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 - 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]