Turkcell Iletisim Hizmetleri AS

IST:TCELL.E

Earnings Call Transcript 2020-Q1

[Operator]

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 to present and discuss the first quarter 2020 financial results. [Operator Instructions]

At this time, I would like to turn the conference over to Mr. Korhan Bilek, Treasury and Capital Markets Director. Please, Mr. Bilek, you may now proceed.

[Zeynel Bilek, executive]

Thank you, Gaily. Hello, everyone. Welcome to Turkcell's First Quarter 2020 Results Call. Today's speakers are our CEO, Mr. Murat Erkan; and our CFO, Mr. Osman Yilmaz. We have a brief presentation, and afterwards, we will 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. Erkan.

[Murat Erkan, executive]

Good afternoon and good evening, everyone. Welcome to Turkcell's First Quarter 2020 Results Call.

We have ended tough quarter with several consecutive challenges. Starting the year with unfortunate natural disaster, we began to feel the impact of the COVID-19 pandemic in March in Turkey. The first case in Turkey was identified on March 10, after which things changed rapidly, both our company and in our lives. We responded immediately to protect and support our employees, customer, our distribution channel and those communities in need. I will talk about the impact of COVID-19 later in the presentation. For now, I would like to point that its impact was limited to just 2 weeks in our first quarter results.

With that, I am pleased to deliver a strong start to 2020 in line with our plans. Our outstanding operational performance in the home market played a large role in these results. We gained a total of 614,000 net subscribers, reaching a large part of our annual target of 1 million. Strong ARPU growth continued, both in the mobile and residential fiber segment. Accordingly, we generated 17.3% revenue growth, our EBITDA grew by 23.1%, leading to 42.2% EBITDA margin. These results were in line with our guidance announced earlier this year.

Next slide. Now some further detail on our financial performance. We recorded a TRY 6.7 billion top line and TRY 2.8 billion EBITDA in first quarter. Our EBITDA margin improved by 2 percentage points year-on-year. Our EBIT reached TRY 1.4 billion with a 21.6% margin. Net income was at TRY 873 million. Last year in the first quarter, there was a Fintur transaction gain of TRY 772 million. Excluding this, our net income nearly doubled this year.

Next slide. Let's have a look at our operational performance. We gained 679,000 in IPTV and fixed segment. The 614,000 net subscriber gains represent 61% (sic) [ 63% ] of annual tariffs. Firstly, gaining new subscribers early in the year benefits the full year effect of revenue. And secondly, with the bulk of the targeted reach in Q1, we are confident of meeting our full year target of 1 million, despite COVID-19-related uncertainty. The monthly mobile churn rate, excluding the impact of regulatory change, was down to 1.7% from 1.8% (sic) [ 1.9% ] last year and from 2.1% in the previous quarter.

Blended mobile ARPU rose to TRY 46.3, a 21.1% (sic) [ 21.5% ] increase, with the change in subscriber mix towards postpaid and upsell to higher tariffs with increased data usage. Prepaid ARPU also saw a double-digit rise in this quarter, twice the rate of the fourth quarter in the fixed broadband segment. Our fiber subscriber base grew by 34,000 net additions. Residential fiber ARPU growth was at 13.4%. The price increase in the first quarter last year led to base effect in the growth figure. Going forward, we expect ARPU growth rates to converge to inflation.

Next slide. I should mention a few more points about our rising postpaid base. Our value focus has resulted in continued growth of the postpaid subscriber base. Historically, the first quarter is usually weak due to seasonality. Even so, we gave a solid performance with 679,000 net postpaid additions. This results from consistent customer focus since early last year, utilizing a micro segmented approach by leveraging our [ high altitude ] capabilities. We strengthened our market position by shifting to a more valuable portfolio of higher postpaid subscriber in the total base. The postpaid share was 7.8 percentage points year-on-year to 63%. Having a strong postpaid base has become more important in this fragile macroeconomic environment. Postpaid subscription is more open to upsell opportunities and less risky in this challenging period.

Moving to next slide. Now let's look at the performance of our fixed wireless access product, Superbox. Superbox remained the sole home Internet alternative to fiber. Where there is no fiber, Superbox subscriber enjoys the fiber-like speed delivered over our mobile network. As such, we recorded 76,000 net adds this quarter, over 3x that of the first quarter last year. Total Superbox subscriber reached 400,000. We have seen accelerated demand for Superbox lately as people stay at home under pandemic conditions. We are confident of meeting churn level of demand, both in terms of supply and network capacity.

