Market Newsdesk

TEGNA Announces Quarterly Dividend

TYSONS, Va.–(BUSINESS WIRE)–
TEGNA Inc.’s (NYSE: TGNA) Board of Directors declared a regular quarterly dividend of 9.5 cents per share, payable on July 1, 2022, to stockholders of record as of the close of business on June 3, 2022.

About TEGNA

TEGNA Inc. (NYSE: TGNA) is an innovative media company that serves the greater good of our communities. Across platforms, TEGNA tells empowering stories, conducts impactful investigations and delivers innovative marketing solutions. With 64 television stations in 51 U.S. markets, TEGNA is the largest owner of top 4 network affiliates in the top 25 markets among independent station groups, reaching approximately 39 percent of all television households nationwide. TEGNA also owns leading multicast networks True Crime Network, Twist and Quest. TEGNA offers innovative solutions to help businesses reach consumers across television, digital and over-the-top (OTT) platforms, including Premion, TEGNA’s OTT advertising service. For more information, visit www.TEGNA.com.

Forward Looking Statements

Certain statements in this communication may constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Action of 1995. Any forward-looking statements contained herein are subject to a number of risks, trends and uncertainties that could cause actual results of company actions to differ materially from what is expressed or implied by these statements, including risks related to the recently announced proposed transaction between TEGNA and affiliates of Standard General L.P., such as (1) the timing, receipt and terms and conditions of any required governmental or regulatory approvals of the proposed transaction and the related transactions involving the parties to the proposed transaction that could reduce the anticipated benefits of or cause the parties to abandon the proposed transaction, (2) risks related to the satisfaction of the conditions to closing the proposed transaction (including the failure to obtain necessary regulatory approvals or the approval of TEGNA’s stockholders), and the related transactions involving the parties to the proposed transaction, in the anticipated timeframe or at all, (3) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of TEGNA’s common stock, (4) disruption from the proposed transaction making it more difficult to maintain business and operational relationships, including retaining and hiring key personnel and maintaining relationships with TEGNA’s customers, vendors and others with whom it does business, (5) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement entered into pursuant to the proposed transaction or of the transactions involving the parties to the proposed transaction, (6) risks related to disruption of management’s attention from TEGNA’s ongoing business operations due to the proposed transaction, (7) significant transaction costs, (8) the risk of litigation and/or regulatory actions related to the proposed transaction or unfavorable results from currently pending litigation and proceedings or litigation and proceedings that could arise in the future, (9) other business effects, including the effects of industry, market, economic, political or regulatory conditions, (10) information technology system failures, data security breaches, data privacy compliance, network disruptions, and cybersecurity, malware or ransomware attacks, and (11) changes resulting from the COVID-19 pandemic (including the effect of COVID-19 on TEGNA’s revenues, particularly its nonpolitical advertising revenues), which could exacerbate any of the risks described above. Potential regulatory actions, changes in consumer behaviors and impacts on and modifications to TEGNA’s operations and business relating thereto and TEGNA’s ability to execute on its standalone plan can also cause actual results to differ materially. Other economic, competitive, governmental, technological and other factors and risks that may affect TEGNA’s operations or financial results are discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and Quarterly Reports on Form 10-Q. Any forward-looking statements in this press release should be evaluated in light of these important risk factors. TEGNA is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this press release by wire service, Internet service providers or other media.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220428005846/en/

For media inquiries, contact:

Anne Bentley

Vice President, Corporate Communications

703-873-6366

[email protected]

For investor inquiries, contact:

Julie Heskett

Senior Vice President, Financial Planning & Analysis

703-873-6747

[email protected]

KEYWORDS: United States North America Virginia

INDUSTRY KEYWORDS: Entertainment Other Entertainment General Entertainment TV and Radio Film & Motion Pictures Mobile Entertainment

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The Arbor Day Foundation Awards Recognition to PG&E as 2022 Tree Line USA Utility

Award is for commitment to urban forestry in its community

OAKLAND, Calif.–(BUSINESS WIRE)–
Just in time for National Arbor Day, Friday, April 29, The Arbor Day Foundation has awarded Pacific Gas and Electric Company (PG&E) status as a 2022 Tree Line USA member. The award recognizes PG&E’s dedication to proper urban forest management in its service area of Central and Northern California.

“We know the value trees provide to our planet and to the people we are privileged to serve across Central and Northern California,” said Peter Kenny, PG&E Senior Vice President of Vegetation Management and System Inspections. “That’s why we work with customers every day to showcase the importance of planting the right tree in the right place, which helps promote fire safety, reduce power outages and ensure beautiful communities for years to come.”

Tree Line USA, a partnership between the Arbor Day Foundation and the National Association of State Foresters, recognizes public and private utilities for pursuing best practices that protect and cultivate America’s urban tree canopy. In addition, Tree Line USA promotes delivering safe and reliable electricity while maintaining healthy community forests.

“Trees are essential to creating more urban green spaces in communities across the United States,” said Dan Lambe, chief executive of the Arbor Day Foundation. “They provide important benefits to residents, including clean air, clean water, and vital shade. Service providers like PG&E demonstrate how easily trees and utilities can co-exist for the benefit of communities and residents.”

PG&E achieved the Tree Line USA recognition by meeting five program standards: quality tree care, annual worker training, tree planting and public education, a formal tree-based energy conservation program, and participation in a National Arbor Day celebration.

This Arbor Day, PG&E would also like to ask its customers who haven’t signed up for Paperless Billing yet, to join the 3.1 million customers who have opted out of paper bills, saving 1,100 trees each month. To sign up, create or login into your online account, or visit pge.com/paperlessbilling.

For free downloaded resource guides, and more information about planting the right tree in the right place in your community, visit pge.com/trees.

About the Arbor Day Foundation

Founded in 1972, the Arbor Day Foundation has grown to become the largest nonprofit membership organization dedicated to planting trees, with more than one million members, supporters and valued partners. Since 1972, almost 500 million Arbor Day Foundation trees have been planted in neighborhoods, communities, cities and forests throughout the world. Our vision is to lead toward a world where trees are used to solve issues critical to survival.

As one of the world’s largest operating conservation foundations, the Arbor Day Foundation, through its members, partners and programs, educates and engages stakeholders and communities across the globe to involve themselves in its mission of planting, nurturing and celebrating trees. More information is available at arborday.org.

About PG&E

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. For more information, visit www.pge.com/ and http://www.pge.com/about/newsroom/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220428005892/en/

Media Relations

415.973.5930

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Energy Environment Utilities

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Posted on April 28, 2022 11:45 am

Hashdex Announces Launch of the Hashdex Nasdaq Crypto Index Europe ETP

PR Newswire

Firm’s First European Product to be Traded on the SIX Swiss Exchange

ZURICH and NEW YORK and RIO DE JANEIRO, April 28, 2022 /PRNewswire/ — Hashdex, a leading global crypto-focused asset manager, today announced the upcoming launch of the Hashdex Nasdaq Crypto Index Europe exchange-traded product (“ETP”) ISIN CH1184151731. The firm’s first European product will be available on the SIX Swiss Exchange under the ticker symbol SIX: HASH SW starting Monday, May 2, 2022.

The Hashdex Nasdaq Crypto Index Europe ETP (SIX: HASH SW) tracks the Nasdaq Crypto Index Europe^™ (NCIE^™), an index designed to measure the performance of the overall digital asset market while remaining reflective of the ETP listing standards at specified European exchanges. The NCIE was specifically designed to be dynamic in nature, broadly representative of the market, and readily trackable by both institutional and retail investors.

“The launch of HASH SW is a major milestone for Hashdex as we continue to deliver on our mission of providing global investors with access to the crypto asset class,” said Marcelo Sampaio, Co-Founder & CEO of Hashdex. “With our strong European team led by European ETP and ETF expert Laurent Kssis, coupled with our experienced global team and our deep international relationship with Nasdaq, we are well-positioned to offer investors worldwide simple, secure, and regulated products that allow them to gain diversified exposure to the crypto ecosystem.”

“Capturing the performance in the crypto assets using a financial instrument like an ETP can be highly challenging for institutional investors as many existing products have been based on single assets crypto exposure and that does not answer their investment objectives in a conventional portfolio allocation,” said Laurent Kssis, Managing Director and Head of Europe of Hashdex. “We believe with this index and subsequently delivering this institutional-grade ETP, we have represented exactly what investors have been demanding by offering a product with diversified exposure that mitigates risk in crypto assets. With the support of Nasdaq, Hashdex is incredibly well-positioned to service the needs of investors with efficient strategies.”

Digital assets are eligible for inclusion in the NCIE if they satisfy specific criteria in line with current qualified requirements, including meeting a minimum standard of liquidity and trading volume, as well as being supported by digital asset exchanges and custodians approved by Nasdaq. The NCIE currently includes the following assets:

• Avalanche
• Bitcoin
• Cardano
• Ethereum
• Litecoin
• Polkadot
• Polygon
• Solana

“NCIE is an adaptable, rules-based industry benchmark that can accurately represent the investable cryptocurrency market and continue to evolve with the digital assets landscape,” said Jake Rapaport, Head of Digital Asset Index Research, Nasdaq. “We are pleased to work with Hashdex offering European investors the ability to efficiently and securely incorporate crypto into their investment strategies.”

