Good day, welcome to the third quarter 2018 results conference call. For your information, today's conference is being recorded. At this time, I'd like to turn the call over to Korhan Bilek, Director of Investor Relations and Mergers and Acquisitions. Please go ahead, sir.
Thank you, Valet. Hello, everyone. Welcome to Turkcell third quarter 2018 results call. Today's speakers are our CEO, Mr. Kaan Terzioğlu, and our CFO, Mr. Osman Yılmaz. We have a brief presentation, afterwards, we will be taking your questions. Before we start, I would like to remind you to review the disclaimer of our presentation. Now, I hand over to Mr. Terzioğlu.
Korhan, thank you very much. Good afternoon, good evening, welcome to our third quarter 2018 results call. We are pleased to announce another set of strong results, especially in a challenging macroeconomic environment. We continued our growth momentum at the top line with 26.1% year-on-year increase to TRY 5.8 billion. This brings the two-year cumulative growth rate to 59%. Even with an accelerated inflation level, this represents a real growth after inflation rate of 14.5%. The key driver of this outstanding performance was the record high mobile ARPU growth of 18% due to successful execution of our digital services focused strategy and upsell performance. EBITDA rose to TRY 2.4 billion with a 41.3% EBITDA margin.
As the download of our digital services reached 130 million, the share of multi-play customers also followed, resulting in 64% of our mobile customer base on triple play and 47% of fiber residential subscribers using our TV services. With 18.2 million 4.5G compatible smartphones on our network, the average data usage has continued to rise, reaching seven gigabytes quarterly average. Given these better than anticipated nine months results, we once again raise our revenue growth guidance from the 16%-18% range to 20%-22% range, along with a higher EBITDA margin guidance of 39-41 percentage points for 2018. Our capital expenditure, monitored for efficiency at all times, remains on track at 18%-19% operational CapEx over sales ratio guidance despite sharp lira weakness. Next slide. Our robust business model has successfully weathered the tough macroeconomic environment of the third quarter.
Our ability to create revenues with adjacent products and our focus on the value offered to our subscribers contributed to the yearly mobile ARPU growth of 18% for the quarter. Resilient operational performance is proven again by continued growth momentum and an EBITDA margin of 41.3% with a 5.8 percentage points rise year-on-year. Customer loyalty is intact, as seen in the sector low monthly churn, as well as our leadership in the Net Promoter Score. This resulted from our value offerings enhanced by digital services, superior network quality, retention campaigns, and user experience. Our prudence and disciplined financial risk management strategy has protected us in volatile times. Additionally, effective credit scoring and collection mechanisms have allowed us to maintain robust asset quality, including our consumer finance business. Next slide. More details on our financial performance.
On a quarterly basis, with a TRY 5.8 billion top line and TRY 2.4 billion EBITDA, we recorded a 41.3% EBITDA. With our two-year cumulative growth of 59% in top line and 97% in EBITDA, we achieved higher profitability and even deflated by inflation over the 24 months, a 14.5% growth, real growth. Turkish lira depreciation and macroeconomic volatility dominated the headlines during this period. Regardless, we generated a net income of TRY 241 million. This confirms the efficiency of our long-term foreign currency risk management measures and the resilience of our business model. In the first nine months, revenues rose 20.8% and EBITDA 45.9%, resulting in a 41.8% EBITDA margin. Operational CapEx as a percentage of sales for the first nine months was 16%, in line with our plans. Next slide. Let's elaborate on Turkcell Turkey's operational performance.
In the third quarter, we had 37.8 million subscribers in Turkey with 591,000 yearly net additions. This quarter, we gained 128,000 mobile customers. The postpaid subscriber base continued to grow with 191,000 additions, reaching 19 million in total. Our monthly average mobile churn rate during the quarter was 2.2%. Specifically in the corporate segment, we witnessed the lowest churn rate of the past 13 years. Our tailor-made end-to-end solutions and value propositions for corporates have been instrumental in this success. Our customers' higher data and digital services usage and upsell to higher tariffs have led to higher ARPU. Mobile ARPU grew by 18% year-on-year to TRY 38.7. On the fixed broadband front, fiber, our key focus, is clearly gaining ground on ADSL market. Indeed, our fiber business has performed well with yearly net additions of 175,000, 25% of which were gained through our wholesale contracts for other operators.
