Core Viewpoint - Turkcell Iletisim Hizmetleri A.S. reported strong financial results for Q2 2025, with a notable year-on-year growth in revenue driven by increased average revenue per user (ARPU) and a growing mobile subscriber base, particularly in the postpaid segment [3]. Financial Performance - The company's revenue reached TRY 53 billion, reflecting a year-on-year growth of 12% [3]. - The growth was primarily attributed to strong ARPU performance and significant expansion in the mobile subscriber base, especially in the postpaid domain [3]. Conference Call Overview - The conference call included key participants such as the CEO, CFO, and the Investor Relations Director, who provided insights into the operational and financial results for the quarter [2]. - The call was structured to include an overview of results followed by a Q&A session, indicating a focus on transparency and engagement with investors [2].

Financial Data and Key Metrics Changes - The company's top line reached TRY 53 billion, reflecting a year-on-year growth of 12% [4] - Group EBITDA rose by 15% year-on-year to TRY 23 billion, with a solid margin of 43.5% [5] - Net income from continuing operations increased by 37% year-on-year to TRY 4.4 billion [5][21] Business Line Data and Key Metrics Changes - The mobile segment saw 816,000 postpaid net additions, the highest in over five years, with mobile ARPU increasing by 9.8% year-on-year [6][7] - Fixed broadband subscriber base remained stable at 3.3 million, with residential fiber ARPU increasing by 17.5% year-on-year [12] - Digital Business Services grew by 39%, exceeding TRY 4.9 billion in revenue, while data center and cloud services surged by 53% [13][14] Market Data and Key Metrics Changes - The mobile churn rate was 2.2%, influenced by high volumes in the mobile number portability market due to competition [8] - The postpaid share in total mobile subscribers reached 78%, indicating a focus on value-added subscribers [7] Company Strategy and Development Direction - The company is committed to maintaining its leadership position in the mobile market through superior network quality and customer experience [9] - Investments are being made in both mobile and fixed infrastructure to support the upcoming 5G deployment, with a focus on digital transformation [9][33] - Approximately 65% of the CapEx budget will be allocated to fixed and mobile businesses, with additional investments in data centers and renewable energy [34] Management's Comments on Operating Environment and Future Outlook - Management expects a moderation in performance in the second half of the year, forecasting year-on-year inflation at 30.5% [17] - The company remains cautious about its guidance, considering the high base effect from the previous year and the impact of price adjustments [42][44] Other Important Information - The company’s cash position reached TRY 117 billion, with gross debt at TRY 173 billion, resulting in a net debt position of TRY 25 billion [25][26] - The company has a strong foreign currency risk management strategy, with 87% of cash holdings in hard currency [27] Q&A Session Summary Question: Update on fixed concession and 5G - Management indicated that the Minister of Transport and Infrastructure mentioned a potential renewal of Turk Telekom's concession for 25 years, and they are awaiting details on the 5G tender expected to be available by 2026 [31][32] Question: Guidance evaluation for the second quarter - Management explained that strong first-half performance provides headroom for guidance, but they remain cautious due to expected inflation and high base effects from the previous year [42][44] Question: Future of the TOG project and its impact on profits - Management acknowledged the cyclical nature of the automotive industry and indicated that TOG will take time to reach sustainable profitability, but they remain confident in the long-term value of the investment [45][47] Question: Increase in financing costs and income - Management highlighted effective balance sheet management, noting a net positive income from FX management, and indicated that they are managing their financing costs well despite high interest rates [50][51] Question: Impact of entering the mobile market - Management stated that there is currently no clear information regarding entering the mobile market and emphasized their strong competitive position in the existing mobile services [55][56]

Turkcell (TKC) Q2 2025 Earnings Call August 13, 2025 01:00 PM ET Speaker0Ladies and gentlemen, thank you for standing by. I am Jyote, your Chorus Call operator. Welcome and thank you for joining the Turkcell's conference call and live webcast to present and discuss the Turkcell's Second Quarter twenty twenty five Financial Results. All participants will be in a listen only mode and the conference is being recorded. The presentation will be followed by a question and answer session.At this time, I would like ...