Providing Thematic Crypto Exposure Globally

Hashdex and Nasdaq have a deep and long-standing relationship as partners in the crypto space, having previously co-developed the Nasdaq Crypto Index^™ (NCI^™), which benchmarks the institutionally investable crypto market. The NCIE is an extension of the effective methodology established by the NCI, and has been refined in line with European eligibility requirements at SIX and XETRA. This product launch is an important milestone in Hashdex’s commitment to building a family of NCI products that will provide investors with access to a full spectrum of digital assets tailored to the regulatory requirements of their respective regions.

Mr. Kssis added: “Having recently begun establishing our presence in Europe, the launch of SIX: HASH SW is a natural next step in Hashdex’s commitment to serving the region. We are excited to offer this innovative new product to European investors, who will benefit from Hashdex’s expertise as a basket specialist and provider of thematic exposure.”

About Hashdex
Hashdex is a global pioneer in crypto asset management. Hashdex’s simple and secure financial products invite innovative investors to join the emerging crypto economy. Hashdex’s mission is to provide educational resources and best-in-class products that advance its efforts to build pathways to prosperity by opening the crypto ecosystem to the world. The firm co-developed the Nasdaq Crypto Index^™ (NCI^™) with Nasdaq to provide global investors with a reliable benchmark for the crypto asset class. In 2021, Hashdex introduced the world’s first crypto ETFs, enabling over 260,000 investors to simply and securely add crypto to their portfolios. For more information visit www.hashdex.com.

About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.

Media Contacts:

Kendal Till/Josh Gerth
Dukas Linden Public Relations
[email protected] 

Jack S. Song

Hashdex 
[email protected] 

Disclaimer:

This document qualifies as advertisement within the meaning of article 68 of the Swiss Financial Services Act and/or article 95 of the Swiss Financial Services Ordinance and is not a prospectus, basic information sheet (BIB) or a key information document (KID). Any prospectus (in connection with an offer to the public or admission to trading) and/or any BIB or KID (for a product which was meant to be offered to retail clients), in each case if applicable and/or available, of financial instruments described in herein, from the date of its publication (which may be before, on or after the date of this document) and subject to applicable securities laws, is available from Hashdex AG.

Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security, digital asset or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or digital asset or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

© 2022. Nasdaq, Inc. All Rights Reserved.

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SOURCE Hashdex

Posted on April 28, 2022 11:44 am

AST SpaceMobile Announces Collaboration with Globe Telecom

AST SpaceMobile Announces Collaboration with Globe Telecom

Memorandum of Understanding Would Explore Opportunities to Extend AST SpaceMobile’s Planned Coverage to Globe Telecom Customers

MIDLAND, Texas–(BUSINESS WIRE)–AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network designed to be accessible directly by standard mobile phones, today announced a Memorandum of Understanding (“MoU”) with Globe Telecom, Inc. (“Globe”) (NASDAQ: GTMEF).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220428005725/en/

(Photo: Business Wire)

Globe is a leading digital platform in the Philippines, serving consumers and businesses’ telecommunications and technology needs, including about 86 million wireless subscribers.

“The Philippines’ thousands of islands create formidable challenges to meet a growing demand for cellular broadband connectivity,” said Chris Ivory, Chief Commercial Officer of AST SpaceMobile. “We believe our planned space-based network solution is well-suited to help, and we’re excited to work with Globe.”

Once launched, AST SpaceMobile would aim to provide Globe with expanded coverage and reach to remote and underserved areas.

“Globe has always been a pioneer in bringing first-to-market digital solutions to empower Filipinos. This collaboration is another step in Globe’s continuing initiatives to provide digital connectivity to remote rural communities as part of its commitment to the United Nations Sustainable Development Goals. It is our mission to enable inclusive economic growth and provide quality education and e-health even in remote and still unconnected rural communities,” said Gerhard Tan, Globe’s Network Strategy and Technology Enablement Director.

AST SpaceMobile has entered into agreements and understandings with mobile network operators which collectively service over 1.8 billion cellular customers.

About AST SpaceMobile

AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s more than 5 billion mobile subscribers and finally bring broadband to the billions who remain unconnected. Our partners in this effort include leading global wireless infrastructure companies such as Rakuten Mobile, Vodafone and American Tower. For more information, follow AST SpaceMobile on Facebook, Twitter, LinkedIn and YouTube. Watch this video for an overview of the SpaceMobile mission.

About Globe

Globe Telecom, Inc. is a leading digital platform in the Philippines, with major interests in telecommunications, financial technology, digital marketing solutions, venture capital funding for startups, entertainment, and virtual healthcare. The company serves the telecommunications and technology needs of consumers and businesses across an entire suite of products and services including mobile, fixed, broadband, data connectivity, internet and managed services. In 2019, Globe became a signatory to the United Nations Global Compact, committing to implement universal sustainability principles. Its principals are Ayala Corporation and Singtel, acknowledged industry leaders in the country and in the region. It is listed on the Philippine Stock Exchange under the ticker symbol GLO and had a market capitalization of US$8.7 billion as of the end of December 2021. For more information, visit www.globe.com.ph. Follow @enjoyglobe on Facebook, Twitter, Instagram and YouTube.

Forward-Looking Statements

This communication contains “forward-looking statements” that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include, without limitation, statements concerning AST SpaceMobile’s expectations with respect to future performance and market size.

These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing and level of deployment of satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile service that would supersede memoranda of understanding and preliminary agreements; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company’s filings with the SEC, including those in the Risk Factors section of AST SpaceMobile’s Annual Report on Form 10-K, to be filed with the SEC on March 31, 2022.

AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors included in AST SpaceMobile’s Annual Report on Form 10-K, filed with the SEC on March 31, 2022. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220428005725/en/

AST SpaceMobile

Investor:

Scott Wisniewski

[email protected]

Media:

Brandyn Bissinger

[email protected]

+1 866 845 6521

Globe Telecom, Inc.

Yoly C. Crisanto

[email protected]

KEYWORDS: Texas United States North America Philippines Asia Pacific

INDUSTRY KEYWORDS: Aerospace Manufacturing Mobile/Wireless Technology Telecommunications

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Turkcell Iletisim Hizmetleri: First Quarter 2022 Results

“STRONG START TO 2022”

ISTANBUL–(BUSINESS WIRE)–
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) (BIST:TCELL):

• Please note that all financial data is consolidated and comprises that of Turkcell Iletisim Hizmetleri A.S. (the “Company”, or “Turkcell”) and its subsidiaries and associates (together referred to as the “Group”), unless otherwise stated.
• We have four reporting segments:
  • “Turkcell Turkey,” which comprises our telecom, digital services and digital business services related businesses in Turkey (as used in our previous releases in periods prior to Q115, this term covered only the mobile businesses). All non-financial data presented in this press release is unconsolidated and comprises Turkcell Turkey only figures unless otherwise stated. The terms “we”, “us”, and “our” in this press release refer only to Turkcell Turkey, except in discussions of financial data, where such terms refer to the Group, and except where the context otherwise requires.
  • “Turkcell International” which comprises all of our telecom and digital services related businesses outside of Turkey.
  • “Techfin” which comprises all of our financial services businesses.
  • “Other” which mainly comprises our non-group call center and energy businesses, retail channel operations, smart devices management and consumer electronics sales through digital channels and intersegment eliminations.
• In this press release, a year-on-year comparison of our key indicators is provided, and figures in parentheses following the operational and financial results for March 31, 2022, refer to the same item as at March 31, 2021. For further details, please refer to our consolidated financial statements and notes as at and for March 31, 2022, which can be accessed via our website in the investor relations section (www.turkcell.com.tr).
• Selected financial information presented in this press release for the first and fourth quarters of 2021 and the first quarter of 2022 is based on IFRS figures in TRY terms unless otherwise stated.
• In the tables used in this press release totals may not foot due to rounding differences. The same applies to the calculations in the text.
• Year-on-year and quarter-on-quarter percentage comparisons appearing in this press release reflect mathematical calculation.

FINANCIAL HIGHLIGHTS

TRY million		Q121	Q421	Q122	y/y%	q/q%
Revenue		7,827	10,192	10,695	36.7%	4.9%
EBITDA1		3,306	4,212	4,302	30.1%	2.1%
EBITDA Margin (%)		42.2%	41.3%	40.2%	(2.0pp)	(1.1pp)
EBIT2		1,651	2,136	2,217	34.4%	3.8%
EBIT Margin (%)		21.1%	21.0%	20.7%	(0.4pp)	(0.3pp)
Net Income		1,105	1,385	803	(27.3%)	(42.0%)

FIRST QUARTER HIGHLIGHTS

• Solid financial performance:
  • Group revenues up 36.7% year-on-year on increased ARPU growth and larger subscriber base of Turkcell Turkey, higher contribution from international operations and techfin business
  • Group EBITDA up 30.1% year-on-year leading to an EBITDA margin of 40.2%
  • EBIT up 34.4% year-on-year resulting in an EBIT margin of 20.7%
  • Net income at TRY803 million
  • Healthy net leverage³ level at 1.2x
  • Short FX position of US$204 million (broadly in line with our FX neutral definition, which is between -US$200 million and +US$200 million)
• Robust set of operational results:
  • Turkcell Turkey subscriber base up by 577 thousand quarterly net additions
  • 423 thousand quarterly mobile postpaid net additions; postpaid subscriber base share at 66.7%
  • 59 thousand quarterly mobile prepaid net additions
  • 50 thousand fixed subscriber net additions; 53 thousand fiber net additions
  • 186 thousand new fiber homepasses in line with our annual expansion plan
  • Mobile ARPU⁴ growth of 19.8%; residential fiber ARPU growth of 21.0%
  • Average monthly data usage of 4.5G subscribers at 14.7 GB in Q122; smartphone penetration at 86%
  • Digital channel’s share⁵ in sales at 21.8%

• 2022 guidance⁶ maintained; revenue growth target of around 30%, EBITDA target of around TRY19 billion, and operational capex over sales ratio⁷ target of between 20% – 21%

⁽¹⁾ EBITDA is a non-GAAP financial measure. See page 15 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income.

