ISTANBUL--(BUSINESS WIRE)--Turkcell (NYSE: TKC) (BIST: TCELL) has signed a landmark US$1 billion syndicated international Murabaha financing with 14 banks. ...

Core Insights - Nokia and Turkcell have successfully completed a project to enhance Turkcell's fixed broadband performance, benefiting over 3 million customers in Türkiye [1][2]. Group 1: Project Overview - The initiative, launched in early 2025, provides comprehensive monitoring of Turkcell's fixed broadband experience, enabling end-to-end visibility from access networks to subscriber home networks [2]. - AI-driven automation allows for the detection of potential issues before they impact customers, enhancing service continuity and operational efficiency [2][6]. Group 2: Customer Experience and Satisfaction - Turkcell has implemented a large-scale fixed network analytics system that processes service-quality data hourly for approximately 15 million smart and connected devices, reducing the risk of faults and outages [3]. - The near real-time performance and experience monitoring increases customer satisfaction by facilitating faster and more accurate interventions [3]. Group 3: Technological Advancements - Nokia's AI-powered fixed network analytics solution is built on a modern, cloud-native architecture, ensuring scalability, resilience, and future readiness for autonomous and cognitive network operations [4][8]. - The use of AI-driven analytics provides operations teams with a comprehensive view of network behavior, supporting earlier identification of issues and smoother day-to-day operations [6]. Group 4: Strategic Importance - The project aligns with the growing importance of fixed broadband services in daily routines, particularly as remote work and online education evolve [5]. - Turkcell aims to elevate service quality through proactive maintenance protocols, ensuring stable home connectivity and a frictionless customer experience [5].

Financial Performance - Turkcell's revenue for FY25 reached TRY 241,471 million, representing a year-on-year growth of 10.7% compared to FY24[11]. - EBITDA increased by 13.8% to TRY 104,017 million, resulting in an EBITDA margin of 43.1%, up from 41.9% in FY24[11]. - The company achieved a significant EBIT growth of 37.7%, reaching TRY 40,089 million, with an EBIT margin of 16.6%[11]. - Profit from continuing operations rose by 22.6% to TRY 17,791 million, despite a decline in net income by 42.8% to TRY 17,604 million due to a high base effect from FY24[11][16]. - Consolidated revenues increased by 10.7% year-on-year to TRY 241 billion in 2025, with an EBITDA margin improvement of 1.2 percentage points to 43.1%[21][34]. - Profit for the year decreased to TL 17,604,007, down 42.7% from TL 30,779,151 in 2024[89]. - Basic and diluted earnings per share for profit attributable to owners of the Company was TL 8.08, a decrease from TL 14.12 in 2024[89]. - Total comprehensive income for the year was TL 23,851,548, slightly up from TL 23,729,939 in 2024[91]. Subscriber Growth - Total net mobile subscriber additions reached 809 thousand, increasing the total mobile subscriber base to 39.1 million, with postpaid subscribers growing by 2.4 million, the highest since 1999[22]. - Turkcell Group had approximately 46.2 million registered subscribers as of December 31, 2025, reflecting a 2.2% increase from the previous year[72]. - The total number of subscribers for Turkcell Türkiye increased by 1.9% year-over-year, reaching 43.9 million as of December 31, 2025[59]. Revenue Segments - The company reported a notable 45% year-on-year growth in its Data Center & Cloud segment, exceeding guidance[14]. - Techfin segment revenues grew by 21.1% to TRY 13.7 billion, driven by Paycell's 41.0% year-on-year revenue increase[26][38]. - Revenue from financial services grew to TL 12,456,548, a 22% increase from TL 10,232,322 in 2024[89]. Future Outlook - Turkcell's 2026 revenue growth target is set between 5%-7%, with a data center and cloud revenue growth target of 18%-20%[16]. - The company plans to maintain an EBITDA margin target of 40%-42% and an operational capex over sales ratio target of around 25% for 2026[16]. - The company expects revenue growth of 5%–7% in 2026, with data center and cloud business projected to grow by 18%–20%[32][31]. Capital Expenditures and Investments - Capital expenditures are anticipated to be 25% of revenues in 2026, despite being in an intense investment phase[32]. - The company plans to continue investing in 5G, data centers, fiber infrastructure, and renewable energy to support long-term value creation[31]. - Capital expenditures (CAPEX) for 2025 amounted to TRY 89,961 million, with operational CAPEX accounting for 22.6% of total revenues[57]. Cash Flow and Debt - Consolidated cash as of December 31, 2025, increased to TRY 91,828 million, up from TRY 90,230 million as of December 31, 2024[54]. - Consolidated debt as of December 31, 2025, rose to TRY 158,649 million from TRY 136,573 million as of December 31, 2024, with net debt slightly increasing to TRY 14,888 million[55]. - Cash generated from operations rose to TRY 122,709,607 in 2025, compared to TRY 103,612,992 in 2024, marking an increase of 18.4%[96]. Inflation and Economic Conditions - The cumulative three-year inflation rate in Turkey reached 211.4% as of December 31, 2025, based on the Turkish nation-wide Consumer Price Index (CPI)[114]. - The annual inflation rate for 2025 was reported at 30.9%, while the average index for the year was 3183.23[116]. Accounting and Financial Reporting - The financial statements were prepared in accordance with IFRS, ensuring fair presentation and compliance with international standards[111]. - The Group applies the simplified approach for expected credit losses (ECL) for trade receivables, calculating ECL rates based on historical credit loss experience[130]. - Business combinations are accounted for using the acquisition method, with identifiable assets and liabilities measured at fair value at the acquisition date[150].

