Page 59 - TURKRptMay20

The company has also a $450mn syndicated loan maturing in November 2020.
9.2.6​ TMT corporate news
Turkcell, Turkey’s largest mobile operator, has seen a spike in demand for digital services it offers amid the coronavirus (COVID-19) outbreak, but it may lose revenue in the digital business solutions segment​.
The company said in a presentation that customer data usage had increased by 35%, the number of people who use the TurkTV + platform had doubled, group video calls had also doubled while the number of magazines read on the Turkcell digital publishing platform had soared 75%.
However, the telco warned about potential risks stemming from corporate customers in particular industries impacted directly by the pandemic. It also noted that restrictions imposed on curbing mobility and partial curfews made it difficult for the company to acquire new customers because there were fewer people visiting its outlets in person.
Turkcell added that device sales at its stores had declined due to the limited mobility of consumers.
“Certain industries are taking a hit from the pandemic which may lead to requests from clients regarding deferrals on payments and temporary discounts on services, while small and medium sized companies are vulnerable to prolonged [shutdown] time and macro risks, which account for less than 10% of the company’s overall revenues,” Turkcell detailed.
The company also warned that stricter lockdown conditions might impact fixed broadband service set-ups, any rise in unemployment or decreasing purchasing power may impact its overall business and vulnerability to cyber attacks may increase due to more working from home.
Turkcell’s long FX position stood at $115mn and the company had $1.7bn-equivalent cash—mostly in hard currency—as of end-December. It faces lower debt servicing until 2023; around $1bn in three years excluding short-term local currency loans.
Google’s community mobility data showed that visits to groceries and pharmacies plunged 39% from February 16 to March 29​, while the number of people journeying to offices dropped by as much as 45%.
Migros, one of the country’s largest supermarket chains, has almost tripled home deliveries over the past couple of weeks​. Its staff leave deliveries just outside the doors of homes to avoid even the slightest physical proximity with customers. All payments are pre-paid online.
Delivery service app Getir has also boosted its business amid the pandemic​. Getir has expanded its main warehouse and enlarged its vehicle fleet, company officials told Reuters.
Its app has more than 1.5mn active users and the company’s business has grown some 65% since mid-March.
Online shopping platform Hepsiburada is another beneficiary of the confinement of people in their homes​. The company plans to hire an additional 5,000 staff by the end of the year to meet strong demand.
Amid the stay-at-home response to COVID-19 outbreak, the number of applications to establish delivery companies in the country has risen
59​ TURKEY Country Report​ May 2020 ​ ​www.intellinews.com