⁽²⁾ EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses.

⁽³⁾ Starting from Q421, we have revised the definition of our net debt calculation to include “financial assets at fair value through other comprehensive income” reported under current and non-current assets, and “financial assets at amortized cost”. We believe that these assets are highly liquid and can be easily converted to cash without significant change in value.

⁽⁴⁾ Excluding M2M

⁽⁵⁾ Share of all sales from digital channels (including voice, data, services & smart devices) in Turkcell Turkey consumer sales (excluding fixed business) and equipment related revenues in other segment.

⁽⁶⁾ Please note that this paragraph contains forward-looking statements based on our current estimates and expectations regarding market conditions for each of our different businesses. No assurance can be given that actual results will be consistent with such estimates and expectations. For a discussion of factors that may affect our results, see our Annual Report on Form 20-F for 2021 filed with U.S. Securities and Exchange Commission, and in particular, the risk factor section therein.

⁽⁷⁾ Excluding license fee

For further details, please refer to our consolidated financial statements and notes as at March 31, 2022 via our website in the investor relations section (www.turkcell.com.tr).

COMMENTS BY CEO, MURAT ERKAN

We step into the year strongly, despite the challenges and uncertainties

Challenging macroeconomic conditions caused by high inflation, increased energy and labor costs, disruptions to the supply chain all around the world, and international political risk from the Russia-Ukraine war stood out in the first quarter of 2022. And meanwhile, the effects of COVID-19 variants that unsettled the markets continued to be observed, despite being reduced by widespread vaccination programs. While the recovery in mobility started with the substantial easing of the COVID-19 restrictions in Turkey as of March, the main concerns that stood out in this quarter were the prevailing impact of currency depreciation in the last quarter of 2021 and the inflationary environment. Then, of course, we are deeply saddened by the humanitarian disaster resulting from the war that has been waged for the past two months in Ukraine, the home of our largest international subsidiary. Perceiving communication as a human right in all conditions, we continue the activities of our subsidiary lifecell, and ensure the continuity of our network for seamless communication. Prevailing conditions have made our company confront uncertainties. And yet we continued to improve our growth, managing operations effectively with our diversified business model and proactive risk management, which we implemented decisively in the first quarter of the year.

Accordingly, our consolidated revenues increased by 36.7% year-on-year to TRY10.7 billion in the first quarter of the year. While our strong growth was driven mainly by Turkcell Turkey’s performance, the international and techfin segments, which grew by 101.4% and 58.5% year-on-year, respectively, also supported growth. EBITDA¹ increased by 30.1% to TRY4.3 billion, with an EBITDA margin of 40.2%. Net profit was at TRY803 million. These results, realized in line with our guidance, enabled us to take a strong step into a challenging 2022, which will be shaped within the framework of global political and economic uncertainties.

We serve 40 million Turkcell subscribers

Since December 2021, we have sought to reflect the cost pressures caused by energy, commodities and labor, as well as the effects of the inflationary environment in our prices. Within a similar conjuncture in the first quarter, we maintained our focus on inflationary pricing, introducing price increases in fixed broadband services in January and also in mobile services in March. While rationalization prevailed in the market as our price increases were followed by those of competitors, the decline in the MNP market also continued. This quarter we also saw an acceleration in upsell of our existing customers to higher packages. Confirming our customer-driven approach, analysis of our customers’ behavior indicates that the churn rate continued to decrease with the timely actions we have taken.

We reached 40 million subscribers with 577 thousand net additions in the first quarter of the year. Our robust and fast network, value-oriented pricing strategy and brand loyalty have been instrumental in customers opting for Turkcell. On the mobile front, we achieved 482 thousand net additions, recording 423 thousand postpaid and 59 thousand prepaid subscriber net additions. Our postpaid customer base reached 24.1 million, comprising 66.7% of the total mobile subscriber base. Besides the price increases, mobile blended ARPU (excluding M2M) accelerated compared to the previous quarter, rising 19.8% on the back of increased mobility, upsell efforts and a larger postpaid subscriber base. Reflecting the success of our customer-driven approach, the average monthly churn rate was realized at 1.6%, the lowest level of the past four years.

We observe that customers’ need for high-speed and high-quality fixed internet connection has continued in the post-pandemic period. Our fiber subscriber base registered 53 thousand quarterly net additions thanks to our superior network quality and extensive sales channels, while our total fixed broadband subscribers exceeded 2.7 million. The subscribers of our IPTV service, which is in 65 out of every 100 households among our residential fiber customers, exceeded 1.1 million with 44 thousand quarterly net additions. Residential fiber ARPU rose by 21.0% with price increases, upsell to faster packages and increased TV+ penetration. With the target of increasing our fiber rollout, in the first quarter we reached 186 thousand new fiber homepasses in line with our plans.

We meet the needs of our customers with our strategic focus areas that increase our inclusivity

We continue to stand by our customers with the instant messaging, TV and music platforms, personal cloud services and e-mail services in our digital services portfolio, the engine of our digital transformation. BiP, which has been downloaded more than 92 million times to date, and the international recognition of which continues to rise day by day, had one out of every five of its active users from abroad. TV+, our digital TV platform, has accelerated its mobile subscriber additions in this quarter thanks to enriched content, its accessibility through smart televisions and the firm growth in our TV+ Ready product. The paid users of Lifebox, through which we provide a cloud-based storage service, increased by 50% compared to the same period of last year. Additionally, we launched the user-friendly “Office Collaboration” feature in Lifebox Business, where we serve approximately one thousand corporate customers. With all these developments, in the first quarter, the stand-alone revenues of our Digital Services & Solutions increased by 15.3% to TRY424 million and Digital OTT service revenues increased 46.3% year-on-year.

The total revenues of Digital Business Services, the leader in the IT Services market, rose 75.2% year-on-year to TRY791 million. The biggest contributor to this increase was the acceleration of end-to-end system integration projects. In the first quarter of the year, we set a fresh record with close to a thousand new contracts signed. We have put into practice 2,310 system integration and managed services projects to date; from those we have a contract value (backlog) of TRY1.9 billion to be collected over the coming periods. In line with the demand for digital transformation accelerated by the COVID-19 pandemic, the revenues of data center and cloud technologies services almost doubled in the first quarter. We continue efforts to meet this demand with a larger capacity and to transform our country into a leading hub of data and cloud technologies. Within this scope, we will focus on capacity increases at our new generation data centers in the upcoming period.

We remain the pioneer of the Techfin industry with our expanding product range

Financell and Paycell had a strong quarter, contributing to the growth of our techfin business revenues, which increased by 58.5% in the first quarter of 2022. Financell is the pioneer of financing for technological needs. And as well as serving individual customers, it continues to create innovative financial solutions that increase SME competitiveness with the Digital Transformation Financing program that strengthens their digital infrastructures. Reaching a loan portfolio of TRY2.3 billion with an annual increase of 24%, Financell’s revenues increased by 50.0% in this quarter with the contribution of the insurance business. With its superior technology and wide range of solutions Paycell, the payment platform that has swiftly adapted to new payment habits, notably transformed during the pandemic, has seen another successful quarter registering 67.2% growth. Paycell’s 3-month active users reached 6.9 million and transaction volume reached TRY6.7 billion, tripling on an annual basis. The transaction volume of “Pay Later” allowing expenditures to be reflected on Turkcell invoices, doubled and the transaction volume over Paycell Card rose to eightfold of the same period of last year. We accelerated our efforts to expand our POS service to support an increased number of merchants, and have increased the number of Android POS by 66% to 9.6 thousand since the previous quarter. Considering the virtual POS service, the transaction volume of our POS solutions has doubled compared to the previous quarter to TRY2.1 billion.

We continue to stand by our customers in difficult conditions

During these days of intense global and macroeconomic challenges, we, as Turkcell, aim to provide better service to our customers day by day by maintaining our innovative approach. Despite the difficulties we have experienced, especially in Ukraine, we maintain our 2022 guidance shared in February, thanks to our accelerated performance in Turkey.

I extend my thanks to all our colleagues for their contribution that has enabled our strong start to the year, and to our Board of Directors for their confidence in us and invaluable support. I also express our gratitude to our customers and business partners, ever with us on our journey to success.