Financial Data and Key Metrics Changes - Revenues increased by 11% year-on-year, surpassing TRY 241 billion, with quarterly growth of 7% [3][17] - EBITDA increased by 14% year-on-year to TRY 104 billion, with an EBITDA margin of 43% [18] - Net income from continuing operations rose by 23% year-on-year to TRY 17.8 billion [3][19] Business Line Data and Key Metrics Changes - Turkcell Turkey revenue increased by TRY 21 billion year-on-year, driven by real ARPU expansion and sustained postpaid subscriber additions [17] - Data center and cloud business revenues grew by 32% year-on-year, with expectations of significant future growth [9][13] - Techfin revenues grew by 21% year-on-year, with Paycell being a major growth driver [14] Market Data and Key Metrics Changes - The share of postpaid subscribers increased by 4.7 percentage points year-on-year to reach 81%, enhancing revenue visibility [10] - The Turkish cloud market is growing at 19% annually, supported by increasing digitalization and rapid adoption of AI-driven workloads [11] Company Strategy and Development Direction - The company is focusing on strategic investments in data centers, cloud infrastructure, and renewables, allocating 15% of CapEx to these areas [4][5] - A strategic partnership with Google Cloud aims to build a hyperscale cloud region in Turkey, enhancing the digital ecosystem [12] - The capital allocation framework emphasizes investing in business growth, delivering shareholder returns, and maintaining a strong balance sheet [6][7] Management Comments on Operating Environment and Future Outlook - Management expects real revenue growth in the range of 5%-7% for 2026, with an EBITDA margin between 40%-42% [16] - The company anticipates continued operational efficiency while investing in growth, particularly in 5G rollout and digital infrastructure [16] - Management remains cautious about potential margin contraction due to increased salary expenses and marketing costs related to 5G [46] Other Important Information - The company launched a three-year share buyback program and repurchased $58 million of shares to date [3][6] - Renewable energy installed solar capacity increased from 8 megawatts to 62 megawatts, generating significant operational savings [15] Q&A Session Summary Question: Inquiry about data centers business EBITDA margins - Management highlighted that the data center business is expected to see significant growth, with no dilutive impact on EBITDA margins anticipated [25][27] Question: Clarification on FX position and justification for short position - Management explained that the FX position is around $957 million, with a strategy to benefit from higher local currency yields by swapping some US dollar holdings into Turkish lira [30][34] Question: Size of investments in data centers and expected megawatt numbers - Management clarified that the initial 50 megawatts is a substantial investment, as it prepares for a full-blown system with Google Cloud, which will utilize shared resources among multiple companies [31][41]

