Earnings Call: Q3 2020

Nov 6, 2020

Ladies and gentlemen, thank you for standing by. I am Yolte, your Chorus Call operator. Welcome, and thank you for joining the Dirk sales conference call to present and discuss the third quarter 2020 Financial Results. Should anyone need assistance during the conference call, you may signal At this time, I would like to turn the conference over to Mr. Colhan Billeck, Treasury And Capital Markets Director. Please, Mr. Billeck, you may now proceed. Thank you, Yota. Hello, everyone. Welcome to Turkcell's third quarter 2020 results call. Today's speakers are our CEO, Mr. Murad Khan, and our CFO, Mr. Osman Yumas. We will have a brief presentation and afterwards, we'll be taking your questions. Before we start, I would like to kindly remind you to review the last page of this presentation for our safe harbor statement. Now I hand over to Mr. Erica. Thank you, Korhan. Good afternoon and good evening, everyone. Viracom's 2 12 quarter 2020 results call. Before we go into the results, I would like to extend my condolences to those who have lost their loved ones in last week's okay, disaster in Israel and in Greece. And wish a speedy recovery to the engine. As structured, we did our best support to search and rescue efforts by extended free voice and data plans to those in the region and by making sure our level of operated maximum capacity. Now as to our performance, we had a strong quarter that beat our expectations. While the business work got used to the circumstances of the pandemic, our customers have gradually regained their mobile mobility. Has the reopening cost economy has helped us from performance. We registered 16% top line growth with over 4% EBITDA margin. The ARPU trend remained robust at 14% on the mobile side, and the close of double digit on the fixed side. Meanwhile, our customer base grew by 30082,000 Net Edition. 370,000 of which were postpaid. TRAC driven by digitalization in the COVID period become permanent such as the share of digital channels in our sales at all our strategic focus areas. We continue to launch new product and services and enhance an existing one. Overall, we generated 1,000,000,000 of free cash flow during the quarter marking a continued solid performance. Our leverage ratio remained at 0.8 times. Moving to next slide. As international travel was not possible, our roaming revenue remained under pressure. On a year on year basis, the decline was around 3%. Please consider that we realized a strong growth performance despite this happening. Given the current state of pandemic, we expect a similar trend in roaming revenue in the fourth quarter as well. We observed a shift to e commerce in Turkey, excited by the pandemic, has continued as user. Enjoy the convenience. As such transaction through our online channels as well as through Paycell have displayed promising grants. Furthermore, demand for our digital services particularly TV platform remains strong. Motivating us to further enhance our digital services and solutions. Now some further details on our financial performance. We recorded a 7,600,000,000 Turkish to the top line with an increase of 16% year on year. The first 9 month growth reached 15%. Such as performance was possible with our resilient and flexible business model. Our EBITDA reached $3,400,000,000 on a 19.6% increase with a 44.4% margin. The third quarter is seasonally a strong period. Moreover, operationally, cost saving triggered by the pandemic have contributed to a higher profitability. Net income was solid at 1,200,000,000 marking 51% yearly growth. This is the highest quarterly revenue we generated already. We are pleased with our performance, which exceeded our expectations. Let's take a look at our operational performance. Our total subscriber base expanded by 300 and 82,000 net additions this quarter. In the mobile business with our continued focus on cost base segment, the base grew by 317,000. With this postpaid sharing, the total mobile subscriber reached 64%. The average month in mobile insurance was at around December as last year. We believe a 2% monthly insurance to be a healthy level in this market. Blended mobile ARPU rose to 52 Turkish Dura on a 14% increase. This quote was a result of rising data and digital services usage to shift to higher data plans and our new offers and tires designed to meet customer expectations. In the fixed broadband business, demand for our services continue. We gain a net 45,005 subscriber with new tariff choices. Residential fiber output goal was at 9.4 percent on a year on year basis. Further, we registered some 39,000 IPTV subscription during the quarter. Next slide. Now some highlight on the performance of Superbact our fixed wireless access products. Superbox is the pioneer product in its market with Superbox We have addressed the rising demand for fiber speed home internet. Our value invested LTE Network has proven its ability to provide this service without interruption. Superbox subscriber reach 551,000 with a net add of 60,000 this quarter. With this, Superbucks subscriber base was two and a half times, that of a year ago. Strong demand has triggered price adjustment in ours for box products. Today, the minimum spare parts plan on shop is 159 to Chichluda, up from 99 to Chichluda a year ago. This increase should