⁽¹⁾ EBITDA is a non-GAAP financial measure. See page 15 for the explanation of how we calculate Adjusted EBITDA and it’s reconciliation to net income.

FINANCIAL AND OPERATIONAL REVIEW

Financial Review of Turkcell Group

Profit & Loss Statement (million TRY)		Q121	Q421	Q122	y/y%	q/q%
Revenue		7,826.5	10,191.5	10,695.0	36.7%	4.9%
Cost of revenue1		(3,913.0)	(5,019.9)	(5,493.5)	40.4%	9.4%
Cost of revenue1/Revenue		(50.0%)	(49.3%)	(51.4%)	(1.4pp)	(2.1pp)
Gross Margin1		50.0%	50.7%	48.6%	(1.4pp)	(2.1pp)
Administrative expenses		(199.4)	(276.8)	(303.7)	52.3%	9.7%
Administrative expenses/Revenue		(2.5%)	(2.7%)	(2.8%)	(0.3pp)	(0.1pp)
Selling and marketing expenses		(358.2)	(576.6)	(540.7)	50.9%	(6.2%)
Selling and marketing expenses/Revenue		(4.6%)	(5.7%)	(5.1%)	(0.5pp)	0.6pp
Net impairment losses on financial and contract assets		(49.5)	(106.7)	(55.1)	11.3%	(48.4%)
EBITDA2		3,306.5	4,211.6	4,302.0	30.1%	2.1%
EBITDA Margin		42.2%	41.3%	40.2%	(2.0pp)	(1.1pp)
Depreciation and amortization		(1,656.0)	(2,075.5)	(2,084.5)	25.9%	0.4%
EBIT3		1,650.5	2,136.1	2,217.5	34.4%	3.8%
EBIT Margin		21.1%	21.0%	20.7%	(0.4pp)	(0.3pp)
Net finance income / (costs)		(207.1)	(1,769.5)	(1,259.4)	508.1%	(28.8%)
Finance income		1,601.9	2,643.6	319.9	(80.0%)	(87.9%)
Finance costs		(1,809.0)	(4,413.0)	(1,579.3)	(12.7%)	(64.2%)
Other income / (expense)		(12.1)	(45.2)	14.3	n.m.	n.m.
Non-controlling interests		(0.0)	(0.1)	(0.0)	n.m.	n.m.
Share of profit of equity accounted investees		17.7	63.6	(23.4)	(232.2%)	(136.8%)
Income tax expense		(344.1)	999.7	(146.0)	(57.6%)	(114.6%)
Net Income		1,104.9	1,384.6	802.9	(27.3%)	(42.0%)

⁽¹⁾ Excluding depreciation and amortization expenses.

⁽²⁾ EBITDA is a non-GAAP financial measure. See page 15 for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income.

⁽³⁾ EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses.

Revenue of the Group grew by 36.7% year-on-year in Q122. This was driven mainly by growth in Turkcell Turkey revenues thanks to the expanding subscriber base, as well as price adjustments to reflect inflationary impacts and upsell efforts leading to higher ARPU growth compared to previous quarters. A strong contribution from Turkcell International, continued momentum in techfin and higher energy business revenues also supported the topline in the first quarter.

Turkcell Turkey revenues, comprising 74.3% of Group revenues, rose 33.0% year-on-year in Q122 to TRY7,950 million (TRY5,979 million).

– Consumer segment revenues grew 26.9% year-on-year with the contribution of price adjustments to reflect inflationary impacts, upsell efforts, and a growing subscriber base.

– Corporate segment revenues rose 42.7% year-on-year, driven mainly by the strong momentum of digital business services, which grew 75.2% year-on-year with all-time high quarterly new contracts.

– Standalone digital services revenues, registered as part of the consumer and corporate segments, grew 15.3% year-on-year in Q122. The slower growth compared to previous quarters resulted from the negative impact of the regulatory decision that amended the usage conditions of our voicemail service, the revenues of which are reported under digital services. Excluding this impact, the growth would have been 36%.

– Wholesale revenues rose 71.3% year-on-year to TRY583 million (TRY340 million), mainly due to the positive impact of currency movements, as well as the traffic increase and capacity upgrades of customers.

Turkcell International revenues, constituting 13.3% of Group revenues, rose 101.4% year-on-year to TRY1,427 million (TRY708 million). lifecell was the main driver of this performance as the impact of the current situation on business remained limited in the first quarter. Currency movements also had a positive impact on Turkcell International revenues.

Techfin segment revenues, comprising 3.3% of Group revenues, rose 58.5% to TRY353 million (TRY223 million). The 67.2% rise in Paycell revenues and 50.0% growth of our financing business, Financell, were the drivers of this performance. Please refer to the Techfin section for details.

Other subsidiaries’ revenues, at 9.0% of Group revenues, mainly including consumer electronics sales, call center revenues and revenues from energy business, increased 5.3% to TRY966 million (TRY917 million). The decline in equipment revenues was more than compensated for by the increase in call center and energy business revenues.

Cost of revenue (excluding depreciation and amortization) increased to 51.4% (50.0%) year-on-year as a percentage of revenues in Q122. This was due mainly to the rise in radio expenses (2.2pp), mostly related to increasing energy prices, employee expenses (0.8pp), and other cost items (1.1pp) despite the decline in cost of goods sold (2.7pp) as a percentage of revenues.

Administrative Expenses rose to 2.8% (2.5%) year-on-year as a percentage of revenues in Q122. This was led by higher employee expenses (0.2pp) and other cost items (0.1pp) as a percentage of revenues.

Selling and Marketing Expenses increased to 5.1% (4.6%) year-on-year as a percentage of revenues in Q122. This was due mainly to the rise in employee expenses (0.3pp), selling expenses (0.1pp), and other expenses (0.1pp) as a percentage of revenues.

Net impairment losses on financial and contract assets was at 0.5% (0.6%) as a percentage of revenues in Q122.

EBITDA¹rose by 30.1% year-on-year in Q122 leading to an EBITDA margin of 40.2% (42.2%).

– Turkcell Turkey’s EBITDA rose 20.3% year-on-year to TRY3,286 million (TRY2,731 million), leading to an EBITDA margin of 41.3% (45.7%). Rising energy prices and higher employee expenses pressured the profitability of this segment.

– Turkcell International EBITDA increased 107.3% year-on-year to TRY714 million (TRY345 million), driving an EBITDA margin of 50.1% (48.6%) on a 1.5pp improvement.

– Techfin segment EBITDA rose 31.8% year-on-year to TRY182 million (TRY138 million) with an EBITDA margin of 51.5% (62.0%). The lower EBITDA margin was due mainly to the higher funding costs of Financell, and the changing revenue mix and higher marketing expenses of Paycell.

– The EBITDA of other subsidiaries was at TRY121 million (TRY93 million).

Depreciation and amortization expenses increased 25.9% year-on-year in Q122.

Net finance expense increased to TRY1,259 million (TRY207 million) year-on-year in Q122. The decline in swap rates in the first quarter, which negatively impacted fair valuation of our short-term derivative instruments, and further depreciation of the TRY resulted in higher FX losses. Lower interest income on time deposits and a higher interest expense on borrowings also led to a higher net finance expense.

See Appendix A for details of net foreign exchange gain and loss.

Income tax expense declined to TRY146 million (TRY344 million) in Q122. This was driven by a deferred tax income of TRY11 million registered in Q122 compared to a deferred tax expense of TRY181 million reported in Q121.

Net income of the Group was TR803 million (TRY1,105 million) in Q122. Despite the strong operational performance, the decline in net income resulted mainly from higher net finance expense incurred in the quarter.

(1) EBITDA is a non-GAAP financial measure. See page 15 for the explanation of how we calculate adjusted EBITDA and its reconciliation to net income

Total cash & debt: Consolidated cash as of March 31, 2022, increased to TRY18,804 million from TRY18,629 million as of December 31, 2021. Our cash position was positively impacted by currency movements during the quarter. However, we switched around US$50 million of our hard currency cash to FX Protected TL Time Deposits, which is reported under the “Financial assets at fair value through other comprehensive income” item on our balance sheet. Excluding FX swap transactions, 76% of our cash is in US$, 12% in EUR, and 10% in TRY.

Consolidated debt as of March 31, 2022, increased to TRY40,855 million from TRY36,778 million as of December 31, 2021, due mainly to the impact of currency movements. TRY2,984 million of our consolidated debt is comprised of lease obligations. Please note that 49% of our consolidated debt is in US$, 26% in EUR, 3% in CNY, 7% in UAH, and 14% in TRY.

Net debt¹ as of March 31, 2022, was at TRY19,449 million with a net debt to EBITDA ratio of 1.2 times. Excluding finance company customer loans, our telco only net debt was at TRY17,100 million with a leverage of 1.1 times.

Turkcell Group had a short FX position of US$204 million as at the end of the first quarter (Please note that this figure takes hedging portfolio and advance payments into account). The short FX position of US$204 million is broadly in line with our FX neutral definition, which is between -US$200 million and +US$200 million.

Capital expenditures: Capital expenditures, including non-operational items, amounted to TRY2,918 million in Q122.

