Turkcell Iletisim Hizmetleri AS

Ladies and gentlemen, thank you for standing by. I'm Konstantinos, your course call operator. Welcome and thank you for joining the Turkcell conference call and live webcast to present and discuss the Turkcell fourth quarter and full year 2020 FANASA results conference call. All participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a question and answer session. Should anyone need assistance during the conference call, you may signal an operator by pressing star and zero on your telephone. At this time, I would like to turn the conference over to Mr. Alistair Daryagdi, Investor Relations and Corporate Finance Director. Please go ahead.

Thank you, Konstantinos. Hello, everyone. Welcome to Trixas' fourth quarter and full year 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 kick off, 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.

Thank you, Serdar. Good morning and good afternoon. Welcome to the Turkcell fourth quarter and 2020 result calls. We have concluded a year marked by challenges and uncertainties resulting in permanent change in everyone's life. Our results confirm that we have successfully weathered the storm. This was possible due to our diversified business model filled by our core competencies. Accordingly, we concluded the year on 15.8% revenue growth, generating 19.1 billion TL. With our 42.2% margin, we exceeded our guidance level. Overall, we generated 3.4 billion Turkish lira free cash flow in 2020 mainly through strong operational performance. All this was possible on the back of solid growth in subscriber base of 1.1 million strong ARPU growth and the rising contribution of our strategic focus area. It's also worth to highlight that we exceeded our target of 1 million net subscriber addition for 2020, despite the pandemic. I am glad to see that the focus on our digital strategy is paying off, both for our results and for the benefit of our customers. Next slide. Let's take a closer look at our fourth quarter performance. With good execution of our customer-centric strategy, We delivered our best quarterly revenue growth for the year 2020 at 17.8%. This corresponds to revenue of 7.9 billion TL. EBITDA growth later was similar, resulting in a 41.2% EBITDA margin. Our mobile subscriber base continued to grow in favor of postpaid with 464,000 addition. We have seen solid momentum in our fiber business with all-time high net addition in a quarter with 65,000. Our digital channels gain wider use. This quarter, over 14% of customer sales of Turkcell Turkey were generated through our website and digital operator application. Overall, we generated 780 million Turkish lira free cash flow during the quarter, confirming continuous solid performance. Next slide. I am glad to see that we delivered full-year results that are in line with our initial guidance in February, beating our revised guidance as well. As was the case with many companies, we had to revise our guidance in April with a more cautious approach as the pandemic brought about significant uncertainties. Yet, by November, we had greater visibility for the year-end, revising our guidance upwards, having displayed a healthy performance. We owe this performance to our diversified business model, built on where the future lies. Our readiness to capture the rising demand for digital services and our ability to swiftly adapt to changing dynamics were integral to this success. Next slide. Let's look at our operational performance. On the mobile front, in the fourth quarter, post-batch subscriber rose by 464,000. Yearly, 1.6 million additions marked the record level of past 11 years. We continue to shift into a more valuable portfolio with 66% post-paid share, 4 points higher than last year. Good momentum for our fixed wireless access product Superbox has continued. Accordingly, subscriber nearly doubled in a year to 591,000. Superbox stands out as a preferred alternative to fiber. Where there is no fiber, Superbox subscribers enjoy the fiber-like space delivered to our mobile network. This year, ICTA requires all operators to deactivate the lines of decreased customers. We have disconnected 194,000 lines in the fourth quarter. Excluding this, our churn rate has been nearly flat over the past three years at around 2.8%. Blended mobile ARPU rose to 51.2 Turkish lira on a 11.3% increase with positive change in subscriber mix. Ups held to higher tariffs and rising data and digital service usage. Moving to next slide. More time at home facilitated a good momentum for our fix broadband business. Our fiber subscriber base grew by 180,000 net addition in 2020, $65,000 which was gained in the fourth quarter. This fourth quarter performance marked a historic high. Including the net addition ADSL and cable, our fixed broadband subscriber base expanded by 187,000 in 2020. The trend was similar in our IPTV business. Our customer rose 152,000 to 871,000, again with a remarkable performance in the last quarter with 60,000 net addition. Residential fiber art to grow was 8.6% in the fourth quarter, impacted partially by the strong base effect in the same period of 2019. Average monthly fixed churn rate decreased to 1.6%. Next slide. An update on data usage and 4.5G subscription trends. Average mobile data usage rose 44% in a year to 13 GB per user. The main driver were the rising share of 4.5G users and SuperVox subscribers. Out of 31.8 million customers signed up for Foreign House G services. 