gradually reflect to its ARPU level. Next slide. We are ever focused on how to improve the lives of our customer and better serve their needs. This mindset leads us to create innovative offers. As such, this quarter rely through tariff plan, with a new value proposition. Under Mega Plus, our customer offers the flexibility to buy large data plan that they can consume through a year. Under family and friends plan, our customer can point team of up to 5 with whom they can share their data quota. Additionally, we continue to please our customer with our legendary shake handling campaign through our digital connection platform. Overall, We have recorded by far the highest NPS score in the sector with our key strength in value proposition, network quality, and brand world. Next slide. Digital channels play on the integral part in our distribution network model. We serve our customers through our website and our digital operator application. During the quarter, We remain focused on how to continue diverting customer demand towards this platform. By being sure, we register saving particularly in sales expenses. As the visit to these digital channels reached 28,000,000 in a month, our conversion to sales ratio has doubled on an annual basis. The additional data plan purchases and tier copper transaction, volume over this platform have tripled on an annual basis. Accordingly, 12% of consumer sales of Tushal Turkey was registered over these digital channels. Even though mobility limitation were lifted in third quarter, digitalization trend and and behavior driven by the COVID period had become permanent. Next slide. Let's take a look at our performance in our strategic focus areas. 1st, the digital services. Standard Von Digital Services revenue increased 28% year on year this quarter. Paid user, a key revenue source reached 2,700,000, marking 29% year on year growth. We introduce our secure and seamless video conference platform, which is relative to competitor with its global peers. Moreover, the data generated by Gitmeid is securely stored at our data center located in Turkey. We also introduced our TV plus ready products. It is the first Android TV solution in Turkey that is launched by an operator and capable of converting a television into a smart TV with with a dongle. By doing so, people ask customer can access over 150 live channels an archive of 5000 videos on demand in addition to music and game application at Dan Road Market. Last but not least, our new service lifebox transfer is a fast, easy, and secure alternative for data sharing. With this service, we suggest an alternative for those who wish to have the data sorted. Next slide. As to our 2nd strategic focus, namely digital business solution, Our Digital Business Solutions registered 40% yearly revenue growth. 900,000,000 TR System Integration Project backlog is promising for the period ahead. We pursue a strategy of providing our customer an integrated service procurement from a single point. As such, we launched Turkcell Multi Glass service, which offered global global cloud service procurement peer to peer management and consultancy service. Our secure digital signature and Tucson digital archive solution will enable the digitization of the process that require signature and generating operational efficiency. These services also contribute to our sustainable targets by reducing pay per users. Also in the period, we have built new global vendor partnership. Increasing the total to 20. All these efforts have encouraged to our ultimate goal of becoming the leader in the integrated solution market. Next slide. Now a few words on our tech team services. Paycell sustained its revenue growth. Driven by continued demand for contactless payment in the pandemic environment. Accordingly, Paycell, non group revenue grew by 85% year on year. This this quarter, we have introduced Paycell Android posts in a pilot scheme. This device is the first in the Android POS market to have secured necessary approvals and will become a new business line for pay stub. Paycel Android Post has a smart operating system and enabling the process of collection inventory tracking and e commerce or a single platform. It offers cost cost advantage to to number merchant, especially for SME. In addition to QR code payment, all bank cards can be used with this device. The portfolio will expand with the inclusion of meal costs. Next slide. And now an update on data usage and 4 and a house G subscription plan. Average mobile data usage rose 51% in a year to 12.2 gigabytes produced. The rise in data consumption was due mainly to higher content consumption boosted by seasonality. The growing share of our warehouse user and Supervac subscriber. Out of the 2,000,000 customers sign up for for an outg services. It's only 1,400,000 have for an outg compatible smart phones. Still indicating room for growth. This quarter, smartphone penetration on our network reached 80% with 90% foreign house to be compatible. There were $1,800,000 net additional for our apps to be compatible smartphone on a yearly basis. Next slide. Let's look at our performance in the international markets. Which generates 9 per 9% of the group's revenues. Our international operation grew by 25 0.3% year on year. This was mainly on rising voice and data usage and the positive