Turkcell(US:TKC)2025-11-07 20:16Financial 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].