The number of IPTV subscribers rose by 115,000 in a year, and including our OTT TV subscribers, this exceeded 3 million. Fixed residential ARPU reached TRY 55.3. Superbox, our innovative product for wireless home broadband service, generates TRY 105 ARPU. This product is becoming increasingly popular. Superbox net adds have reached one-fourth of fiber net adds this quarter. Next slide. With our marketing campaigns, we aim to constantly create new motivations for our customers to experience our digital services. In a recent exemplar, we have participated in the government-initiated nationwide all-out war against inflation by doubling data quota of our customers until year-end. This confirmed our support for Turkey, it has also been instrumental in engaging our customers with our digital services as well as customer retention.
In addition to ever more relevant digital services, the quality of network, the efficiency of our sales channel, and overall brand image continued to impact positively in the eye of our customers. Our Net Promoter Score not only increased in this quarter, but we have also widened the gap with our competitors. Next slide. A key driver of our strategy, demand for data and digital services. Average mobile data rose 29% in a year to 5.4 GB per user in the third quarter. The main driver of this increase is the rising consumption of 4.5G users, which reached 7 GB per user. Out of 31.5 million customers signed up for 4.5G services, 18.2 million have 4.5G compatible smartphones. The room for growth here underlines the potential for more data use by a wider customer base as 4.5G users consume twice as much data in comparison to non-4.5G users.
To tap this potential, we continue to increase the penetration of 4.5G smartphones on our network. Accordingly, smartphone penetration reached 74%, out of which 79% are 4.5G compatible. This is an 11 percentage points increase in a year. The recent regulatory change limiting installments for device financing, coupled with currency devaluation, will significantly decrease smart device sales in the market. For us, this is likely to have a limited impact given the already high level of smartphone penetration on our network and ever-increasing demand for data usage. Going forward, we also expect customers to shift to mid and low segment devices available in our sales channels. Next slide. In the third quarter, customer engagement through all our digital services continued to increase. In addition to 32 minutes of GSM calls, the call time for Voice over IP customers on BiP increased to 30 minutes.
While a user on average spent eight minutes interacting on BiP, we see a dilutive impact on average usage levels as the user base continues to increase. Our customers spent 60 minutes on TV+, 21 minutes on reading Dergilik magazines and newspapers, and 48 minutes listening to music on Fizy. Thus, an average Fizy user today listens to one full album of 12 songs per day. We continued to advance our digital services with new features this quarter as well. Next slide. Now let's look to the KPIs of our services this quarter. From this period onwards, we will be disclosing our three-month active user figures to better reflect quarterly performance. With 30.3 million downloads to date, BiP active users increased from 8.6 million to 9.7 million. 114 million messages per day are sent through BiP, marking a new record high.
BiP ranked number one application downloaded in App Stores for the six consecutive days in October. UpCall, which combines an enhanced calling experience with secure phonebook, digitized 2 million calls per day. The leading digital publishing platform, Dergilik, with expanded content, has 13 million active users. Nearly 110,000 magazines and newspapers were read per day this quarter. Total Fizy downloads reached 19.2 million, where over 7.8 million songs are streamed on a daily average. 36 live concerts were broadcasted on Fizy this quarter. We are proud that Fizy now is equipped with accessibility features for the vision impaired as well. 2.3 million active users on our TV+ application has 2.6 million session logins per day. This quarter, we have added Bundesliga, the German football league, to our sports content exclusively for TV+ customers.
Lifebox, our personal cloud application, has 2 million active users with 36 objects uploaded per person per day. Our key tool to digitize connection with our customers, My Account, has 18.6 million active users, generating a 32% greater output. My Account users enjoy this user-friendly access to Turkcell's online platform. Yaani, our locally developed search engine, has been downloaded over 6.5 million times since its launch just a year ago. Today, Yaani hosts 1.8 million search inquiries per day. Our payment platform, Paycell, hosting several Techfin solutions, has 4.8 million active users with transactions worth of 1.5 billion TRY in Q3. The application has 1.9 million registered credit cards. Our Fast Login service, enabling secure and seamless sign-in to mobile apps and online websites, has 12.2 million registered users. Fast Login is integrated into 31 services, through which around 182 million logins have been facilitated to date.