21.5 million have Foreign House G compatible smartphones, still indicating room for growth. As of year end, smartphone penetration was at 81%, with 91% being Foreign House G compatible. On a yearly basis, There were 2.3 million net edition of Foreign House G compatible smartphones. Next slide. This year confirmed the importance of telecom industry in our lives. And our motto continued to be that we are here for our customers. With this in mind, we addressed the changing customer needs via our offering with rich value proposition and innovative campaign. Our well invested high quality network made it possible for us to meet the rising demand also with the help of the smart capacity management. Further, our digital sales channels help us serve our customer even under the pandemic restrictions. Overall, These key differentiated fundamentals of our company have played an important role in widening the large gap in net promoter score even to the second best. Next slide. Let me further elaborate our digital channel strategy. We have been determined to increase our sales through our digital channels even before the pandemic struck. Indeed, The pandemic has provided a tailwind, triggered a change in the customer behavior. The number of visitors to our website reached 30 million, and there were 23 million 3-month active users of our mobile application. The conversion rate doubled annually. Data plan purchase and Turkish Lira top-up transaction volume over this platform have tripled on an annual basis. Accordingly, 14% of consumer sales of Turkcell Turkey was realized on these digital channels. To leverage our expert capabilities in this arena, in December we launched Turkcell Pasaj, Turkey's tech and electronic marketplace. At Turkcell Pasaj, a wide range of electronic goods, from smart devices to new generation technologies are offered from several leading suppliers with Turkcell assurance. We plan to differentiate with a focus on customer experience, promising best after-sales services. Moving to next slide. The next three slides, we will discuss our strategic focus area. Firstly, our digital services. We have seen accelerated demand for our BIP application with rising concern over personal data security among the competition. BIP differentiates from peers acting on its data only with the user's permission. Also, data at BIP is kept at our certified data centers in Turkey. These facts have increased BIP's popularity not only in Turkey, but also in certain countries of high population like India and Pakistan. We plan to monetize this demand via collaboration with operators through BIP multi-cloud, enabling them to integrate BIP so as to digitize their own customers. In addition, we'll launch a complementary product for our communication portfolio called BIPMeet. to meet video conferencing demand. In our TV business, we are now focused on expanding our presence on large screen. With our partnership with TV Producer and our TV Plus Ready products, this is one of our priorities for this year. This year also marked as a milestone in our digital service strategy as we have established individual companies for Lifebox, Fizi, and TV+. This means management flexibility and marks a step towards considering strategic moves in the medium run. To sum up this year, the standalone revenue from digital services rose 26% year-on-year to 1.3 billion Turkish Lira. The next initiative is our digital business services. The revenue from digital business services rose 30% year-on-year in 2020 to 1.8 billion TL. The pandemic has clearly accelerated the digitalization of the business world. We see a strong demand across the whole spectrum of corporates from the public sector to SMEs. We took the lead in corporate digital transformation by being awarded over 2,300 projects with a total contract value of 1 billion TL in 2020. Of these, 420 were system integration projects for which we provided end-to-end solutions. We have a backlog in the amount of 967 million TL from the system integration projects signed today. Also this year, we increased the number of global vendors partnership to 21 to strengthen cooperation. On healthcare front, we have reached a bed capacity of over 8,000 at 9 hospitals in total, continuing our market leadership of this sector. Next focus area is Techfin. The total Techfin business revenue corresponded to 3% of our consolidated revenue. As PayCell, we pursue a dual growth strategy, capturing the huge business potential at both consumer and merchant fronts. For that, we take bold steps in 2020, introducing new offerings for member, merchant, and customer new offerings. Besides the popular mobile payment solution, ready-to-use limit, and 24x7 money transfer were amongst the new initiatives over this platform. For merchant, we offer Pacer Android POS, a smart operating system enabling the process of collection, inventory tracking, and e-invoice over a single platform. It offers cost advantages to merchants, especially for SMEs. Going forward, we aim to diversify pay cell services and focus on commercial enterprises via our post-solution. Next slide. Now, let's