Next slide. As to our performance in strategic focus areas, we continue to advance our digital services with new features and launch new services. One of those is Turkcell Digital Security service, which provides individual security plan online. We also introduced various campaigns, including Live WhatsApp zero-rated video calls and informatory channel on BiP to support our customers staying at home.

Overall, digital service stand-alone revenue growth was 29% year-on-year. This resulted from our focus on stand-alone subscribers, reflecting our plan laid on during the Capital Markets Day in November 2019.

Our digital business solutions registered solid quarterly growth of 42%. Digital business solution has been focused on delivering seamless service to the corporate segment with our strong infrastructure and advanced service and solutions. At the same time, we have secured nearly 700 new projects in this field during the quarter. Given the changing business dynamics, we expect that the demand for digital solution, particularly our cloud and data security solution, to accelerate going forward.

In techfin, Paycell registered its all-time-high yearly transaction volume growth of 146% in March. The limitation on mobility and concurrent rise in digital content consumption was instrumental in this rise. Going forward, we expect the demand for Paycell to increase as user habits change.

Next slide. And now an update on data usage and 4.5G subscription plan. Average mobile data usage rose 66% in a year to 9.8 gigabyte per user. This is the highest growth level of the past 10 quarters. The rise in data consumption was due mainly to higher content consumption in the current environment, the growing share of 4.5G user and Superbox subscribers.

In March, the monthly data usage of 4.5G users has reached 13 gigabyte. Out of 31.4 million customers signed up for 4.5G services, 20.4 million have 4.5G compatible smartphones, still indicating room for growth. In the first quarter, we achieved 78% smartphone penetration with 89% being 4.5G compatible. There were 1.9 million net addition of 4.5G compatible smartphones on an yearly basis.

Moving to next slide. We are in a period in which the vital importance of our sector is clear from experience. Moreover, experience has told us that quality plays a differentiating role during the challenging times, such as pandemic and other natural disasters. At Turkcell, we reap the fruits of consistent investment in our infrastructure over many years, having pioneered the digitalization of the sector. Our network capacity and quality boosted our confidence to offer more to our subscriber. Furthermore, an extensive distribution channel and our revenues in online sales channel have helped bring us ever closer to our customer. All these have been instrumental in customers recommending Turkcell over the competition, even more so in the challenging times.

Next slide. Let's look at our performance in the international market, generating 8% of group revenue. Our international operation grew by 31.7% year-on-year to TRY 560 million. This was mainly on rising data usage in these countries and the positive impact of currency movements. In local currency terms, the top line growth rate of our Ukrainian and Belarusian subsidiaries were 12% and 2%, respectively. This quarter, Lifecell Ukraine acquired a new license in the 900 megahertz bandwidth for UAH 121 million. Accordingly, its frequency band rose from 3.8 megahertz to 5.6 megahertz, valid for 5 years. New frequency will be used to provide LTE services to rural regions and highways. Furthermore, our subsidiary in the Turkish Republic of Northern Cyprus recorded 14% revenue growth with the rising contribution of fixed services and the corporate segment.

Next slide. You may have followed our teleconference 2 weeks ago, where we shared our initial takes on the impact of the COVID-19. Here is the summary of what we said, quantifying the initial impact and risk determined so far. The COVID-19 pandemic has been disruptive for the entire world in various aspects and at different levels. Right after the first case was identified in Turkey, we witnessed a series of economic and social preventive measures taken swiftly by related government bodies. These measures have considerably impacted our daily lives and forced us to unite against the pandemic. We have been running our operations in Turkey and in the other markets with nearly all our employees, including 10,000 call center agents, working from home.

Our analysis of last week of March shows that total network traffic rose by 25%, even up to 50% in peak hours. Our digital services use has increased 10-plus more group -- 10x more group video calls on BiP and 15% higher logins on TV+. Meanwhile, postpaid customer acquisition was down 35%, whereas fixed broadband subscription rose by 52%. We also observed significant improvement in churn levels. On the retail network front, visitor to website and application ramped up by 30%, with a 70% -- 76% higher sales volume. The digital business solution teams served our customer 25 -- 24/7, meeting the rising demand for our services. Also, we achieved earlier-than-planned inauguration of another city hospital in Ikitelli, Istanbul. Similar trends were observed in our international business, which remained more challenging even with predominant prepaid component. Potential risk exists in short-term business and segments, including SMEs and for roaming income, prepaid top-ups and the device sales. Risk of disruptions to global supply chain may also emerge depending on the duration of the crisis.

