Core Insights - Turkcell has announced a strategic partnership with Google Cloud to enhance digital infrastructure in Türkiye [1] - Google Cloud will establish a new cloud region in Türkiye, which is expected to strengthen Turkcell's data center and cloud business [1] - This partnership represents a multi-year investment aimed at accelerating the digital transformation in the country [1]

Core Insights - Turkcell, a Turkish telecom operator, has signed a strategic cooperation agreement with Google focused on cloud technologies [1] Company Summary - The agreement aims to enhance Turkcell's capabilities in cloud services, indicating a significant move towards digital transformation in the telecom sector [1] Industry Summary - The partnership reflects a growing trend in the telecom industry where companies are increasingly collaborating with tech giants to leverage cloud technologies for improved service offerings [1]

Financial Performance - Turkcell's consolidated revenues increased by 11.2% year-on-year to TRY 59.5 billion in Q3 2025, driven by robust ARPU growth and a 20.0% rise in the Techfin segment[10]. - EBITDA rose by 10.5% year-on-year to TRY 26.2 billion, resulting in an EBITDA margin of 43.9%[10]. - Profit from continuing operations increased by 31.8% to TRY 5.4 billion, supported by solid operational performance and a lower effective tax rate[14]. - Net income for Q3 2025 was reported at TRY 5.4 billion, a decline attributed to a high base from Q3 2024, which included a one-off gain from the sale of operations in Ukraine[10]. - Consolidated revenue rose by 11.2% year-on-year in Q325, supported by strong performance in the Techfin segment and successful upselling strategies[26]. - Net income for the quarter was TRY 5,398 million, reflecting a significant decrease due to a one-off impact from discontinued operations last year[40]. - Total revenue for the nine months ended September 30, 2025, reached 171,195,487 thousand Turkish Lira, a 12.5% increase from 152,744,487 thousand Turkish Lira in the same period of 2024[77]. - Profit for the year attributable to owners of the Company was 13,425,665 thousand Turkish Lira for the nine months ended September 30, 2025, a decrease of 51.0% from 27,397,964 thousand Turkish Lira in the same period of 2024[77]. - Total comprehensive income for the year was 17,192,927 thousand Turkish Lira for the nine months ended September 30, 2025, compared to 29,408,898 thousand Turkish Lira in the same period of 2024, indicating a decline of 41.4%[78]. Subscriber Growth - The mobile subscriber base exceeded 39 million, with 569 thousand net postpaid additions in Q3 2025, increasing the share of postpaid subscribers to 79%[18]. - The total number of subscribers reached approximately 46.0 million as of September 30, 2025, reflecting a year-over-year increase of 0.9%[58]. - The mobile churn rate rose to 2.6% in Q3 2025, influenced by increased activity in the Mobile Number Portability market[50]. - The fixed broadband subscriber base grew by 11 thousand in Q3 2025, supported by sustained demand for high-speed connectivity[51]. Revenue Segments - The Techfin segment achieved 20.0% year-on-year revenue growth, with Paycell delivering a 41.7% increase in revenue, driven by POS and mobile payment services[20]. - Data center and cloud revenues increased by 51% year-on-year, with active capacity growing by 8.4 MW to a total of 50 MW[21]. - Turkcell Türkiye revenues grew by 11.1% to TRY54,454 million, driven by solid ARPU growth and expanding subscriber portfolio[27]. - The corporate segment saw a 17.1% increase in revenues, primarily from Data Center & Cloud services, which grew by 50.6% year-on-year[29]. - Revenue from Turkcell Turkiye's telecommunication services increased to TRY 142,294,470 for the nine months ended September 30, 2025, up from TRY 126,834,762 in 2024, marking a growth of 12.1%[126]. - Techfin segment revenue for the nine months ended September 30, 2025, was TRY 9,675,376, a significant increase of 24.5% compared to TRY 7,769,657 in the same period of 2024[126]. Financial Position - The total assets of Turkcell Group reached TRY 491.4 billion as of September 30, 2025, compared to TRY 431.8 billion at the end of 2024[68]. - Total equity increased to TRY 243.0 billion as of September 30, 2025, up from TRY 234.5 billion at the end of 2024[75]. - The company reported a net foreign exchange loss before hedging of TRY 3,407.2 million in Q325, an increase of 61.5% year-over-year[70]. - The company’s total liabilities increased to TRY 248.4 billion as of September 30, 2025, compared to TRY 197.3 billion at the end of 2024[75]. - The company reported a total of TRY 24,461,356 in financial assets as of September 30, 2025, compared to TRY 22,343,905 as of 31 December 2024, indicating an increase of about 9.5%[143]. Capital Expenditures and Investments - Capital expenditures (CAPEX) totaled TRY 59,129 million in the first nine months of 2025, with TRY 15,708 million recorded in Q3 2025[46]. - The outstanding purchase commitments for property, plant, and equipment as of 30 September 2025 amounted to TRY 5,528,056, an increase from TRY 5,371,264 as of 31 December 2024[180]. - The total cost of intangible assets as of 30 September 2025 was TRY 433,806,494, up from TRY 414,430,758 at the start of the year, indicating ongoing investment in intangible resources[137]. Debt and Financing - Consolidated cash increased to TRY122,347 million, primarily due to a USD 1 billion bond issuance, while consolidated debt rose to TRY181,281 million[43][44]. - Long-term borrowings rose to TRY 118,621,574 as of 30 September 2025, up from TRY 65,769,209 as of 31 December 2024, reflecting a significant increase of approximately 80.3%[147]. - The company completed the issuance of a conventional bond with a nominal amount of USD 500,000 at a fixed annual coupon rate of 7.45%, maturing on 24 January 2030[148]. - The company issued financing bonds totaling TRY 1,500,000 with an annual simple interest rate of 41.50%, maturing on 20 November 2025[152]. Regulatory and Compliance - The Competition Authority reduced the administrative fine to TRY 61,294, which was paid at a discounted amount of TRY 45,971[191]. - An administrative fine of TRY 57,301 was imposed on the Company following an investigation into gentleman's agreements in the labor market, which was settled with a 25% reduction[193]. - The ICTA indicated potential administrative fines for non-compliance with identity verification regulations, citing four separate violations[199].