impact of currency movement in these countries. Lifestyle Ukraine revenue grew by 14.2% in local currency terms. Life sales bottom line turned positive in June for the first time. And in Q3, lifestyle generated net income for the whole quarter. The performance of substring barrels has improved with the partial recovery, invoice, and data revenues. Euro top line growth was at 1.4%. Mobile ARPU grew 9.3% in a local currency terms. With higher data consumption and demand for digital services, best launch postpaid tires upon demand for its customers. Our subsidy in Turkish Republic of Northern Cyprus recorded 18.15 percent revenue growth on the back of data and health cent revenue. Despite continuing pressure in roaming revenue. Going to next slide. A new era for our company began the 22nd October. The transaction and shared transfer agreed and among our major shareholders and Turkey refund were completed on that day. As a result, Turkey Wealth Fund become the largest shareholder with its run 6.2% stake. Lesson 1, RISE is taking 2¢ to 24.8%. With this change, our company now has simplified ownership structure. Longstanding shareholder dispute are over. We no longer have the answer opportunities created by a 3 party controlling structure. Looking at the 26 year history of Tucson, I consider this change at milestone. I trust that we will register great results for our company and our country industry era with Turkey Wealth Fund. Turkey Wealth Fund has already declared its support for our strategy, and this is perceived great value at Tucson. I must also add that 2 service remains sub 2 service will remain subject to CMB, SCC, and SOX rules, and to other regulation. We will continue to have 3 independent board members ensuring best in class corporate governance principles. Next slide. I would like to add my presentation by sharing our new guidance for the full year of 2020. Taking into consideration our healthy 9 months, performance, and our expectation for the remainder of the year, we revise our guidance upwards. Accordingly, we rise our revenue group to 14% to 15%, EBITDA margin to 41% to 42% and EBIT margin to 21%. We back to registering operational CapEx over sales ratio of around 19%. With this, We are glad to have come back to the target level we announced before the pandemic hit the world, bringing on opportunities. We all these platforms are seeing the right strategy with an excellent team and offering the best in class service or a well invested network. I will now leave the floor to our CFO, Osma. Thank you, Rob. Now let's take a closer look into the financial performance. Our business displayed a solid performance in the third quarter. Group revenues rose 16.1 percent year on year corresponding to an incremental 1,100,000,000 PL. Of this increase, $996,000,000 derived from Turkcell Turkey, thanks to strong data demand from both consumers and corporates. 5G postpaid subscriber base and continued momentum in digital digital solutions. Increase in use of our digital channels contributed to for facilitating higher device sales. Trix and international revenues rose by 25.3% contributing 132,000,000 in this quarter, mainly with the contribution of lifestyle Ukraine and currency movements. Turkcell finance company's contribution remains negative due to our portfolio size as well as lower interest on the portfolio compared to last year. Next slide. EBITDA rose by 19 point percent year on year to 3,400,000,000 with a margin of 44 point 4 percent. Our EBITDA margin mark 1.3 percentage point improvement on a yearly basis. This was mainly due to a solid rise in revenues, plus lower G and A and S and M expenses. Third quarter had been a high season typically with increased usage during the summer period, and this was the case despite the pandemic environment. On the cost side, lower selling expenses, very limited travel expenses, lower overhead costs under our continued remote work in practice have only supported the margin expansion. Moreover, decline in doubtful trade receivable provision had a positive contribution to EBITDA in this quarter. Our collection performance was strong despite cautious expectations in COVID environment. Meanwhile, increasing equipment sales had negative impact on the profitability margin level. To start Turkish, EBITDA growth was stronger at to 123% 2 per to 123.2 percent year on year corresponding to an incremental 554,000,000 PL. The profitability margin improved with a 2 percentage point rise year on year to 44.3%. Now, more detail on our free cash flow. On this slide, you can clearly see the positive trend and strengthening of took sales cash flow generation over the years. In Q3, we have registered 1,000,000,000 TIL free cash flow, mainly on back of strong EBITDA generation. I want to emphasize that our finance company is portfolio expanded by nearly 100,000,000 TiI versus 2nd quarter. So our free cash flow generation performance is not related with the change in finance company portfolio, but the operational performance of Turkcell. With this, the 1st 9 months free cash flow amounted to 2,600,000,000. The major items of this 2,600,000,000 cash flow include EBITDA of 9,000,000,000, acquisition of intangible assets of 4,800,000,000, change in operating assets and liabilities of negative 130,000,000, payment of lease and