Next slide. We have evaluated the risk to the best of our knowledge and calculated the potential impact on our 2020 targets. Accordingly, we would like to share a revised and realistic guidance with you. We have assumed that this challenging period would continue through the second quarter with a gradual normalization thereafter. We now expect revenue growth of 10% to 20% (sic) [ 10% to 12% ] and EBITDA margin of 40% to 42% and EBIT margin of 19% to 21%. We expect the operational CapEx-to-revenue ratio to be within the range of 17% to 19% as a result of new revenue guidance. Despite currency movement, we aim to keep normal CapEx stable.

Despite the challenging environment, based on our revised figures, we expect to deliver double-digit top line growth throughout this critical period. As the dust settles, we are confident in our ability to monetize the fast-forward digitalization and changing user habits in favor of digital services, solution and payment services.

Before I give the floor to Osman, I would like to express my gratitude to all those working tirelessly while putting their lives at risk, especially our health workers. May you all stay safe and healthy. Over to you, Osman.

[Osman Yilmaz, executive]

Thank you very much, Murat. Let me start by saying how proud I am to be a part of this dynamic management team. We had preplanned, effectively responded to extraordinary and fast-changing conditions. As already mentioned, the COVID-19 pandemic had a limited impact on our first quarter performance. We expect the impact to be felt throughout the second quarter, leaving a headwind.

Group revenues rose 17.3% year-on-year, corresponding to an incremental TRY 1 billion. Of this increase, TRY 900 million comes from Turkcell Turkey operations. This is created by diversified source of revenues, where consumer business contributes close to 1/2 of this amount, while fast growth in corporate business and new products like Superbox were instrumental in this increase.

As was the case for several quarters, consumer finance company's contribution was negative given the slowdown in its business. Moreover, termination of our sports betting business, Inteltek, also created a drag on growth. Excluding these 2, our year-on-year growth is 20.8% in the first quarter.

Next slide. Group EBITDA rose 23.1% year-on-year to TRY 2.8 billion, driven mainly by strong top line growth and disciplined cost control. EBITDA margin rose 2 percentage points to 42.2%. Turkcell Turkey was the main driver of margin improvement with its 2.7 percentage point increase. EBIT rose by 20% year-on-year to TRY 1.4 billion, with a margin of 21.6%. We realized nominally flat G&A expenses and lower sales and marketing expenses versus the first quarter of the last year. The savings in G&A related to personnel expenses, where we grow our top line with limited headcount increase.

Sales and marketing contributed by 1.9 percentage points to EBITDA, 0.6 percentage point comes from marketing and 0.9 percentage points from sales expenses. This was mainly due to having done fewer but effective and segment-focused campaigns this year. Further, we prioritized the use of digital channels, leading to additional savings.

Year-on-year increase in doubtful receivables is mainly due to TRY 42 million one-off impact in Q1 last year, creating a base effect.

Next slide. Now let's take a closer look at our fintech company's performance, at first, Financell. In Q1, Financell revenues were down 33% on a declining portfolio due to regulatory decisions plus a rise in handset prices. The total loan portfolio fell around 42% year-on-year to TRY 2.1 billion in the Q1 '20. The COVID-19 pandemic now represents a further challenge for this business. Its EBITDA declined by 7% to TRY 102 million, indicating a margin of 62%. Yearly margin improvement of 17.2% points is mainly due to lower cost of funding at lower rates plus the rising share of equity in total funding. Meanwhile, cost of risk fell to 2.8% from 3.2% in Q4, reflecting our risk management efforts since mid-2019. The potential further decline in this business due to COVID pandemic is positive from a working capital perspective.

Next slide. Paycell has been [indiscernible] to business potential arising from increased demand for cashless payment methods. Total 3-month active Paycell users numbered 4.6 million, with a total transaction volume of TRY 2.4 billion for this quarter. We observed a solid rise in service usage, particularly the online payments and direct carrier billing. Direct carrier billing volume was up 69%, and with third-party bill payments up 216%. The transaction volume on the Paycell card was TRY 53 million, marking a 70% year-on-year rise.

The company's analytical strength enabling diversified campaigns using micro segment marketing has contributed to achieving these growth figures. Paycell has also continued to expand its reach and service portfolio. As at the end of Q1, Paycell is accepted at 9,300 merchant points. In Q1, Paycell generated TRY 64 million revenues with 57% EBITDA margin. With a value focus, Paycell concentrated its efforts on non-Turkcell businesses. Accordingly, nongroup revenues increased by 82% this quarter, now representing more than 1/2 of total revenues. Paycell is well on track to benefiting from permanent change in consumer habits in favor of cashless payment methods.