take a look at our performance in the international markets. The Turkcell International grew by 33% year-on-year basis in the fourth quarter, mainly on rising voice and data demand, plus the positive impact of currency movements. Full-year growth was at 27%. Lifestyle Ukraine revenue grew by 22.8% in local currency term in the fourth quarter. This was mainly from subscriber-based growth and the rise in voice and data despite the decline in roaming business. Lifestyle Ukraine registered a full-year operational net income for the first time. Life Belarus registered 11.5% revenue growth with the rising voice, data, and handset sales revenue. Life is the first and only company to offer digital remote subscription in Belarus. Introduced in the third quarter, such subscriptions have reached 9% of the total. Next slide. We have also strengthened our sustainability credentials this year through important initiatives. I will discuss a few here. According to the result for our carbon disclosure project, we are the industry leader in Turkey. We reflect our preference by securing a green loan amounting to 50 million euro. We will use this proceeds for financing of green investments. We reaffirmed our commitment by announcing the Turkish environmental policy as well as our human rights policy and domestic violence procedures. On the government side, we put into practice the Integrated Value Creation Committee and Sustainability Committee inspired by international practices. These committees are responsible for determining medium to long-term action plans and overseeing their efficient implementation. Last but not least, comes to the exempt of having almost finalized our first integrated annual report. This reporting model enables us to present the environmental, social, and corporate information in a more holistic and transparent way. Moving to next slide. I would like to say a few words about our focus on e-mobility. As Turkcell, we continuously invest in future technologies to grow our business. In this regard, opportunities that the e-mobility arena offers are so immense. That is the potential to become another strategic focus area for Turkcell. Our investment in Turkcell Electrical Vehicle Initiative is a solid step towards realizing this potential. This investment offers several opportunities including integration of smart living solution into the mobility ecosystem, end-to-end mobility services and creation of smart charging system network. Turkcell will now only contribute to realizing TORQ's ambition of being relevant to the 70% of Turkey's and Europe's car market with its product portfolio by 2030, but also aimed to be among the leading e-mobility players and take its share from the already trillion-dollar market in revenue. Initially, our focus is on charging infrastructure. AI-based in-car solution and integration of our digital services into vehicle software next. We believe that this EV initiative has the potential to be very accurate for Turkcell Group through value creation arising from synergies. Before I end my presentation with our guidance, I would like to share some insight into our top agenda task in 2021. In our core business, as the integrated telecom player, we will further grow our subscriber base by adding another million of subscribers. We will be more active in fixed broadband, where we aim to increase home paths with fiber by another half a million. We will be more ambitious on our digital platforms and offer further customized value propositions supported by the use of artificial intelligence. In digital services, as well as growing the paid user base of existing portfolio, we will be more vocal in gaming business. Further, we believe we can do more by pursuing more B2B collaborations, as well as taking BIP into the next level. In digital business services, we will further increase our competency to strengthen our position as a digital transformation partner of cooperation. We trust that we can become the leader in information technology services market by the end of 2021. In Techwin, we will pursue dual growth strategy. We will expand service portfolio with wealth management solution, enabling trade of cryptocurrencies, local and global stocks, as well as innovative customer finance solutions. Financial will also grow through a more diverse portfolio with new products as well as new customer segments such as residential, SMEs, and corporates for their digital infrastructure needs. InsurTech is another area where we intend to increase our presence in 2021. Next slide. This is my last slide. I want to share our full year guidance for 2021. Obviously, uncertainty continues as to when the pandemic environment will end. We have built our business plan, assuming a gradual normalization in the second half. Expecting another year of subscriber and ARPA growth, and the rising contribution of our focus areas, we target a top-line growth within the range of 14-16%. With that, we aim to generate around 14 billion TL EBITDA, maintaining our effective cost management. We will continue to invest our infrastructure at around 20% of sales, driven mainly by capacity and software investment upgrades, as well as expansion of fiber infrastructure. I now give the floor to our CFO, Osman. Hope you see all stay safe.

