Financial Data and Key Metrics Changes - Revenues increased by 11% year-on-year, surpassing TRY 241 billion, with quarterly growth of 7% [3][17] - EBITDA increased by 14% year-on-year to TRY 104 billion, with an EBITDA margin of 43% [18] - Net income from continuing operations rose by 23% year-on-year to TRY 17.8 billion [3][19] Business Line Data and Key Metrics Changes - Turkcell Turkey revenue increased by TRY 21 billion year-on-year, driven by real ARPU expansion and sustained postpaid subscriber additions [17] - Data center and cloud business revenues grew by 32% year-on-year, with expectations of significant future growth [9][13] - Techfin revenues grew by 21% year-on-year, with Paycell being a major growth driver [14] Market Data and Key Metrics Changes - The share of postpaid subscribers increased by 4.7 percentage points year-on-year to reach 81%, enhancing revenue visibility [10] - The Turkish cloud market is growing at 19% annually, supported by increasing digitalization and rapid adoption of AI-driven workloads [11] Company Strategy and Development Direction - The company is focusing on strategic investments in data centers, cloud infrastructure, and renewables, allocating 15% of CapEx to these areas [4][5] - A strategic partnership with Google Cloud aims to build a hyperscale cloud region in Turkey, enhancing the digital ecosystem [12] - The capital allocation framework emphasizes investing in business growth, delivering shareholder returns, and maintaining a strong balance sheet [6][7] Management Comments on Operating Environment and Future Outlook - Management expects real revenue growth in the range of 5%-7% for 2026, with an EBITDA margin between 40%-42% [16] - The company anticipates continued operational efficiency while investing in growth, particularly in 5G rollout and digital infrastructure [16] - Management remains cautious about potential margin contraction due to increased salary expenses and marketing costs related to 5G [46] Other Important Information - The company launched a three-year share buyback program and repurchased $58 million of shares to date [3][6] - Renewable energy installed solar capacity increased from 8 megawatts to 62 megawatts, generating significant operational savings [15] Q&A Session Summary Question: Inquiry about data centers business EBITDA margins - Management highlighted that the data center business is expected to see significant growth, with no dilutive impact on EBITDA margins anticipated [25][27] Question: Clarification on FX position and justification for short position - Management explained that the FX position is around $957 million, with a strategy to benefit from higher local currency yields by swapping some US dollar holdings into Turkish lira [30][34] Question: Size of investments in data centers and expected megawatt numbers - Management clarified that the initial 50 megawatts is a substantial investment, as it prepares for a full-blown system with Google Cloud, which will utilize shared resources among multiple companies [31][41]

Financial Data and Key Metrics Changes - Revenues increased by 11% year-on-year, surpassing TRY 241 billion, with quarterly growth of 7% [20] - EBITDA rose by 14% year-on-year to TRY 104 billion, with an EBITDA margin of 43% [21] - Net income from continuing operations reached TRY 17.8 billion, up 23% year-on-year [22] Business Line Data and Key Metrics Changes - Turkcell Turkey revenue increased by TRY 21 billion year-on-year, driven by real ARPU expansion and sustained postpaid subscriber additions [20] - Data center and cloud business revenues grew by 32% year-on-year, supported by capacity expansions [16] - TechFin revenues grew by 21%, with Paycell's revenues increasing by 40% year-on-year [17] Market Data and Key Metrics Changes - The share of postpaid subscribers increased by 4.7 percentage points year-on-year to reach 81%, enhancing revenue visibility [10] - Mobile ARPU real growth was 5.4%, reflecting balanced growth strategies [11] - The Turkish cloud market is growing at 19% annually in dollar terms, driven by increasing digitalization [12] Company Strategy and Development Direction - The company is focusing on strategic investments in data centers, cloud infrastructure, and renewables, allocating 15% of CapEx to these areas [4] - A strategic partnership with Google Cloud aims to build a hyperscale cloud region in Turkey, enhancing the digital ecosystem [13] - The capital allocation framework emphasizes investing in business growth, delivering shareholder returns, and maintaining a strong balance sheet [7] Management's Comments on Operating Environment and Future Outlook - The company expects real revenue growth in the range of 5%-7% for 2026, with an EBITDA margin between 40%-42% [19] - Management highlighted the importance of operational efficiency and strategic investments in 5G rollout and digital infrastructure [19] - The company anticipates a normalization in growth rates for the data center and cloud business following significant capacity expansions [19] Other Important Information - The company maintained a net leverage below 1x, with a cash position of TRY 92 billion at year-end [25] - Active solar capacity increased from 8 megawatts to 62 megawatts, generating TRY 156 million in OpEx savings [18] - The company launched a three-year share buyback program, repurchasing $58 million of shares to date [6] Q&A Session Summary Question: Inquiry about data centers business EBITDA margins - Management indicated that the data center business is expected to see significant growth, with no dilutive impact on EBITDA margins anticipated [31] Question: Clarification on FX position and short position in U.S. dollars - Management explained that the FX position is around $957 million, with a strategy to benefit from higher local currency yields by swapping some U.S. dollar holdings into Turkish lira [38][42] Question: Size of investments in data centers and expectations for future capacity - Management clarified that the initial 50 megawatts is a starting point, with plans for significant infrastructure to support Google Cloud, indicating a substantial investment in the future [46][48]