Financial Performance - Turkcell Group's revenue increased by 12.5% year-over-year to TRY 53.022 billion[58] - EBITDA grew by 14.8% year-over-year to TRY 23.086 billion, with an EBITDA margin of 43.5%, a 0.9 percentage point increase[58] - Net income from continuing operations increased by 36.8% year-over-year to TRY 4.388 billion[5] Subscriber Growth & ARPU - Postpaid net additions reached 816,000, a record high in 5.5 years[5] - Mobile ARPU increased by 9.8% year-over-year to TRY 352.5[5] - Residential Fiber ARPU increased by 17.5% year-over-year to TRY 418.2[5] Business Segments - Techfin revenue grew by 23.1%[6] - Data Center & Cloud revenue grew by 53.2%[6] - Digital Business Services revenue increased by 39% year-over-year, reaching TRY 4.930 billion[30] Fixed Broadband - Turkcell Fiber saw a net addition of 4,000 subscribers quarter-over-quarter[5] - 12-month contract share in residential fixed broadband reached 87%[23] Techfin - Loan portfolio reached TRY 7.3 billion[33] - Total transaction volume increased by 75% year-over-year to TRY 38.8 billion[33]

[Highlights](index=3&type=section&id=HIGHLIGHTS) [Segment Information](index=5&type=section&id=SEGMENT%20INFORMATION) As of Q1 2025, Turkcell revised its reporting segments to Turkcell Türkiye and Techfin, reclassifying former international and other operations - The company re-evaluated its operating segments, consolidating them into two main groups: **Turkcell Türkiye and Techfin**, effective from Q1 2025[11](index=11&type=chunk) - Following the sale of its Ukrainian assets, the companies previously in the Turkcell International segment have been reclassified under the **"Other" segment**[11](index=11&type=chunk) - Turkcell Satış, which handles consumer electronics and retail channel operations, has been moved from the "Other" segment to the **"Turkcell Türkiye" segment** for integrated management review[12](index=12&type=chunk) - The reclassification of segments has **no impact** on the Group's operating profit, net profit, or cash flow statement[14](index=14&type=chunk) [Quarter Highlights](index=6&type=section&id=QUARTER%20HIGHLIGHTS) Turkcell Group's Q1 2025 revenue grew 12.7% to TRY 48.0 billion and EBITDA increased 19.0%, though net income declined 15.3% Q1 2025 Financial Highlights (vs. Q1 2024) | TRY million | Q124 | Q125 | y/y% | | :--- | :--- | :--- | :--- | | Revenue | 42,567 | 47,963 | 12.7% | | EBITDA | 17,614 | 20,959 | 19.0% | | EBITDA Margin (%) | 41.4% | 43.7% | 2.3pp | | EBIT | 4,865 | 8,214 | 68.8% | | Net Income | 3,638 | 3,082 | (15.3)% | - The Board of Directors has proposed a **gross dividend of TRY 8.0 billion**, which corresponds to a gross dividend of TRY 3.636 per share, to be paid in two equal installments in June and December 2025[22](index=22&type=chunk) - The company renewed its fiber infrastructure agreement with BOTAŞ for an additional 15 years through a tender valued at **$25.5 million annually**[22](index=22&type=chunk) - Key operational achievements include **153,000 quarterly mobile postpaid net additions**, **30,000 fiber net additions**, and surpassing **6.0 million total fiber homepasses**[22](index=22&type=chunk) [Comments by CEO, Ali Taha Koç, PhD](index=7&type=section&id=COMMENTS%20BY%20CEO%2C%20Ali%20Taha%20Ko%C3%A7%2C%20PhD) The CEO highlighted a strong start to 2025, driven by robust ARPU growth, postpaid additions, and expansion in Techfin and Data Center businesses - Consolidated revenues for Q1 2025 reached **TRY 48.0 billion (+12.7% YoY)**, EBITDA increased to **TRY 21.0 billion (+19.0% YoY)**, and net profit was TRY 3.1 billion[24](index=24&type=chunk) - The mobile segment saw **153,000 net postpaid additions**, increasing the postpaid subscriber share to 76%, while mobile ARPU grew by **15.9% YoY**[25](index=25&type=chunk) - The fixed segment added **30,000 new fiber customers**, with total homepasses exceeding 6.0 million and fiber ARPU growing by **17.7% YoY**[26](index=26&type=chunk) - Strategic focus areas showed strong growth, with **Techfin revenues up 31.5%** and **Data Center & Cloud business revenue up 47.5%**[24](index=24&type=chunk)[30](index=30&type=chunk) [Financial and Operational Review](index=9&type=section&id=FINANCIAL%20AND%20OPERATIONAL%20REVIEW) [Financial Review of Turkcell Group](index=9&type=section&id=FINANCIAL%20REVIEW%20OF%20TURKCELL%20GROUP) Group revenue rose 12.7% to TRY 48.0 billion and EBITDA grew 19.0%, but net income fell 15.3% due to a high base effect from an asset sale in 2024 Q1 2025 Profit & Loss Statement Summary | Profit & Loss Statement (million TRY) | Q124 | Q125 | y/y% | | :--- | :--- | :--- | :--- | | Revenue | 42,566.8 | 47,962.6 | 12.7% | | EBITDA | 17,614.2 | 20,959.1 | 19.0% | | EBITDA Margin | 41.4% | 43.7% | 2.3pp | | EBIT | 4,864.6 | 8,213.5 | 68.8% | | Net Income | 3,638.4 | 3,082.1 | (15.3)% | - Net income decreased by 15.3% YoY; however, excluding the TRY 747 million positive impact from the sale of Ukrainian assets in Q1 2024, **net income increased by 6.6%**[46](index=46&type=chunk) Cash and Debt Position (as of March 31, 2025) | Metric | Value (million TRY) | | :--- | :--- | | Total Cash | 108,421 | | Total Debt | 150,712 | | Net Debt | 16,637 | | Net Debt to EBITDA Ratio | 0.21x | - Operational capital expenditures (excluding license fees) were **20.2% of total revenues** in Q1 2025[53](index=53&type=chunk) [Operational Review of Turkcell Türkiye](index=12&type=section&id=OPERATIONAL%20REVIEW%20OF%20TURKCELL%20T%C3%9CRK%C4%B0YE) Turkcell Türkiye expanded its mobile postpaid and fiber subscriber bases while achieving double-digit ARPU growth in both segments Turkcell Türkiye Operational Data (Q1 2025) | Metric | Q125 | y/y % | | :--- | :--- | :--- | | Mobile Postpaid Subscribers (million) | 29.3 | 6.2% | | Turkcell Fiber Subscribers (thousand) | 2,484.4 | 6.4% | | Mobile Churn (%) | 1.7% | 0.2pp | | Fixed Churn (%) | 1.4% | 0.1pp | Turkcell Türkiye ARPU (Q1 2025) | ARPU (TRY) | Q125 | y/y % | | :--- | :--- | :--- | | Mobile ARPU, blended (excl. M2M) | 325.1 | 15.9% | | Residential Fiber ARPU | 377.0 | 17.7% | - The company added **153,000 postpaid subscribers** in the quarter, bringing the postpaid share of the total mobile base to **76%**[57](index=57&type=chunk) - The fiber network was expanded to an additional **43,000 homepasses**, bringing the total to over **6.0 million**[60](index=60&type=chunk) [Techfin](index=13&type=section&id=TECHFIN) The Techfin segment, comprising Paycell and Financell, demonstrated strong growth, significantly contributing to consolidated results [Paycell](index=14&type=section&id=Paycell) Paycell's revenue grew 47.8% YoY to TRY 1.4 billion, driven by mobile payment and POS services, though its EBITDA margin contracted Paycell Financial Data (Q1 2025 vs Q1 2024) | Paycell Financial Data (million TRY) | Q124 | Q125 | y/y% | | :--- | :--- | :--- | :--- | | Revenue | 940.4 | 1,390.0 | 47.8% | | EBITDA | 439.4 | 545.6 | 24.2% | | EBITDA Margin (%) | 46.7% | 39.2% | (7.5)pp | | Net Income | 102.3 | 186.0 | 81.8% | - Total transaction volume reached **TRY 38 billion** in Q1 2025, an **88% year-on-year increase**, supported by POS solutions, QR Code, and direct carrier billing[63](index=63&type=chunk) - Over **70% of Paycell's revenues** originated from non-group business, highlighting its market expansion[62](index=62&type=chunk) [Financell](index=14&type=section&id=Financell) Financell's revenue grew 8.2% and its EBITDA margin improved significantly due to lower funding costs, despite weak consumer demand Financell Financial Data (Q1 2025 vs Q1 2024) | Financell Financial Data (million TRY) | Q124 | Q125 | y/y% | | :--- | :--- | :--- | :--- | | Revenue | 1,162.4 | 1,257.3 | 8.2% | | EBITDA | 129.5 | 199.4 | 54.0% | | EBITDA Margin (%) | 11.1% | 15.9% | 4.8pp | | Net loss | (130.2) | (10.1) | (92.2)% | - The loan portfolio reached **TRY 6.8 billion** in Q1 2025, with **0.8 million active customers**[65](index=65&type=chunk) - EBITDA margin improved by **4.8 percentage points to 15.9%**, driven by lower funding costs on a yearly basis[64](index=64&type=chunk) [Turkcell Group Subscribers](index=15&type=section&id=TURKCELL%20GROUP%20SUBSCRIBERS) As of March 31, 2025, the Turkcell Group's total subscriber base grew 0.7% year-over-year to 45.2 million across all regions Turkcell Group Subscribers (as of March 31, 2025) | Region | Subscribers (million) | y/y% | | :--- | :--- | :--- | | Turkcell Türkiye | 43.1 | 0.7% | | BeST (Belarus) | 1.5 | - | | Kuzey Kıbrıs Turkcell | 0.6 | - | | **Total Group** | **45.2** | **0.7%** | - The total subscriber figure is calculated by summing the mobile, fiber, ADSL, cable, and IPTV subscribers of Turkcell Türkiye, and the mobile subscribers of BeST and Kuzey Kıbrıs Turkcell[66](index=66&type=chunk) [Overview of the Macroeconomic Environment](index=15&type=section&id=OVERVIEW%20OF%20THE%20MACROECONOMIC%20ENVIRONMENT) Key macroeconomic indicators for Q1 2025 show a YoY CPI of 38.1% in Türkiye and a 17.0% increase in both USD/TRY and EUR/TRY exchange rates Key Macroeconomic Indicators (Q1 2025) | Indicator | Q125 | y/y% Change | | :--- | :--- | :--- | | Consumer Price Index (Türkiye, YoY) | 38.1% | (30.4)pp | | US$ / TRY Closing Rate | 37.7656 | 17.0% | | EUR / TRY Closing Rate | 40.7019 | 17.0% | [Reconciliation of Non-GAAP Financial Measurements](index=16&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20MEASUREMENTS) This section reconciles the Q1 2025 consolidated profit of TRY 3.1 billion to an Adjusted EBITDA of TRY 21.0 billion - The company uses Adjusted EBITDA as a key metric to facilitate performance comparisons by excluding the effects of capital structure, tax positions, and depreciation/amortization[70](index=70&type=chunk) Reconciliation of Adjusted EBITDA to Profit (Q1 2025, million TRY) | Item | Q125 | | :--- | :--- | | Consolidated profit before minority interest | 3,082.1 | | Income tax expense | (3,459.7) | | Consolidated profit before income tax & minority interest | 6,541.8 | | Adjustments (Finance, Monetary, Other) | 1,671.7 | | **EBIT** | **8,213.5** | | Depreciation and amortization | (12,745.6) | | **Adjusted EBITDA** | **20,959.1** | [Appendix](index=19&type=section&id=Appendix) [Appendix A – Tables](index=19&type=section&id=Appendix%20A%20%E2%80%93%20Tables) Appendix A details a net FX loss of TRY 1.4 billion and a total income tax expense of TRY 3.5 billion for Q1 2025 Net Foreign Exchange Gain and Loss Details (million TRY) | Item | Q124 | Q125 | | :--- | :--- | :--- | | Net FX loss before hedging | (3,708.3) | (1,783.3) | | Swap interest income/(expense) | 254.9 | 115.1 | | Fair value gain on derivative financial instruments | 267.8 | 286.8 | | **Net FX gain / (loss) after hedging** | **(3,185.6)** | **(1,381.3)** | Income Tax Expense Details (million TRY) | Item | Q124 | Q125 | | :--- | :--- | :--- | | Current tax expense | (61.7) | (622.8) | | Deferred tax income / (expense) | (1,761.8) | (2,836.9) | | **Income Tax expense** | **(1,823.6)** | **(3,459.7)** | [Appendix B – New Segment Breakdown](index=20&type=section&id=Appendix%20B%20%E2%80%93%20New%20Segment%20Breakdown) Appendix B presents historical financial data under the new reporting segments, showing Turkcell Türkiye and Techfin as the primary revenue drivers Revenue Breakdown by New Segment (Q1 2025, million TRY) | Segment | Revenue | | :--- | :--- | | Turkcell Türkiye | 43,523.4 | | Techfin Business | 2,746.6 | | Other Segment | 1,692.7 | | **Consolidated Revenues** | **47,962.6** | EBITDA Breakdown by New Segment (Q1 2025, million TRY) | Segment | EBITDA | | :--- | :--- | | Turkcell Türkiye | 19,835.0 | | Techfin | 716.9 | | Other | 407.2 | | **Consolidated EBITDA** | **20,959.1** | [Condensed Consolidated Financial Statements](index=21&type=section&id=CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [Condensed Consolidated Interim Statement of Financial Position](index=23&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of March 31, 2025, total assets grew to TRY 418.1 billion, driven by increased cash, while total liabilities rose to TRY 208.3 billion Statement of Financial Position Summary (million TRY) | Item | 31 March 2025 | 31 December 2024 | | :--- | :--- | :--- | | **Total Assets** | **418,120** | **378,919** | | Total Non-Current Assets | 259,270 | 253,786 | | Total Current Assets | 158,850 | 125,133 | | **Total Equity and Liabilities** | **418,120** | **378,919** | | Total Equity | 209,835 | 205,781 | | Total Liabilities | 208,285 | 173,139 | [Condensed Consolidated Statement of Profit or Loss](index=25&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For Q1 2025, revenue increased to TRY 48.0 billion, but profit for the period decreased to TRY 3.1 billion due to higher taxes and no discontinued operations gain Statement of Profit or Loss Summary (million TRY) | Item | 31 March 2025 | 31 March 2024 | | :--- | :--- | :--- | | Total revenue | 47,962.6 | 42,566.8 | | Total gross profit | 13,622.8 | 9,173.3 | | Operating profit | 7,763.9 | 4,563.0 | | Profit before income tax | 6,541.8 | 4,707.8 | | Profit from continuing operations | 3,082.1 | 2,884.3 | | Profit from discontinued operations | - | 746.6 | | **Profit for the year** | **3,082.1** | **3,630.9** | [Condensed Consolidated Financial Statement of Cash Flows](index=28&type=section&id=Condensed%20Consolidated%20Financial%20Statement%20of%20Cash%20Flows) In Q1 2025, a significant net cash inflow from financing activities of TRY 33.7 billion led to a net increase in cash of TRY 39.1 billion Statement of Cash Flows Summary (million TRY) | Item | 31 March 2025 | 31 March 2024 | | :--- | :--- | :--- | | Net cash inflow from operating activities | 12,729.9 | 7,716.3 | | Net cash outflow from investing activities | (7,341.0) | (16,235.3) | | Net cash inflow from financing activities | 33,711.0 | 6,904.6 | | **Net increase in cash and cash equivalents** | **39,099.9** | **(1,614.4)** | [Note 13. Loans and borrowings](index=46&type=section&id=Note%2013.%20Loans%20and%20borrowings) Total borrowings stood at TRY 150.7 billion as of March 31, 2025, following a USD 1 billion Eurobond issuance and new domestic financing in Q1 - In January 2025, the company completed a dual-tranche bond issuance to qualified investors abroad: a **USD 500 million conventional bond** due 2030 and a **USD 500 million sustainable bond** due 2032[159](index=159&type=chunk)[160](index=160&type=chunk) - The company issued domestic bonds totaling **TRY 2.23 billion** in Q1 2025 and utilized new loan facilities from the Development Investment Bank of Türkiye (EUR 18.5 million) and China Development Bank (CNY 103 million)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) Breakdown of Borrowings (as of March 31, 2025, million TRY) | Type | Long-term | Short-term | | :--- | :--- | :--- | | Unsecured bank loans | 28,666 | 26,367 | | Secured bank loans | 8,574 | 1,307 | | Lease liabilities | 4,155 | 2,257 | | Debt securities issued | 53,370 | 26,016 | | **Total** | **94,765** | **55,947** | [Note 17. Commitments and Contingencies](index=56&type=section&id=Note%2017.