liabilities of 1,100,000,000, and income takes paid of 460 to 36,000,000. Our aim is to continue free cash flow generation trend in the upcoming periods. Next slide. Now let's take a closer look at our texting company's performance, and let's start first with Turkcell Finance Company. In Q3, to a financial revenue is declined by 41.9 percent to 127,000,000 on a shrinking loan portfolio and lower average interest rate on the portfolio versus last year. EBITDA declined by 32.2 percent to 97.3000000. EBITDA margin was up 10.8 percentage points year on year on the back of lower cost of funding and lower cost of risk specifically this quarter. As communicated in earlier quarters, we will expect our finance company portfolio to stabilize by mid 2020 and plan to start to grow gradually afterwards. We saw an increase of nearly $100,000,000 in Q3. Copies with seasonality pent up demand in Q2 led to stronger sales in Q3 and continue to remote education has created demand particularly for tablets. We also observed smartphone demand was pulled forward with the expectation of price increases given the currency depreciation. Other manual condition, we expect the portfolio to grow by 10 to 15% per annum going forward. Meanwhile, cost of risk decreased to 2.5 percent by improving 1 percentage point on a quarterly basis. Successful collection performance and continued improvements on risk assessment infrastructure were the main drivers of this decline. In integrating telco and financial data, we created the best in class chronic mechanism with wireless reach in Turkey. Next slide. Our payment services company, Paycell, is well on track in monetizing the shifting consumer heavy in favor of ecommerce and cashless payment methods. Direct carrier billing transactions nearly doubled while transaction volume through Paystar card three times of last year. Quarterly growth case in transaction volume of this business line were also strong with 26.63%, respectively. It is worth noting that despite the fewer mobility limitations in Q3, we see prolonged trans in k Payside KPIs. Overall, pay side revenues increased by 34% to 78,000,000 EBITDA rose to R47 $1,000,000 with a margin of 60%. Non Group revenues rose by 85% with share of non group revenues reaching 2 thirds of total. We saw strong demand for ready to use limits that will launch in June July with 30,000,000 tier volume in this quarter. With this service, our customers can transfer their mobile payment limits to their pay side cards in order to spread at any merchant credit card is accepted. As discussed, we have also large Paycell Android POS in a top scheme in this quarter. This service will create more value to Paycell with becoming widespread in 2021 and beyond. Next slide. Now some highlights from our balance sheet and leverage. As at the end of the quarter, our gross debt position increased to $22,800,000,000 from 19,800,000,000. Currency movements led to around 2,500,000,000 increase in total debt. In Q3, dollar appreciated by 14% and to eurobar 18%. As indicated, we we do not net off our derivative receivables from that. So our reported net debt in TR terms rise as FX appreciates. As of Q3, net debt was 9,300,000,000 with a 0.8 ton leverage ratio. Excluding the Titanium business, this was at 0.7x, same as the level with the previous quarter. Within 0.5 1,000,000,000 rising net debt in Q3. Current's effect was bound point point 6,000,000,000 while we generated 1,510,000,000 cash from our operations. Next slide. I will end my presentation by discussing our management of foreign currency We have $1,700,000,000 equivalent cash in hand with 7% of in hard currency. We deemed this practice to be important as a natural hedging tool. With hedging consumers in place, the share of FX that had declined from 7 7% to 43% as at the end of q 2. Our hedge contracts are cash flow rates covering full maturity of related FX debt. We entered into these contracts, mainly in 2016 2017. So thanks to good timing, we have favorable exchange rates, and we are able to renegotiate stock levels see any potential in the market. As of Q3, our net FX position is $31,000,000, and we will continue to keep the position neutral in the coming periods. This concludes our presentation. Now we are ready to take your questions. Thank you very much. Ladies and gentlemen, you. The first question comes from the line of Cabo Chek Onda with UBS. Please go ahead. Hi. Thank you for taking my questions and congratulations on a very good set of results. I had a couple of questions actually. So I I was just thinking if I look at your revenue growth, obviously, you outperformed on both revenues and and EBITDA. But if I look at your, revenue growth, I I would say that the sources of the of the, call it, be there up performance were from wholesale and other. I was wondering if you could clarify a bit where exactly, so much of that growth is coming from, that's my first question. 