Financial Data and Key Metrics Changes - Revenues increased by 11% year-on-year, surpassing TRY 241 billion, with quarterly growth of 7% [17] - EBITDA rose by 14% year-on-year to TRY 104 billion, with an EBITDA margin of 43.1% [18] - Net income from continuing operations reached TRY 17.8 billion, up 23% year-on-year [3][18] Business Line Data and Key Metrics Changes - Turkcell Turkey revenue increased by TRY 21 billion year-on-year, driven by real ARPU expansion and sustained postpaid subscriber additions [17] - Data center and cloud business revenues grew by 32% year-on-year, supported by capacity expansions [13] - Techfin revenues grew by 21%, with Paycell being a significant driver, increasing by 40% year-on-year in Q4 [14] Market Data and Key Metrics Changes - The share of postpaid subscribers increased by 4.7 percentage points year-on-year to reach 81%, enhancing revenue visibility [10] - The Turkish cloud market is growing at 19% annually in dollar terms, driven by increasing digitalization and AI adoption [11] Company Strategy and Development Direction - The company is focusing on strategic investments in data centers, cloud infrastructure, and renewables, allocating 15% of CapEx to these areas [4] - A strategic partnership with Google Cloud aims to establish a hyperscale cloud region in Turkey, enhancing the digital ecosystem [12] - The capital allocation framework emphasizes investing in business growth, delivering shareholder returns, and maintaining a strong balance sheet [5][6] Management's Comments on Operating Environment and Future Outlook - The company expects real revenue growth of 5%-7% in 2026, with an EBITDA margin between 40%-42% [16] - Management highlighted the importance of operational efficiency and strategic investments in 5G rollout and digital infrastructure [16] - The company remains committed to maintaining net leverage below 1 times while funding 5G payments and strategic investments [21] Other Important Information - The company launched a three-year share buyback program and repurchased $58 million of shares to date [6] - Renewable energy installed solar capacity increased from 8 megawatts to 62 megawatts, generating TRY 156 million in OpEx savings [15] Q&A Session Summary Question: Inquiry about data centers business EBITDA margins - Management indicated that the data center business is expected to see significant growth, with no dilutive impact on EBITDA margins anticipated [26] Question: Clarification on FX position and short position in US dollars - Management explained that the short position in US dollars is around $957 million, aimed at benefiting from higher local currency yields [34][35] Question: Size of investments in data centers and expectations for future capacity - Management clarified that the initial 50 megawatts is a substantial investment, with plans for significant scaling in the future, particularly with the Google Cloud partnership [41]

TURKCELL GROUP Q4 & FY 2025 MAR 5, 2026 Q4 & FY 2025 BUSINESSOVERVIEW Ali Taha Koç, PhD Turkcell CEO 2025 Results: Exceeded Guidance Strong Execution Across All Key Areas Resilience in Core Services • Dual tranche bond issuance: 1 billion USD Çorlu Data Center Solar Power Plant Shifting to a Digital & Sustainable Future Q4 & FY 2025 Results| 3 * Turkcell has been awarded a total frequency band of 160 MHz in ICTA's 5G tender. ** BOTAŞ Petroleum Pipeline Corporation is the state-owned crude oil and natural ga ...

Core Insights - Turkcell Iletisim Hizmetleri A.S. reported strong financial results for the full year 2025, with revenues increasing by 10.7% year-on-year to TRY 241.5 billion, driven by solid operational performance and a diversified revenue base [1][2][3] - The company achieved an EBITDA margin of 43.1%, up 1.2 percentage points from the previous year, reflecting disciplined cost management amid inflationary pressures [1][2] - Turkcell's strategic partnership with Google Cloud aims to establish Türkiye's first hyperscale cloud region, with a total planned investment of USD 3 billion, enhancing its position in the data center and cloud market [1][2] Financial Performance - Revenue for the full year 2025 reached TRY 241.5 billion, compared to TRY 218.2 billion in 2024, marking a 10.7% increase [1][3] - EBITDA rose by 13.8% to TRY 104.0 billion, with an EBITDA margin of 43.1% [1][3] - Profit from continuing operations increased by 22.6% to TRY 17.8 billion, while net income decreased by 42.8% to TRY 17.6 billion due to a high base from 2024 [1][3] Operational Highlights - Turkcell Türkiye accounted for over 91% of group revenues, with a 10.3% growth to TRY 220.3 billion [1][3] - The company secured the largest spectrum of 160 MHz in the 5G tender for USD 1.2 billion, reinforcing its leadership in the mobile market [1][2] - The total number of mobile subscribers reached 39.1 million, with a significant increase in postpaid subscribers, totaling 2.4 million net additions, the highest in 26 years [1][2] Strategic Initiatives - The partnership with Google Cloud is expected to support Türkiye's ambition to become a regional technology hub, with the first modules of the cloud region expected to be operational by 2028-2029 [1][2] - Turkcell's Techfin segment grew by 21.1%, driven by Paycell, which saw a 41.0% increase in revenues [1][2] - The company plans to maintain an ambitious investment pace in 2026, targeting revenue growth of 5%-7% and data center and cloud revenue growth of 18%-20% [1][2]

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]