Turkcell(TKC) - 2025 Q4 - Annual Report

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].