2nd question on CapEx you you're now moving your guidance to 19%. I wanted to clarify whether that is just a function of FX or whether there's some new investments coming through. And, lastly, just a comment if you could please on your, or rather not on your, but on competition, because one of your competitors yesterday, was was saying that, the competition seems to be picking up on the acquisitions market specifically in mobile. So if you could comment on what your view on that is and and what impacts would you say that that could have on your subscriber costs going forward because clearly they were, up again in the in third quarter compared to what we have seen before, even before COVID. Thank you. Thank you very much for the question. Let me sell it, revenue growth part. This was mainly driven by Turkish strong ARPU performance on the back of larger postpaid share and higher data consumption and upsell efforts. Equipment revenue backed by sales, particularly on digital channels and corporate projects. Also had a positive impact on to South Turkey's strong top line performance. Tushar International revenue, which rose 25% mainly with the contribution of Ukraine operation and the positive impact of currency movement, supported group top line growth as well. Meanwhile, we saw 15% drop in other substrate revenue. This was a result of declining finance business revenue due to contracting loan portfolio and declining interest rates. We also stopped our support betting operation in Turkey by the end of August 2019, which had a negative impact on the other subsidiaries revenue as well. Excluding the finance business and spot betting operation revenue, our consolidated revenue growth would have been 19% in Q3. For the second question regarding CapEx, we implemented discipline and selective management without compromising quality in terms of coverage and capacity. By selective, we mean making new investments based on subscriber metrics, while prioritizing locations, having higher revenue generation potentials. However, on the phase of the recent recent volatility in Turkish era, as well as our continued investment, We we revised our guidance, and now we are targeting the higher end of our initial guidance, which is around 19%. Regarding a competitive environment, actually, our strategy compromise different initiatives than our competition. We focus on creating higher value and richer experience to our customer by offering differentiated product and services. As rather than competing on price, we focus on additional value to build from our customers. Our strong NPS score and customer addition performance confirms that our strategy is paying more. Appreciation of our value proposition by our customer also enabled us to implement inflationary pricing. In the third quarter, we registered an auto growth performance, which has 2 percentage points above inflation. And double the nearest competition. Going forward, depending on the pace of inflation, we would be reasonable to expect our ARPU growth to be in a range plus or minus a couple of percentage points around the inflation level. Actually, I as far as, get I get the the portable wholesale side. You asked for a fixed effect. Yes. We have foreign exchange effects as well. But on the wholesale side, we have also some local currency level On the other side, I I believe I already, explained the equipment resources and corporate equipment as well. Yes. Thank you. If I may one short follow-up on the enterprise revenues, so those seem to be very strong, but usually those, are sort of by their nature, usually come in sort of larger projects with pretty big upfront costs, meaning low margin, but it seems you've you've also done very well on the margins. So can you just talk a bit about the nature of these? Are they, for example, clouds there by nature? A higher margin or any comment on that would be helpful? Thank you. For I mean, we already, actually, initially you said that for the corporate market, we are going to focusing higher profitable areas, which are, cloud business, security, IoT, and that type of business. So, yes, we are entering into project sites And we are going after, for instance, health care hospital business, but all of them as a part of, data, cloud, another solution as well. So I think, we are focusing very much on enterprise segment and then, profitable side of interest segment as well. Thank you. I I apologize everyone on the line. Can can you just please clarify in terms of the subscriber acquisition costs that I asked earlier, they seem to have jumped up again quite a bit in the 3rd quarter. What is the outlook for those, in in in the coming periods? Yeah. To be honest, you know, with the normalization of our mobile customer acquisition, increased 38% compared to previous previous quarter and third quarter, while fixed customer acquisition loss 16%. These are the main driver behind the increased subscriber acquisition costs. That's very clear. Thank you, and then, sir, everyone. Thanks. The next question comes from the line of Ibrahimovadilia with Citi. Please go ahead. Yes, thank you very much for the opportunity and congratulations on that strong results. I had a couple of questions on the similar theme, where Andre was first, maybe looking at the device, Dale, so if I'm looking at the, there has been strong increase, but if I'm looking at the gross margin, especially year on year, there has a very, or relatively visible dilution. Can I just ask whether the device sales coming at positive margin or maybe the margin on those are improving? And also, maybe if you have a breakdown share of equipment sales that are attributable to corporate segment, please And my second question is on service