Next slide. Now a few words on our balance sheet and leverage. As at the end of the quarter, our gross debt position declined to TRY 19.5 billion from TRY 20 billion. The main factor is TRY 2.4 billion of debt repayments against the TRY 1.6 billion negative impact of currency movements. Recall that dollar appreciated by 10% and the euro appreciated by 9% in Q1. As we do not net off our derivative receivables from debt, our reported debt rises as FX appreciates. As of Q1, net debt was TRY 10.3 billion with 0.9x leverage ratio, down from 1x previous quarter. Excluding the fintech business, this was at 0.8%, the lowest in the sector.

In Q1, we had a nominal TRY 221 million increase in net debt. This was mainly due to a net of TRY 535 million negative FX impact. The first quarter is seasonally a difficult one in terms of working capital as we pay for the relatively high CapEx of previous fourth quarter. Also, the annual frequency tax is paid in February at over TRY 400 million this year to be collected from subscribers throughout the year. Hence, our cash generation performance this quarter was very successful.

Next slide. As discussed during previous quarterly calls, liquidity management is among the key factors of our business hedging model. From time to time, we have been criticized by certain investors for carrying large amounts of liquidity on our balance sheet. Yet this unfortunate crisis period has proven us right once again. On this slide, I would like to highlight our balance sheet and liquidity strength. Turkcell is among the few companies in Turkey with this key strength. Our average debt maturity is around 5 years, and we fund working capital requirement through short-term bank loans, matching the maturity of our obligations. Our liquidity position offers us a sufficient buffer to sustain our operations with TRY 1.4 billion hard currency cash and TRY 1 billion debt service in 3 years, excluding short-term local currency loans and available credit line from diversified sources. The potential for a further slowdown in the consumer finance business will also mean an additional working capital release.

Next slide. Finally, a few words on our FX management. Our balance sheet remains robust with some USD 1.4 billion equivalent cash in hand and for a long position of USD 114 million. We continue to hold the bulk of our cash in hard currency as a natural hedging tool. With hedging instruments in place, the share of FX debt has declined from 80% to 40% by the end of Q1. Our disciplined FX risk management has, once again, helped to protect our bottom line performance during this fragile quarter. Despite close to 10% FX appreciation, we saw a quarter of net FX gain, excluding swap interest, leading to a remarkable bottom line figure of TRY 873 million.

This concludes our presentation. We are now ready to take your questions. Thank you very much.

[Operator]

[Operator Instructions] The first question is from the line of Kim, Ivan with Xtellus Capital.

[Ivan Kim, analyst]

Two questions from my side, please. First, on your strong postpaid subscriber win additions. Can you talk about how many are coming from other operators and how many are prepaid customer conversions? And in general, given how strong the postpaid additions over the past couple of quarters, aren't you worried that this can lead to higher price competition from your rivals in the mobile market? That's the first question. And the second question on free cash generation. It's been strong in the first quarter, as you said, against some adverse seasonality with high-frequency payments, for example. On my calculations, the equity free cash flow in the first quarter was TRY 900 million. So I was just wondering, what is your ballpark range number you expect for the year by now? Because as you pointed out, too, there will be some more working capital release in the remainder of the year from the winding of consumer finance company balance sheet.

[Murat Erkan, executive]

Okay, Ivan. I believe we -- hard to hear the second part of the question, but let me start with the first part of the question regarding postpaid and switch between prepaid to postpaid side. As part of our strategy, we have been more focused on strengthening our bond with customers over the past years. We realize the return of our efforts each quarter. We are one of the teleco companies leveraging the data analytic skills most effectively using big data, and we follow a micro segmented approach, which enables us to make the right offer to the right customer at the right time. Please also note that we achieved the performance by registering mobile ARPU growth of 21%.

Our solid performance confirms our commitment to gaining 1 million subscribers each year. Nearly half of the postpaid net adds in Q1 is switched from the prepaid. So this is -- this reflects the 1 of 2 questions. Moving prepaid customers to postpaid segment is one of our key goals and is naturally target of all operators. I must say, it's not easy to, as it is found from the technical definition of switch. Therefore, there is a notable performance on our front as well. So this was the first part of the question.

Let me give the word to Osman regarding free cash flow and working capital relation. Osman?

