Turkcell Continues To Execute, But Macro And Strategic Concerns Remain

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About: Turkcell Iletisim Hizmetleri A.S. (TKC)
by: Stephen Simpson, CFA
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Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst
Summary

Turkcell has been performing well in terms of revenue and EBITDA, both relative to sell-side expectations and in absolute terms, with EBITDA margins in the 40%'s.

Management is targeting business customers and fintech services as growth priorities; Turkcell's share of Turkey's commercial IT market is small, but growth will be dilutive to margins.

Turkcell shares continue to look undervalued, but investors remain nervous about Turkey, and the Street isn't sold on management's new strategic growth priorities.

Turkey's leading mobile services provider Turkcell (NYSE:TKC) has had a mixed performance run since my last update on the shares. Operationally, the company continues to do quite well, with relatively stable share in