revenue. It was up quite a bit of growth in mobile service revenue driven by prepaid. I just wanted to check whether that's, how much of that is driven by pricing, that you have put through in July, June, July, and then how much of that is driven by maybe higher consumption of data. As consumer, you know, just, see, I'm working from home and studying from home. Thanks. Okay. Thank you very much, Peter. First of all, regarding device sales and the impact of of the gross margin, So we are not doing devices. Just take off the revenue increase. Every device that we are selling to our customer has related adjacent adjacent revenues as well. Which are mainly profitable revenues. If you look at stand alone device, the margin, it's like between 6 to 8 percent level, but it brings higher, profitable revenue next, these devices and also increase customer's fitness and create new opportunity especially in the enterprise markets as well. For the, for the hiking prepaid ARPU growth, we implemented price increase to bundle offers as well as data packages in the prepaid segment at the beginning of the 12th quarter. Aiming to reduce the price gap between prepaid and postpaid. Moreover, we follow the proactive approach to prevent possible churns that will be triggered by the price adjustment with customized and exclusive offering using our analytic capabilities. This resulted in solid outgrowth in prepaid segment in the 4th quarter. Share of the compensation? Actually, you asked for equipment sales share. It was 10%. So 10% of all devices. All of it is for the corporate revenue. Okay. Thanks very much. Sorry. Sorry to coming back to the first question. Yeah. The next question comes from the line of Demetas tomal with ATA Invest. Please go ahead. Thank you for the presentation and congratulations for a very good result. My question is about the prospect for 2021. Could you give any indication about the trans for k 2021. Any significant change in the outlook you know, we'll love you. What are your expectations? Thank you. Gemal, thank you very much. I think, you know, to be able to prospect from now, it is it might be a little bit difficult, especially in the COVID environment. So, no, there are some revenue rely on the, for instance, roaming revenue rely on the COVID situation because if the COVID goes earlier, we would see the roaming revenue come back in the same level even even maybe higher. So, as of today, we are working on heavily on 2021. Prospects. It is not easy job, by the way, but we will provide guidance soon in February with with 4th quarter results, but believe me, we are working hard on the on the prospect for 2021 these days. Thank you. We have a follow-up question from the line of Ibrahim Vadilia with Citi. Please go ahead. Yeah. But thank you very much for the opportunity to pull up until I pull up. I had 3, actually, yeah, if I may. First is on, margin or maybe cost structure this quarter specifically. Do you if, I understand that some of the costs may have been lower because of the lower commercial activity, for example, sales and marketing. So if we were, if the if the market was open as normal, where do you think your EBITDA would have been then? And second question is on roaming is there any rolling revenue, in Turkish revenue this quarter? And my third question is on your guidance as a top line guidance, which implies 11, 15% growth in the 4th quarter, which seems conservative. Considering that it tends to be a stronger quarter in device sales and the run rate that we have seen so far. Is it are you just being cautious, in your outlook? As you mentioned, that some of the device sales have been, have moved forward as people rush to buy, equipment before, inflation, is that, or are you just being conservative? Thanks. Thank you very much. Let us start with the margin side. I mean, third quarter is the high season for telco market in Turkey. It was historically like this. And this is this is due to increased usage during the summer period, and this was the case despite despite the pandemic environment. On the cost side, lower selling expenses, very limited travel expenses, lower overhead costs under our continued remote working practice have all supported the margin. Moreover, declining doubtful trade receivable provision had a positive confirmation to the EBITDA in this quarter as well. Our collection performance was strong despite cautious expectation in COVID environment. We believe that we will be within our guidance range for a full year which is between 41% to 42%. As you know, this 2 sales channel is a focus area for Turkcell. The increasing share of digital travel leads to saving in the selling and subscriber acquisition expenses as well. The pandemic environment had a positive impact on this plan. And we believe this become permanent, even normalization period. We believe that we can sustain the savings on the selling side. On the marketing side, we either postpone or canceled part of marketing expense due to pandemic. This will bounce back to normal levels when things get back to normal, I would say. For the pipeline guidance, uh-uh, sorry, for the roaming revenue in Turkey, this quarter, as I indicate that our rolling revenue, decreased by 33% year over year. So, row roaming park still, obviously, we get some roaming revenue. But it decreased