Financial Data and Key Metrics Changes - The company achieved an 11% revenue growth, reaching TRY 60 billion, driven primarily by the core telecommunication business [3] - Group EBITDA increased by 11% to TRY 26 billion, with a margin of 43.9% [3] - Net income from continuing operations rose by 31.8% to TRY 5.4 billion [3][14] Business Line Data and Key Metrics Changes - Mobile ARPU grew by 12%, while residential fiber ARPU increased by 17.3% year-on-year [4][8] - Data center and cloud revenues surged by 51%, with digital business services achieving a 97% revenue growth, reaching TRY 4.9 billion [9][10] - The Tekfin ecosystem, representing 6% of consolidated revenues, grew by 20% year-on-year, driven by Paycell's 42% revenue increase [10] Market Data and Key Metrics Changes - The mobile subscriber base exceeded 39 million, with 569,000 net postpaid additions in the quarter [6] - The fiber customer base grew to over 2.5 million, with a net addition of 33,000 this quarter [8] - The company expanded its fiber network with 107,000 new home passes, achieving a 42.6% take-up rate [9] Company Strategy and Development Direction - The company secured 160 megahertz of spectrum in the 5G tender, enabling speeds exceeding 1,000 megabits per second [4] - 5G will be commercially launched in April 2026, marking a new chapter in Türkiye's digital transformation [5] - The company aims to maintain a customer-centric approach, focusing on value-driven growth rather than competing solely on price [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining revenue growth and improving EBITDA margins, revising 2025 revenue growth expectations upwards to around 10% [11] - The company anticipates a competitive environment in 2026 but aims to maintain growth above inflation through strategic initiatives [29] - Management highlighted the importance of 5G in unlocking new revenue opportunities across various sectors, including automotive and government services [41] Other Important Information - The company plans to pay the second dividend installment in Q4, maintaining a dividend policy of distributing 50% of net income [22] - The cash position reached TRY 122 billion, with a net leverage ratio of 0.2 times, expected to remain below 1 times in the upcoming period [17] Q&A Session Summary Question: CapEx and dividend outlook post-5G auction - Management expects CapEx intensity to remain around 24% and confirmed a dividend policy of distributing 50% of net income [22] Question: Pricing actions during the quarter - The company adjusted prices in response to inflation and competition, achieving above-inflation mobile ARPU growth of 12% [25] Question: Net short FX position explanation - The net FX position will be assessed in January 2026, with management planning to manage it based on macroeconomic conditions [23] Question: Sustainability of revenue growth and EBITDA margins - Management believes current growth levels are sustainable, with a focus on maintaining ARPU growth through dynamic pricing strategies [29] Question: Monetary loss in Q3 versus previous quarters - The decline in monetary gain was attributed to lower inflation rates and the sale of the Ukraine business, impacting the balance sheet [33] Question: Future opportunities post-5G - The company anticipates new value-added services and opportunities with the launch of 5G, focusing on customer satisfaction and tailored plans [39]

TURKCELL GROUP Q3 2025 NOV 6, 2025 Q3 2025 BUSINESSOVERVIEW Ali Taha Koç, PhD Turkcell CEO Another quarter of robust performance… …powered by operational excellence Revenue TRY 59.5 Billion 11.2% YoY increase EBITDA TRY 26.2 Billion 10.5% YoY increase EBITDA Margin 43.9% 0.3pp YoY decrease Net Income from continuing operations TRY 5.4 Billion 31.8% YoY increase Turkcell Group: Q3 2025 Highlights Strong Results Driven by Strategic Execution Postpaid Net Add 569 K Turkcell Fiber Net Add 33 K DC & Cloud Revenu ...