Thank you very much, Murat. Now let's take a closer look into our financials. Our performance in the fourth quarter has been robust, and this brought the full year revenue and profitability levels above our initial guidance. we recorded a 7.9 billion TL top line with an increase of 17.8% year-on-year in this quarter. Full-year growth was 15.8% on the back of our diversified business model, suggesting resilience and flexibility in addition to the contribution from ever-increasing data demand. Our EBITDA reached 3.2 billion TL on a 17.8% increase with a 41.2% margin. The bottom line rose to 1.3 billion TL due to strong operations and effective financial risk management. Excluding the one-off items in relation to Lifestyle Ukraine's deferred tax income of 690 million TL and provision for legal cases, organic net income was around 1 billion TL. For the year 2020, our net income reached 4 billion TL at a 39% growth when one-off impacts are excluded. We concluded the year with an operational capex to sales ratio of around 18.5% in line with our guidance. Next slide. In the fourth quarter, group revenues rose an incremental 1.2 billion TL. Of this increase, 1 billion TL comes from Turkcell Turkey thanks to a larger post-paid subscriber base, high growth in corporate segment, and strong data demands. Higher equipment revenues backed by sales through the digital channel and corporate projects were the other catalysts of growth. Turkcell international revenues increased by 33.2% to 750 million TL, mainly with the contribution of our Ukrainian operations and the positive impact of currency movements. For the full year, group revenues rose 15.8% year on year to 21.9 billion TL. Looking at the details, Turkcell revenues increased by 17.1%, contributing 3.7 billion TL. International subsidiaries contributed 540 million TL. Consumer finance revenues contracted by 333 million TL, given the decline in its loan portfolio. Excluding consumer finance and our sports betting business that we exited last year, group revenue yearly growth would have been around 18.4% in 2020. Next slide. In the fourth quarter, EBITDA rose 17.8% year-on-year to 3.2 billion TL thanks to strong revenue increase and lower G&A expenses. Increasing low margin equipment sales led to a flat margin on a yearly basis. For the full year, EBITDA increased by 17.7% to 12.3 billion TL with a margin of 42.2%. The EBITDA margin saw a 0.8% improvement. The factors contributing to this increase are as follows. 2% improvement in OPEX with lower overhead costs, travel and marketed expenses, 0.2% improvement in doubtful receivables, against 1.5% decline in gross margin impacted by the rising cost of goods sold mainly due to higher costs of new growth businesses. Turkcell International also contributed positively to the group with a 0.9 point improvement in its EBITDA margin. EBIT draw 17% year-on-year to 6.3 billion TL with a margin of 21.6%. Next slide. Now more details on our free cash flow generation. On this slide, you will clearly note the positive trend and strengthening of our cash flow generation over the years. In 2020, we registered 3.4 billion TL free cash flow mainly on the back of rising EBITDA generation. Strong operational performance was the key driver of this success, while the declining consumer loan portfolio also contributed on a working capital in a yearly basis. The major items of the 3.4 billion TL of cash flow increase include EBITDA of 12.3 billion TL, acquisition of tangible and intangible assets of 7.3 billion TL, change in working capital of positive 300 million TL with improved collection performance and higher payable days, payment of lease liabilities around 1.3 billion TL, and income tax payment of 634 million TL. Our aim is to continue free cash flow generation in this year as well. Next slide. Now some highlights from our balance sheet and leverage. As at the end of 2020, our total cash position decreased to 11.9 million TL from 13.5 million TL in Q3 and due to mainly dividend payment of 800 million TL and currency appreciation. In Q4, 6% decline in dollar TRY and 1.3% decline in euro TRY led to around 500 million TL in our total cash position. As of 2020 year end, group net debt was around 9.7 billion TL with a 0.8 time leverage ratio. Excluding the Techfin business, this was at 0.7 times the same level as the previous quarter and the lowest in the sector. Next slide. Let me provide you some color on foreign currency risk management and our liquidity strength. Our balance sheet remains robust with some $1.6 billion equivalent cash in hand with a long FX position of $132 million. We continue to hold the bulk of our cash in hard currency as a natural hedging tool. This is sufficient to cover our repayments until 2025. In addition, we have secured committed lines of around $700 million in total in this year, which may be utilized in euro, dollar, or RMB over the next three years. With hedging instruments in place, the share of FX debt declined from 78% to 43% as of the year end. Our average debt maturity is around four years. Next slide. Now let's take a closer look at our taxing company's performance, and first with consumer finance business, Finansa. In the fourth quarter, financial revenue declined by 28.1% to 145 million TL on a shrinking loan portfolio. EBITDA fell 23.8% to 96 million TL. The EBITDA margin was up almost 4% year-on-year thanks to an improving bad debt ratio this quarter. In 2020, the challenging environment led to fluctuations in the cost-of-risk ratio, although it ultimately declined to a normalized level of 2.4%. For the full year, net income increased by about 29% to 241 million TL, thanks to recovery on cost of risk and lower expenditures on the back-off process improvements. Next slide. Paysal's remarkable performance has continued in Q4, monetizing the rising preference for e-commerce and cashless payment methods. Three months active users of Paysal hugely popular for its convenience and secure payment infrastructure, reached 4.7 million. Generating revenues of 80 million TL in the fourth quarter, PayCell ended the year at 285 million TL on a 13% annual growth rate. With 62% growth, the non-group revenue share reached 66% in total. PayCell EBITDA margin was at 52% in 2020. The largest revenue generator, mobile payment business, more than doubled in volume in the fourth quarter. The number of active PayCell cards doubled to 473,000. Accordingly, transaction volume tripled. Ready-to-use limit service has gained traction. Our customers have made purchases by transferring their mobile payment limits to their PayCell cards. On the merchant side, PayCell POS is set to grow over the coming periods. merchants will benefit from cost advantage and efficiency by means of managing processes such as collection, inventory monitoring, and e-invoice over a single platform using the PayCell POS device. Next slide. I would like to end my presentation by recalling our approach to value creation at group level. As our results have shown, our business model plays out well under different macroeconomic cycles. This diversified business model, built on growing individual businesses, today not only generates a strong free cash flow, but also unleashed a strong potential for actions towards unlocking the hidden values. These businesses have the potential to generate their own funding for future growth. For now, we see our fiber business our payment service business, and our tower business as likely candidates to take under spotlight for strategic actions as we have already mentioned at our Capital Markets Day in London in 2019. SuperOnline is a unique diversified fiber company suggesting strong growth potential. Given its size and potential, it stands out as the most likely candidate for an equity capital markets action as long as the market conditions remain favorable. Hence, we plan to start working on this in the upcoming period. We will keep the market informed on developments in this regard in a timely manner. This concludes my presentation. We are ready for your questions. Thank you very much.