Financial Data and Key Metrics Changes - Revenues increased by 11% year-on-year, surpassing TRY 241 billion, with quarterly growth of 7% [20] - EBITDA rose by 14% year-on-year to TRY 104 billion, with an EBITDA margin of 43% [21] - Net income from continuing operations reached TRY 17.8 billion, up 23% year-on-year [22] Business Line Data and Key Metrics Changes - Turkcell Turkey revenue increased by TRY 21 billion year-on-year, driven by real ARPU expansion and sustained postpaid subscriber additions [20] - Data center and cloud business revenues grew by 32% year-on-year, supported by capacity expansions [16] - TechFin revenues grew by 21%, with Paycell's revenues increasing by 40% year-on-year [17] Market Data and Key Metrics Changes - The share of postpaid subscribers increased by 4.7 percentage points year-on-year to reach 81%, enhancing revenue visibility [10] - Mobile ARPU real growth was 5.4%, reflecting balanced growth strategies [11] - The Turkish cloud market is growing at 19% annually in dollar terms, driven by increasing digitalization [12] Company Strategy and Development Direction - The company is focusing on strategic investments in data centers, cloud infrastructure, and renewables, allocating 15% of CapEx to these areas [4] - A strategic partnership with Google Cloud aims to build a hyperscale cloud region in Turkey, enhancing the digital ecosystem [13] - The capital allocation framework emphasizes investing in business growth, delivering shareholder returns, and maintaining a strong balance sheet [7] Management's Comments on Operating Environment and Future Outlook - The company expects real revenue growth in the range of 5%-7% for 2026, with an EBITDA margin between 40%-42% [19] - Management highlighted the importance of operational efficiency and strategic investments in 5G rollout and digital infrastructure [19] - The company anticipates a normalization in growth rates for the data center and cloud business following significant capacity expansions [19] Other Important Information - The company maintained a net leverage below 1x, with a cash position of TRY 92 billion at year-end [25] - Active solar capacity increased from 8 megawatts to 62 megawatts, generating TRY 156 million in OpEx savings [18] - The company launched a three-year share buyback program, repurchasing $58 million of shares to date [6] Q&A Session Summary Question: Inquiry about data centers business EBITDA margins - Management indicated that the data center business is expected to see significant growth, with no dilutive impact on EBITDA margins anticipated [31] Question: Clarification on FX position and short position in U.S. dollars - Management explained that the FX position is around $957 million, with a strategy to benefit from higher local currency yields by swapping some U.S. dollar holdings into Turkish lira [38][42] Question: Size of investments in data centers and expectations for future capacity - Management clarified that the initial 50 megawatts is a starting point, with plans for significant infrastructure to support Google Cloud, indicating a substantial investment in the future [46][48]

Financial Data and Key Metrics Changes - Revenues increased by 11% year-on-year, surpassing TRY 241 billion, with quarterly growth of 7% [17] - EBITDA rose by 14% year-on-year to TRY 104 billion, with an EBITDA margin of 43.1% [18] - Net income from continuing operations reached TRY 17.8 billion, up 23% year-on-year [3][18] Business Line Data and Key Metrics Changes - Turkcell Turkey revenue increased by TRY 21 billion year-on-year, driven by real ARPU expansion and sustained postpaid subscriber additions [17] - Data center and cloud business revenues grew by 32% year-on-year, supported by capacity expansions [13] - Techfin revenues grew by 21%, with Paycell being a significant driver, increasing by 40% year-on-year in Q4 [14] Market Data and Key Metrics Changes - The share of postpaid subscribers increased by 4.7 percentage points year-on-year to reach 81%, enhancing revenue visibility [10] - The Turkish cloud market is growing at 19% annually in dollar terms, driven by increasing digitalization and AI adoption [11] Company Strategy and Development Direction - The company is focusing on strategic investments in data centers, cloud infrastructure, and renewables, allocating 15% of CapEx to these areas [4] - A strategic partnership with Google Cloud aims to establish a hyperscale cloud region in Turkey, enhancing the digital ecosystem [12] - The capital allocation framework emphasizes investing in business growth, delivering shareholder returns, and maintaining a strong balance sheet [5][6] Management's Comments on Operating Environment and Future Outlook - The company expects real revenue growth of 5%-7% in 2026, with an EBITDA margin between 40%-42% [16] - Management highlighted the importance of operational efficiency and strategic investments in 5G rollout and digital infrastructure [16] - The company remains committed to maintaining net leverage below 1 times while funding 5G payments and strategic investments [21] Other Important Information - The company launched a three-year share buyback program and repurchased $58 million of shares to date [6] - Renewable energy installed solar capacity increased from 8 megawatts to 62 megawatts, generating TRY 156 million in OpEx savings [15] Q&A Session Summary Question: Inquiry about data centers business EBITDA margins - Management indicated that the data center business is expected to see significant growth, with no dilutive impact on EBITDA margins anticipated [26] Question: Clarification on FX position and short position in US dollars - Management explained that the short position in US dollars is around $957 million, aimed at benefiting from higher local currency yields [34][35] Question: Size of investments in data centers and expectations for future capacity - Management clarified that the initial 50 megawatts is a substantial investment, with plans for significant scaling in the future, particularly with the Google Cloud partnership [41]

TURKCELL GROUP Q4 & FY 2025 MAR 5, 2026 Q4 & FY 2025 BUSINESSOVERVIEW Ali Taha Koç, PhD Turkcell CEO 2025 Results: Exceeded Guidance Strong Execution Across All Key Areas Resilience in Core Services • Dual tranche bond issuance: 1 billion USD Çorlu Data Center Solar Power Plant Shifting to a Digital & Sustainable Future Q4 & FY 2025 Results| 3 * Turkcell has been awarded a total frequency band of 160 MHz in ICTA's 5G tender. ** BOTAŞ Petroleum Pipeline Corporation is the state-owned crude oil and natural ga ...