For Q122, operational capital expenditures (excluding license fees) at the Group level were at 17.3% of total revenues.

Capital expenditures (million TRY)		Q121	Q421	Q122
Operational Capex		1,467.9	2,686.3	1,845.3
License and Related Costs		–	–	–
Non-operational Capex (Including IFRS15 & IFRS16)		789.4	1,611.1	1,073.1
Total Capex		2,257.3	4,297.4	2,918.3

⁽¹⁾ Starting from Q421, we have revised the definition of our net debt calculation to include “financial assets at fair value through other comprehensive income” reported under current and non-current assets, and “financial assets at amortized cost”. We believe that these assets are highly liquid and can be easily converted to cash without significant change in value.

Summary of Operational Data		Q121	Q421	Q122	y/y%	q/q%
Number of subscribers (million)		37.4	39.4	40.0	7.0%	1.5%
Mobile Postpaid (million)		22.4	23.7	24.1	7.6%	1.7%
Mobile M2M (million)		2.9	3.3	3.5	20.7%	6.1%
Mobile Prepaid (million)		11.6	12.0	12.0	3.4%	–
Fiber (thousand)		1,714.3	1,887.8	1,941.0	13.2%	2.8%
ADSL (thousand)		716.3	754.9	755.7	5.5%	0.1%
Superbox (thousand)1		614.6	603.6	612.4	(0.4%)	1.5%
Cable (thousand)		64.9	54.6	51.1	(21.3%)	(6.4%)
IPTV (thousand)		920.7	1,082.2	1,126.4	22.3%	4.1%
Churn (%)2
Mobile Churn (%)3		1.8%	2.5%	1.6%	(0.2pp)	(0.9pp)
Fixed Churn (%)		1.6%	1.6%	1.4%	(0.2pp)	(0.2pp)
ARPU(Average Monthly Revenue per User) (TRY)
Mobile ARPU, blended		46.0	54.6	54.6	18.7%	–
Mobile ARPU, blended (excluding M2M)		49.9	59.5	59.8	19.8%	0.5%
Postpaid		57.8	68.2	67.0	15.9%	(1.8%)
Postpaid (excluding M2M)		65.8	78.3	77.3	17.5%	(1.3%)
Prepaid		23.4	28.6	29.8	27.4%	4.2%
Fixed Residential ARPU, blended		73.9	82.2	88.9	20.3%	8.2%
Residential Fiber ARPU		74.3	83.0	89.9	21.0%	8.3%
Average mobile data usage per user (GB/user)		12.6	13.3	13.4	6.3%	0.8%
Mobile MoU (Avg. Monthly Minutes of usage per subs) blended		532.0	548.7	531.1	(0.2%)	(3.2%)

⁽¹⁾ Superbox subscribers are included in mobile subscribers.

⁽²⁾ Churn figures represent average monthly churn figures for the respective quarters.

⁽³⁾ In Q117, our churn policy was revised to extend from 9 months to 12 months (the period at the end of which we disconnect prepaid subscribers who have not topped up above TRY10). Additionally, under our revised policy, prepaid customers who last topped up before March are disconnected at the latest by year-end. As a regulatory requirement, we started to disconnect prepaid lines in accordance with the new ICTA regulation, which requires deactivation of prepaid lines which lack residency documents by the 6^th month of subscription starting from 2019. Furthermore, as required by the ICTA, the line of a deceased customer should either be transferred to a successor/another user or terminated. Lines, which are not transferred or terminated, are to be disconnected at the end of seven months.

In Q122, we made a solid start to the year towards realizing our ambition of 1-million net subscriber additions in 2022. Accordingly, we registered 577 thousand quarterly net additions to our subscriber base, which reached 40.0 million. This robust performance was driven by our customer-centric approach and rich value proposition to our customers.

On the mobile front, our subscriber base reached 36.1 million on 482 thousand quarterly net additions in Q122. The rise was driven mainly by 423 thousand quarterly net additions to the postpaid subscriber base, which reached 66.7% (65.8%) of total mobile subscribers. Meanwhile, in Q122, we had 59 thousand net additions in the prepaid segment.

On the fixed front, our fiber subscriber base expanded with 53 thousand quarterly net additions supported by our focus on fiber network investments, and the strong demand for high-speed and quality broadband connections. Total fixed subscribers exceeded 2.7 million on 50 thousand quarterly net additions. Meanwhile, IPTV subscribers exceeded 1.1 million on 44 thousand quarterly net additions.

In Q122, the average mobile monthly churn rate declined to 1.6%, the lowest level of the past four years. The decline resulted mainly from our customer-focused approach, our analytical capabilities supporting customer retention, and our pricing actions, which led to a more rational competitive environment.

The average monthly fixed churn rate decreased to 1.4% in Q122. Our superior customer experience resulting from the speed and quality we offer on our fiber infrastructure plays an important role in maintaining a healthy churn level.

Our mobile ARPU (excluding M2M) rose 19.8% year-on-year in Q122, driven mainly by pricing adjustments to reflect inflationary impacts, upsell efforts, and a larger postpaid subscriber share.

Our residential fiber ARPU growth was 21.0% on a year-on-year basis in Q122. This was driven mainly by price adjustments and upsell to higher tariffs, as well as increased IPTV penetration, at 65% in Q122.

Average monthly mobile data usage per user rose 6.3% in Q122 to 13.4 GB. The average mobile data usage of 4.5G users reached 14.7 GB in Q122.

Total smartphone penetration on our network reached 86% in Q122 on a 2.4pp year-on-year rise. 92.4% of those smartphones were 4.5G compatible.

TURKCELL INTERNATIONAL

lifecell1 Financial Data	Q121	Q421	Q122	y/y%	q/q%
Revenue (million UAH)	1,899.2	2,406.4	2,306.8	21.5%	(4.1%)
EBITDA (million UAH)	1,076.8	1,319.1	1,292.4	20.0%	(2.0%)
EBITDA margin (%)	56.7%	54.8%	56.0%	(0.7pp)	1.2pp
Net income (million UAH)	83.2	237.9	209.4	151.7%	(12.0%)
Capex (million UAH)	572.4	1,319.3	711.6	24.3%	(46.1%)
Revenue (million TRY)	508.8	996.6	1,112.6	118.7%	11.6%
EBITDA (million TRY)	288.6	544.5	623.6	116.1%	14.5%
EBITDA margin (%)	56.7%	54.6%	56.0%	(0.7pp)	1.4pp
Net income (million TRY)	22.4	98.1	101.0	350.9%	3.0%

⁽¹⁾ Since July 10,2015, we hold a 100% stake in lifecell.

lifecell (Ukraine) revenues rose 21.5% year-on-year in Q122 in local currency terms with an EBITDA margin of 56.0%. lifecell continued to register positive net income in Q122.

lifecell revenues in TRY terms grew 118.7% year-on-year in Q122 with a strong operational performance and the positive impact of currency movements.

lifecell Operational Data		Q121	Q421	Q122	y/y%	q/q%
Number of subscribers (million)2		9.2	10.1	10.2	10.9%	1.0%
Active (3 months)3		8.0	9.2	8.9	11.3%	(3.3%)
MOU (minutes) (12 months)		177.2	179.0	170.0	(4.1%)	(5.0%)
ARPU (Average Monthly Revenue per User), blended (UAH)		68.1	80.2	75.6	11.0%	(5.7%)
Active (3 months) (UAH)		78.7	88.5	84.3	7.1%	(4.7%)

⁽²⁾ We may occasionally offer campaigns and tariff schemes that have an active subscriber life differing from the one that we normally use to deactivate subscribers and calculate churn.

⁽³⁾ Active subscribers are those who in the past three months made a revenue generating activity.

lifecell’s focus has been on ensuring the safety of its employees and continuing to provide critical telecom services that the Ukrainian people need during this difficult time. None of our employees have been harmed since the beginning of the war.

Our network is largely operational, and we continue to provide services to our customers in Ukraine. There has been no material damage or outage in the core network. Around 10% of our nearly 9 thousand base stations are temporarily down on average daily due to energy cut-offs. The national roaming among the three operators also enables the continuity of communication in the country.

The portion of telecommunication equipment and revenues earned in the region currently invaded by Russia is insignificant compared to our total telecommunication equipment and our total revenue earned in Ukraine.

Around 60% of our stores are open nationwide daily average as of the end of March. Refills were down in March by around 20% compared to the average of December 2021 and January 2022. There has been no interruption to our ICT systems, such as billing and CRM.

The banking system in the country continues to operate and day-to-day operations, including payments and collections are exercised normally. We have rolled over our debt during the quarter as access to local currency liquidity is still available. Meanwhile, our cash position is conducive to sustain the operations.

We closely monitor the developments in Ukraine and the potential impact on our operations. We continuously update our corporate action plans to ensure safety and health of our employees and maintain our operations. At this point, we have no way of predicting either the progress or the outcome of the situation. The continuation of the situation going forward may impact our consolidated financial condition, results of operations and cash flows.

