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]

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]