Core Insights - Turkcell Iletisim Hizmetleri A.S. reported strong financial results for the full year 2025, with revenues increasing by 10.7% year-on-year to TRY 241.5 billion, driven by solid operational performance and a diversified revenue base [1][2][3] - The company achieved an EBITDA margin of 43.1%, up 1.2 percentage points from the previous year, reflecting disciplined cost management amid inflationary pressures [1][2] - Turkcell's strategic partnership with Google Cloud aims to establish Türkiye's first hyperscale cloud region, with a total planned investment of USD 3 billion, enhancing its position in the data center and cloud market [1][2] Financial Performance - Revenue for the full year 2025 reached TRY 241.5 billion, compared to TRY 218.2 billion in 2024, marking a 10.7% increase [1][3] - EBITDA rose by 13.8% to TRY 104.0 billion, with an EBITDA margin of 43.1% [1][3] - Profit from continuing operations increased by 22.6% to TRY 17.8 billion, while net income decreased by 42.8% to TRY 17.6 billion due to a high base from 2024 [1][3] Operational Highlights - Turkcell Türkiye accounted for over 91% of group revenues, with a 10.3% growth to TRY 220.3 billion [1][3] - The company secured the largest spectrum of 160 MHz in the 5G tender for USD 1.2 billion, reinforcing its leadership in the mobile market [1][2] - The total number of mobile subscribers reached 39.1 million, with a significant increase in postpaid subscribers, totaling 2.4 million net additions, the highest in 26 years [1][2] Strategic Initiatives - The partnership with Google Cloud is expected to support Türkiye's ambition to become a regional technology hub, with the first modules of the cloud region expected to be operational by 2028-2029 [1][2] - Turkcell's Techfin segment grew by 21.1%, driven by Paycell, which saw a 41.0% increase in revenues [1][2] - The company plans to maintain an ambitious investment pace in 2026, targeting revenue growth of 5%-7% and data center and cloud revenue growth of 18%-20% [1][2]

Core Insights - Mavenir and Turkcell have signed a Memorandum of Understanding (MoU) to accelerate the deployment of AI applications in voice and messaging for Turkcell, focusing on enhancing customer experience through AI-driven services [1][3] - The collaboration aims to leverage Mavenir's cloud-native IMS architecture to develop and promote advanced new services, injecting new value into traditional voice and messaging functionalities [3] - This partnership reflects a macro trend in the industry towards AI-native network capabilities, embedding intelligence directly into core services rather than relying on over-the-top (OTT) applications [3] Company Overview - Turkcell is a technology and telecommunications company based in Turkey, providing a unique combination of voice, data, and IPTV services through its mobile and fixed networks, operating in Turkey, Belarus, and Northern Cyprus [6] - Mavenir specializes in developing telecom-prioritized, cloud-native, AI-native design software solutions for mobile operators, with deployments across over 120 countries and more than 300 operators [6]

Core Insights - Mavenir and Turkcell have signed a Memorandum of Understanding (MoU) to enhance Turkcell's deployment of AI applications in voice and messaging services, aiming to improve customer experience and simplify daily interactions [1][3] - The partnership will leverage Mavenir's cloud-native IMS architecture to innovate traditional voice and messaging capabilities, embedding AI directly into the mobile core to ensure high-quality service and continuous innovation [3][4] - This collaboration signifies a shift in the telecommunications industry towards AI-native network capabilities, integrating intelligence into core services rather than relying on external applications [4][6] Company Overview - Turkcell is a leading telecommunications and technology company in Türkiye, providing a diverse range of voice, data, and IPTV services across mobile and fixed networks, as well as digital consumer and enterprise solutions [7] - Mavenir specializes in developing AI-driven, cloud-native software solutions for mobile operators, with a proven track record of deployments with over 300 operators globally, serving more than 50% of the world's subscribers [8]