%20Commitments%20and%20Contingencies) The company faces ongoing legal disputes, regulatory investigations, and has outstanding purchase commitments of TL 4.7 billion - The Competition Authority imposed an administrative fine of **TL 57,301** on the Company, which was recognized as a liability in the Q1 2025 financial statements[193](index=193&type=chunk) - A lawsuit related to a prior Competition Board decision was settled via mediation, with the company paying **TL 130,000** in May 2024[190](index=190&type=chunk) - The company is subject to multiple ongoing investigations by the Information and Communication Technologies Authority (ICTA) regarding R&D obligations, subscriber refunds, subscription agreements, and service quality[194](index=194&type=chunk)[195](index=195&type=chunk)[197](index=197&type=chunk)[203](index=203&type=chunk) - As of March 31, 2025, the Group has outstanding purchase commitments of **TL 4,743 million** and is contingently liable for guarantees amounting to **TL 21,492 million**[181](index=181&type=chunk)[182](index=182&type=chunk) [Note 21. Discontinued operations](index=65&type=section&id=Note%2021.%20Discontinued%20operations) The sale of Ukrainian subsidiaries in Q1 2024 generated a one-time profit of TRY 746.6 million, which is absent from Q1 2025 results - The sale of Ukrainian subsidiaries was agreed upon in December 2023 and completed in 2024[222](index=222&type=chunk)[223](index=223&type=chunk) Profit from Discontinued Operations (for Q1 2024, million TRY) | Item | 31 March 2024 | | :--- | :--- | | Revenue | 3,514.1 | | Gross profit | 1,245.1 | | Operating profit | 937.8 | | **Profit for the year from discontinued operations** | **746.6** |

OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Table of Contents As filed with the Securities and Exchange Commission on April 29, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended ...

Core Insights - The article emphasizes the importance of value investing, highlighting the strategy of identifying undervalued companies in the market [2] - It introduces the Zacks Rank system and Style Scores to assist investors in finding strong stock picks based on earnings estimates and specific traits [1][3] Company Analysis: Turkcell Iletisim Hizmetleri (TKC) - TKC has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock's P/E ratio is 9.05, which is lower than the industry average of 9.27, suggesting it may be undervalued [4] - TKC's Forward P/E has fluctuated between 3.69 and 20.81 over the past year, with a median of 12.89 [4] - The P/S ratio for TKC is 1.28, compared to the industry's average P/S of 1.34, further indicating its value proposition [5] - The P/CF ratio for TKC is 2.98, significantly lower than the industry's average P/CF of 4.14, suggesting strong cash flow relative to its valuation [6] Company Analysis: Vodafone Group (VOD) - Vodafone Group also holds a Zacks Rank of 2 (Buy) and a Value grade of A, making it another attractive option for value investors [6] - The stock is currently trading at a forward earnings multiple of 9.37, which is in line with the industry average P/E of 9.27 [7] - Vodafone's PEG ratio is 0.57, compared to the industry's average PEG ratio of 0.65, indicating potential for growth relative to its earnings [7]

BARCELONA, Spain, March 7, 2025 /PRNewswire/ -- During MWC2025, Huawei and Turkcell (NYSE: TKC) (BIST: TCELL), Türkiye's technology leader signed Memorandum of Understanding to develop sustainable leading networks using innovative products and solutions in Turkcell Enhanced Network.The collaboration between the companies includes further developing smart cities using next-generation features of 5G Advanced Technology in wireless network as well as innovations in ultra-speed broadband services in access netw ...