BeST1		Q121	Q421	Q122	y/y%	q/q%
Number of subscribers (million)		1.4	1.5	1.5	7.1%	–
Active (3 months)		1.1	1.1	1.1	–	–
Revenue (million BYN)		38.0	35.6	34.3	(9.7%)	(3.7%)
EBITDA (million BYN)		9.2	10.1	10.7	16.3%	5.9%
EBITDA margin (%)		24.2%	28.5%	31.1%	6.9pp	2.6pp
Net loss (million BYN)		(8.1)	(7.5)	(8.5)	4.9%	13.3%
Capex (million BYN)		18.0	16.7	21.5	19.4%	28.7%
Revenue (million TRY)		109.4	157.3	175.8	60.7%	11.8%
EBITDA (million TRY)		26.5	44.7	54.6	106.0%	22.1%
EBITDA margin (%)		24.2%	28.4%	31.1%	6.9pp	2.7pp
Net loss (million TRY)		(23.3)	(32.9)	(43.7)	87.6%	32.8%

⁽¹⁾ BeST, in which we hold an 80% stake, has operated in Belarus since July 2008.

BeST revenues declined 9.7% year-on-year in local currency terms. This was due mainly to a contraction in handset sales despite the increase in voice, messaging, and data revenues. BeST registered year-on-year EBITDA growth of 16.3% in Q122, which led to an EBITDA margin of 31.1%. The higher EBITDA margin resulted mainly from the decline in lower margin handset sales. BeST’s revenues in TRY terms grew 60.7% year-on-year in Q122 with an EBITDA margin of 31.1%.

BeST continued to expand its 4G network in Q122. BeST provides LTE service to its customers in 6 regions over 3.6 thousand sites, growing by over 200 additions during the quarter. In Q122, BeST also continued to expand its rural coverage launching its LTE800 services in Brest. The expanding LTE coverage allows BeST to increase the penetration of its 4G subscribers. Accordingly, 4G users comprised 73% of the 3-month active subscriber base as of Q122. Meanwhile, the average monthly data consumption of subscribers rose 22% year-over-year to 15.4 GB.

In March 2022, the EU, US, UK and certain other countries imposed new sanctions on Belarusian persons, entities and export controls on Belarus. These may affect the economic climate in Belarus and our access to imported equipment and software. These factors may impact the financial condition and operating performance of our operations in Belarus.

Kuzey Kıbrıs Turkcell2 (million TRY)		Q121	Q421	Q122	y/y%	q/q%
Number of subscribers (million)		0.5	0.6	0.6	20.0%	–
Revenue		61.9	90.1	96.9	56.5%	7.5%
EBITDA		24.5	35.3	38.3	56.3%	8.5%
EBITDA margin (%)		39.6%	39.2%	39.5%	(0.1pp)	0.3pp
Net income		9.9	25.5	21.8	120.2%	(14.5%)
Capex		15.7	26.6	34.9	122.3%	31.2%

⁽²⁾ Kuzey Kıbrıs Turkcell, in which we hold a 100% stake, has operated in Northern Cyprus since 1999

Kuzey Kıbrıs Turkcell revenues increased 56.5% year-on-year in Q122 on the back of the rise in mobile voice and roaming revenues with increased mobility, as well as fixed broadband and handset sales revenues. The EBITDA of Kuzey Kıbrıs Turkcell rose 56.3% yielding a 39.5% EBITDA margin.

TECHFIN

Paycell Financial Data (million TRY)		Q121	Q421	Q122	y/y%	q/q%
Revenue		98.1	139.6	164.0	67.2%	17.5%
EBITDA		53.3	64.3	72.9	36.8%	13.4%
EBITDA Margin (%)		54.4%	46.1%	44.5%	(9.9pp)	(1.6pp)
Net Income		40.2	48.7	49.1	22.1%	0.8%

Paycell continued its strong growth momentum in Q122, leveraging the demand for digital payments with its diverse product portfolio including mobile payment services, as well as Paycell card and payment facilitation solutions. Accordingly, the revenues of Paycell rose 67.2% year-on-year in Q122. Paycell’s EBITDA rose 36.8% year-on-year, leading to an EBITDA margin of 44.5% in Q122. The changing revenue mix, plus selling and marketing efforts were the main factors behind the year-on-year decline in EBITDA margin.

The transaction volumes across Paycell’s product portfolio continued to rise in Q122. The Pay Later service transaction volume (non-group) doubled year-on-year to TRY718 million. This was driven by a 42% increase in the 3-month active users of the Pay Later service to 4.1 million and their increased usage. Meanwhile, Paycell continued to penetrate its payment facilitation services during the quarter. Accordingly, the transaction volume over physical and virtual POS services reached TRY2.1 billion in Q122, almost doubling compared to previous quarter. The Paycell Card transaction volume increased to TRY1.6 billion in Q122, almost to eightfold of the transaction volume in Q121. Overall, Paycell’s total transaction volume across all services rose 166% to TRY6.7 billion, driven mainly by the 32% year-on-year rise in 3-month active users to 6.9 million and their increased usage.

Financell Financial Data (million TRY)		Q121	Q421	Q122	y/y%	q/q%
Revenue		130.0	190.4	195.0	50.0%	2.4%
EBITDA		85.3	128.9	110.0	29.0%	(14.7%)
EBITDA Margin (%)		65.6%	67.7%	56.4%	(9.2pp)	(11.3pp)
Net Income		95.0	109.5	65.7	(30.8%)	(40.0%)

Financell’s revenues grew 50.0% year-on-year in Q122. A larger loan portfolio and a higher average interest rate on the loan portfolio, compared to the same period of the last year, were the main drivers of this growth. Financell reported 29.0% year-on-year EBITDA growth. The decline in EBITDA margin was due to the rise in funding costs and lower receivable sales compared to Q121. Financell’s net income declined 30.8% year-on-year due mainly to the fair valuation impact of its derivative instrument portfolio.

Financell’s loan portfolio increased to TRY2.3 billion in Q122, from TRY1.9 billion in Q121, driven by higher lending to the corporate segment and greater mobility. Financell’s cost of risk has slightly increased from 1.0% in Q121 to 1.5% in Q122, mainly due to a lower amount of receivable sales and expansion in the loan portfolio.

Turkcell Group Subscribers

Turkcell Group registered subscribers amounted to approximately 52.3 million as of March 31, 2022. This figure is calculated by taking the number of subscribers of Turkcell Turkey, and of each of our subsidiaries. It includes the total number of mobile, fiber, ADSL, cable and IPTV subscribers of Turkcell Turkey, and the mobile subscribers of lifecell and BeST, as well as those of Kuzey Kıbrıs Turkcell.

Turkcell Group Subscribers	Q121	Q421	Q122	y/y%	q/q%
Turkcell Turkey subscribers (million)1	37.4	39.4	40.0	7.0%	1.5%
lifecell (Ukraine)	9.2	10.1	10.2	10.9%	1.0%
BeST (Belarus)	1.4	1.5	1.5	7.1%	–
Kuzey Kıbrıs Turkcell	0.5	0.6	0.6	20.0%	–
Turkcell Group Subscribers (million)	48.6	51.6	52.3	7.6%	1.4%

⁽¹⁾ Subscribers to more than one service are counted separately for each service.

OVERVIEW OF THE MACROECONOMIC ENVIRONMENT

The foreign exchange rates used in our financial reporting, along with certain macroeconomic indicators, are set out below.

	Q121	Q421	Q122	y/y%	q/q%
GDP Growth (Turkey)	7.3%	9.1%	n.a	n.a	n.a
Consumer Price Index (Turkey) (yoy)	16.2%	36.1%	61.1%	44.9pp	25.0pp
US$ / TRY rate
Closing Rate	8.3260	13.3290	14.6458	75.9%	9.9%
Average Rate	7.5086	11.0757	13.8778	84.8%	25.3%
EUR / TRY rate
Closing Rate	9.7741	15.0867	16.3086	66.9%	8.1%
Average Rate	9.0683	12.6591	15.5203	71.1%	22.6%
US$ / UAH rate
Closing Rate	27.89	27.28	29.2549	4.9%	7.2%
Average Rate	28.07	26.81	28.7685	2.5%	7.3%
US$ / BYN rate
Closing Rate	2.6242	2.5481	2.9732	13.3%	16.7%
Average Rate	2.6112	2.5019	2.7118	3.9%	8.4%

RECONCILIATION OF NON-GAAP FINANCIAL MEASUREMENTS: We believe Adjusted EBITDA, among other measures, facilitates performance comparisons from period to period and management decision making. It also facilitates performance comparisons from company to company. Adjusted EBITDA as a performance measure eliminates potential differences caused by variations in capital structures (affecting interest expense), tax positions (such as the impact of changes in effective tax rates on periods or companies) and the age and book depreciation of tangible assets (affecting relative depreciation expense). We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors and other interested parties in evaluating the performance of other mobile operators in the telecommunications industry in Europe, many of which present Adjusted EBITDA when reporting their results.

Our Adjusted EBITDA definition includes Revenue, Cost of Revenue excluding depreciation and amortization, Selling and Marketing expenses, Administrative expenses and Net impairment losses on financial and contract assets, but excludes translation gain/(loss), finance income, finance expense, share of profit of equity accounted investees, gain on sale of investments, minority interest and other income/(expense).