Ladies and gentlemen, at this time we'll begin the question and answer session. Anyone who wishes to ask a question may press star followed by one on their telephone. If you wish to remove yourself from the question queue, then you may press star and two. Please use your handset when asking your question for better quality. Anyone who has a question will press star and 1 at this time. One moment for the first question, please. The first question is from the line of Kabacek Andre with UBS. Please go ahead.

Hello, and thank you for taking my questions, and congratulations on a strong year. I have a question around CapEx mainly and probably going into fiber. So you are guiding for an increased CapEx sales intensity for 2021. Can you just break down for us a bit what part of that is driven by the fiber plan to pass another half a million homes? What part of that would be driven by some of the ICT initiatives that you've been highlighting over the past couple of quarters? And then on fiber itself, is this an indication of you reaching more homes inorganically rather than through regulatory means? So is this the kind of new normal for TXL, growing homes past over the next couple of years? Thank you.

Thank you very much. For the CAPEX side, there are multiple elements for the CAPEX. Let us start with the mobile side. We will invest in capacity increase in Turkey. We continue the strong demand for our data and digital services. This is driven by the increasing number of data consumption for our household users. We will continue to provide high-speed and quality household internal services over SuperBucks in 2021, which is well appreciated by our customers. Please note that SuperBucks services lead to additional 1 billion Turkish Lira annual revenue. We will also invest into our foreign housing network in Ukraine while expanding our network deployment in Belarus. Furthermore, Fiber penetration in Turkey is still low compared to other developed markets. Majority of the broadband connection in the country are based on ADSL technology, that is copper. It is not sufficient to meet the quality connection needs of customers, especially in the pandemic area. Hence, we believe that there is additional need for fiber investment and we will increase our fiber footprint in 2021 by 500,000 home passes. Meanwhile, as you mentioned for the ICT investment, we will continue to invest our data center investment in 2021. This is for the CAPEX and the CAPEX portfolio. Regarding fiber footprint, actually this is, instead of calling them inorganic, we call it organic approach. obviously joint fiber investment is important for Turkey to be able to reach every place in Turkey. While this joint fiber company is going to establish, we would like to invest in our fiber area. And this is going to be organically. And obviously what you say, this is new normal for Turkcell. We want to continue adding more home plants year over year, especially next maybe three, four years level.

Thank you very much. Can you maybe just elaborate a bit on the half a million and what kind of homes are these? Are they untapped entirely currently or are they where there are some kind of networks already in place? Will you be fighting for market share in these areas? and is half a million per year the kind of run rate that we should be expecting over the next four years, as you say?

First of all, we would like to expect half a million run rate. If we achieve more than half a million, it's very welcome. Regarding what kind of home paths, there are three types of home paths. One of them, the existing zone that we invest, this is expansion for the existing zones. we already deployed. There will be new, totally new greenfield areas also possible, but probably at least half of them will come from existing zone. Maybe one third of them will come from the new greenfield area, and the other will be using new technologies which we call e-home paths where We have fiber at the base station level, I mean mobile base station. We can expand this through this base station area with an e-HomePass investment. I would like to give you some more breakdown into our COBEX. Probably 35% of them will go to the fiber, 5% for the data center, At least 50% for the mobile and 10% other.