Last but not least, our gaming services, including Playcell and BiP Gaming, has reached 9.2 million users in Q3. Next slide. Our communication and lifestyle experience platform, BiP, has proudly been developed using internal resources in Turkey. With a significant hike this quarter, total BiP downloads reached 30.3 million, 2.7 million of which were in global markets. Ukraine tops the list, over 650,000 downloads, followed by Saudi Arabia and Germany. BiP's first global advertising were broadcast on digital screens in New York's Times Square during the week of the United Nations General Assembly in September, accelerating the global communication of our flagship service. Our initial target is to reach 25 million global downloads of BiP and to register 1 billion downloads of overall digital services over the next three years. Next slide.
Let's take a closer look at Lifecell, our digital-only offering built on our digital services and mobile data platform. Last quarter, we introduced a tariff creation option for Lifecell users who are now free to choose digital services other than Turkcell's, designing their own tariffs. Fueled by this new model, our Lifecell subscribers have doubled this quarter again, reaching 1.6 million by October. 55% of postpaid Lifecell users are new to Turkcell. Lifecell users are consuming 8.6 gigabytes on average. A Lifecell subscriber generates 1.3 times the ARPU of a Turkcell customer. The churn rate of Lifecell customers is 40% lower than that of average Turkcell customer. Next slide. Financell, our consumer finance company, continued its steady growth this quarter with a 52% revenue rise, more than tripling net income year-over-year. This was mainly due to portfolio growth, higher insurance services revenue, and one-off gain from swap transactions.
Financell's consumer loan portfolio reached 4.8 billion TRY. Including the contracted handset receivables of Turkcell, total receivables from handset financing rose to 5.2 billion during the quarter. Financell has portfolio of 4.7 million loans, the average ticket size of which is approximately 1,600 TRY. Consumers pay 91 TRY per month on average, with over 95% also opting in for add-on loan protection insurance. Thanks to our strict credit scoring, cost of risk remains stable at 2.2% as of September, despite the challenging macroeconomic environment. As discussed before, the regulatory change as of September has limited the financing installments for telecom devices to six months across all channels. While this will have a substantial impact on the number of smartphones sold in the market, along with the slower renewals, we expect no impact on the level of data consumed.
We expect the resulting disposable monthly budget of our consumers to create more room for service revenue growth. Also, the potential of deleveraging of Financell will enhance Turkcell Group cash flow generation. Next slide. This brings us to the Turkcell International's performance during Q3. Turkcell International generates 7.3% of our group revenues. Our operations grew by 55.4% year-on-year to TRY 424 million with an EBITDA margin of 35.5%. lifecell in Ukraine contributes 65% of our international business. Fueled by the launch of 4.5G services, quarterly mobile data consumption per user more than doubled in a year. Accordingly, lifecell revenues climbed 62.6% in TRY terms. The EBITDA margin came in at 41.8%. The 3-month active 4.5G users expanded by 50% this quarter as the network rollout continues. In Belarus, the revenues of BeST rose 61.6% with an EBITDA margin of 16.1%.
Higher data and digital services usage with 4G led to revenue growth. Digital magazine, music, TV, and gaming services are the key contributors in Belarus. This quarter, we saw the launch of the new kids' game platform available to BeST subscribers. Our Turkish Republic of Northern Cyprus operation, Kuzey Kıbrıs Turkcell, saw 12% year-on-year growth with an EBITDA of 35 percentage points. Next slide. Considering the strong nine-month performance, we revise our 2018 top-line guidance upwards from 16%-18% range to 20%-22% range, and we also increase our EBITDA margin target from 37%-40% range to 39%-41 percentage points. As to our CapEx budget, we have taken several actions, including advanced payments at lower exchange rates, renegotiating with our suppliers, and reevaluation of entire CapEx program to mitigate the impact of TRY devaluation.
Accordingly, we retain our operational CapEx to sale ratio guidance at 18%-19%. I will now leave the floor to Osman for the financial overview. Before he starts, I would like to also congratulate him at his permanent appointment as Chief Financial Officer. Osman, to you.
Thank you very much, Kaan. There are a couple of things I should highlight regarding the key components of our business model hedging, which enabled us to weather the tough macro conditions and the Six Sigma events in financial markets we have experienced. First of all, we have been determined in implementing inflationary pricing over the past few years, which we consider the key to sustainable growth and profitability margins in an inflationary environment. Our proven track record in this regard is evidenced by our ARPU growth versus consumer price increases. The former has always been at a higher level despite its latent impact given a contracted customer base. We are more selective than ever in our new projects and investments, evaluating opportunities with the utmost scrutiny given the prevailing higher cost of capital. Secondly, we have proven financial risk management mechanisms in place.