Core Insights - Turkcell Iletisim Hizmetleri A.S. reported strong financial results for Q3 2025, with consolidated revenues increasing by 11.2% year-on-year to TRY 59.5 billion, driven by robust growth in the Techfin segment and ARPU growth in Turkcell Türkiye [10][24][13] - The company revised its 2025 guidance upwards, projecting revenue growth of around 10% and an EBITDA margin between 42% and 43% [10][19] - Turkcell secured 160 MHz of spectrum in the 5G tender, enhancing its position in next-generation connectivity technologies [10][11] Financial Performance - Revenue for Q3 2025 was TRY 59,535 million, up from TRY 53,546 million in Q3 2024, marking an 11.2% increase [7][24] - EBITDA rose to TRY 26,165 million, a 10.5% increase year-on-year, with an EBITDA margin of 43.9% [7][30] - Net income decreased to TRY 5,398 million, down 71.6% from the previous year, primarily due to a one-off gain from the sale of operations in Ukraine in Q3 2024 [7][34] Operational Highlights - The mobile subscriber base exceeded 39 million, with 569 thousand net postpaid additions in Q3 2025, increasing the postpaid share to 79% [10][14] - Mobile ARPU (excluding M2M) grew by 11.9% year-on-year, driven by price adjustments and upselling strategies [10][14] - The fixed broadband segment saw 55 thousand net fiber subscriber additions, with residential fiber ARPU increasing by 17.3% [10][15] Segment Performance - The Techfin segment, accounting for 6% of consolidated revenues, grew by 20.0% year-on-year, with Paycell achieving a 41.7% revenue increase [10][27] - Data Center & Cloud services recorded a notable 50.6% year-on-year growth, contributing significantly to corporate revenues [10][25] - The Other segment, which includes international and energy businesses, generated revenues of TRY 1,671 million [10][28] Capital Expenditures and Debt - Total cash increased to TRY 122,347 million, primarily due to a USD 1 billion bond issuance [36] - Consolidated debt rose to TRY 181,281 million, with a net debt to EBITDA ratio of 0.20x [37] - Operational capital expenditures accounted for 17.4% of total revenues in Q3 2025 [39] Strategic Outlook - The company aims to leverage its 5G capabilities to enhance service offerings and maintain market leadership [10][12] - Turkcell's commitment to sustainability is reflected in its solar power investments, which reached a total capacity of 37.5 MW [18] - The focus on digital transformation and customer experience is expected to drive future growth [20]

Group 1 - Turkcell Iletisim Hizmetleri AS (NYSE:TKC) experienced a significant share price decline of 6.26%, closing at $5.54, as investors sold off positions ahead of a government tender for 5G frequency development in Turkey [1] - The Information and Communication Technologies Authority (ICTA) is set to hold a tender on October 16 for mobile operators to provide 5G services starting in April 2026, which includes the renewal of existing licenses expiring in 2029 [2] - Turkcell has shown interest in participating in the upcoming bidding process alongside competitors Turk Telekom and Vodafone [3] Group 2 - The Turkish government plans to allocate 11 different frequency packages to operators, with a minimum total value of $2.125 billion for 400 MHz of frequency in the 700 MHz and 3.5 GHz bands [4]

Core Insights - Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is a dividend stock that is benefiting from advancements in AI technology [1] - The company has focused over 80% of its capital expenditures on mobile and fixed networks to enhance its communication service capabilities [2] - Turkcell has a long-standing market presence, maintaining innovative offerings and disciplined expense management for the past 30 years [3] Company Overview - Turkcell Iletisim Hizmetleri A.S. is a Turkish provider of converged telecommunication and technology services, established in 1993 [4] - The company's core offerings include tower and satellite services, fixed data services, international roaming services, and voice services [4] Investment Activity - Rhumbline Advisers reduced its stake in Turkcell by 12.9%, selling 21,761 shares, and now holds 146,534 shares valued at approximately $911,000 [1]

Core Insights - Turkcell has been recognized as the global leader in ESG sustainability ratings by the London Stock Exchange Group (LSEG) [1] - The company achieved the highest ESG score among 286 telecom companies worldwide [1] - Turkcell's ranking reflects its pioneering efforts in sustainability and environmental initiatives [1] Company Summary - Turkcell is Turkey's leading communications and technology company [1] - The LSEG ESG score serves as a primary criterion for investors [1]

Group 1 - Turkcell has been named to TIME's list of World's Best Companies 2025, highlighting its recognition in the global market [1] - The evaluation covered over 200,000 participants across 50 countries, indicating a comprehensive assessment process [1] - Companies were assessed based on employee satisfaction, revenue growth, and ESG (environmental, social, and governance) performance [1]