[Osman Yilmaz, executive]

In the beginning of the year, we were expecting about TRY 500 million additional free cash flow generation from our consumer finance business. But given the negative impacts of COVID-19 pandemic, we now expect more than TRY 700 million free cash flow generation from consumer finance. But a part of this additional free cash flow generation will be offset by deteriorating collection performance, mainly in corporate segment.

[Ivan Kim, analyst]

So, just to quickly follow up. So do you -- do you have a ballpark number for the annual free cash flow you expect right now or you can share that?

[Osman Yilmaz, executive]

Actually, we prefer not to give a precise number for free cash flow generation, but you can roughly say 20% of the EBITDA -- nominal EBITDA, 20% to 25% of the nominal EBITDA can be expected as our free cash flow generated for this year.

[Operator]

The next question is from the line of Drouet, Herve with HSBC.

[Herve Drouet, analyst]

Two questions as well on my side. Firstly, in terms of date for the AGM. Do you have a date for the AGM? And do you believe there could be -- what is your view on the potential payout on earnings that you may give to shareholders? And the second question is: Did you see in the beginning of Q2, any impact in terms of bad debt increasing and especially as well as you unwind the portfolio -- your loan portfolio on consumer financing, do you see an increased portion of difficulties of payment from some of your consumers?

[Murat Erkan, executive]

Okay. Thank you very much. For the general assembly, along with many other listed companies, we are on hold regarding a call for general assembly. Please also note that our government introduced 25% cap on dividends, which will be effective till end of September. So this is one side. Also, this cap overrides our official dividend policy of distribution, minimum 50% of distribution net income. Yet in practice, any prudent company would wait and see the normalization of this crisis before the dividend decision. As Turkcell, we also believe that it will be reasonable to wait until the removal of this cap. Hopefully, with this normalization of the condition and removal of this cap, our Board can make a dividend proposal in line with our policy, and we can hold our general assembly in the later months of this year. This is regarding the AGM.

For the bad debt, I think Osman can respond for the bad debt side as well.

[Osman Yilmaz, executive]

Actually, until March, we had a very strong collection performance, not only in consumer finance business, but also in all business segments. And cost of risk in consumer finance declined from 3.2% to 2.8% despite a contracting portfolio. Inevitably, pandemic will have negative consequences on our collection performance. For example, due to regulatory restrictions, we will not be able to make a legal follow-up for our late payments in consumer finance business. Similarly, banks in Turkey cannot conduct legal follow-up actions for the receivables. And we will not be able to do this until mid-June. This will have some negative impact on our cost of risk. We expect cost of risk to rise to 4% to 5% in the coming quarters. It's about 1% higher than our initial assumptions in the beginning of this year.

Also, please note that more than 90% of the loans that we granted are insured. And these insurances protect us against unemployment, which is expected to rise rapidly in coming months. So we are partially hedged against a macroeconomic downturn.

[Herve Drouet, analyst]

And just a follow-up question on those 90% insured. Does it cover external events such as COVID-19?

[Osman Yilmaz, executive]

It covers only unemployment. It doesn't cover natural diseases or pandemic. It's not a health insurance. It's against debt and also unemployment. And we are not insuring customers above age 65. So we see very few fatalities throughout the year. Most of the compensation comes from unemployment claims.

[Operator]

[Operator Instructions] The next question is from the line of Mandaci, Ece with Unlu Securities.

[Ece Mandaci Baysal, analyst]

I have 3 questions. One is about the mobile ARPU growth trend going forward. If I'm not mistaken, you mentioned that the ARPU growth should converge to inflation at some point. So when do you expect such a convergence to happen? As far as I believe, that in the -- in April, you still have the effect of the up-selling, and probably there might be higher ARPU growth, particularly in postpaid segment. And on a stand-alone basis, we are seeing a slower growth compared to previous quarters, but still very good transition, as you have noted, from prepaid to postpaid, which also has an effect on the blended ARPU. So combining all those, how much percentage growth we should expect for ARPU for the second quarter and the third quarter? This is my first question in detail.

And the second question is about the corporate segment revenues, which represent like 16% of your total consolidated revenues. We have seen 30% growth in this segment in the first quarter, but you are seeing slower sales. Should we expect sharp contraction or slight growth or still high teens growth in this segment for the second quarter? How we should make assumptions for that segment specifically?

And thirdly, you highlighted the working capital requirement -- an increase in working capital requirement for the whole year, given this SME business. I think it had below 10% share in your total revenues. While you consider this effect, would you still expect an improvement in your net debt-over-EBITDA ratio or leverage ratio for 2020?

