Netaş's Third Quarter Sales Surge by 37% to Reach 6.4 Billion TL
In the third quarter of the year, Netaş (IS:NETAS) has continued to deepen its presence in both the telecommunications and corporate markets, increasing sales revenue across all segments in which it operates. As one of Turkey's leading technology companies with extensive experience in information and communication technologies, Netaş announced its financial results for the third quarter of 2024. According to the results, the company’s sales revenue rose by 37% in the first nine months of the year, reaching 6.36 billion TL, while orders received increased by 42%, amounting to 6.4 billion TL. The company's gross profit saw a 38% growth compared to the same period last year, reaching 477 million TL.
Netaş CEO Sinan Dumlu stated that despite the slowdown in the economy, they closed the third quarter in line with expectations. "In the third quarter, we continued our sales growth especially with new projects and collaborations in the Telecommunications and Corporate Markets segments. We aim to carry this growth into the upcoming periods with our telecommunications infrastructure projects conducted in partnership with ZTE and new initiatives in the mobile device market. Our projects with key clients such as Akbank (IS:AKBNK), Turkcell (IS:TCELL), Vodafone (LON:VOD), and Türk Telekom (IS:TTKOM) are progressing successfully. This year, we participated in Saha Expo and reintroduced our work in the defense sector to our clients. We also had the opportunity to showcase Turkey's first domestic server to visitors at the fair. We continue to advance steadily in the smartphone market under the Nubia brand," he said.
Revenue Growth Across All Segments System Integration continued to account for the largest portion of sales and orders during the first nine months of the year. The segment’s sales revenue rose by 20% to 3.2 billion TL, maintaining its status as Netaş's largest source of income, making up 51% of total sales. Meanwhile, the telecommunications segment’s share of orders received increased significantly. Orders in the telecommunications segment grew by 102% year-on-year. Revenue generated from telecommunications increased by 56%, reaching 2.4 billion TL. New projects launched in collaboration with ZTE in the infrastructure of Turkey’s telecommunications operators contributed to this growth. The sales revenue of the BDH segment increased by 78%, reaching 715 million TL.
Significant Interest in Netaş at SAHA EXPO 2024 Netaş received considerable interest from participants from around the world at two of the most important international events of 2024. Netaş, celebrating its 50th anniversary in R&D, showcased its existing products and services as well as two new products, including the Global Navigation Satellite System (GNSS) receiver and Precision Time Generator, at SAHA EXPO 2024, one of the leading events in the defense, aviation, and aerospace industries in the region and globally. Netaş successfully exhibited its locally produced and national products, including Turkey's first domestic server, the Netaş Cloud Server, at the SAHA EXPO International Defense, Aviation and Space Fair held from October 22-26 at the Istanbul Expo Center.
At SAHA EXPO, a strategic cooperation agreement was signed between Netaş and TAAC Aviation Technologies Industry and Trade Inc. The scope of cooperation between the two firms, which are already developing projects for the aviation sector, has been expanded with this agreement to cover the fields of Electronics, Electromechanical Device Technologies, and Integrated System Technology.
In Netaş's production center, a significant stakeholder in the defense sector, the production of Identification Friend or Foe (IFF) interrogator and responder units is ongoing.
ZTE held its largest event, the 5G Summit and User Congress, in Istanbul. ZTE’s prominent event, the global 5G Summit and User Congress held annually in different countries, took place this year in Istanbul on November 5-6, 2024, under the theme "Achieve Success with Smart Innovations." The summit hosted Turkish and global operators and participants from various technology fields alongside ZTE. The event featured valuable speakers and panels on different technology areas, emphasizing the mission to contribute to Turkey's digital future by sharing the latest technology trends with leading figures in the industry.
Netaş has already begun preparations for next year’s 5G auction and commenced equipment replacement projects on the mobile network side in a region of one of Turkey’s leading telecom operators. Furthermore, important projects for the transmission network, namely APE and DWDM replacement projects, have also begun through acquired tenders. In terms of subscriber access, Netaş is successfully providing power systems to its telecom networks while continuing end device projects with various operators.