Nevertheless, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute for analysis of our results of operations, as reported under IFRS. The following table provides a reconciliation of Adjusted EBITDA, as calculated using financial data prepared in accordance with IFRS as issued by the IASB, to net profit, which we believe is the most directly comparable financial measure calculated and presented in accordance with IFRS as issued by the IASB.

Turkcell Group (million TRY)		Q121	Q421	Q122	y/y%	q/q%
Adjusted EBITDA		3,306.5	4,211.6	4,302.0	30.1%	2.1%
Depreciation and amortization		(1,656.0)	(2,075.5)	(2,084.5)	25.9%	0.4%
EBIT		1,650.5	2,136.1	2,217.5	34.4%	3.8%
Finance income		1,601.9	2,643.6	319.9	(80.0%)	(87.9%)
Finance costs		(1,809.0)	(4,413.0)	(1,579.3)	(12.7%)	(64.2%)
Other income / (expense)		(12.1)	(45.2)	14.3	n.m	n.m.
Share of profit of equity accounted investees		17.7	63.6	(23.4)	(232.2%)	(136.8%)
Consolidated profit before income tax & minority interest		1,449.1	385.0	948.9	(34.5%)	146.5%
Income tax expense		(344.1)	999.7	(146.0)	(57.6%)	(114.6%)
Consolidated profit before minority interest		1,104.9	1,384.7	802.9	(27.3%)	(42.0%)

NOTICE: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. This includes, in particular, our targets for revenue, EBITDA and capex for 2022. More generally, all statements other than statements of historical facts included in this press release, including, without limitation, certain statements regarding the launch of new businesses, our operations, financial position and business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as, among others, “will,” “expect,” “intend,” “estimate,” “believe”, “continue” and “guidance”.

Although Turkcell believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give no assurance that such expectations will prove to be correct. All subsequent written and oral forward-looking statements attributable to us are expressly qualified in their entirety by reference to these cautionary statements. For a discussion of certain factors that may affect the outcome of such forward looking statements, see our Annual Report on Form 20-F for 2021 filed with the U.S. Securities and Exchange Commission, and in particular the risk factor section therein. We undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The Company makes no representation as to the accuracy or completeness of the information contained in this press release, which remains subject to verification, completion and change. No responsibility or liability is or will be accepted by the Company or any of its subsidiaries, board members, officers, employees or agents as to or in relation to the accuracy or completeness of the information contained in this press release or any other written or oral information made available to any interested party or its advisers.

ABOUT TURKCELL: Turkcell is a digital operator headquartered in Turkey, serving its customers with its unique portfolio of digital services along with voice, messaging, data and IPTV services on its mobile and fixed networks. Turkcell Group companies operate in 4 countries – Turkey, Ukraine, Belarus, and Northern Cyprus. Turkcell launched LTE services in its home country on April 1st, 2016, employing LTE-Advanced and 3 carrier aggregation technologies in 81 cities. Turkcell offers up to 10 Gbps fiber internet speed with its FTTH services. Turkcell Group reported TRY10.7 billion revenue in Q122 with total assets of TRY75.3 billion as of March 31, 2022. It has been listed on the NYSE and the BIST since July 2000, and is the only NYSE-listed company in Turkey. Read more at www.turkcell.com.tr.

Appendix A – Tables

Table: Net foreign exchange gain and loss details

Million TRY		Q121	Q421	Q122	y/y%	q/q%
Net FX loss before hedging		(1,618.1)	(4,137.2)	(1,077.5)	(33.4%)	(74.0%)
Swap interest income / (expense)		(114.5)	(89.2)	(70.8)	(38.2%)	(20.6%)
Fair value gain on derivative financial instruments		1,456.1	2,613.3	58.8	(96.0%)	(97.7%)
Net FX gain / (loss) after hedging		(276.5)	(1,613.1)	(1,089.5)	294.0%	(32.5%)

Table: Income tax expense details

Million TRY		Q121	Q421	Q122	y/y%	q/q%
Current tax expense		(163.2)	(106.6)	(157.3)	(3.6%)	47.6%
Deferred tax income / (expense)		(181.0)	1,106.3	11.3	(106.2%)	(99.0%)
Income Tax expense		(344.1)	999.7	(146.0)	(57.6%)	(114.6%)

		TURKCELL ILETISIM HIZMETLERI A.S. IFRS SELECTED FINANCIALS (TRY Million)
		Quarter Ended	Quarter Ended	Year Ended	Quarter Ended
		Mar 31,	Dec 31,	Dec 31,	Mar 31,
		2021	2021	2021	2022
Consolidated Statement of Operations Data
Turkcell Turkey		5,978.6	7,689.4	27,223.5	7,949.7
Turkcell International		708.2	1,286.4	3,750.1	1,426.6
Fintech		222.6	329.9	1,075.7	352.9
Other		917.1	885.9	3,871.2	965.9
Total revenues		7,826.5	10,191.5	35,920.5	10,695.0
Direct cost of revenues		(5,568.9)	(7,095.4)	(25,230.0)	(7,578.0)
Gross profit		2,257.6	3,096.2	10,690.6	3,117.0
Administrative expenses		(199.4)	(276.8)	(919.0)	(303.7)
Selling & marketing expenses		(358.2)	(576.6)	(1,778.5)	(540.7)
Other Operating Income / (Expense)		(12.1)	(45.2)	(370.0)	14.3
Net impairment loses on financial and contract assets		(49.5)	(106.7)	(271.2)	(55.1)
Operating profit before financing costs		1,638.4	2,090.9	7,351.9	2,231.7
Finance costs		(1,809.0)	(4,413.0)	(6,492.9)	(1,579.3)
Finance income		1,601.9	2,643.6	3,592.0	319.9
Share of profit of equity accounted investees		17.7	63.6	90.1	(23.4)
Income before tax and non-controlling interest		1,449.1	385.0	4,541.1	948.9
Income tax expense		(344.1)	999.7	490.2	(146.0)
Income from continuing operations before non-controlling interest		1,104.9	1,384.7	5,031.3	802.9
Discontinued operations		0.0	0.0	0.0	0.0
Non-controlling interests		(0.0)	(0.1)	(0.2)	(0.0)
Net income		1,104.9	1,384.6	5,031.1	802.9
Net income per share total		0.51	0.63	2.30	0.37
Other Financial Data
Gross margin		28.8%	30.4%	29.8%	29.1%
EBITDA(*)		3,306.5	4,211.6	15,013.8	4,302.0
Total Capex		2,257.3	4,297.4	11,479.4	2,918.3
Operational capex		1,467.9	2,686.3	7,629.8	1,845.3
Licence and related costs		0.0	0.0	0.0	0.0
Non-operational Capex		789.4	1,611.1	3,849.6	1,073.1
Consolidated Balance Sheet Data (at period end)
Cash and cash equivalents		13,467.0	18,628.7	18,628.7	18,804.0
Total assets		55,987.2	70,682.6	70,682.6	75,324.6
Long term debt		19,074.5	27,929.7	27,929.7	30,105.2
Total debt		24,895.8	36,778.1	36,778.1	40,855.4
Total liabilities		34,253.0	48,120.4	48,120.4	51,944.9
Total shareholders’ equity / Net Assets		21,734.3	22,562.3	22,562.3	23,379.7

(*) Please refer to the notes on reconciliation of Non-GAAP Financial measures on page 15

For further details, please refer to our consolidated financial statements and notes as at 31 March 2022 on our website

		TURKCELL ILETISIM HIZMETLERI A.S. TURKISH ACCOUNTING STANDARDS SELECTED FINANCIALS (TRY Million)
		Quarter Ended	Quarter Ended	Year Ended	Quarter Ended
		Mar 31,	Dec 31,	Dec 31,	Mar 31,
		2021	2021	2021	2022
Consolidated Statement of Operations Data
Turkcell Turkey		5,978.6	7,689.4	27,223.5	7,949.7
Turkcell International		708.2	1,286.4	3,750.1	1,426.6
Fintech		222.6	329.9	1,075.7	352.9
Other		917.1	885.9	3,871.2	965.9
Total revenues		7,826.5	10,191.5	35,920.5	10,695.0
Direct cost of revenues		(5,568.9)	(7,095.4)	(25,230.0)	(7,578.0)
Gross profit		2,257.6	3,096.2	10,690.6	3,117.0
Administrative expenses		(199.4)	(276.8)	(919.0)	(303.7)
Selling & marketing expenses		(358.2)	(576.6)	(1,778.5)	(540.7)
Other Operating Income / (Expense)		698.7	4,355.8	6,409.6	1,494.1
Operating profit before financing and investing costs		2,398.8	6,598.6	14,402.7	3,766.7
Net impairment loses on financial and contract assets		(49.5)	(106.7)	(271.2)	(55.1)
Income from investing activities		50.7	402.6	464.1	299.2
Expense from investing activities		(47.6)	72.1	0.0	0.0
Share of profit of equity accounted investees		17.7	63.6	90.1	(23.4)
Income before financing costs		2,370.1	7,030.2	14,685.7	3,987.3
Finance income		1,373.1	2,569.6	3,051.1	72.3
Finance expense		(2,294.1)	(9,214.8)	(13,195.7)	(3,110.7)
Income from continuing operations before tax and non-controlling interest		1,449.1	385.0	4,541.1	948.9
Income tax expense from continuing operations		(344.1)	999.7	490.2	(146.0)
Income from continuing operations before non-controlling interest		1,104.9	1,384.7	5,031.3	802.9
Discontinued operations		0.0	0.0	0.0	0.0
Income before non-controlling interest		1,104.9	1,384.7	5,031.3	802.9
Non-controlling interest		(0.0)	(0.1)	(0.2)	(0.0)
Net income		1,104.9	1,384.6	5,031.1	802.9
Net income per share from continuing operations		0.51	0.63	2.30	0.37
Other Financial Data
Gross margin		28.8%	30.4%	29.8%	29.1%
EBITDA(*)		3,306.5	4,211.6	15,013.8	4,302.0
Total Capex		2,257.3	4,297.4	11,479.4	2,918.3
Operational capex		1,467.9	2,686.3	7,629.8	1,845.3
Licence and related costs		0.0	0.0	0.0	0.0
Non-operational Capex		789.4	1,611.1	3,849.6	1,073.1
Consolidated Balance Sheet Data (at period end)
Cash and cash equivalents		13,467.0	18,628.7	18,628.7	18,804.0
Total assets		55,987.2	70,682.6	70,682.6	75,324.6
Long term debt		19,074.5	27,929.7	27,929.7	30,105.2
Total debt		24,895.8	36,778.1	36,778.1	40,855.4
Total liabilities		34,253.0	48,120.4	48,120.4	51,944.9
Total shareholders’ equity / Net Assets		21,734.3	22,562.3	22,562.3	23,379.7