That's very clear. Thank you very much.

The next question is from the line of Mishra Nickhill with HSBC. Please go ahead.

Thank you for the presentation. A couple of questions. First is on your tech and tech and device e-commerce platform, Asajj. So can you give us what are your ambitions regarding that? And how big do you see it becoming in the next three, four years? And secondly, again on asset monetization, apart from the three key areas you mentioned, like global towers, PSL, and super online, Which other areas do you see in the future? Which other assets do you see yourself monetizing in future?

Okay, first of all, regarding our e-commerce platform, we would like to establish marketplace for electronic and technology markets specifically because this is where we have expertise, where our customer has strong trust on us. So we would like to be number one player in this technology and IoT area of marketplace. Obviously, during the pandemic, we see strong demand and increase. We were planning to have 12% total sales of consumer will come from digital side. But what we see that it's already reached 14% end of 2020. So we're going to revisit our targets. So we want to go as much as we can. And in this aspect, I think sky's the limit. We'll push more on the e-commerce platform on the marketplace side. For the asset monetization, obviously Super Online, we already declared that a couple of years ago. what we can do, but there are other potential. So, as I said before, we have diversified business model comparing operation, driving growth, and strong cash generation. We believe that the growth business in our portfolio has the potential to finance their operation. In this context, we may consider strategic option including capital market action, as well as private equity. For now, we see our fiber business, our payment services business, fintech, and tower business as likely candidates for such a strategic action. In your question, the payment services is probably the next one for this candidate. We will keep the market informed on development in this regard in a timely manner. And we also see that we established companies from digital services. So these companies are also potential for the further possibilities, like Beep, Lifebox, Fizi, TV+. But these are more long-run things.

Thank you. And any timeline for these projects? But look, these three asset monetization is super online. Is there any timeline for these?

I mean, the timeline is not definite yet because we're discussing with our board and our shareholder the best timing for this. So as soon as we finalize the timeline with the management, with the board, board of directors, will come at the right time. Obviously, market condition is strongly dependent on this timing. So, we'll see. But we want to see something in this year.

Thank you.

By the way, we're going to get ready anyway. But it depends on market condition as well.

Sure. Thank you.

As a reminder, if you would like to ask a question, please press star one on your telephone. The next question is from the line of Kenny the Good Jonathan with J.P. Morgan. Please go ahead.

Good afternoon. Three questions from me, if I may. Could you comment on potential impacts of continued upsell opportunities on Turkish ARPU growth. Obviously, very strong ARPU growth last year. Just trying to understand if as economy is opening up, we could see or expect ARPU growth ahead of inflation again. And then second of all, could you comment on how much CapEx is required to support super online as it stands at the moment? And then finally, perhaps if you could comment on some of the developments in the prepaid pricing markets and how that is developing from a competitive perspective.

Okay, thank you very much. For the first question, as you know, inflationary pricing is a key pillar of our strategy and business model. Our price action are reflected in pricing with a lack due to the contracted nature of our business. We expect our ARPA growth to be in reasonable range around inflation level. And as everybody knows, inflation is the trend of decreasing mode. So while the inflation is in decreasing mode, it's really difficult to increase the pricing level. But we would like to be in line with plus or minus a couple of point percentage around the upcoming quarter. So we don't want to be above the inflation, too much above the inflation, or too much below the inflation. So we're going to stick inflationary pricing as a strategy. And our upsell performance was remarkable so far. and we had the right action on rising the price with customized offer using our analytical capabilities. This resulted in a solid ARPA growth in prepaid segment in the fourth quarter as well. It is also worth noting that this connection of inactive prepaid lines had a positive impact on prepaid ARPA growth. So there are demands, especially when the economy gets better. It creates opportunity to increase upsell and other things as well. So regarding SuperOnline, how much CapEx is required is 35% of the total CapEx in 2021 will be made to support our SuperOnline fiber business in total CapEx. So I believe I already responded regarding prepaid pricing market and shaping competitive in a first question level. So for the market size, everybody, all the competitors are focusing on postpaid market and clearly shows that we are the winner of postpaid markets so far and we would like to keep this going. Thank you.

Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Interactual Management for any closing comments. Thank you.

Thank you, everyone. This is the end of our call. Thank you all for taking the time to participate in our call. Thank you very much.