Accordingly, we have engaged in several hedging instruments shortly after we secured the financial debt. This helped us convert the majority of our FX debt to fixed rate TL debt, eliminating currency maturity and interest rate risks. Furthermore, we carry cash at hand in hard currency as a natural hedging tool. Thirdly, we have strong liquidity position with a $1.5 billion equivalent cash in foreign currency, sufficient to cover debt service, including interest for the next three years in addition to committed credit lines. Next slide. Now let's take a closer look into the financials. In Q3, group revenues were 26.5% year-over-year, corresponding to an incremental 1.2 billion TL. This increase is mainly comprised of 916 million TL from Turkcell Turkey from the back of strong ARPU, 151 million TL from Turkcell International, and 86 million TL from Turkcell Consumer Finance.
EBITDA rose by 46.6% year-on-year to 2.4 billion TL, with a margin of 41.3%. This was mainly due to a solid rise in revenues and lower G&A expenses. Next slide. Now I would like to talk about our balance sheet and leverage details. As at the end of the third quarter, our net debt position was at 13.2 billion TL, with a net debt to EBITDA ratio of 1.83 times. Excluding our consumer finance company loans, our telco-only net debt was 8.4 billion TL, with a leverage of 1.23 times. Our net debt position in Q3 saw an FX impact of 2.3 billion TL and the dividend payment. Next slide. Now I will go into the management of foreign currency risk. As stated before, as a natural hedging tool, we hold 100% of our cash in hand in hard currency.
In addition, by using hedging instruments, the share of FX in our debt at the end of the quarter falls from 85% to 43%. Our short FX position was at $255 million by the end of third quarter within our comfort zone. In this quarter, we observed extraordinary circumstances of 31% dollar appreciation against lira. Due to our consistently prudent risk management policy, we have been able to limit our net FX loss to 716 million TL, which otherwise would have been 4.3 billion TL without the FX effect on our balance sheet and the hedging instruments in place. Recently, we have observed a more stable macro environment and Turkish lira appreciation. We will remain cautious regarding our financial risk management and continue to keep our FX risk at manageable levels.
Let us also remember that we expect to complete the Fintur sale process and receive nearly $400 million cash for our stake in the near term. Under IFRS rules, this is not currently reflected on our balance sheet nor in our net FX position.
This is the end of presentation. We are ready to take your questions. Thank you very much.
Thank you. Ladies and gentlemen, we will now start our question and answer session. If you wish to ask a question, please press zero one on your telephone keypad. To participate in our written Q&A, type your question into the Ask a Question text area, then click the Submit button. Thank you for holding until we have our first question. Our first question comes from JB Davids. J.P. Morgan, please go ahead.
Good evening. Thank you for the opportunity. Congratulations on the results. Two questions from my side. Just coming back to the inflationary environment, a question there, if I may to start. You presented a very strong message on your historic pricing power and ability to offset inflation. At the same time, you've highlighted a commitment to supporting the government initiative around containing inflation going forward. Really it's about the forward-looking view of Turkcell around pricing and how you expect to balance inflationary pressures in the market with supporting this government initiative. The second question would be focused around the net debt. Net debt up by about TRY 3 billion in the period. I'm just trying to understand exactly what the drivers of that increase in the lira debt is.
Obviously FX is impacting. It looks like free cash flows is positive in the quarter. It looked like the FX loss for the quarter was only around TRY 700 million. Maybe you can just help me understand that movement in the lira debt. Thank you.
JB, first of all, let me start with the second question you have, which is purely the foreign currency impact on the debt. That's practically a simple driver of the TRY 3 billion increase in our net debt position.
Okay.
Of course, the dividend payment as well. Please also take that into consideration in trying to reconciling the differences on the cash movements. If you go to your first question about the inflationary environment, our commitment to the government initiative, our also disciplined approach on pricing. These are not mutually exclusive events. If you think about the way we acted in terms of supporting the government's initiative, in terms of containing inflation, was actually towards increasing the supply of data, not towards reducing our pricing. Frankly speaking, I think the right way to challenge the current conditions about inflation is to move towards more affordable entertainment platforms and make it available even more. We see this as a great opportunity to drive the usage levels in our digital services.
Actually, we do not see an impact or any diversion from our disciplined pricing actions moving forward.
Thank you very much.
Thank you.
Our next question comes from Herve Drouot, HSBC. Please go ahead.
