding the dividend distribution, I would like to remind you that our dividend policy continues unchanged. As you know, dividend proposal is first made by the Board of Directors and voted by the shareholders at the General Assembly. No proposal has been made by the Board of Directors for this year yet. As you may recall from last year, our Board of Directors' dividend proposal was announced together with the General Assembly announcement. Therefore, I don't want to speculate on the potential proposal of the Board of Directors regarding the dividends. Thank you.

Thank you. Thank you for the clear answer. Thank you.

Ladies and gentlemen, there are no further audio questions at this time. I will now turn the conference over to Turkcell management for any closing comments. Thank you. Ali Serdar Yağcı: Thank you very much for being with us in this Q1 results. We hope to see you in the next one. Thank you very much. Thank you bye-bye.

Thank you very much. Bye.

Ladies and gentlemen, the conference has now concluded and you may disconnect your telephone. Thank you for calling and have a pleasant evening.