ISTANBUL, March 3, 2025 /PRNewswire/ -- Odine (BIST: ODINE), a global technology partner, has worked with Mavenir to empower Turkcell (NYSE: TKC) (BIST: TCELL) through the advanced cloud-based automation of its telecom infrastructure, utilizing Odine Orion, a comprehensive wholesale voice management platform engineered by Turkish engineers. By leveraging Odine's expertise in network automation and orchestration, this initiative enhances Turkcell's operational efficiency, modernizing provisioning and call ro ...

Financial Data and Key Metrics Changes - For the full year 2024, the company's top line reached TRY 166 billion, reflecting a year-on-year increase of 7.8% [5][30] - EBITDA for 2024 was TRY 70 billion, a 10.2% increase from the previous year, with an EBITDA margin of approximately 42% [5][33] - Net income increased by 30%, exceeding TRY 23.5 billion [7] Business Line Data and Key Metrics Changes - The mobile segment saw a record-breaking 1.9 million net postpaid additions, the highest in 15 years, while the prepaid segment experienced a net loss of 0.9 million subscribers [6][8] - Fixed broadband market maintained rational pricing, with 32,000 net additions in Q4, bringing the total for the year to 168,000 [11] - Digital business services generated TRY 4.4 billion in revenue in Q4, with recurring service revenues rising 19% year-on-year [13] Market Data and Key Metrics Changes - The share of packages of 100 megabits per second and above in the residential fiber portfolio rose by 12 percentage points year-on-year [12] - The churn rate in the mobile segment increased to 2.8%, attributed to aggressive competitor campaigns and the disconnection of inactive subscribers [9][122] Company Strategy and Development Direction - The company is committed to advancing its infrastructure and technology, focusing on 5G and expanding its fiber network [24][28] - Plans to build two new data center modules in 2025, increasing capacity by 8.4 megawatts [16] - The Techfin segment, including Paycell and Financell, is expected to contribute significantly to top-line growth, with Paycell achieving 33% growth in Q4 [18][31] Management's Comments on Operating Environment and Future Outlook - Management expects top-line revenue growth of 7% to 9% for 2025, with a focus on maintaining profitability despite inflationary pressures [29][75] - The company is prepared for potential challenges from increased competition and inflation, emphasizing a diversified revenue model [105][107] - Management highlighted the importance of maintaining a strong cash position and effective balance sheet management [38][97] Other Important Information - The company issued a $1 billion euro bond, with half designated as a sustainable bond, reflecting its commitment to ESG initiatives [20][40] - The cash position at the end of 2024 was TRY 70 billion, with a net debt position of TRY 10 billion [38] Q&A Session Summary Question: What is the timeline for 5G deployment and potential license fees? - Management indicated that there is no official timeline yet, but a tender is expected in 2025, with a live network in 2026 [52][54] Question: What are the growth prospects for the company? - Management expects continued growth, with a focus on mobile and fixed services, and anticipates a similar growth rate in 2025 compared to 2024 [71][75] Question: How will the company manage EBITDA margins amidst inflation? - The company plans to maintain margins through effective cost management and a diversified revenue model [102][105] Question: What is the expected inflation rate for 2025? - The company estimates an average inflation rate of around 33% for 2025 [96][125] Question: What are the plans for dividend distribution? - The company maintains a policy of distributing 50% of net income, with the AGM expected to decide on the exact amount [126] Question: How will the company handle salary hikes in 2025? - Management indicated that salary increases are typically annual, with adjustments made based on inflation and competitive pressures [130][141]