Yes. Good afternoon. Thank you as well. Two question on my side. The first one is, I notice you have quite good growth in mobile ARPU, but much less so on the residential fixed line. Only single digit growth. In light with some of the tariff increase we've seen with one of your competitors, especially on broadband, should we expect an accelerated increase of ARPU for your residential fixed line, or do you think it will still stay in this low single digit growth? The second question is regarding, do you see any impact looking forward or already in term of bad debt? With the macro environment getting tougher is there any impact you think that may come not only on the consumer financing but also in term of the ability to be paid on time, and the potential risk associated as well with payment on consumer financing?
Thank you.
Herve, thanks a lot. Actually, the ARPU increase on the fixed business is impacted also by the change of taxation a little bit. Despite that, as you can imagine, we are not the market leader in this particular segment. Of course, the prices are mainly set by the ADSL provisioning of Türk Telekom. This is a market where we are trying to bring innovative products. As we have noticed, the innovative product we have in terms of fixed wireless access has almost an ARPU of twice the average fixed business. We are focusing mainly on fiber and fixed wireless access rather than the commodity ADSL business. You should expect a better performance moving onwards on the ARPU side, on the fixed side as well from us.
Do you think that could reach double-digit in the coming future or no?
Yes.
Yes?
Yes, it should.
You think that could be reachable in a 12-month period, or?
My expectation is to reach the same levels of performance on fixed business with our new line of products on fixed wireless access as well as fiber business. I will not comment on the ADSL side, which suffers from heavy price squeeze in terms of wholesale and retail markets.
Our next question comes from Alexander Kazbegi, Renaissance Capital. Please go ahead.
Yes, good afternoon. If I can go back to the inflation question, as far as I understand your answer, Kaan, basically to increase revenues mostly through consumption. Should we really feel that after this massive increase in inflationary pricing, so to say, on your side in Q3, you're still looking forward to much more moderate increases of your pricing? Second question with the same regard is that when do you see the inflation is actually hitting also on the cost side, when the wages are going to be adjusted and when other maybe cost items might be going up? What sort of inflationary pressure on the cost side you might be seeing in the beginning of 2019? Lastly, maybe just to understand on your hedging positions, the duration of the hedges.
I mean, are these basically set for the entire duration of that instrument or do you need to roll over the hedges at some stage? Thank you very much.
Okay. In terms of the inflationary actions we have taken by doubling the quotas of our customers, again, I see this actually as a mid-term, a great opportunity for us to get more customers and more usage. Our position in terms of inflationary pricing has not changed. That means any impact on the cost side, as well as the overall pricing levels in the economy, will be reflected in our pricing actions as well, immediately after we have this three months of special campaign period. We feel very comfortable in terms of continuing our disciplined approach to pricing on that side. With regard to hedging positions, I will leave it actually to Osman to answer the question.
All cash flows of the loans, including coupon and interest rate payments, are fully hedged. We don't need to roll over none of our hedges.
For the entire duration?
Yes, for the entire duration, including all coupon and interest rate payments.
Okay, sounds good. Thank you.
Our next question comes from Vyacheslav Degtyarev, Goldman Sachs. Please go ahead.
Yes, thanks for the presentation. A couple of questions. Firstly, maybe it's a bit premature to ask, but is there willingness of the management to adjust the upcoming dividend recommendation on the FX flows? Secondly, maybe you have any update on the Fintur sale. Thank you.
Okay. Slava, thanks a lot. We have no change in our dividend policy. Our dividend policy remains at minimum 50% of our net income, and there is not anything to report at this particular time. With regard to the Fintur, we are progressing on our divesting policy of Fintur. As also CEO of Telia has commented on his quarterly update last week, the process is ongoing and on track. I will not be providing any more information on this, but what I can tell you is it is in line with our expectations, and we will let you know if there are any new news on that.
Thank you.
Thank you.
Ladies and gentlemen, I would like to remind you if you have any further questions, please press 01 on your telephone keypad. To participate in our written Q&A, type your questions into the ask a question text area, then click the submit button. Our next question comes from Cesar Tiron, Bank of America Merrill Lynch. Please go ahead.
Yes. Hi. Thanks for the call and for the opportunity to ask questions. I have two questions, please. First one, I wanted to understand if the price increases that you implemented in Q3 have had impact on the revenue growth since I think most of them have been implemented in September. Second, I wanted to understand why you didn't take the opportunity to improve your interim outlook, given the impressive results that you delivered. The third question, can you share some KPIs on the game users, for example, the output level of the, I think you mentioned 9 million users. Thank you so much.