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220428005758/en/

For further information please contact Turkcell

ALI SERDAR YAGCI, Head of Investor Relations & Corporate Finance

[email protected]

Corporate Communications:

EBRU FILIZFIDANOGLU, Corporate Communications Manager

+90533210933

Investor Relations

Tel: + 90 212 313 1888

[email protected]

Corporate Communications:

Tel: + 90 212 313 2321

[email protected]

KEYWORDS: Turkey United States United Kingdom Russia North America Europe Middle East

INDUSTRY KEYWORDS: Data Management Technology Mobile/Wireless Telecommunications Networks Internet

MEDIA:

Posted on April 28, 2022 11:39 am

Ohio Valley Banc Corp. Reports 1st Quarter Earnings

PR Newswire

GALLIPOLIS, Ohio
, April 28, 2022 /PRNewswire/ — Ohio Valley Banc Corp. (Nasdaq: OVBC) (the “Company”) reported consolidated net income for the quarter ended March 31, 2022, of $4,125,000, an increase of $594,000, or 16.8%, from the same period the prior year. Earnings per share for the first quarter of 2022 was $.87, compared to $.74 for the first quarter of 2021. Return on average assets and return on average equity were 1.34% and 11.78%, respectively, for the first quarter of 2022, versus 1.20% and 10.47%, respectively, for the same period the prior year.

“OVBC has had a successful quarter, and we intend to build on this momentum,” said Chairman and CEO Tom Wiseman. “At Ohio Valley Bank, we recently demonstrated this by expanding operating hours and announcing that contactless OVB credit cards are arriving in May. Loan Central has completed another season of tax advance loans and is helping the members of its communities prepare for summer expenses. At Race Day Mortgage, we are pushing out of the starting gate as we have now realized full staffing and are lending in more states with more lead generation partners. All these plans stem from a dedication to enhance the communities we serve. I cannot think of a better way to honor the bank’s 150th anniversary year.”

For the first quarter of 2022, net interest income decreased $58,000 from the first quarter of 2021. For the three months ended March 31, 2022, average earning assets increased $61 million from the same period the prior year. The increase was due to average securities and average balances maintained at the Federal Reserve, which increased $69 million and $11 million, respectively, from the first quarter of last year in relation to higher average deposit balances. Partially offsetting the growth in these areas was the $18 million decrease in average loan balances. The decrease in average loans was related to SBA Paycheck Protection Program (PPP) loans. As of March 31, 2022, all PPP loans have been paid off. As a result, the average balance of PPP loans decreased $27 million and the corresponding interest and fees on PPP loans decreased $352,000 for the first quarter of 2022, as compared to the same period last year. The earnings contribution from the higher balance of earning assets was offset by a decrease in the net interest margin. For the quarter ended March 31, 2022, the net interest margin was 3.51%, compared to 3.73% for the same period the prior year. The decrease was attributable to the higher relative balances maintained in securities and the Federal Reserve, which generally yield less than loans.

For the three months ended March 31, 2022, the provision for loan loss expense was negative $1,126,000, a decrease of $1,074,000 from the first quarter of 2021. The negative provision for loan loss expense for the first quarter of 2022 was primarily related to lower general reserves in association with improved economic risk factors and a decrease in loan balances since December 31, 2021, which was partly offset by quarterly net charge-offs of $88,000. The decrease in general reserves was related to lower criticized and classified loans and the partial release of the COVID reserve for the pandemic environment. Based on positive asset quality trends and low net charge offs, management released $645,000 of the COVID economic risk factor. We will monitor the pandemic environment and asset quality trends moving forward to determine the appropriate level of the COVID economic risk factor, which totaled $1,936,000 at March 31, 2022. The allowance for loan losses was .65% of total loans at March 31, 2022, compared to .78% at December 31, 2021 and .83% at March 31, 2021.

For the first quarter of 2022, noninterest income totaled $3,720,000, an increase of $381,000 from the first quarter of 2021. The increase was related to a $153,000 increase in service charges on deposit accounts, an $85,000 increase in interchange income on debit and credit card transactions, and a $56,000 increase in mortgage banking income in relation to our new mortgage company, Race Day Mortgage.

Noninterest expense totaled $9,788,000 for the first quarter of 2022, an increase of $601,000, or 6.5%, from the same period last year. The Company’s largest noninterest expense, salaries and employee benefits, increased $300,000, or 5.7%, from the first quarter of 2021. The increase was primarily related to staffing Race Day Mortgage and to annual merit increases. Further contributing to higher noninterest expense was data processing. For the three months ended March 31, 2022, data processing expense increased $97,000 from the same period last year due to higher credit and debit card transaction volume. Also contributing to higher noninterest expense for the first quarter of 2022 was a $59,000 increase in professional fees and a $54,000 increase in software expense, as compared to the same period last year.

The Company’s total assets at March 31, 2022 were $1.258 billion, an increase of $8 million from December 31, 2021. The increase in assets was related to a $12 million increase in both securities and balances maintained at the Federal Reserve, which was partially offset by a $20 million decrease in loans. The decrease in loans was largely related to the payoff of a limited number of large commercial loans. At March 31, 2022, total deposits increased $15 million and shareholders’ equity decreased $5 million from year end 2021. The decrease in shareholders’ equity was related to recording the fair value adjustment for securities classified as available-for-sale. Based on the increase in market rates during the first quarter of 2022, the fair value of securities decreased $8 million on an after-tax basis.

Ohio Valley Banc Corp. common stock is traded on The NASDAQ Global Market under the symbol OVBC. The Company owns The Ohio Valley Bank Company, with 16 offices in Ohio and West Virginia; Loan Central, Inc. with six consumer finance offices in Ohio; and Race Day Mortgage, Inc., an online consumer direct mortgage company. Learn more about Ohio Valley Banc Corp. at www.ovbc.com.

Caution Regarding Forward-Looking Information

Certain statements contained in this earnings release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believes,” “anticipates,” “expects,” “appears,” “intends,” “targeted” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying those statements. Forward-looking statements involve risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events, including: (i) impacts from the novel coronavirus (COVID-19) pandemic on our business, operations, customers and capital position; (ii) the impact of COVID-19 on local, national and global economic conditions; unexpected changes in interest rates or disruptions in the mortgage market related to COVID-19 or responses to the health crisis; (iii) changes in political, economic or other factors, such as inflation rates, recessionary or expansive trends, taxes, the effects of implementation of federal legislation with respect to taxes and government spending and the continuing economic uncertainty in various parts of the world; (iv) competitive pressures; (v) fluctuations in interest rates; (vi) the level of defaults and prepayment on loans made by the Company; (vii) unanticipated litigation, claims, or assessments; (viii) fluctuations in the cost of obtaining funds to make loans; (ix) regulatory changes; and (x) other factors that may be described in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made to reflect unanticipated events.

OHIO VALLEY BANC CORP – Financial Highlights (Unaudited)
							Three months ended
							March 31,
							2022		2021
PER SHARE DATA
Earnings per share							$            0.87		$	0.74
Dividends per share							$            0.21		$	0.21
Book value per share							$          28.63		$	28.77
Dividend payout ratio (a)							24.20%		28.47%
Weighted average shares outstanding							4,761,072		4,787,446
DIVIDEND REINVESTMENT (in 000’s)
Dividends reinvested under
employee stock ownership plan (b)							$             154		$           188
Dividends reinvested under
dividend reinvestment plan (c)							$             515		$           425
PERFORMANCE RATIOS
Return on average equity							11.78%		10.47%
Return on average assets							1.34%		1.20%
Net interest margin (d)							3.51%		3.73%
Efficiency ratio (e)							70.81%		68.03%
Average earning assets (in 000’s)							$   1,167,366		$  1,105,984