[Murat Erkan, executive]

Okay. Thank you for the questions. First of all, let me start on ARPU side and let me give you a little bit broader answer on the ARPU side, because ARPU impacts on fixed and also mobile front. On the mobile side, our mobile ARPU rose 21.5%, driven by large postpaid subscriber base and upsell effort on the back of increased data consumption. Inflationary pricing is a key pillar of our business model. Due to contracted nature of our business, our price actions are reflected in ARPU with a lag. Please note that Turkey has been in a declining inflation path since last year, and this trend is to be accelerated with the falling commodity prices as well as drop in demand in various industries as a result of COVID-19 pandemic. Declining inflation, together with our aim to support our customers in these difficult times puts a limit on pricing. Hence, it was reasonable to expect our ARPU growth to converge to a reasonable range around inflation level in the upcoming quarters.

On the fixed side, we registered fiber ARPU growth of 13.4% in Q1. The slowdown in fiber ARPU growth is also a reflection of declining inflationary environment. Please also note that we renewed our offering portfolio with the removal of fair usage policy at the beginning of 2019 and increased our pricing. As we have longer-term contracts in fixed segment and as the base effect diminished, this also impacted our ARPU growth.

Regarding corporate revenue side, obviously, we don't expect sharp contraction, but we will see business slow down because there are -- especially in the SME side, the shops are closed, the SMEs are not working at this point of time. So this impacts our revenue side. On the other hand, roaming also has a big revenue decline in position since our corporate customer are not going abroad and doing business with the abroad companies. So that's why our corporate segment will hit more than the consumer side in this COVID-19. But to be honest, I would expect the corporate business will recover sooner than the other business because the demand is not canceled, it's just postponed.

For the working capital side, Osman will take care of the question.

[Osman Yilmaz, executive]

Thank you very much. First, let us clearly state that rather than being rigid on collections with a shortsighted vision, we rather believe that we should be providing the flexibility to our customers during these difficult times, and we -- thus, we can build stronger bonds with them. In the corporate segment, certain industries and, in particular, SMEs have been directly impacted by the pandemic. We see lower risk for large enterprises and public accounts, but we see a high risk for SME segment. We have been extending the payment terms for several customers in the industries that are directly impacted.

At this point, the number of these requests are limited and insignificant given the total number of clients. Yet if we have a prolonged scenario, we can expect additional deferral on payments. As I try to figure in the previous questions, we don't expect a significant impact in terms of networking capital requirements. This will be more than offset by the flexibility in our consumer finance business. There will be additional release from the slowdown in this business, and this will more than offset the working capital requirement in SME segment.

For your question on net debt to EBITDA. Unless we see a further depreciation in lira, we expect our leverage ratio to remain below 1.0x throughout this year. And if the currency stays stable at these levels, we will -- potentially, we will see lower net debt-to-EBITDA figures approaching to 0.7x.

[Operator]

Ladies and gentlemen, there are no further audio questions at this time. I will now turn the conference over to Mr. Bilek for webcast questions. Thank you.

[Zeynel Bilek, executive]

So we have a list of questions coming from the web. We are going to touch on a couple of them and try to address the rest at one-to-one. Some of them have already been answered. So one is related with the impact of prepaid top-ups. So what is the COVID social mobility impact on the prepaid top-ups?

[Murat Erkan, executive]

Let me take care of this question. The usual online channel has an increased trend in the last couple of months. As people spend more time in their homes, we have seen a decrease in our top-up revenue from our stores. But since our top-up rate has increased significantly through our digital channel, we don't see a negative effect on prepaid top-ups in total. So to give you some information, our digital share increased from 6% to 13% in terms of top-up.

[Zeynel Bilek, executive]

Thank you, Murat. And one last question regarding our credit line. How much do you have in committed and uncommitted credit line?

[Osman Yilmaz, executive]

Actually, we have utilized almost all of our committed lines, but we are working on additional committed lines, and we are planning to announce it very soon. In addition to that, we have $50 million left from an ECA facility with EKN. And in the beginning of April, we have utilized $50 million from this facility. Moreover, we have around TRY 4.5 billion credit lines from various banks both in Turkey and outside Turkey.

[Zeynel Bilek, executive]

Thank you, Osman. So this brings us to the end of the call. We thank Murat and Osman for their presentations and everyone for their participation.

[Murat Erkan, executive]

Have a safe and healthy days.

[Osman Yilmaz, executive]

Thank you.

[Zeynel Bilek, executive]

Thank you. Bye-bye.

[Operator]

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