Okay. The price increases is something that we have been doing on an ongoing basis, so there is no specific action that particularly we have taken in September. It has been an ongoing process, as I mentioned to you, this has been going on actually for the last 16 quarters that we have been on these calls, and it will continue to be in a disciplined approach. What I would like to mention you, our price increases are coupled with adjacent products. Our customers are not just consumers of calls and SMSs. They also consume music services, TV services, messaging services, cloud services. Our combined value propositions have not been even more affordable, but were able to deliver us higher ARPU and lower churn.
Please keep in mind that we are not just raising prices on a single commodity product, but providing a comprehensive value proposition on a portfolio of products. From a price increase perspective, it will be very difficult for you to decipher. That is the secret sauce of our strategy in digital services. With regard to Playcell and BiP Gaming, your other question, in Q3, the distinct number of subscribers who have been engaged in these platforms is 9.2 million. We have also bundled some of these products into our packages as well. Next quarter, I will also report to you in terms of how many new subscribers with gaming packages involved.
We have also introduced a special backgammon game application where we have close to 190,000 subscribers, and the average number of people who are engaged in this particular game is already 40 minutes. This 9.2 million subscribers, distinct users, represents almost 4 million-9.2 million increase, more than doubling in the last quarter. Thank you. You also asked a second question, which I couldn't get. If you repeat that as well, I would love to answer that.
Sure, thanks. Just wanted to understand why you didn't take the opportunity to revise your midterm outlook based on these very strong numbers.
Well, I think it would be advisable for us to come back to you on that one next quarter. I think that would be a more prudent thing to do. As you may have noticed, we have been not raising our guidances on possibilities, but when it becomes probable, we will do exactly what will be the picture next quarter's call.
Thank you so much.
I think I missed one question, Herve, that you have asked about the collection performance. As we have indicated, the quality, the cost of risk on our portfolio does not seem to show any fluctuation even at this particular time. Thank you.
Thank you.
Ladies and gentlemen, I would like to remind you if you have any further questions, please press zero one on your telephone keypad. To participate in our written Q&A, type your question into the ask a question text area, then click the Submit button. Our next question comes from Lilia Naydenova , Citi. Please go ahead.
Hello. Hi. Thank you for the opportunity. Had a quick question, please, on CapEx hedging. You mentioned that you have hedged some of the payables or made prepayments and also have renegotiated some of the payments. Just wanted to ask about how far in advance have that been done? Is it only for this year CapEx or would that apply also to some of the 2019 investments that you're planning to do?
Lilia, thanks a lot for the question. These actions that we have taken actually are not unique only to this year or at this time. We have been applying these techniques in the past as well. This will cover some of the investments that we will do this year, but also it covers, of course, 2019 as well.
Thank you. May I just also follow up on the price adjustments or value adjustments that you have done in October to address the inflation requests from the government. Were these adjustments done only to contract packages or across the board? Have you done it in a way that you would still expect ARPU growth? The reason I'm asking, for example, if I used to be on a package which is TRY 50, next year, for example, I'm in more difficult financial situation and I'm reviewing my costs, now that I'm seeing that for TRY 40 I can get the same value, would that be available to me as a customer based on what you have done in October?
Let me clarify one thing. We have not done anything on the request of the government. Government has initiated a campaign, we have used that campaign as an opportunity to create a retention campaign to double up everybody's quota without exception. Actually, this refers to 4.5G users, anyone who would shift from 3G to 4.5G would get the advantage of that. This is a campaign model that we have used in the past, the result of such campaigns have always led into higher usage, higher retention, and higher loyalty. We do not see this as a prohibitive factor in terms of neither the ARPU levels or the pricing decisions that we will take in the future.
That's very helpful. Thank you.
Thank you.
We have no other audio questions. Dear speakers, we can now switch to the written Q&A.
I think there is one more question that I see from the system in terms of hedge accounting. I will actually have Osman to respond to that as well.
As you know, we have been using hedging instruments as part of our financial risk management strategy, and we are hedging our company for tail risks. That's why we started implementing hedge accounting when tail risk started to arise, especially starting from the July, and we will continue to implement hedge accounting going forward.
Any other questions from the network or from voice?
We have no other questions.
Thank you very much for all the questions and spending time with us, looking forward to seeing you in the next quarter's call.
Thank you. Bye-bye.
Bye-bye.
This concludes today's conference call. Thank you for your participation. You may now disconnect.