dramatically versus last year. For the top line guidance, You know, we increased the top top line to 14 to 15%. I believe this is, reasonable, at the achievement because last year, 4th quarter was also quite strong quarter. And I think we we will try to hit the higher end of the guidance, but I believe we can we can do this. As you said, as you said, you said that people rush to buy a shipment. This might be changed. And also, the the increase of the, foreign currency, I believe in reduced customer, buying turning the equipment. The this and, you know, in the top third quarter, the the Turkish, the terminal price was in Turkish. So we expect to increase in the terminal side as well. Thank you. Just one more addition. It's regarding Promings revenue. In total, it is 2% of, Tuxan Turkey revenue. So it it has such impact. Sorry, just to confirm, this quarter, the roaming revenue of 2% of total It's probably the roaming revenues around 2 percent of 2011. But this this quarter decrease to to sorry. Just let let me Okay. This is the same. It's in this quarter, it is 2% of Two sides of 11 at the wrong time for the 12 o'clock. We have a follow-up question from the line of Cabo Chek Andre with UBS. Please go ahead. Mister Cabo Chek, can you hear us? Oh, apologies. I was on I was on mute. I I wanted to have, ask a question on the consumer finance business. So, clearly, that's, the the loan book, of it. Has sort of bottomed out. But I believe it's bottomed out quite below what, you were sort of expecting it to reach. About a year ago. So I wanted to ask whether that is, intentional, for example, relating again to your focus on on on profits or marginality on on on devices or whether that was simply something natural that the, COVID situation, for example, uh-uh made happen. Can you comment on that, please? Thank you. Yeah. First of all, at the beginning of the year, are, in Turkey, the regulation is changed for the installment, number of installment in the device business. So it it, it's reduced, 3 installment for the price, of, 35100 turkish liter range and, 6 installment lower than 3500 Turkish liter. So this impacted our finance business, top line and, and, and, number of, device credited to customer. The main reason of this. It's not intentionally. It is due to regulation. Okay. But but so you can confirm that despite this happening, earlier this year, we've sort of annualized that. Or or it's in the base now and and the the growth like you said should come, sort of in line with revenues from where we are today. Yeah. We see that hit down to the, like, mid mid mid of the year. And now we're recovering, but, obviously, going forward, we can expect 10% to 15% portfolio growth on an annual basis. Okay. Thank you. And and one more, a follow-up please on on the prepaid market. You said you if I understood correctly, your strategy would be to sort of converge prepaid to postpaid pricing, logically, that would be making the, prepaid services more expensive how confident you are that the market is going to call you on that one? Because one of your mid medium term targets is also to be adding 1,000,000 RGUs per year. So are you not scared of market share losses in this segment? To be honest, we would like to close the gap between prepaid and postpaid pricing because so that customer would like to move to the postpaid environment rather than prepared environment, which is more sustainable, more ARPU and more strictness for us So this is, this is intentional job that we're doing during the year, actually. This is this is the case ID. As for the 1,000,000 target, we I think obviously, the the COVID environment, impact the customer acquisition side, mainly we didn't see a foreigner to come to Turkey and, and acquire more, mobile lines. This has impact, but we would like to get as much as we can to the 1,000,000 target. Okay. Thank you very much. And if there's if there's no one else in the line, maybe you wanna follow-up on on TV, please. Your competitor yesterday announced an I mean, speed of of TV services with with more content. Is there any any any reaction, a potential reaction from your side in terms of how you you run the TV business at Terex Health? Yeah. Our TV business is quite strong, and you know, your growth is the also quite, positive on our side. For the, I didn't know that what the competition are on us, but one of the richest content is in Subside TV plus. Actually, we announced a new, new things like which means, we can attack the competition, broadband infrastructure by using OTT, download box. So this is also, I think, one of the important achievements on our side. So for the content side, I believe we are the the probably the re we we have the richest, content in Turkey in terms of, in terms of TV content. Obviously, we don't have local Turkish leak rest, but I believe our competition doesn't have anywhere. Yes. Alright. Thank you. Thank you. I appreciate all the answers. Thank you. I would now turn the conference over to Turkcell Management for any closing comments. Thank you. Okay. This is the end of our call. Thank you all for taking time. To participate in our call. Have a nice weekend. Thank you very much. Ladies and gentlemen, the conference is now concluded and you may disconnect your call. Thank you for calling and have a pleasant evening.